Canadian officials nervous over US-Mex trade bitterness

OTTAWA — Canadian Trade Minister Stockwell Day is watching closely the trade rift growing between the U.S. and Mexico, hoping the protectionist blowback doesn’t drift north.

"I don’t want to intervene in their dispute but I’m concerned when I see disputes like that," Day told Canadian Press. "What happens in an economic downturn, various businesses and industries get nervous and succumb to the impulse to build protectionist walls."

Mexico slapped tariffs on 90 American products last week in response to Congress making good on a promise to eliminate the controversial Mexican truck pilot program.

The cancellation was imbedded in President Obama’s stimulus package, which also included the so-called "Buy American" provisions that affect primarily steel and iron sectors in Canada.

Unlike Mexican carriers, Canadian are allowed access to all U.S. highways as long as they don’t break cabatoge rules and haul point-to-point within the U.S..

However, the Canadian export community could be forgiven for being slightly anxious in light of recent comments by U.S. Homeland Security Secretary Janet Napolitano that Canada shouldn’t be treated differently than Mexico when it comes to border issues. 

"One of the things we need to be sensitive to is the very real feelings among southern border states and in Mexico that if things are being done on the Mexican border, they should also be done on the Canadian border," she said.

That kind of tone has caught the attention of Day and other trade stakeholders especially as Canadian businesses are at risk of being locked out of procurement contracts because of protectionist provisions in the various stimulus packages.

Canadian Trucking Alliance CEO David Bradley told CP the whole episode "does raise questions about how easy it is for one government to unilaterally ignore its treaty requirements under NAFTA."

 


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