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12/14/14

Canada -US relations: Ottawa threatens to block Buy America rules in Canada - by Barrie Mckenna-

The federal government is threatening to invoke a rarely used anti-sanctions law to block the U.S. from imposing Buy America rules in Canada.

Outraged that Washington has banned Canadian steel from a ferry terminal overhaul in Prince Rupert, B.C.,

Ottawa is considering using the Foreign Extraterritorial Measures Act (FEMA) to prohibit suppliers from bowing to a foreign law on Canadian soil, according to industry sources.

Canada has used the law just once – in 1992 – after the U.S. moved to tighten its trade embargo on Cuba by punishing companies and individuals doing business there, including Canadians.

Invoking the law again would further strain tensions between the Conservative government and U.S. President Barack Obama, who are already at odds over issues such as the Keystone XL oil pipeline, climate-change policies and U.S. meat labeling laws.

Read more: Ottawa threatens to block Buy America rules in Canada - The Globe and Mail

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