Canada Exempt from "Buy American" Policy

Canadian officials were satisfied that the so-called "Buy American" policy connected to the stimulus money used primarily of infrastructure in the U.S. can now be bid on by Canadian companies.

The new agreement reached on Friday allows bids from companies based in Canada for projects funded by stimulus money in the United States.

To make the deal happen Canada had to give up something as well, with contractors from the U.S. now being allowed to bid on contracts in Canada as well.

What remains to be seen is how this will work out practically, as the U.S. should have far more projects to bid on with $75 billion in stimulus funds available to apply to infrastructure projects.

Even with Canada opening up bidding on their projects, the number of projects could be far less, as well as the money available to fund them.

The deal will continue on a permanent basis for government projects on the state, municipal or provincial level.