Obama: U.S. will respect trade pacts 'as we always have'

[Freddie Stubbs]

U.S. president says he'll discuss 'comprehensive' Afghanistan strategy with PM

CBC News

Washington's mammoth economic stimulus package will "enhance" the ability of trading partners such as Canada to work within U.S. borders over time, U.S. President Barack Obama told CBC News on Tuesday in an exclusive interview from Washington.

The interview with the CBC's chief correspondent Peter Mansbridge took place in the White House on Tuesday morning ahead of Obama's first official foreign visit as president with Prime Minister Stephen Harper in Ottawa on Thursday.

During the interview, Obama said Canadians should not be "too concerned" that a "Buy American" clause is still included in the $787-billion US recovery plan that he signed into law later in the day.

The president, who has previously spoken about the dangers of sparking trade wars, said history shows "beggar thy neighbour" protectionist policies can actually end up further contracting world trade during global recessions.

"My administration is committed to making sure that even as we take steps to strengthen the U.S. economy, that we are doing so in a way that actually over time will enhance the ability of trading partners, like Canada, to work within our boundaries," he said.

more: http://www.cbc.ca/canada/story/2009/02/17/obama-cbc.html

[4lbs]

1. President Obama is correct.

The "Buy American" clause in the final version applies only to steel and iron. It states that all infrastructure projects funded by the recovery bill use only U.S. manufactured steel and iron.

That's it. All other products can be imported.

According to the US State Department profile on Canada:

http://www.state.gov/r/pa/ei/bgn/2089.htm

<snip>
Trade: U.S. merchandise exports to Canada (2007)--$248.9 billion: motor vehicles and spare parts, industrial and electrical machinery, plastics, computers, chemicals, petroleum products and natural gas, and agricultural products. In 2007, 65% of Canada's imports came from the United States. U.S. merchandise imports from Canada (2007)--$313.1 billion: motor vehicles and spare parts, crude petroleum and natural gas, forest products, agricultural products, metals, industrial machinery, and aircraft. In 2007, 76% of Canada's exports went to the U.S.

U.S.-CANADA RELATIONS
The relationship between the United States and Canada is the closest and most extensive in the world. It is reflected in the staggering volume of bilateral trade--the equivalent of $1.5 billion a day in goods--as well as in people-to-people contact.
<snip>


So, Canada exports more than $310 billion annually to the U.S.

However, not all of that is steel/iron that would be affected by this "Buy American" clause. In fact, only about 2.5% of the $310 billion would be affected.

http://internationaltradecommodities.suite101.com/article.cfm/us_steel_imports_exports

<snip>
Iron and Steel Exports to US by G7 Country
Canada sends the most ferrous metal exports into America, half of the G7’s $14.4 billion total exports to the U.S.

Canada ... US$7.6 billion in iron and steel materials and products
<snip>

So, of the ~ $310 billion annually that Canada exports to the U.S., just $7.6 billion of it is iron/steel.

That's less than 2.5% of the total of Canada's exports.

[pansypoo53219]

2. as we always have?

that doesn't sound reassuring. ask the natives.

[Freddie Stubbs]

3. Those weren't 'trade' pacts