The United States and Canada ended a year-old dispute on Friday as Washington agreed to waive the contentious “Buy American” provisions barring Canadian firms from projects under a massive stimulus package. The controversial U.S. provisions were part of the nearly $800 billion U.S. stimulus package adopted in 2009, but was quickly criticized as a protectionist measure. Under a tentative agreement reached between the United States and Canada, Washington would provide Canadian suppliers access to state and local public works projects under the American Recovery and Reinvestment Act of 2009 aimed at stimulating the world's largest economy from recession. In return, Ottawa will also provide U.S. suppliers with access to construction contracts across its provinces and territories, as well in as a number of municipalities. Canada's move followed a decision to sign up its provinces to the World Trade Organization's government procurement agreement, officials said. “The trade and investment relationship between the United States and Canada is very important to both of our countries,” said a joint statement by U.S. 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. The Buy American provisions had mandated that all steel and manufactured goods purchased with the stimulus funds be made in the United States or in countries with US agreements on government procurement.
