"Buy American means Canadian businesses can't bid on U.S. infrastructure. But they can bid on ours," Premier Dalton McGuinty said. "That's not fair." (Simon Gardner/CBC)

Ontario's premier rallied municipal governments Tuesday to fight U.S. protectionism alongside the federal government.

Dalton McGuinty said the premiers have agreed to keep supporting efforts made by Prime Minister Stephen Harper to lobby U.S. President Barack Obama's administration with regard to the "Buy American" provision of the U.S. government's economic stimulus package.

"And I strongly encourage you to do the same," he told the annual meeting of the Association of Municipalities of Ontario in Ottawa.

McGuinty said the provision, which gives priority to U.S. iron, steel and other manufactured goods for use in public works and building projects funded with recovery money, could make the situation in Ontario even worse at a time when the province is already shedding jobs.

"Buy American means Canadian businesses can't bid on U.S. infrastructure. But they can bid on ours," he said. "That's not fair."

Ottawa city councillor Peter Hume, president of the AMO, said Ontario cities have already been talking to the American Conference of Mayors.

"We are encouraging our border colleagues, our border cities to talk to their mayors, to explain to them the impact that these policies would have on both of our economies," he added.

He said that while his own city may seem insulated from economic problems, that may not hold a year or two from now, and it can't ignore the threat that U.S. protectionism poses.