The White House to use executive power to treat sectors of the Canadian economy as American

The power to define is very strong. If the President can define the US to include Canada then "buy USA" becomes a matter of "are we friends with the President?"


OTTAWA — A deal that limits the damage of Buy American provisions on Canadian companies is expected to be announced soon, and experts say it marks an "important breakthrough" in terms of stopping the spread of protectionism and acknowledging Canada's importance to the U.S. economy.

Because U.S. President Barack Obama cannot rely on Congress to pass legislation exempting Canada from Buy American provisions, sources say the agreement as structured would allow the White House to use executive power to treat sectors of the Canadian economy as American by claiming supply chains are so integrated they cannot be separated.

"There was a critical mass of support in the United States that something needed be done to get Canada back into the procurement business, and get Canada qualified to supply into U.S. projects with stimulus funding," said Lawrence Herman, a trade lawyer with Cassels Brock and Blackwell in Toronto, on why Washington finally gave in.