Washington, Sep 17 (IANS) President Donald Trump has ordered officials to identify Canadian goods that could be excluded from US federal civilian procurement, accusing Canada of restricting American companies’ access to government contracts while retaining preferential entry to the US market.
The memorandum targets Canadian-origin items bought through the federal civilian procurement system. It directs officials to pursue removals where warranted and permitted by law.
The administration linked the action to Canada’s “Buy Canadian” policy and provincial restrictions. According to the memorandum, Canadian companies have preferential access to US federal procurement covered by the World Trade Organisation’s Agreement on Government Procurement, worth more than $280 billion annually.
That figure represents the procurement market covered by US commitments at the federal level. The memorandum does not say Canadian companies receive contracts worth that amount.
“My Administration will always act to combat such unreasonable or discriminatory practices,” Trump said in the memorandum.
The White House alleged that preferences for Canadian products and Canadian content had created new barriers for American suppliers. It also accused Canadian provinces of limiting access for US companies. The supplied memorandum and accompanying fact sheet contain no Canadian response to those allegations.
The order puts the director of the Office of Management and Budget and the US trade representative in charge of identifying potential restrictions. They will coordinate with members of the Federal Acquisition Regulatory Council and consult other senior officials as needed.
The US trade representative must monitor how Canada’s federal and provincial procurement systems treat American goods. The official must alert Trump to circumstances that could justify further action or the restoration of a Canadian item’s availability.
A Canadian policy change ending the treatment of US-origin items cited in the memorandum could warrant such restoration, the order says.
Agency heads must take appropriate measures within their existing authority to implement the directive. They may delegate that work where the law allows.
In its accompanying fact sheet, the White House presented the measure as part of Trump’s wider trade agenda. It said American companies no longer received equal treatment in Canadian government procurement despite Canada’s commitments to the United States.
The fact sheet also said Washington had not agreed to renew the United States-Mexico-Canada Agreement in its current form. It argued that the agreement was insufficiently beneficial to US manufacturers, farmers, ranchers, workers and service suppliers.
The procurement directive follows action announced on September 8. According to the White House fact sheet, Trump imposed bans and increased tariffs on certain products under Section 338 of the Tariff Act of 1930, citing Canadian treatment of US alcoholic beverages, dairy products and motor vehicles.
The memorandum places the latest dispute within the existing WTO procurement framework. It says Canadian suppliers retain preferential access to covered US federal purchasing while American suppliers face restrictions in Canada’s federal and provincial markets.
–IANS
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