Unfortunately, during the global economic downturn, protectionist forces in the United States Congress loudly imposed rules which forced American stimulus money to be used to purchase goods and services from American companies only, shutting out many Canadian manufacturers.

What American legislators failed to realize is that Canadian companies all across our country provide important goods and services to many cities, towns and communities in the United States, especially for infrastructure projects. This led to some outlandish examples of protectionism. For example, American cities were paying very high prices for goods which were actually much cheaper to purchase in Canada; but to purchase them from our country was impossible due to the Buy American rules. In other cases, American infrastructure projects funded by American stimulus dollars that were close to completion and had used Canadian products were actually ripped out of the ground.

Realizing the impact of these unfair Buy American rules on Canadian companies, our Government has been working with our partners in the Obama Administration to find a solution to this serious problem.

As Prime Minister Stephen Harper and President Barack Obama met over the course of 2009, they worked closely on the roughly $800-billion worth of contracts that were off-limits to Canadian workers. In addition, they also discussed the discriminating rules that were placed on other foreign firms who happened to use Canadian suppliers. Prime Minster Harper also highlighted the positive outcomes that could come to both countries by ending such unfair rules.

I am pleased to report that an important joint agreement was reached on this issue in February, signalling our Government’s success in convincing President Obama to end the Buy American provisions.

Canadian suppliers can now access work projects in the United States, and in the case of the American Recovery Act, Canadian companies now have access to U.S. state and local projects in a range of areas including programs for the U.S. Department of Energy, the U.S. Department of Housing and Urban Development, and the Environmental Protection Agency. In addition, Canada and the United States have agreed to establish a fast-track consultation process if similar Buy American provisions are applied to future funding programs by a protectionist U.S. Congress.

Not only will this development help create new jobs and protect existing ones, it is another step forward in our trading relationship with the United States.

Despite the challenges created by the global economic recession, our Conservative Government has responded with real action through our Economic Action Plan. Now, with this new agreement with the United States in place, Canadians have even more opportunities for success. Our Government will continue to deliver the right help when it is needed, so that workers and businesses in Canada can experience a successful and prosperous future.