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B.C. municipal councils pivot to harness buying power during U.S. trade war threat

On Tuesday, Vancouver Mayor Ken Sim said he wants to hold a special council meeting to focus on the city's response to threat of U.S. tariffs.

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B.C. municipal politicians are looking to prioritize Canadian suppliers in their cities’ procurement policies as part of their response to the threat of U.S. tariffs.

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On Monday, Delta council unanimously passed a motion calling on the provincial government to amend legislation to allow cities to favour Canadian businesses in procurement bids.

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U.S. President Donald Trump had previously stated tariffs of 10 per cent on energy and 25 per cent on U.S. bound goods would take effect Tuesday. But on Monday the tariffs were paused for at least 30 days after Canada agreed to implement additional border security measures and resources.

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Delta Coun. Dylan Kruger, who introduced the motion, said: “Even with this 30-day reprieve, it’s been a wake-up call that all levels of government need to work together on Team Canada here, and do what we can to assert our economic independence from the United States.”

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Kruger said he’s not looking to ban suppliers from the U.S. or other countries, but seeking the ability to give preference to local vendors where factors such as cost and experience are roughly equal. Currently, legislation does not allow municipalities to favour suppliers from certain regions, Kruger said.

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“There’s a formula, and it’s based on cost, and on experience and a number of factors, but geography is not one that we can use today,” Kruger said. “It’s not about a ban. It’s about having the ability to favour Canadian companies in the calculations that we use.”

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Kruger doesn’t know how much of the City of Delta’s spending goes to suppliers from outside of Canada every year, but he hopes city staff can quantify that and report back.

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Vancouver council will discuss its procurement policies at an urgent special meeting later this month to consider the city’s response to the looming trade war.

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At Tuesday morning’s Vancouver city council meeting, Coun. Pete Fry introduced a motion as urgent new business, asking city staff to conduct a policy review with an eye to prioritize Canadian and local suppliers.

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Pete Fry
Councillor Pete Fry. Photo by Arlen Redekop /PNG
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Mayor Ken Sim proposed postponing Fry’s motion to a special meeting later this month to focus on the threat of U.S. tariffs to have “dedicated time where we can give this issue our full attention.”

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Council unanimously supported Sim’s referral.

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Fry, a Green councillor and council’s only current member not affiliated with the majority ABC party, said he appreciated “the mayor’s willingness to work together on this, I think we will want to come together on this.”

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Sim said: “I do want to acknowledge Coun. Fry for bringing this up. In this chamber, we may not agree on everything, but I can tell you, we’re all very united when it comes to supporting Canada and everyone who calls Canada home.”

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Fry’s motion would direct city staff to launch “an urgent high-level review of capital projects, suppliers, procurement, and trade agreement exposure and opportunities to buy local/buy Canadian and report back as soon as possible with immediate and long-term strategies supporting the Team Canada approach.”

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After Tuesday’s meeting, Fry said it’s a complicated matter because the city’s ability to prioritize local suppliers might be affected by international trade agreements. Fry wants staff to investigate and report back.

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Kruger’s motion also calls on the province to expedite the approval of FortisBC’s proposed expansion of its liquefied natural gas facility on Tilbury Island in Delta, aiming to create hundreds of long-term jobs, and also “immediately” begin construction on the $4.1 billion Massey Tunnel replacement, which will the motion says will “help facilitate the faster movement of goods to Deltaport, strengthen the transportation gateway between Canada and the Asia-Pacific region, and aid in diversifying Canada’s export market.”

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dfumano@postmedia.com

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twitter.com/fumano

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TALK TO US ABOUT TARIFFS: Has the news of tariffs changed your buying habits or travel plans? Has it impacted your workplace or business? We want to hear your thoughts on how the U.S. tariffs has impacted your daily life. Sound off in the comments below or email us at vantips@postmedia.com if you’d like to speak with a reporter for a future story.

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