Halifax examining how to buy more Canadian goods, services amid U.S. trade war

Halifax examining how to buy more Canadian goods, services amid U.S. trade war

Staff will look at raising penalties on U.S. goods in municipal procurement

Halifax is looking for more ways to cut out American goods and buy Canadian, as the trade war with the United States continues.

On Tuesday, Mayor Andy Fillmore asked for a staff report on options to increase the city’s existing 10 per cent penalty to American bids for services, consulting and goods in Halifax’s procurement process.

“It's not clear that we'll harm the United States, but we will certainly benefit local companies,” Fillmore said in an interview Wednesday.

Halifax brought in a 10 per cent penalty on American goods and services earlier this year, but Fillmore said so far that has not caused any U.S. bidders to lose a contract.

Council unanimously passed Fillmore’s motion asking for a staff report on increasing that penalty.

“We're not going to be able to solve an international trade dispute from City Hall. But we do have some tools that we can use to make sure that Canadian and Nova Scotia and Haligonian companies are being thought of in the procurement process first,” Fillmore said.

After trade talks between both countries fell apart last month, the U.S. placed 50 per cent levies on hundreds of Canadian goods, and Canada countered with new tariffs on roughly an equivalent value of U.S. imports.

President Donald Trump has also said Canadian-made products would not be eligible for certain U.S. government purchasing contracts.

Ideally, Fillmore said he would like to see the penalty rise to between 25 and 50 per cent if financially possible.

It is important that the municipality gets good value for the taxpayer dollars it spends, Fillmore said, but there is also a “clear benefit” to having municipal money stay in the local economy even with a slightly higher purchase price.

“We'll find … where that line should be and that's part of the work that our finance staff are looking at,” Fillmore said.

Report expected back next month

The mayor said most American goods Halifax buys now are computer technology or software.

Coun. Cathy Deagle Gammon asked staff to include details on how many Halifax bids have gone to U.S. companies since the penalty has been in place, to see the scale of the issue.

The report is expected to come back to council by the end of October.

Crown stays sex offence charges against Salmon River man

'Still looking': Sister of homicide victim in 50-year-old Halifax cold case wants answers

A month to go in the season, still no contract for N.S.-Maine ferry in 2027

Bayers Lake dialysis clinic to temporarily close due to floor problems

Cape Breton billet family to share in Marc-André Fleury's QMJHL hall induction

Haley Ryan is the municipal affairs reporter for CBC covering mainland Nova Scotia. Got a story idea? Send an email to haley.ryan@cbc.ca, or reach out on Twitter @hkryan17.