Newfoundland Suspends Participation In All Trade Agreements Over Feud With Ottawa

Newfoundland and Labrador Premier Paul Davis. CP

Sue Bailey, The Canadian Press
Newfoundland and Labrador says it is suspending its participation in all trade agreements because of its dispute with Ottawa over a promised federal-provincial fisheries fund.

The provincial government says the federal government has failed to honour its commitment to provide $280 million in exchange for the province relinquishing minimum processing requirements for fish plants as part of a free trade deal with Europe.

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.

Read full on globeandmail