Economy

Alaska Calls Canada’s Bluff

January 22, 2015

Alaskan plans to upgrade the Prince Rupert ferry terminal have been scrapped after Canada moved to bar a Buy America requirement for contract bids on the project. The enactment of a ruling under the Foreign Extraterritorial Measures Act would have imposed fines of up to $1.5 million (US $1.2 million) and/or jail time for corporations or individuals who disregarded the Canadian ruling.

The upgrade, which was to be funded primarily by the U.S. Federal Highway Administration, would have required American made iron and steel products used to be used for construction, despite the terminal’s location on Canadian soil.

Prince Rupert Port Authority In late November, British Columbia Premier Christy Clark told reporters, “This is our country, it is our land, it is our port, it is our laws and the Americans are building a facility here in Canada, in our province, where we aren’t allowed to have a chance to supply or fabricate the steel. That’s just wrong.”

The state of Alaska canceled all bids on Wednesday leaving the future of the terminal in question. According to Patricia Eckert, the associate director for international trade within the governor’s office, normal operations at the port can be maintained “over the next several years until this is sorted out.”

The Alaska Marine Highway System signed a 50-year lease with the Prince Rupert Port Authority in 2013. The $10-$20 million project was expected to be completed in 2016.