As I wrote previously, it seems as if the disastrous Smoot-Hawley
protectionist statute has been
quietly revived. Protectionism has come back to America, and
only now have we begun to notice.
Predictably, the Canadian Federation of Municipalities has
endorsed a plan to support communities that refuse to buy
products from countries that slap trade restrictions on Canadian
products and services, Reuters
reports:
The measure is a response to a provision in the U.S. economic
stimulus package passed by Congress in February that says
public works projects should use iron, steel and other goods
made in the United States.
The United States is Canada's largest trading partner, and
Canadians have complained the restrictions will bar their
companies from billions of dollars in business that they have
previously had access to.
"This U.S. protectionist policy is hurting Canadian firms,
costing Canadian jobs and damaging Canadian efforts to grow our
economy in the midst of a worldwide recession," said
Sherbrooke, Quebec, Mayor Jean Perrault, also president of the
federation that represents cities and towns across Canada.
[...]
It's only going to get worse.
