Prime Minister Stephen Harper, Mexico's President Felipe Calderon and U.S. President Barack Obama walk toward a stand for the official photo in Guadalajara, Mexico, on Monday. (Dario Lopez-Mills/Associated Press)

U.S. President Barack Obama said the "Buy American" provision needs to be kept in perspective, saying it has not hurt trade with Canada.

"We have not seen some sweeping steps towards protectionism," Obama said at a news conference wrapping up the so-called "Three Amigos" summit in Guadalajara, Mexico, on Monday with Prime Minister Stephen Harper and Mexican President Felipe Calderon.

"There was a very particular provision that was in our recovery package, our stimulus package. It did not extend beyond that," he said.

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.

Critics in Canada have expressed concerns that the policy will lead to more protectionism south of the border and close markets to Canadian companies.

Obama said that while he opposed the measure's inclusion in the U.S. stimulus package, he did not want the recovery package to get bogged down over that issue because it was important to be passed.

"I do think it’s important to keep this in perspective. This in no way has endangered the billions of dollars of trade taking place between our two countries."

Obama said the controversial clause conforms with all World Trade Organization and NAFTA regulations because it deals with what's called sub-national governments — such as states and municipalities — which aren't included in trade treaties.

"There may be mechanisms whereby states and local jurisdictions can work with the provinces to allow for cross-border procurement practices," he said.

'We've evolved differently'

At a summit last week, Canadian premiers had some tough talk about the "Buy American" provision, uanimously voicing their support for the federal government in its efforts to exempt Canada from the controversial policy.

Obama noted that Harper brings up the subject every time they meet.

Obama was also asked about the Canadian health-care system becoming part of the U.S. health-care reform debate.

"I’ve said that the Canadian model works for Canada. It would not work for the United States in part simply because we’ve evolved differently."

Some of Obama's critics have accused the president of wanting to replicate Canada's system in the U.S., a charge Obama has denied.

"I suspect that you Canadians will continue to get dragged in by those who oppose reform even though I’ve said nothing about Canadian health-care reform.

"I don’t find Canadians particularly scary, but I guess some of the opponents of reform think they make a good bogeyman."

North America's leaders ended their two-day summit in pledging a united effort on economic recovery, trade, swine flu and climate change.

The new visa restrictions on Mexican visitors to Canada was also a topic of discussion at the summit.

Calderon said the issue gets in the way of a good relationship between Canada and Mexico.

But Harper said the visa requirement is the result of Canada's refugee claimant system, which makes it "far too easy in Canada to make a bogus refugee claim as a way of entering the country."

He suggested the visa requirement could be lifted once the system for handling refugees is fixed.