Quebec Premier Jean Charest hopes a deal is near that would exempt Canada from the controversial Buy American provision included in the U.S. stimulus package. Quebec Premier Jean Charest hopes a deal is near that would exempt Canada from the controversial Buy American provision included in the U.S. stimulus package. (Jacques Boissinot, Canadian Press)

The White House is pondering a proposal by Canada to exempt the country from the controversial Buy American provision included in the U.S. stimulus package.

International Trade Minister Stockwell Day provided few details on Wednesday, saying only that no deal has been struck, but adding "we're working on it."

U.S. Trade Representative Ron Kirk said while the Canadians "don’t have it nailed down," they have "presented us with what they think might be a resolution that would allow them to more fully engage in this market, but we're working very collaboratively on it."

CBC News reported on Tuesday that according to Canadian government sources, Ottawa expects that the White House will use its discretionary power to exempt Canada from the clause very soon. In return, Canada would simultaneously announce that its provincial and municipal doors are now wide open to U.S. companies.

"The key word in all this, by the way, to watch for is reciprocity," said Quebec Premier Jean Charest. "Whatever we have access to, they have access to. Because it's such a big market, we come out of this winners."

Ontario's Premier Dalton McGuinty, however, was talking on Wednesday about limiting any reciprocity.

"I forget whether it's wind turbines or solar panels, we're saying that 25 per cent of the work has to be done in Ontario."

The Buy American provision gives priority to U.S. iron, steel and other manufactured goods for use in state-level and municipal public works and building projects funded with taxpayer stimulus money.

Canadian governments and businesses have railed against the policy.

Liberal trade critic Scott Brison remained skeptical about any impending deal.

"We would have to review any potential deal because [Prime Minister] Stephen Harper declared victory on Buy American six months ago, and we all know that there was no validity on that."