CBSN

Canada Mayors Won't Boycott Over Buy American Deal

Canada's mayors are withdrawing their threat to boycott suppliers from the U.S. in retaliation for the Buy American provisions in the U.S. economic stimulus package.

The Federation of Canadian Municipalities said Saturday it won't enact a resolution passed in June that gave the U.S. 120 days to back down from the Buy American policy, warning that Canadian cities would retaliate by boycotting U.S. suppliers.

Federation president Basil Stewart says the mayors want to give negotiators from both countries the time and space to reach a successful conclusion of their talks.

Earlier this week, news reports suggested a deal was imminent to exempt Canada from the clauses that exclude foreign suppliers from bidding on projects funded by U.S. federal stimulus money. But officials on both sides of the border denied the reports.