New York state legislators dropped their Buy American Act on Friday, leaving border province Ontario feeling triumphant.
Ontario Premier Kathleen Wynne told the Canadian Press that she was “pleased” that New York had decided against forcing businesses in the state to buy only U.S. products on purchases over $100,000.
She hinted that Governor Andrew Cuomo’s New York Buy American Act would have ignited a trade war between New York and Ontario and possibly have compromised the renegotiation of NAFTA between Canada and the United States.
Wynne said Ontario would have reacted “strongly” had the legislation been passed with a “proportional response” that “would be about defending the interests of Ontario’s workers and Ontario’s businesses in proportion to what the Buy American legislation would have been,” she said.
Wynne leads a widely unpopular left-of-center Liberal government that is ideologically close to New York’s Democratic governor and Democratic-controlled House and Senate. The premier has even admitted that she is to blame for Ontario having the highest electricity rates in North America.
But Wynne claims her government’s lobbying efforts in Albany crowned the success of her efforts to block the protectionist legislation, saying there is “a clear understanding among New York state’s political leaders of just how important our ongoing partnership is to both economies.”
Canadian Global Affairs Minister Chrystia Freeland was quick to tweet her approval of the development, describing it as “great news for [Canadian] workers. We worked together with NY friends to protect our shared prosperity,” on the social media site.
Ontario had feared New York’s policy could have had a domino effect with other states if it was approved.
“I hope we don’t have to do this too many times,” said Wynne. “I hope the message is clear.”
Wynne has had much to say about U.S. protectionism in the form of a border adjustment tax but she’s hardly a symbol of free trade, pulling out a list of things that Ontario needs to “protect” in the renegotiation of NAFTA.
“The thing is, in free trade agreements there’s always a give-and-take, in terms of particular sectors and particular jurisdictions,” said Wynne. “That’s why it’s so important that we be at the table, and close to the conversations.”
The next stop for Wynne is Illinois and trade discussions with Governor Bruce Rauner.
She has already met with the governors of six other states of border states plus Michigan and Vermont, and has had conversations with the governors of Arkansas, Colorado, Indiana, Mississippi, Ohio and Wisconsin.
“It is an uncertain time, there’s no doubt about that and it’s very important that, as premier, I play very close attention to, and put resources into, that protection of our interests — not protection of our border, but protection of our interests,” she said.