Procurement Policy - Appendix A: Trade Agreements and Financial Thresholds
Disclaimer
We do not guarantee the accuracy of this copy of the CRA website.
Scraped Page Content
Appendix A: Trade Agreements and Financial Thresholds
Table of Contents
- Agreement on Internal Trade (AIT)
- North American Free Trade Agreement (NAFTA)
- World Trade Organization – Agreement on Government Procurement (WTO – AGP)
- Canada-Chile Free Trade Agreement (CCFTA)
- Canada-Peru Free Trade Agreement (CPFTA)
- Canada-Colombia Free Trade Agreement (CCoFTA)
- Canada-Panama Free Trade Agreement (CPaFTA)
- Canada-Honduras Free Trade Agreement (CHFTA)
- Canada-Korea Free Trade Agreement (CKFTA)
- Table 1 – Financial Thresholds
1. Canada is a Party to each of the following trade agreements and the Canada Revenue Agency (CRA), as a federal government entity, is subject to the provisions of these agreements:
Agreement on Internal Trade (AIT)
The AIT is an inter-governmental agreement signed by Canadian First Ministers that came into force in 1995. Its purpose is to foster improved inter-provincial trade by addressing obstacles to the free movement of persons, goods, services and investments within Canada. In terms of procurement, the AIT is focused on eliminating local price preferences, biased technical specifications, unfair registration requirements and other discriminatory practices in order to ensure equal access to procurement for all interested Canadian suppliers.
North American Free Trade Agreement (NAFTA)
The NAFTA is an international trade agreement, launched in January 1994, between Canada, the United States and Mexico. The objectives of the Agreement are to eliminate barriers to trade in, and facilitate the cross-border movement of, goods and services between the territories of the Parties; promote conditions of fair competition in the free trade area; increase substantially investment opportunities in the territories of the Parties; provide adequate and effective protection and enforcement of intellectual property rights in each Party's territory; create effective procedures for the implementation and application of the Agreement, for its joint administration and for the resolution of disputes; and establish a framework for further trilateral, regional and multilateral cooperation to expand and enhance the benefits of the Agreement.
World Trade Organization – Agreement on Government Procurement (WTO – AGP)
The WTO – AGP is a plurilateral trade agreement aimed at increasing international competition for various goods and services. The WTO – AGP is designed to make the laws, regulations, procedures and practices regarding government procurement more transparent and to ensure they do not protect domestic products or suppliers, or discriminate against foreign products or suppliers.
Canada-Chile Free Trade Agreement (CCFTA)
The CCFTA, which came into force July 5, 1997, was amended in November 2006 to add a chapter on procurement that came into force September 5, 2008. The general principles of the CCFTA are non-discrimination in the treatment of one Party's goods, services and suppliers by the other Party; transparency; and open competition. The CCFTA introduces a new concept of "extended transparency" which makes information available with respect to specific procurement opportunities that are not covered by the trade agreement (see paragraph 4 below).
Canada-Peru Free Trade Agreement (CPFTA)
The CPFTA came into force on August 1, 2009. The CPFTA gives Canadian and Peruvian suppliers improved market access in the area of government procurement. It guarantees Canadian suppliers the right to bid on a broad range of goods, services and construction contracts carried out by Peru's central government entities. It also ensures that practices remain transparent and fair for suppliers.
Canada-Colombia Free Trade Agreement (CCoFTA)
The CCoFTA came into force on August 15, 2011. Chapter 14 of the CCoFTA deals with government procurement and gives Canadian and Colombian suppliers improved market access and the right to bid on a broad range of goods, services and construction contracts carried out by the Parties' central government entities. The general principles of the CCoFTA correspond to those of the other trade agreements: non-discrimination in the treatment of one Party's goods, services and suppliers by the other party; open competition; and, practices that are transparent and fair. The CCoFTA includes the concept of "extended transparency" which makes information available with respect to specific procurement opportunities that are not covered by the trade agreement (see paragraph 4 below).
Canada-Panama Free Trade Agreement (CPaFTA)
The CPaFTA came into force on April 1, 2013. Chapter 16 of the CPaFTA deals with government procurement and gives suppliers improved market access and the right to bid on a broad range of goods, services and construction contracts carried out by the Parties' central government entities. The general principles of the CPaFTA correspond to those of the other trade agreements: non-discrimination in the treatment of one Party's goods, services and suppliers by the other party; open competition; and, practices that are transparent and fair.
Canada-Honduras Free Trade Agreement (CHFTA)
The CHFTA came into force on October 1, 2014. Chapter 17 of the CHFTA deals with government procurement and gives suppliers improved market access and the right to bid on a broad range of goods, services and construction contracts carried out by the Parties’ central government entities. The general principles of the CHFTA correspond to those of the other trade agreements: non-discrimination in the treatment of one Party’s goods, services and suppliers by the other party; open competition; and, practices that are transparent and fair.
Canada-Korea Free Trade Agreement (CKFTA)
The CKFTA came into force on January 1, 2015. Chapter 14 of the CKFTA came into force on January 14, 2016 and it deals with government procurement and gives suppliers improved market access and the right to bid on a broad range of goods, services and construction contracts carried out by the Parties' central government entities. The general principles of the CKFTA correspond to those of the other trade agreements: non-discrimination in the treatment of one Party's goods, services and suppliers by the other party; open competition; and, practices that are transparent and fair. The CKFTA is unique in that it incorporates by reference the text of the WTO-AGP and therefore reflects most of its obligations.
2. The current financial thresholds for each of the above trade agreements are reflected in the following table:
Trade Agreement | Covering Period | Applicable Financial Thresholds | |||
---|---|---|---|---|---|
From | To | Goods | Services | Construction | |
Agreement on Internal Trade (AIT) | 01-07-1995 | n/a | $25k | $100k | $100k |
North American Free Trade Agreement** (NAFTA) | 01-01-2016 | 31-12-2017 | $28.9k (can–us) | $89.6k | $11.6m |
$89.6k (can-mex) | $89.6k | $11.6m | |||
World Trade Organization – Agreement on Government Procurement**(WTO – AGP) | 01-01-2016 | 31-12-2017 | $221.4k | $221.4k | $8.5m |
Canada-Chile Free Trade Agreement** (CCFTA) | 01-01-2016 | 31-12-2017 | $89.6k | $89.6k | $8.5m |
Canada-Peru Free Trade Agreement** (CPFTA) | 01-01-2016 | 31-12-2017 | $161.8k | $161.8k | $8.5m |
Canada-Colombia Free Trade Agreement** (CCoFTA) | 01-01-2016 | 31-12-2017 | $89.6k | $89.6k | $8.5m |
Canada-Panama Free Trade Agreement** (CPaFTA) | 01-01-2016 | 31-12-2017 | $89.6k | $89.6k | $8.5m** |
Canada-Honduras Free Trade Agreement** (CHFTA) | 01-01-2016 | 31-12-2017 | $89.6k | $89.6k | $8.5m |
Canada-Korea Free Trade Agreement (CKFTA) | 14-01-2016 | 31-12-2017 | $100k | $100k | $8.5m |
*Valuation of requirements to be inclusive of all applicable taxes.
**The specified financial thresholds are subject to adjustment every two years.
3. Refer to the Procurement Planning and Administration Procedures for instructions on how to determine if one or more of the above trade agreements applies to a CRA procurement requirement.
4. Under the CCFTA and CCoFTA, the "extended transparency" commitments obligate the Parties to provide suppliers with information on those procurements for which they are not eligible to bid but where: (1) an open-tendering process is used and (2) the procurement value exceeds $124,000 CDN (CCFTA) and $150,000 CDN (CCoFTA). See Annex Kbis-01.1-8 (Extended Transparency Commitments) of the CCFTA and Annex 1401-9 (Extended Transparency Commitments) of the CCoFTA. For the CRA, these extended transparency commitments are met through existing procurement practices.
- Date modified:
- 2016-02-04