‘Buy American’ Act Would Threaten Bi-National Economy

New York Governor Andrew Cuomo proposed a ‘Buy American’ Act in his 2017-18 Executive Budget.  This legislation would establish a preference in all state and public authority contracts and procurements over $100,000 for bidders who agree to provide products that are manufactured in the U.S.  If implemented, it would threaten the robust trade and investment relationship New York State has with Canada.

Why is this important?3-21-17-buy-american-niagara-falls-bridge-pic-smaller

  • More than 400,000 people and $2.4 billion in trade cross the U.S.-Canada border each day.
  • Canada is New York’s number one customer with $12.6 billion in exports in 2016.
  • Nearly 681,000 New York jobs depend on trade and investment with Canada.

Not only do Western New York companies seek customers across the border, they also make things together.  Many companies run their supply chains through our bi-national region to the benefit of both countries.  As an example, on average, manufactured goods coming into the U.S. from Canada have 25% American content.

If New York adopts this ‘Buy American’ policy, it will likely force Canada to implement a reprisal policy to protect its economy from the adverse effects of the legislation.  This move would further hurt New York companies and service providers currently doing business with the Canadian government.  Not to mention, the policy would be difficult to comply with from a reporting perspective, making it even more difficult for New York companies.

3-21-17-buy-american-manufacturing-pic-smallerThe Partnership is working in conjunction with our partners at Unshackle Upstate and other regional chambers of commerce to communicate our concerns with the proposed policy.  We have sent a letter to our Western New York state delegation and chamber leadership.  As the State moves closer to a budget resolution, we will continue to advocate our opposition to the ‘Buy American’ Act.

Does your company want to get involved?  Contact Catherine Muth to see how you can plug into our state advocacy work.