OTTAWA - THE premiers of Canada's 13 provinces and territories urged Ottawa on Tuesday to open talks with Washington for a procurement liberalisation pact, citing concern over US protectionism.

The regional leaders said they were 'deeply concerned' over recent US legislation that requires US states and municipalities to use only iron, steel and goods manufactured in the United States for federally funded infrastructure projects.

The 'Buy American' provision is 'hurting both American and Canadian companies,' and is hindering efforts to stimulate the largely interdependent economies of the world's largest trading partners, the premiers said in a statement.

'Protectionist measures,' they said, 'impede the integrated supply chains that Canadian and American companies have developed, and undermine the prosperity and the competitiveness of both economies.'

The premiers suggested that Ottawa negotiate with Washington for 'a broad, reciprocal procurement liberalization agreement covering federal, provincial/territorial and state government measures.'

Through such a pact, they argued, Canada would be excluded from the 'negative effects' of the Buy American provision.

In Washington, meanwhile, Canadian envoys said they were meeting with members of Congress to 'drive home the message' that the restrictions in the massive US$787 billion (S$1.13 trillion) US economic stimulus are costing jobs on both sides of the border. -- AFP