Contracting Policy Notice 2018-01: Update on Thresholds for Trade Agreements, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and the Canada–United States–Mexico Agreement
Contracting Policy Notice: 2018-01
To: Functional heads of Administration and Finance units at all departments and agencies
This Contracting Policy Notice has 3 elements:
- an update on thresholds for trade agreements
- an update on the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
- an update on the Canada–United States–Mexico Agreement (CUSMA)
1. Update on thresholds for trade agreements
Table 1 serves as a summary of the thresholds in effect from , to , for procurements that are subject to free trade agreements to which the federal government is a party. Table 1 has been updated to include the CPTPP.
|Free trade agreement||Entities (departments and agencies)||Crown corporations and other government enterprises|
|Canadian Free Trade Agreement||25,300||101,100||101,100||505,400||505,400||5,053,900|
|Canada–Chile Free Trade Agreement||106,000||106,000||9,100,000||530,000||530,000||16,900,000|
|Canada–Colombia Free Trade Agreement||106,000||106,000||9,100,000||530,000||530,000||16,900,000|
|Comprehensive Economic and Trade Agreement (European Union)||237,700||237,700||9,100,000||Annex 19-3, Section A: 649,100||Annex 19-3, Section A: 649,100||9,100,000|
|Annex 19-3, Section B: 731,400||Annex 19-3,Section B: 731,400|
|Canada–Honduras Free Trade Agreement||106,000||106,000||9,100,000||530,000||530,000||16,900,000|
|Canada–Korea Free Trade Agreement||100,000||100,000||9,100,000||-||-||-|
|North American Free Trade Agreement (NAFTA)|
|Canada–Panama Free Trade Agreement||106,000||106,000||9,100,000||530,000||530,000||16,900,000|
|Canada–Peru Free Trade Agreement||173,700||173,700||9,100,000||530,000||530,000||16,900,000|
|Canada–Ukraine Free Trade Agreementtable 1 note *||237,700||237,700||9,100,000||649,100||649,100||9,100,000|
|World Trade Organization–Government Procurement Agreement (WTO-GPA)||237,700||237,700||9,100,000||649,100||649,100||9,100,000|
Table 1 Notes
2. Update on the CPTPP
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will enter into force on . CPTPP is an international free trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam and includes government procurement obligations between these countries. Note that the CPTPP:
- developed out of the negotiation process for the Trans-Pacific Partnership Agreement (TPP)
- generally adopts by reference the provisions of the TPP
The CPTPP will coexist with Canada’s other trade agreements, and the obligations set out in Canada’s other trade agreements will continue to apply. The following chapters of the CPTPP should be consulted in order to understand Canada’s obligations and the exceptions that are available regarding potential contracts:
Chapter 15 of the CPTPP addresses government procurement and consists of the following:
- the procedural rules to be followed when conducting a covered procurement
- Annex 15-A, which forms the Market Access Schedule of Canada
Note that CPTPP obligations commence with the beginning of the procurement process, which starts once an entity has decided on its requirement.
Entities covered in the CPTPP
Federal departments and agencies
The departments and agencies that are subject to the obligations in Chapter 15 are listed in Section A: Central Government Entities of Annex 15-A: Schedule of Canada.
Crown corporations listed in Section C: Other Entities of Annex 15-A: Schedule of Canada are also subject to the obligations addressed in the chapter.
Goods, services and construction services
- Unless otherwise specified, all goods are covered (see Section D: Goods in Annex 15-A: Schedule of Canada)
- Specified covered services are listed in Section E: Services in Annex 15-A: Schedule of Canada.
- Unless otherwise specified, construction services are covered, but dredging services and construction services procured by or on behalf of Transport Canada are not covered (see Section F: Construction Services in Annex 15-A: Schedule of Canada)
- The sections in Annex 15-A: Schedule of Canada should be reviewed for possible exceptions, including Section G: General Notes
The thresholds for procurements covered by the CPTPP are listed in Table 1.
Covered entities are advised to familiarize themselves with the procedural obligations set out in Chapter 15. Examples of what the procedural obligations cover are:
- posting periods for tender notices
- information that must be included in notices
- content of tender documentation
- circumstances for the use of limited tendering
- publication of award information
All entities listed in Section A: Central Government Entities of Annex 15-A: Schedule of Canada must publish their tender notices for covered procurement on the Government Electronic Tendering Service (Buyandsell.gc.ca).
For exceptions that may apply, both the main text and the annexes of Chapter 15 should be reviewed. In particular, officials may wish to consult:
- Article 15.2: Scope
- Article 15.3: Exceptions
- Article 15.10: Limited Tendering, which provides information on the circumstances where sole-sourcing is permitted
- Annex 15-A: Schedule of Canada, including Section G: General Notes
Maintenance of records requirements
Article 15.16: Post-Award Information describes requirements for maintaining records for covered entities.
For questions about the content of the CPTPP’s chapter on government procurement, contact Global Affairs Canada at email@example.com.
3. Update on the Canada–United States–Mexico Agreement (CUSMA)
On , the United States, Mexico and Canada signed the CUSMA. The CUSMA contains a chapter on government procurement, but Canada is not a party to that chapter, which pertains only to Mexico and the United States.
It is expected that the CUSMA will lead to the repeal of NAFTA, and Canada’s government procurement obligations found in NAFTA will consequently cease to be in effect. Once NAFTA is repealed, Canada will continue to have government procurement commitments with:
- the United States through the WTO-GPA
- Mexico through the CPTPP
A future Contracting Policy Notice will provide more information about the CUSMA and its effect on NAFTA.
Original signed by
Assistant Comptroller General
Acquired Services and Assets Sector
Office of the Comptroller General
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