International Trade Agreements

International trade agreements are agreements between countries that include government-procurement obligations intended to reduce trade barriers between the parties. Canada is party to several of them, and CanadaBuys lists the Canada-European Union Comprehensive Economic and Trade Agreement (CETA), the World Trade Organization Agreement on Government Procurement (WTO-AGP), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Canada-United Kingdom Trade Continuity Agreement (Canada-UK TCA).

In Canadian public procurement, these agreements establish market-access and procedural rules. They determine which entities and which goods or services are covered, what tender-notice requirements and time periods apply, and which exceptions are available, as set out in the general principles on trade agreements. The domestic Canadian Free Trade Agreement (CFTA) can apply alongside the international agreements.

Chapters and annexes: where the rules sit

The agreements are implemented through government-procurement chapters and annexes. The chapters generally contain the procedural obligations, such as notices and time periods. The annexes identify covered entities, commodities and Canadian exceptions, according to the CanadaBuys general principles page.

Where more than one agreement applies to a procurement, the buyer must comply with all of them at the same time. A single federal solicitation can therefore carry the obligations of several agreements.

How coverage is determined for a procurement

A procurement is covered when its estimated value reaches the applicable threshold, the buying entity and the requirement are covered, and no exclusion applies. Buyers assess the value, the requesting entity, the type of requirement, any exclusions or exceptions, and any special programs. The estimated value includes options and applicable taxes, as described in the CanadaBuys guidance on trade agreement applicability.

This means two similar requirements can be treated differently. One may fall under an agreement because of its value and the department buying it, while another may be excluded or fall under an exception.

Advertising, tender notices and award reporting

For procurements covered by one or more agreements, the buyer must follow the agreements' public-advertisement and notification provisions. Covered competitive procurements generally must be advertised through the designated tendering service unless an exception applies, per the CanadaBuys guidance on tender notices and trade agreements. Tender opportunities subject to a trade agreement and meeting the applicable dollar threshold are published on CanadaBuys, and the tender notice identifies the agreements that apply, as explained in the guide to finding tender opportunities.

Reporting continues after award. For procurements subject to international trade agreements and the CFTA, the buyer must post an award notice within 72 days of contract award and accurately identify the agreements for reporting purposes, according to the CanadaBuys award guidance.

Reciprocal procurement and supplier eligibility

Under Canada's Interim Policy on Reciprocal Procurement, suppliers from a trading-partner country are eligible for a federal procurement when it is subject to the agreement between Canada and the country where the supplier's business is located.

Solicitations spell this out. A Department of National Defence request for proposals listed the CFTA, other Canadian free-trade agreements, CETA, CPTPP, the Canada-UK TCA and the WTO-AGP. It stated that only Canadian suppliers and suppliers from an applicable trading partner were eligible under its reciprocal-procurement provisions.

What this means for a supplier bidding on Canadian public contracts

• Read the trade-agreement and eligibility clauses in each solicitation, and check which agreements the tender notice lists.
• Confirm that your place of business is in Canada or in a trading-partner country covered by the agreements that apply.
• Review the coverage, exclusions and exceptions the solicitation identifies.
• Follow the stated bidding procedures and deadlines.

These obligations are written mainly as buyer-side procurement rules and solicitation conditions. There is no single universal supplier registration or certification for trade agreements, so the solicitation itself is the document to read.