Canada should reject protectionism to fight Buy American rules in the United States and should instead negotiate more vigorously with U.S. lawmakers to ensure continued access to the world's largest market, federal Liberal Leader Michael Ignatieff says.
It was a hedged response from Mr. Ignatieff yesterday, a balanced position after delegates to the annual meeting of the Federation of Canadian Municipalities voted 189-175 on Saturday to exclude U.S. companies from infrastructure projects undertaken by Canadian cities.
The vote was largely symbolic. It is not binding and another vote called on cities not to act for 120 days, an interval intended to give the federal government some leverage in its talks with the United States.
"I am against retaliation," Mr. Ignatieff told reporters after his speech. He said a trade war would be "bad for Canada and bad for the United States."
Instead, he called on the government of Prime Minister Stephen Harper to adopt a more aggressive position in talks with the United States, adding that the fact that municipalities are wading into international trade issues indicates Mr. Harper has not done enough.
The issue was raised by Halton Hills, an Ontario community that has seen a number of locally based companies locked out of bids in the United States because of Buy American provisions tied to economic-stimulus spending.
Mr. Ignatieff's campaign-like speech reflected the dilemma facing civic delegates: wanting to send a strong message on the one hand, while at the same time not wanting to act rashly.
In a speech on Friday, federal Trade Minister Stockwell Day urged delegates to avoid protectionism.
Councillors from Barrie, north of Toronto, voted against the Halton Hills motion and said they were impressed by Mr. Day and the list of negotiations the Conservative government has had with U.S. leaders.
"Protectionism is bad for everybody," said Barrie Councillor Michael Prowse.
Others said Canada must deal with the Americans on their own terms.
"I totally support buying local. And protectionism is tough - but it's been demanded upon us," said Jim Kipp, a city councillor from the Vancouver Island community of Nanaimo, which has been hit hard by the implosion of the forest industry.
David Miller, mayor of Toronto, voted against the motion because he worries about escalation. That said, Mr. Miller noted Toronto also has some "buy Canadian" policies, pointing to public transit.
"I don't think a national organization like this should try to retaliate against one of our best friends and trading partners, but I do think there's areas where you can support buy Canadian," Mr. Miller told CTV's Question Period yesterday.
Mr. Day yesterday reiterated his message from Friday.
With a report from Brian Laghi in Ottawa
David Ebner