Life in Canada

OTTAWA - Canada plans to fight the Buy American provisions in the new U.S. stimulus package proposed by President Barack Obama , federal Trade Minister Ed Fast said Wednesday.

Obama has proposed a $447-billion bill to help revive the stalled U.S. economy, but the details unveiled Tuesday contain protectionist measures similar to Washington's original stimulus package in 2009.

Fast says in a release that the provisions are not acceptable to Canada.

He has instructed officials to initiate the consultation process that was established as part of the 2010 Canada-U.S. deal on government procurement.

He said Ottawa will also express its concerns to the White House and to Congress.

The offending passage is Section 4, headed "Buy American — Use of American Iron, Steel and Manufactured Goods."

The section contains a directive that none of the funds made available under the American Jobs Act may be used for "the construction, alteration, maintenance, or repair of a public building or public work unless all of the iron, steel and manufactured goods used in the project are produced in the United States."

The bill calls for more than US$100 billion towards the renovation of schools, the construction of roads and bridges and improving transit.

Fast said history shows protectionist measures stall growth and kill jobs.