Buy-American rules shutting out Canadians – and costing Americans

May 6, 2009 at 14:05 | Posted in Canada, economics, protectionism | Leave a comment

 

Canadians have been whining for some time now about moves by Americans to buy only American goods. Well, it does indeed hurt Canadian exporters, but it certainly also hurts Americans. According to the Toronto Star, a Canadian company has lost a contract for supplying plastic pipes to a navy base in the US. But it only mentions in passing the really dumb part of the story.

But the piping [already installed] is now being ripped out of the ground. Why? Because the pipes are branded with the words Made in Canada.

How this can possibly benefit Americans eludes me. Broken window fallacy anyone?

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