Treasury Board Trade Agreements

For more information on the impact of the procurement rules of different trade agreements on a given transaction, please see the following resources: This year has been marked by ongoing efforts to change the public procurement landscape in Canada, and we can expect further changes. The effects of the CPTPP international trade agreement in Canada are a gradual growth in bilateral trade between member states and the tangible benefits of tariff reductions between Canada and Vietnam. The effects of the amended CUSMA are yet to be expected, as Canada has made considerable progress in the process of ratifying this international trade agreement. Recent changes to GASTA provide for measures for the federal, provincial and territorial governments to remove their own specific exceptions through a lighter process and without imposing licensing requirements. These agreements are a signal of the continuing efforts of Canada and the international community to support and encourage global trade in a more coherent, transparent and accountable manner. Parallel efforts are also reflected in proposed additions to provincial allocation regulations, such as the Ontario Supply Chain Management Bill. 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. It is not mandatory for foreign suppliers to set up a local branch or subsidiary or have a local tax residence to conduct transactions with public bodies. However, public authorities may set these criteria during the procurement process if this does not violate their free trade obligations or other obligations (for example. B, the obligation of fair competition). Foreign government procurement is worth hundreds of billions of dollars a year and offers significant potential opportunities for Canadian exporters. Public procurement obligations in international trade agreements help ensure that Canadian suppliers of goods and services are treated in an open, transparent and non-discriminatory manner when selling to governments outside Canada.

In addition to suppliers, open public procurement benefits governments and taxpayers by increasing competition, expanding the choice of available goods and services and, importantly, reducing costs. Canada`s free trade agreements do not impede the inclusion of measures for aboriginal peoples and/or businesses in public procurement. These include purchase obligations under modern contracts (Comprehensive Land Claims Agreements). For more information on Comprehensive Land Agreements (CLCAs), see 9.35 Modern Contracts. For more information on the Aboriginal Business Procurement Strategy (PSAB), see 9.40 Purchasing Strategy for Aboriginal Businesses.