The head of the United Steelworkers Union says the so-called "Buy American" plan pitched by U.S. Congress last week is not protectionism, but rather a plan to create jobs at home and to help the ailing U.S. economy.
Leo Gerard said he was offended by the notion that the trade plan, which would ban the use of foreign iron and steel in building projects funded by President Barack Obama's stimulus plan, would hurt Canadian industries.
"The fact of the matter is, this isn't protectionism," the Canadian-born Gerard said Sunday on CTV's Question Period.
"It's trying to say that if we're going to rebuild the economy of Canada, and rebuild the economy of America, we've got to make sure that taxpayer dollars are going to be used to create jobs in those countries and get the economies back on their feet."
The "Buy American" plan, which is still under consideration by the Obama administration, has upset major U.S. trading partners, including Canada, who charge that the provision will only hamper the global economy because it will raise international trade barriers.
But instead of complaining about U.S. policies, Gerard said the Canadian government should work to protect their own domestic industry.
"As a Canadian, I can tell you that ... there's no longer a Canadian steel industry. There's barely any Canadian-owned manufacturing left," Gerard said, noting that Canada was given an exception when the U.S. restricted international steel seven years ago.
In 2007, Hamilton-based steel giant Stelco was purchased by US Steel for $1.9 billion. Stelco's one-time Canadian rival Dofasco was sold to the Luxembourg-based Arcelor in 2006.
"Canada's not the problem now. It's China, it's the Asian countries, it's the Russians who are dumping their stuff in America, they're dumping it in Canada," he said.
"I don't hear the Canadian government stepping up and bringing charges under our trade laws against the Chinese, who have increased their steel production and their steel dumping into Canada by almost 300 per cent," Gerard said.
Stockwell Day speaking to trade rep
Speaking from the economic forum in Davos, Switzerland, International Trade Minister Stockwell Day said he has spoken with interim U.S. trade representative Peter Allgeier about concerns that the plan will shut Canadian steelmakers out of the U.S. market.
"I reiterated with him that this is a very high level of concern with us," Day told Question Period. "It's not good for Canadian business, it's not good for American business, or for our producer, or for our workers. This is not the time to be raising protectionist barriers. And he said that he heard that loud and clear."
According to Day, Canada shipped about $11 billion worth of steel and iron ore products to the United States in 2007.
The Buy American plan includes a provision that any policy aimed at protecting American industry be devised while respecting U.S. obligations under the North American Free Trade Agreement (NAFTA), as well as international agreements under the World Trade Organization (WTO).
Day said he is "somewhat optimistic" that U.S. officials will grant Canada an exemption if the plan is implemented.
