The state of Alaska has canceled bids for a ferry terminal update that the Canadian government threatened to block in a dispute over the use of American steel.
The cancellation notice went out Wednesday.
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Just a few days earlier, the Canadian government issued an order that would have blocked the state from doing the project on land it leases at Prince Rupert, British Columbia, unless a resolution was reached.
The dispute centered on "Buy America" requirements for steel, iron and manufactured products in projects funded by the Federal Highway Administration.
Much of the construction funding for the project was to come from the federal agency, with the rest coming from the state.
Canadian officials called the requirement to only use U.S. steel on Canadian soil unacceptable.