A movement by municipalities across the nation to install ‘Buy Canada’ procurement policies could have an unintended damaging effect, according to one expert.
Ian Lee, an associate professor at the Sprott School of Business at Carleton University, told CTV News municipalities are reaching outside of their jurisdiction.
“They’re, playing in a sandbox that’s not their sandbox,” Lee told CTV News.
Many Canadian municipalities have begun assessing the feasibility of a “Buy Canada” procurement policy.
On Monday, the City of Brampton announced it was prepared to deploy such a policy, which included blocking American businesses from future contracts.
In recent weeks, Essex County and the City of Windsor joined the list of cities reviewing their procurement policy options.
Typically, procurement policies ensure municipalities buy the most cost-effective and reliable materials or services.
Lee said the act of” protectionism” would result in higher costs for taxpayers.
“We support trade because it allows firms to specialize and produce what they are best at, at the best possible price,” Lee said.
“What we’re saying is we’re not going to buy a product even if it’s better and even if it’s less expensive, we’re going to buy a product that is more expensive and not as good quality.”
Similar to Trump’s tariffs, procurement changes would violate existing trade agreements, Lee said.
Michael Akpata, the Deputy Mayor of the Town of LaSalle and an Essex County Councillor, brought forward a request for the review.
Following the national trend, Akpata said they need a proper response to Canada’s closest ally “poking us in the eye.”
“The County of Essex buys asphalt, the County of Essex buys vehicles, the County of Essex buys paper. We buy uniforms. Where are we buying them from? Who are we giving our tax dollars to?” Akpata said.
Due to the trade agreements, municipalities are either hoping to avoid breaking the law or demand trade changes at upper levels of government.
When asked about higher costs for goods and services, Akpata said that would be the case regardless, due to tariffs.
“We should be able to do everything we can through procurement strategies to buy Canadian where it’s allowed and legal,” he said.
For Lee, a more effective response to the U.S. would be through discussions with municipal counterparts stateside.
“Lobbying them to lobby their congressmen and women and their senators and their governors to lobby the White House and say, knock it off,” Lee said.
Lee applauded the decision by Essex County and other municipalities to demand the federal and provincial governments review and eliminate interprovincial trade barriers.
Meantime, there is no timeline for when municipalities in Windsor-Essex could implement Canadian-focused procurement policies.
