Tags: canada | american | buy | clause

U.S. Waives 'Buy American' Clause for Canada

Friday, 05 February 2010 09:51 AM

WASHINGTON — The United States has agreed to waive "Buy American" provisions for Canadian companies under a massive economic stimulus package, a joint statement said Friday, ending a year-long dispute between the neighbors.

Under a tentative agreement reached between the two countries, Canada will also provide US suppliers with access to a range of construction contracts across the country's provinces and territories, as well in as a number of municipalities.

The controversial US provisions were part of the nearly 800-billion-dollar US stimulus package adopted last year mandating that all steel and manufactured goods purchased with the funds be made in the United States or in countries with US agreements on government procurement.

Local-level projects were also mostly confined to US-made goods, drawing protests from Canada.

"The trade and investment relationship between the United States and Canada is very important to both of our countries," said a joint statement by US Trade Representative Ron Kirk and Canada?s Minister of International Trade Peter Van Loan.

"At its core are thousands of jobs and business relationships that have developed over many decades," they said.

Ottawa has been pushing President Barack Obama's administration to make an exception for Canadian goods in return for a guarantee that city and provincial bids would be open to US firms.

Copyright © 2010 AFP. All rights reserved.

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Friday, 05 February 2010 09:51 AM
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