ANNOUNCEMENT 19 Jan 2015In January 2015, the government of Canada announced a change in the local input requirements for the participation in certain public purchases.
NUMBER OF INTERVENTIONS
On January 19, 2015 Minister of International Trade Ed Fast announced that an order had been signed under the Foreign Extraterritorial Measures Act (FEMA) securing Canada's right to prevent compliance with the Buy America provisions for a proposed ferry terminal to be built by the State of Alaska at the Port of Prince Rupert, British Columbia. The retaliatory act prevents the construction from moving forward.
This action was taken in response to a decision by the State of Alaska not to seek a waiver from the U.S. Department of Transportation regarding these procurement provisions. In order to qualify for U.S. federal funding, the Alaska Department of Transportation requires that the steel used in the construction of the terminal must be of U.S. origin.
According to one legal analysis, 'The FEMA has been used only once to date (in 1992) to block compliance by Canadian corporations with the U.S. Cuba embargo. The 1992 Order, which is still in force, makes it a criminal offence for a Canadian corporation (including a Canadian subsidiaries of a U.S. corporation) to comply with the U.S. Cuba embargo.'