Business New Brunswick Minister Victor Boudreau is welcoming Canada's exemption from the protectionist "Buy American" policy that was attached to the massive U.S. stimulus package.

Under the agreement announced on Friday, Canadian firms can bid on American stimulus projects, and in return, the provinces agree to open their contracts to bidding from U.S. contractors.

The province's business minister said he is not concerned about the potential for New Brunswick companies losing out on work here in Canada.

"New Brunswick companies would be able to bid on contracts in Maine as well for example. It's to create that better level field between our two countries and the provinces and states," he said.

Boudreau said he learned of the agreement on a conference call early last week with his federal and provincial counterparts.

The deal will let Canadian companies bid for the remaining $75-billion worth of U.S. projects under the American stimulus program.

New Brunswick is dependent on open markets to the U.S. as 90 per cent of its international exports head south of the border.

Members of Congress attached the "Buy American" clause to U.S. President Barack Obama's $787-billion stimulus plan, which was passed last year.

The U.S. stimulus money is allocated for roads, public housing and other infrastructure projects. Most of that funding has already been spent and the program's deadline for handing out money is Feb. 17.

Lost business

Steve Ross, who operates a steel fabrication company in Halifax, said the contentious rule cost him work in the United States.

"Yes, I would say there have been a number of projects that likely would have been available for us to bid, and the opportunity to do, but with the 'Buy America' clause, we never had the opportunity," Ross said.

The agreement also lets companies bid across the border on municipal contracts in larger cities, such as Fredericton, Moncton and Saint John.

All the provinces and territories had to agree to the deal before it could go ahead.

The deal provides companies in both countries with permanent market access to projects at the sub-federal level, meaning they can bid and work on public works projects at the provincial, state or municipal

The agreement applies only to U.S. funding delivered under the current stimulus program, not future legislation that might include similar "Buy American" provisions.