Government Procurement
Government of Canada and the Government of the United States of America on Government Procurement
On February 12, 2010, Canada and the United States signed an agreement that will allow Canadian companies to participate in U.S. infrastructure projects financed under the American Recovery and Reinvestment Act.
The Canada-U.S. Agreement on Government Procurement has three parts:
- provincial and territorial procurement commitments under the WTO Agreement on Government Procurement (GPA) for all provinces and territories (except Nunavut) in exchange for U.S. sub-federal GPA commitments;
- temporary Canadian procurement commitments for construction projects for some provincial/territorial agencies not included in the GPA and a significant number of municipalities in exchange for the U.S. exempting Canada from the Buy American provisions of the Recovery Act for 7 programs of interest that receive funding from Recovery Act; and
- a commitment to explore the scope for a long term government procurement agreement between Canada and the U.S., within the next 12 months, to deepen on a reciprocal basis, procurement commitments beyond those in the WTO GPA and NAFTA.
Text of the Canada-U.S. Agreement on Government Procurement HTML | (PDF * 1.32 MB)
Information on Canada-U.S. Agreement on Government Procurement
Office of Management and Budget Notice on Canada-U.S. Government Procurement Agreement (PDF * 167 KB)(Note that this is an external site and is provided in English only)
U.S. Housing and Urban Development Program Federal Register Notices on Canada-U.S. Government Procurement Agreement (* note that this is an external site and is provided in English only)
Foreign government procurement markets are worth hundreds of billions of dollars annually and offer significant potential opportunities for Canadian exporters. Governments, suppliers, and taxpayers have all benefitted from the efforts to open government procurement markets. Government procurement agreements help to ensure that Canadian suppliers of goods and services are treated in an open, transparent and nondiscriminatory manner when they sell to governments outside of Canada.
Canada is working on a number of fronts to improve and secure government procurement market access for Canadian suppliers. The WTO Agreement on Government Procurement is the primary plurilateral instrument guaranteeing access for Canadian suppliers to a number of important government procurement markets. The North American Free Trade Agreement Chapter 10 and recently negotiated procurement chapters in free trade agreements with Chile and Peru, along with other ongoing bilateral and regional negotiations, offer other important opportunities for Canadian suppliers.
WTO - World Trade Organization
In the WTO there are three areas of work on government procurement: the plurilateral Agreement on Government Procurement, the Working Group on Transparency in Government Procurement, and the Working Party on GATS Rules (services).
Agreement on Government Procurement
The WTO Agreement on Government Procurement (AGP) is the primary plurilateral instrument guaranteeing access for Canadian suppliers to the government procurement markets in the United States, the European Union, Japan, South Korea and other important markets. While most WTO agreements are multilateral and include all WTO members, the AGP is a plurilateral agreement because not all WTO members participate in the AGP. The current list of AGP members is available here. In addition, several WTO members, including China and Jordan, are pursuing accession to the Agreement.
- WTO - Agreement on Government Procurement
Appendices and Annexes defining the coverage of each Party’s obligations under the agreement, including thresholds, entities, goods, services, construction services and derogations.
Negotiations under Article XXIV:7 (b) and (c) of the AGP – Canada continues to seek improved market access commitments through an ongoing review of the AGP. Negotiations aimed at expanding coverage, eliminating discriminatory provisions and simplyfing the agreement are ongoing. In December 2006, AGP Parties provisionally agreed on a revised text.
Explanatory Note Regarding Canada's Annex 2, Sub-Central Government Entities, and Annex 3, Government Enterprises - August 2002
Modifications to Canada's Appendix I of the WTO Agreement on Government Procurement (PDF 151 kb)
Provides a revised listing of federal government organizations that are subject to Canada's procurement obligations under Annex 1 and Annex 3 of Appendix 1 of the WTO-Agreement on Government Procurement, submitted to the WTO Committee on Government Procurement.
WTO - Working Group on Transparency in Government Procurement (WGTGP)
WTO - Working Party on GATS Rules (WPGR)
WTO – Ministerial Meeting in September 2001
Information Paper providing Canada’s objectives at the WTO Ministerial that took place in Doha, Qatar from November 9-13, 2001.
NAFTA - North American Free Trade Agreement
NAFTA Chapter 10 provides for Canada, the United States and Mexico to open markets for government procurement to each other's suppliers. The agreement specifies the procurement to be opened and a framework of open and transparent processes that all three Parties have agreed to follow.
- North American Free Trade Agreement (NAFTA) Chapter 10 - Government Procurement
CCFTA - Canada-Chile Free Trade Agreement
CCFTA Chapter Kbis provides for Canada and Chile to open markets for government procurement to each other's suppliers. The agreement specifies the procurement to be opened and a framework of open and transparent processes that the Parties have agreed to follow.
Canada Chile Free Trade Agreement (CCFTA) Chapter Kbis - Government Procurement
CPFTA – Canada - Peru Free Trade Agreement
CPFTA negotiations, concluded in early 2008, included negotiations of a comprehensive procurement chapter that will provide for Canada and Peru to open markets for government procurement to each other’s suppliers. The CPFTA came into force on August 1, 2009.
FTAA - Free Trade Area of the Americas
A Free Trade Area of the Americas (FTAA) would improve the access of Canadian firms selling their goods and services to foreign governments within the hemisphere and ensure that Canadian suppliers are treated in an open and non-discriminatory manner.
- Free Trade Area of the Americas (FTAA) - Government Procurement
Other Regional and Bilateral Negotiations
Government procurement is included in Canada’s trade negotiations with the Central American Four (CA4 – El Salvador, Guatemala, Honduras and Nicaragua), CARICOM, Colombia, the Dominican Republic, Singapore and South Korea.
For further information on Canada’s trade negotiations and agreements please visit the website.
Studies
In 2001 and again in 2008, the Department of Foreign Affairs and International Trade conducted a study of Canadian exporters’ market access priorities in the area of government procurement. The reports from those studies are attached below.
Related Links
- Business Access Canada - Government Procurement Business
- Treasury Board of Canada Secretariat - Contracting Policies and Guidelines
- Public Works and Government Services of Canada (PWGSC) - Includes links to MERX procurement notices, PWGSC Manuals, and Standard Acquisitions Clauses and Conditions (SACC)
- MARCAN – Procurement Information on Provinces, Territories and the Federal Government
SELL2USGOV.CA – Information on U.S. Government Procurement for Suppliers
Accessibility Notice:
If the following documents are not accessible to you, please contact Foreign Affairs & International Trade Canada at the Multilateral Market Access Division(TMA), Foreign Affairs & International Trade Canada, 125 promenade Sussex Drive, Ottawa, Ontario, K1A 0G2; or Fax: 613- 996-0612 ; E-mail : consultations@international.gc.ca to obtain an appropriate format.
Note: Texts are posted in Acrobat (pdf) files.To view or download pdf files you need Adobe® Acrobat® Reader™ a free software that you can download from the web.
