British Columbia Premier Gordon Campbell would like to see EI qualifying standards for urban, rural and remote areas.
British Columbia Premier Gordon Campbell would like to see EI qualifying standards for urban, rural and remote areas. (CBC)

Canadian premiers had some tough talk about the Buy American provision in the U.S. stimulus package as they voiced their support for the federal government in its efforts to exempt Canada from the controversial policy.

"I feel that the American administration has not been up to the rhetoric they have held," Quebec Premier Jean Charest said in Regina on the second day of the Council of the Federation meeting, attended by premiers from across Canada.

"[U.S.] President [Barack] Obama made a commitment that they would live up to world trade rules and they haven’t. And we have been, as a council of federation, very supportive of the federal government’s initiative in this regard."

The message from the premiers comes as Prime Minister Stephen Harper prepares for a meeting with Obama in Mexico on Sunday.

The provision gives priority to U.S. iron, steel and other manufactured goods for use in public works and building projects funded with recovery money.

Premiers are worried that will lead to more protectionism south of the border and close markets to Canadian companies.

Ontario Premier Dalton McGuinty said trade barriers between Canada and the U.S. are bad for both countries and that message needs to be reinforced more often.

"The appeal we have to make to our American cousins is one based on their enlightened self interest. There are millions and millions of American jobs that are dependent on trade with Canada," McGuinty said.

New Brunswick Premier Shawn Graham said the premiers must do all they can to help Ottawa stop the provision from applying to Canada.

"We can't see the gains that have been made over the past decade begin to erode. And that's what we're concerned about today, that this could be the beginning of a slippery slope if protectionism takes root."

All agree changes needed to EI

Meanwhile, premiers attempted to come to a consensus on the issue of employment insurance.

While federal and provincial politicians generally agree that changes need to be made to the system, they differ on which elements need to be fixed.

Currently, there are 58 qualifying standards for EI, depending on local unemployment rates. Those in regions with the highest unemployment require as little as 420 hours of work to qualify, while those in low unemployment areas require as much as 700 hours.

The premiers are hoping to come up with more uniform requirements.

"We're still working on our consensus on EI," Manitoba Premier Gary Doer said on Thursday. "I'm not sure whether we'll get it. We certainly agree on principles. How we'll put those in writing I think is still a challenge for us."

McGuinty has said he wants to temporarily whittle the 58 standards down to one national standard of 420 hours until the recession is over.

B.C. Premier Gordon Campbell said there should be three standards for urban, rural and remote areas.

"What we’re really saying is Canadian workers, whether they live in the Maritimes, the West or North or Ontario, we should treat them the same way," Campbell told CBC News.

"Workers in urban centres would be treated with the same set of standards. Those in rural communities the same set of standards – and those in remote communities, the same set of standards. Right now, we have a patchwork of standards."

Regarding McGuinty's proposal, Campbell said he would be comfortable moving to one system for all Canadians but cautioned that different regions within provinces and territories have different challenges.

"The thing that is important to understand is rural Ontario is very similar to rural British Columbia," he said. "So, let's start thinking as one country again. We can’t have this fractured federalism."

The three-day Council of the Federation kicked off Wednesday.

The EI discussion comes as a federal bipartisan working group met for the second time to try to find common ground on reforming the system.

With files from The Canadian Press