Emergency Committee For American Trade

ECAT Welcomes Commitments to Open Procurement Markets; Urges Additional Administration Steps to Address Negative Buy American Effects

News Release For Immediate Release

February 5, 2010 Contact: Marc Fricchione

202.659.5147

ECAT Welcomes Commitments to Open Procurement Markets by Canada and the United States

Looks for Additional Administration Action to Counter Negative Effects of Buy American Provisions

Washington, D.C., February 5, 2010: Calman J. Cohen, President of the Emergency Committee for American Trade (ECAT), issued the following statement upon the announcement of a tentative deal between the United States and Canada to ensure more open procurement markets at the sub-federal level:

“The tentative deal announced today between Canada and the United States would, once implemented, help expand access of U.S. goods and services in Canada’s procurement market and help both countries move forward more expeditiously and effectively in promoting much-needed economic stimulus at home. For U.S. companies, this agreement will ensure that Canada’s provinces do not discriminate against U.S. suppliers to their procurement markets as part of a permanent commitment to the World Trade Organization (WTO) Government Procurement Agreement (GPA). This agreement will also open Canada’s construction services procurements even more over a temporary period. By promoting more open procurement markets, this agreement will help advance our nation’s goal of doubling exports over the next five years – to the great benefit of U.S. companies and workers.

"ECAT also welcomes this initial step by the United States to address the severe delays and negative repercussions on U.S. companies and workers that have resulted from the closure of U.S. sub-federal, particularly municipal, procurement markets for funds distributed as part of the American Recovery and Reinvestment Act (ARRA). At the same time, this agreement only involves one country and leaves in place severe restrictions, particularly at the municipal level, that continue to slow down the ability of ARRA to promote our nation’s recovery. We hope, therefore, that this announcement is the first in a series of steps to minimize the adverse impacts of these provisions and will, thereby, help speed the release of stimulus funds at the state and local level necessary to accelerate America's economic recovery. Buy American provisions, such as those included in the ARRA, have undermined the ability of our own government procurements to effectively stimulate job growth and economic activity here at home. We look forward to working with Congress and the Administration to avoid such ill-crafted provisions in the future."

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Founded in 1967, ECAT is an organization of the heads of leading U.S. international business enterprises representing all major sectors of the American economy. Their annual worldwide sales exceed $2.7 trillion and they employ more than 6.4 persons. ECAT’s purpose is to promote economic growth through the expansion of international trade and investment.

Attached Document(s): 02-05-10 ECAT Welcomes Commitment to Open Procurement Markets.pdf