New Buy American provisions included in Obama jobs act, much to Canadian dismay

WASHINGTON – Call it Buy American, The Sequel.

U.S. President Barack Obama’s proposed new American Jobs Act is likely to reignite trade tensions with Canada.

Section 4 of the act requires that job-creation projects south of the border use only American iron, steel and manufactured goods.

Similar “Buy American” measures sparked tense negotiations between the two countries for much of 2009.

Those familiar with Canada-U.S. trade say the act will either cut Canadian companies right out of the projects or require them to press for waivers.

Some version of the bill will likely pass Congress and there’s no guarantee the “Buy American” provisions will be removed, they say.

The Prime Minister’s Office says such protectionist measures stall growth and kill jobs.

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