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Canada worried by Biden’s ‘Buy American’ plans, will make issue a priority

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OTTAWA (Reuters) – Canada is worried by U.S. President Joe Biden‘s plans for a “Buy American” program to boost domestic industry and it will be a priority for talks with the new administration, Finance Minister Chrystia Freeland said on Monday.

The two neighbors have highly integrated economies as well as one of the world’s largest bilateral trading relationshipsand Canada fears its firms could lose out if U.S. procurement rules are tightened.

Biden is expected to sign an executive order later on Monday to increase domestic manufacturing and close loopholes in existing provisions, which structure the $600 billion in goods and services the federal government buys each year.

“I am concerned. We are always concerned by ‘Buy American’ … for sure that is going to be an issue very very high on our agenda in our work with the Biden administration,” Freeland told reporters.

Canadian governments have had to deal with ‘Buy American’ provisions from previous U.S. governments only to discover “the devil is very often in the details,” she added.

“We find we are very often able to explain to our American partners that trade is in the mutual interests of Canadians and of Americans,” she said.

Biden’s first conversation with a foreign leader last Friday was with Canadian Prime Minister Justin Trudeau, who raised the “Buy American” issue and urged the President to “avoid unintended consequences that can hurt both countries,” a Canadian government source said.

 

(Reporting by David Ljunggren; Editing by Chris Reese and Paul Simao)

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Economy

How will the U.S. election impact the Canadian economy? – BNN Bloomberg

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How will the U.S. election impact the Canadian economy?  BNN Bloomberg

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Economy

Trump and Musk promise economic 'hardship' — and voters are noticing – MSNBC

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Trump and Musk promise economic ‘hardship’ — and voters are noticing  MSNBC

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Economy

Economy stalled in August, Q3 growth looks to fall short of Bank of Canada estimates

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OTTAWA – The Canadian economy was flat in August as high interest rates continued to weigh on consumers and businesses, while a preliminary estimate suggests it grew at an annualized rate of one per cent in the third quarter.

Statistics Canada’s gross domestic product report Thursday says growth in services-producing industries in August were offset by declines in goods-producing industries.

The manufacturing sector was the largest drag on the economy, followed by utilities, wholesale and trade and transportation and warehousing.

The report noted shutdowns at Canada’s two largest railways contributed to a decline in transportation and warehousing.

A preliminary estimate for September suggests real gross domestic product grew by 0.3 per cent.

Statistics Canada’s estimate for the third quarter is weaker than the Bank of Canada’s projection of 1.5 per cent annualized growth.

The latest economic figures suggest ongoing weakness in the Canadian economy, giving the central bank room to continue cutting interest rates.

But the size of that cut is still uncertain, with lots more data to come on inflation and the economy before the Bank of Canada’s next rate decision on Dec. 11.

“We don’t think this will ring any alarm bells for the (Bank of Canada) but it puts more emphasis on their fears around a weakening economy,” TD economist Marc Ercolao wrote.

The central bank has acknowledged repeatedly the economy is weak and that growth needs to pick back up.

Last week, the Bank of Canada delivered a half-percentage point interest rate cut in response to inflation returning to its two per cent target.

Governor Tiff Macklem wouldn’t say whether the central bank will follow up with another jumbo cut in December and instead said the central bank will take interest rate decisions one a time based on incoming economic data.

The central bank is expecting economic growth to rebound next year as rate cuts filter through the economy.

This report by The Canadian Press was first published Oct. 31, 2024

The Canadian Press. All rights reserved.

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