Amid tariff threats, local governments should prioritize buying local, London mayor says
Morgan will table motion next week to examine London's procurement policies
With the threat of punishing U.S. tariffs on Canadian imports continuing to loom large, London's mayor says there are things municipalities can do to shore up their own economies better.
Among them, they buy local and Canadian wherever possible.
"The way we spend, invest and procure goods and services has a direct impact on jobs, local industries and the long-term resilience of our communities," Josh Morgan said Thursday, flanked by other big city mayors, during a news conference at Ottawa's Château Laurier hotel.
"In London and across Canada, we must seize the moment to rethink our procurement strategies, ensuring that they serve the best interests of residents, businesses and workers."
Morgan is chair of the Federation of Canadian Municipalities (FCM) Big City Mayors' Caucus, which met Thursday to discuss, among other things, the upcoming federal election and the impact a trade war with the United States would have on their communities.
Caucus members also met with Prime Minister Justin Trudeau and Foreign Affairs Minister Mélanie Joly.
On Monday, U.S. President Donald Trump paused his plan to levy 25 per cent tariffs on most Canadian goods for at least 30 days, after Prime Minister Justin Trudeau agreed to several border security commitments on Monday.
Spending billions every year on infrastructure, equipment and services, Morgan said cities could steer that demand toward domestic industries. He reiterated that he would table a motion at city council next week to examine London's procurement policies with that goal in mind.
He also called for improved collaboration with neighbouring municipalities and provinces through shared procurement agreements and to remove barriers faced by small and medium-sized businesses in competing for municipal contracts against larger, deeper-pocketed firms.
"This is an economic relationship that is the envy of the world," Morgan said. "To dismantle that … I think the rest of the world will be just sitting back and laughing at us."
Morgan will travel with FCM representatives and Progressive Conservative Leader Doug Ford to Washington, D.C., on Feb. 11 and 12 to meet with U.S. senators, mayors, and business leaders about the threatened tariffs.
"Municipalities and local governments are at the front lines to respond to these crises," said FCM's president, Rebecca Bligh. "Our intention is to join the delegation and ensure that we can reflect the importance of taking these tariffs seriously."
Local governments have the most to lose in a trade war, so any talks about tariffs, retaliatory measures, or senior government supports will involve municipalities through FCM, Bligh said.
"Additionally, retaliatory measures that could affect municipal procurement and strain municipal budgets must be discussed with FCM to ensure they are addressed appropriately."
Before travelling stateside, London business and economic leaders will gather at city hall on Friday to meet with the mayor to talk tariffs and develop a plan aimed at supporting local commerce.
Graham Henderson, CEO of the London Chamber of Commerce, will be on hand for the meeting, which will start at 1 p.m. in a committee room on the second floor of 300 Dufferin.
Other attendees will include representatives from the London Economic Development Corporation, London Development Institute, London Region Manufacturing Council, as well as local hospitals and post-secondary institutions.
Speaking with CBC News, Henderson said he joined representatives from various sectors and the heads of Hamilton and Toronto's chambers of commerce on a call with Ford on Monday,
The news had just emerged that Trump would pause his promised tariffs for 30 days.
"I think [Ford's] comment was, and this is that old idiom, 'never waste a good crisis,'" Henderson said.
"So what can we do to take advantage of this situation, to take advantage of the crisis, to make our own environment better? One of the ways to do that is to get rid of these interprovincial trade barriers which have been dogging us for decades."
Efforts to eliminate interprovincial trade barriers, which inhibit the free movement of goods and services between provinces, date back decades.
On Wednesday, Transport and Internal Trade Minister Anita Anand suggested movement on the file could come soon.
Asked if "interprovincial trade barriers [could] be dealt with, wiped away in 30 days?" Anand responded, "The short answer to your question is yes."
Removing the barriers could boost productivity and add up to $200 billion to the domestic economy, Anand said previously.