A U.S. requirement that American steel be used to update a ferry terminal in B.C. is causing some tension with Canadian officials, potentially threatening the project.
The terminal is on Canadian soil, in Prince Rupert, B.C., but the land is leased to the state of Alaska. Under a 50-year lease signed last year, the state is to rebuild the terminal facilities and docking structure on that land.
The vast majority of funding for the construction work is expected to come from the Federal Highway Administration, which has "Buy America" requirements for steel, iron and manufactured products used in projects it funds. The rest of the funding would come from the state.
The requirement for materials produced in the U.S. can be waived in some circumstances, such as when use of domestic material would raise costs by more than 25 per cent, U.S. products are in limited quantity, or their use "would be inconsistent with the public interest."
In a letter to Alaska Gov. Bill Walker this month, Gary Doer, the Canadian ambassador to the U.S., said applying Buy America restrictions to a project on Canadian soil is unacceptable.
"More broadly, Buy America policies run counter to the economic interests of both the U.S. and Canada, as they deny our companies and communities the clear benefits that arise from our integrated supply chains," Doer wrote.
The Canadian government has threatened to block the project if the state proceeds under the Buy America specifications, Yost said Wednesday.
Canadian ambassador: Buy America restrictions on Prince Rupert ferry terminal unacceptable - British Columbia - CBC News
The terminal is on Canadian soil, in Prince Rupert, B.C., but the land is leased to the state of Alaska. Under a 50-year lease signed last year, the state is to rebuild the terminal facilities and docking structure on that land.
The vast majority of funding for the construction work is expected to come from the Federal Highway Administration, which has "Buy America" requirements for steel, iron and manufactured products used in projects it funds. The rest of the funding would come from the state.
The requirement for materials produced in the U.S. can be waived in some circumstances, such as when use of domestic material would raise costs by more than 25 per cent, U.S. products are in limited quantity, or their use "would be inconsistent with the public interest."
In a letter to Alaska Gov. Bill Walker this month, Gary Doer, the Canadian ambassador to the U.S., said applying Buy America restrictions to a project on Canadian soil is unacceptable.
"More broadly, Buy America policies run counter to the economic interests of both the U.S. and Canada, as they deny our companies and communities the clear benefits that arise from our integrated supply chains," Doer wrote.
The Canadian government has threatened to block the project if the state proceeds under the Buy America specifications, Yost said Wednesday.
Canadian ambassador: Buy America restrictions on Prince Rupert ferry terminal unacceptable - British Columbia - CBC News
