Canada's International Trade Minister is optimistic that the U.S. may consider exempting Canadian products from the controversial "Buy American" provisions under consideration by President Barack Obama.
Stockwell Day talked to Canadian reporters in a conference call and told them general details of his meeting with U.S. trade representative Peter Allgeier at the economic forum in Davos, Switzerland.
"I'm cautiously optimistic that something can be worked out," Day said Saturday.
"In no uncertain terms they're telling us: 'We hear you, we recognize you've got concerns with this, we're doing some work. Keep talking to us and stay tuned.'"
Obama has faced criticism over the controversial provisions that he is considering appending to his more than US$800 billion economic stimulus plan.
The proposed legislation aims to ban foreign iron and steel used in any building project attached to the massive stimulus plan Obama is pushing forward -- which could cut out a major portion of the Canadian steel industry's $7 billion in annual exports.
The subject is a touchy one for the administration, which must balance the needs of America's trading partners with the concerns of the constituents who elected a president whom they want to protect their jobs.
On Friday, White House press secretary Robert Gibbs said "the administration is reviewing that provision" and acknowledged the concerns on both sides of the U.S.-Canada border.
The U.S. has heard from its trading partners -- including Canada -- that this type of protectionism is exactly what helped push the Great Depression forward at the start of the 1930s.
Back home in Ottawa, Prime Minister Stephen Harper has said such measures would see the U.S. renege on its "international obligations" to eliminate barriers to worldwide trade.
"I spoke to our ambassador about it yesterday and I know that countries around the world are expressing grave concern about some of these measures that go against not just the obligations of the United States, but frankly the spirit of our G20 discussions," Harper told the House of Commons on Thursday.
With files from The Canadian Press
