International Trade committee  No. It's our main market. Canadian companies have used NAFTA to expand their business, and now the majority of them would consider North America to be their domestic market. It's no longer about just Canada; it's really about North America. What you're seeing companies do right now as a result of the recession is to say, how can we use North America as our own domestic market but as a base from which to grow an international market?

International Trade committee  Do you mean projects that have not been carried out?

International Trade committee  In fact, some companies could not bid for projects unless they signed affidavits stating that they could make the products in the United States. For instance, in Beauce or in Quebec as a whole, several companies that deal in steel and that make water treatment equipment, whose main market was usually in the United States, lost their main market overnight.

International Trade committee  Thanks for that question. No, actually, I think our policy has remained the same. We did that paper a couple of years ago, and it related to the Buy American measures that have been applying to federal moneys that are spent on highways and transportation infrastructure in the U.S.

International Trade committee  Yes, I know, he's tough.

International Trade committee  Yes.

International Trade committee  My answer will be brief. In fact, the Buy American measures were indeed very bad. It was the first time that the Americans enforced them. Measures similar to the Buy American measures were applied in the past, generally in some sectors or to very specific kinds of projects. It was the first time that the Americans were applying them to every kind of project funded by the recovery plan in the United States.

International Trade committee  In fact, our members told us that competitive American companies based in the United States use this with their clients and that they even told them that if they were not government clients, they could not buy anything from a Canadian company because the President said that Americans must buy in the United States.

International Trade committee  No, I mean that our objective at the outset was to make Canada practically exempt from the Buy American measures, and then to come to a broader agreement that would allow us to offer protection and guarantees to the provinces and to the American states. This would help prevent this kind of problem from recurring in the future.

International Trade committee  I think it's a very good question. To rephrase what you're asking, it is: what is the deal that has been done for Canadian exporters, has it helped to improve the situation, and what are the ramifications of having such an agreement in place? When you look at the impacts, the direct impact of the Buy American restrictions was that you had Canadian companies that couldn't bid on procurement contracts or stimulus projects in the United States.

International Trade committee  Thank you, Mr. Chair. Good afternoon, ladies and gentlemen. Thank you again for inviting me to appear before the committee today on behalf of Canadian Manufacturers and Exporters to discuss Canada-U.S. trade relations and, more specifically, the procurement agreement that was recently concluded between the two countries.

Finance committee  You were asking compared to whom these provinces would be more competitive. First of all, they would be more competitive in relation to the other provinces. This will definitely improve the tax environment in Ontario and British Columbia for businesses operating in those provinces.

Finance committee  Thank you, Mr. Wallace. I think it's a very good question. In terms of the experience in the Atlantic provinces, we expect the same thing would happen in Ontario and British Columbia if the HST goes forward. You're putting in a tax system that makes it much more competitive for companies that make something and companies that export something into other markets to be located in those provinces.

Finance committee  Thank you, Mr. Chairman. Ladies and gentlemen, good evening. Good evening. Thank you for inviting me to appear before the committee this evening on behalf of Canadian Manufacturers & Exporters to discuss sales tax harmonization. This is a very important measure that would help Ontario and British Columbia improve their tax competitiveness and make the exports coming from these two provinces more competitive as well.

International Trade committee  In closing, I would just add that I think timing is of the essence in this case. There are tremendous economic challenges faced by Canadians because of this recession and because of the crisis that's being faced by some of our leading sectors. There are also some economic challenges that are significant for Colombians.