Reevely: Wynne wields big stick against protectionist U.S.
Kathleen Wynne. (File photo)
Ontario needs a new law letting the government retaliate against American states that keep companies here from bidding on their public contracts, Premier Kathleen Wynne said Wednesday.
New York will be the first target, she said — a state where Ontario fought off wide-reaching “Buy American” restrictions last year, but where a more limited law saying contractors have to use only American iron and steel in state-funded road and bridge projects takes effect in April.
“I have consistently said that Ontario wants free and fair trade. That’s what creates the greatest number of opportunities for our people,” Wynne said, via a written statement. “New York state’s Buy American law will undermine the spirit of our partnership and give their workers an unfair edge. I have no choice but to respond by introducing legislation of our own. Our U.S. partners need to know that if they choose protectionism, they will pay a price.”
Wynne said when MPPs return to Queen’s Park in a couple of weeks, the Liberals will present them with a bill giving the government broad authority to answer rules like New York’s with ones covering Ontario’s public spending.
Ironically, Wynne announced all this on her most recent goodwill tour to the U.S.. Her Tuesday in Washington, D.C. was packed with meetings with U.S. trade diplomats, senators from Wisconsin and Michigan, and U.S. Vice-President Mike Pence’s chief policy adviser. Wednesday in New York included a roundtable on the North American Free Trade Agreement.
Wynne has made a mission out of combating President Donald Trump’s anti-trade ethos by making friends with state governors and legislators, hoping that when Trump gets protectionist, they’ll speak up for the importance of free trade to their states. NAFTA has integrated the economies of Ontario and border states; raw materials and industrial goods flow back and forth across the Canada-U.S. border to the tune of billions of dollars a year.
A harder, thicker border is bad for business, but that’s a pitch that has a better chance of sticking in the White House if Trump hears it from the Republican governors of swing states like Michigan and Wisconsin instead of a liberal politician from Ontario.
So far, it’s worked. Ontario’s blandishments did get that sweeping Buy American language out of New York’s budget bill. NAFTA is being renegotiated, not (yet) ripped up.
There’s always political capital to be made from uniting people against a common outside enemy. Alberta Premier Rachel Notley is doing it against British Columbia, banning imports of B.C. wine to retaliate against Premier John Horgan’s talk of restricting the transportation of Alberta oil through his province. Conflict can be addictive.
“Initiating a trade war with the United States is a last-ditch election ploy by Kathleen Wynne to deflect the blame for her disastrous economic policies,” responded interim Progressive Conservative leader Vic Fedeli.
“The premier using this as a political tool to cling to power is nothing short of reckless, especially during this critical time in the NAFTA negotiations,” said Fedeli.
In 2009, Fedeli reached out to mayors in some U.S. cities where North Bay had bought fire trucks and other civic equipment, asking them to resist a federal plan to have billions in recession-fighting infrastructure work use only material bought in America. In those letters he noted what a shame it would be if North Bay had rules forbidding it to buy from U.S. suppliers.
When nicey-nice fails, having a stick helps. Otherwise you’re not bargaining, you’re begging.