Canada Takes Strong Action Against U.S. Buy American Restrictions at Port of Prince Rupert in British Columbia

This Federal funded project will consist of the removal and replacement of the Prince Rupert ferry terminal facility that is owned by the Prince Rupert Port Authority and leased by the Alaska's Department of Transporation. The work includes: Demolition and removal of all existing marine terminal structures and construction of a new, modern ferry terminal facility

This work is funded by the United States Government through the Federal Highway Administration and the State of Alaska, Department of Transportation & Public Facilities. All iron and steel products associated with this project are subject to the provisions of the Buy America Provisions, U.S. Code of Federal Regulations, 23 CFR 635.410. Reference Section 106-1.01 of the Special Provisions.

The Engineer's Estimate is between $10,000,000 and $15,000,000. All work shall be completed by March 1, 2016.

On January 19, 2015, the Honourable Ed Fast, Canadian Minister of International Trade, today issued the following statement:

“On behalf of hard-working Canadians and businesses that are being harmed by protectionist U.S. Buy America legislation that imposes U.S. content requirements on a project at the Port of Prince Rupert, British Columbia, we are disappointed by the State of Alaska’s decision not to seek a waiver from the U.S. Department of Transportation regarding these provisions.

“A waiver would have resolved this issue in a manner that would have allowed this project to move forward without delay.

“We have been clear: the application of protectionist Buy America provisions on Canadian soil is unacceptable and an affront to Canadian sovereignty.

“Therefore, an order has been signed under the Foreign Extraterritorial Measures Act securing Canada’s right to prevent compliance with the Buy America provisions for this project.

“We remain committed to working with our U.S. partners to resolve this unacceptable situation and call on them to seek a waiver of the Buy America restrictions.

“However, we are prepared to exercise this order to defend Canadian interests.

“Buy America provisions deny both countries’ companies and communities the clear benefits that arise from our integrated supply chain and our commitment to freer and more open trade. We call upon our American friends to join with us to end the harm such policies are doing within our shared North American economy.”

Under Foreign Extraterritorial Measures Act it is prohibited for any person in Canada, in respect of alterations or improvements to be made to premises leased by the State of Alaska from the Prince Rupert Port Authority, to comply with section 313 of title 23 of the United States Code or section 410 of part 635 of title 23 of the United States Code of Federal Regulations. The penalty for violation can be as high as $1.5 million and fiver years in prison.