Fedeli asks colleagues to drop the Buy American provision

Mayor Vic Fedeli is reaching out to his American colleagues to help thwart the 'Buy American' provision in the President Obama's economic stimulus package.

Fedeli has written a letter to the Mayors in Brandon, South Dakota, DeKalb, Illinois, and Cortland, New York because North Bay recently spent millions of dollars in these communities purchasing goods and at the same time boosting their economies. But under the American stimulus package rules the three communities cannot then turn around and do business with North Bay by purchasing products.

Fedeli says the practice is unfair and so in his letter to three he indicates the value of the business the city has invested in their respective communities -- Cortland, New York (membrane filtration system for $6.3 million), City of DeKalb, Illinois (water reservoir for $1 million) and Brandon, South Dakota (two fire pumpers for $850,000)and is asking his American counterparts to lobby their Senators and Congress members to overturn the rule.

Fedeli also reminds them without the city's business the tree towns would have been facing lay offs.

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Letter send to City of DeKalb

I am writing to you today as a fellow Mayor of a small community, continuing to make our respective cities thrive through these tough economic times.

Your website states “the community is recognized for its commitment to economic and environmental sustainability.” Mayor, something is happening between our two countries that could jeopardize that status, and that is the ‘Buy American’ initiative.

It’s important you know that this year my City purchased a water reservoir manufactured by Engineered Storage Products Company for $1 million. This reservoir was manufactured in your city – a community of 45,749 people. Can you imagine if my country had restricted us with a similar policy? One of your leading manufacturers, an integral employer in your community, would not have received that order, and may have been forced to lay people off for that period.

Naturally, we love to support our Canadian manufacturers, but we shop for the best value for our taxpayers. In this case, Greatario Systems, the Innerkip, Ontario supplier for Engineered Storage, was the low bidder. There are no restrictions attached to our stimulus money or other local capital funds, as there are with your stimulus ‘Buy American’ provision. If Canada were to adopt a similar restrictive policy, can you imagine the number of U.S. companies that would not be receiving daily orders for equipment and supplies from their largest trading partner?

I had thought about adding several paragraphs to this letter listing the many geo-political reasons why trade barriers are bad for our economies. I also considered listing the countless media stories detailing how U.S. municipal spending has been paralyzed while cities ensure the nuts and bolts didn’t come from Canada. In the end, those issues are best discussed at other levels of government. What’s important for us Mayors of small communities, who see the day-to-day consequences of these decisions, is to let the other levels of government know the local ramifications. Simply put, if Canada adopted similar measures, no other Canadian municipality could order a water reservoir from Engineered Storage Products.

I do not support protectionism and I do not support retaliation; it’s bad for everybody. That’s why it’s so hard to comprehend this provision. We buy reservoirs made in your city, but you can’t buy engineering services or manufactured products from our city. I ask you, Mayor to Mayor – does that sound right?

Will you and your Council request your government drop the Buy American provision for the reasons stated?

Mayor, my Council wishes you continued success in reaching your goals, as we all weather the economic storm together.