Canada Free Trade Agreement Thresholds
The FAR calculates dollar thresholds for the implementation of NAFTA provisions. The current thresholds are: this is important because most of the purchase funds may come from the Confederation, but in most projects, the purchase entity will be made at the national or local level. While these trade agreements do not apply to municipalities, open access to public procurement is an important advantage of the WTO GPA and offers significant new opportunities. Canada is a signatory to the World Trade Organization on Public Procurement (WTO GPA) agreement, which aims to open up public procurement among participants. The province is subject to the WTO GPA through an agreement between the province and the Government of Canada. The WTO GPA sets rules that impose open, fair and transparent conditions of competition. If contracting is covered by more than one trade agreement, all applicable trade agreements must be respected at the same time, considering the strictest procedures of the trade agreement. Subject: Updated thresholds for free trade agreements Public procurement obligations for other trade agreements in which the Government of Canada participates will continue to apply. It is strongly recommended that companies review the obligations under these agreements to ensure that they establish the changes resulting from the resignation of NAFTA.
As part of Canada`s free trade agreements with Chile, Colombia and Ukraine, there are « increased transparency » obligations to provide suppliers with information on purchases that they cannot provide, but for which a procedure (1) is applied to open tendering, and (2) the supply value exceeds US$124,000 for Chile and Ukraine and US$150,000 for Colombia. In such cases, in order to reduce risk, contract agents should continue to monitor, as far as possible, the obligations arising from trade agreements and depart only from the fact that this is necessary to achieve the purpose or objectives for which the exemption is applied or for which the land freeze is applied. The Canadian Tribunal for International Trade (CITT) is the leading quasi-judicial institution in Canada`s trade assistance system. The CITT has the authority to investigate complaints about purchases covered by trade agreements. For more information, see: Supply thresholds are the monetary values to which government procurement obligations under free trade agreements with Canada generally apply to specific purchases made by covered companies. The thresholds for public procurement are indexed every two years at the beginning of the calendar year according to the formula of the public procurement chapter of the applicable inflation agreement. For more information on the impact that the public procurement provisions of different trade agreements may have on a given transaction, please see the following resources: The list of general exceptions to a trade agreement is generally found in the section on security and general exceptions to the public procurement chapter; However, some trade agreements, such as the CPTPP. B also include exceptions in a specific « Exceptions » chapter. Examples: As of July 1, 2020, the thresholds apply to contracts subject to free trade agreements in which the federal government participates: the CPTPP contains many public procurement provisions, which are similar to Canada`s other obligations in the international trade agreement on non-discrimination, fairness, openness and transparency.
Unless otherwise provided by the CPTPP, its procurement obligations apply to the Province of British Columbia and to provincial departments, boards of directors, commissions, agencies and committees.