As noted by President Trump, U.S. businesses and contractors are blocked from bidding on most Canadian federal and provincial contracts for goods and services. However, the U.S. does not restrict Canadian companies from bidding on U.S. state and federal contracts.
Effective today, that one-way benefit ends.
Keep in mind, as this Truth Social post was made, USTR Jamieson Greer is in a meeting with Canadian USMCA negotiator, Dominick LeBlanc.
(Via Truth Social) – “Everyone knows that Canada doesn’t let our Great Dairy Farmers sell into the Canadian Market, and that the only reason Canada makes Autos is because of previous disastrous Trade Agreements while other Presidents were in Office. Canada has been ripping us off for years, but what many do not realize is that the Canadian Government, including Canadian Provinces, have banned American Small Businesses and Companies from selling into their Government Procurement Markets.
This is the case even though Canada gets broad access into the massive American Government Procurement Market, including those of our States. That is not reciprocity, it is a Canadian Trade Scam. From now on, NO RECIPROCITY – NO ACCESS! I am hereby directing the GSA, working with the USTR, to take all necessary steps to REMOVE Canadian-origin products from GSA’s Multiple Award Schedules unless Canada restores full and fair reciprocity for American Farmers and Companies. Those schedules account for more than 50 BILLION DOLLARS a year. This should have been cut off years ago, by other Administrations, like it was by mine, only to reinstituted by Sleepy Joe Biden. Thank you for your attention to this matter!”
~ President DONALD J. TRUMP
This is also a good opportunity to point out that several media reports on a Deloitte analysis of the Canadian economy, centered around what would happen if the USMCA was terminated, are fundamentally false. The Deloitte analysis has a baseline assumption that is structurally flawed.
You can read the Deloitte Report HERE. In the forward you will notice they ‘assume’ all trade between the U.S. and Canada continues, they assume Canada will retain “most favored nation” status, and they assume without the USMCA Canada will face a global 10% baseline tariff. Each of these assumptions is structurally false.
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Posted in Auto Sector,
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