The government of Alaska said on Wednesday that it had cancelled the overhaul of a ferry terminal in British Columbia "for the time being," after the $15-million project became a trade dispute with Canada over "Buy America" provisions.

The state, which operates the terminal as part of its Alaska Marine Highway System, said it will maintain operations at the existing facilities at normal standards until the issue can be resolved.

The Canadian government invoked rarely used anti-sanction laws earlier this week in an effort to prevent bidders on the 
construction project, which is located in Canada, from agreeing to use only U.S.-made iron and steel.