Game of Trade: Canada fights back in Buy America feud

Canadian and American flags fly in Point Roberts, Wash. (Darryl Dyck/The Canadian Press)

Ottawa has invoked a rarely used anti-sanctions law after Alaska refused to void Buy America purchasing rules in the rebuilding of a B.C. ferry terminal.

The Canadian government signed an order Monday under the Foreign Extraterritorial Measures Act, barring companies from complying with the requirement that only U.S. steel be used on the project in Prince Rupert, B.C., Trade Minister Ed Fast said.

The Foreign Extraterritorial Measures Act, a federal anti-sanctions law, has been used only once, in 1992, to counter the U.S. trade embargo on Cuba.

The law gives the federal Attorney General the power to issue orders, making it illegal for bidders on the project to comply with the Buy America rules.

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Expect it! Higher tariffs on some imports

CBC
In a follow-on to the 2013 budget, new tariffs amounting to some $333 million annually will be applied to 72 countries, including such prominent consumer product exporters as Brazil, China, Indonesia, Mexico, Singapore and South Korea.

Those countries had been on a list of less developed countries that were subject to lower tariffs since 1974 but which are now considered "higher-income and trade-competitive."

Less than two per cent of imported goods will be affected, and certain high-profile consumer goods, such as iPods and MP3 players, have been exempted

Loonie Continuous Downward Spiral After New Year

The Canadian Press - Canadian dollars are pictured in Vancouver, Sept. 22, 2011. The Canadian dollar closed lower Monday amid sliding prices for oil and gold.

CBC

After a break on New Year's Day, the Canadian dollar resumed trading down more than half a cent from where it ended 2014, and was trading hands at 85½ cents US.

The sell-off appeared to be largely driven by strength in the U.S. dollar, as opposed to weakness in Canada`s currency.

Virtually all of the world`s major currencies have been losing ground when compared to the U.S. dollar of late, because the greenback is perceived to be a safe haven that people flock to during times of uncertainty.