Trade Agreement Thresholds

Trade agreement thresholds are the minimum estimated contract values at which a Canadian public procurement can become subject to one or more government-procurement trade agreements. The figure depends on the agreement, on whether the requirement is for goods, services or construction, and sometimes on the category of buyer.

A threshold is only the first test. According to CanadaBuys, a procurement is covered by a trade agreement when its estimated value is at least the applicable threshold, the client is covered and the requirement is covered. Reaching the dollar figure alone does not settle coverage.

The three conditions that decide trade agreement coverage

CanadaBuys identifies three cumulative conditions. The estimated value must meet the relevant threshold, the buyer (the client) must be a covered entity, and the goods, services or construction being purchased must be covered by the agreement. All three must be met.

Federal buyers are instructed to compare the estimated procurement value with the thresholds in the applicable Treasury Board Contracting Policy Notice. If the value is equal to or greater than the threshold, the procurement might be subject to trade agreements, as set out in the CanadaBuys trade agreement applicability guidance. The buyer then confirms the other two conditions.

Which agreements set the thresholds

The term comes from Canada's government-procurement obligations under several agreements:

• The Canadian Free Trade Agreement (CFTA)
• The World Trade Organization Agreement on Government Procurement (WTO-GPA)
• The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
• The Canada–European Union Comprehensive Economic and Trade Agreement (CETA)
• Bilateral free-trade agreements, including those with Chile, Colombia, Peru and Panama

Canada's government procurement trade policy page publishes agreement-specific information for agreements including Chile, CPTPP and CETA. Each agreement carries its own threshold values, so one contract can sit above the threshold for one agreement and below it for another.

Where the current threshold figures are published

The Treasury Board Secretariat publishes thresholds through Contracting Policy Notices. Contracting Policy Notice 2025-8 lists the current values for agreements including the CPTPP and the Canada–Colombia Free Trade Agreement, with separate values for goods, services and construction. The Secretariat states in Policy Notice 2025-5 that these thresholds are effective through December 31, 2027.

Thresholds are updated periodically, generally because the agreements require adjustment for inflation or currency changes. Earlier notices, such as Contracting Policy Notice 2023-6, show how the tables have been revised over time. A threshold table can also distinguish federal departments from other covered entities.

Thresholds also shape how departments structure their sourcing. The PSPC common business rules set out invitation rules by contract-value range, using labels such as "0–40K", "0–CKFTA", "CKFTA–4.5M" and "Over 4.5M".

Thresholds compared with low-dollar and NATO limits

Other dollar limits in Canadian procurement are not trade agreement thresholds. CanadaBuys separately defines low-dollar-value procurements as those not exceeding $25,000 for goods or $40,000 for services and construction, inclusive of taxes. That is a Canadian procurement-policy category, not a universal trade agreement threshold.

NATO also uses financial limits. Its Procurement Policy for NATO Common Funding ties procedures such as NATO competitive procurement and national competitive bidding to contract value. Those limits govern NATO common-funded purchasing and are a separate matter from Canada's trade agreement thresholds.

What trade agreement thresholds mean for a supplier

Where an agreement applies, the buyer must generally run the procurement according to that agreement's obligations. These can include non-discrimination, open competition, notice and procedural requirements, and the exact obligations depend on the agreement and any exclusions or exceptions.

Check each solicitation for the trade agreements it identifies, its eligibility rules, the commodity classification, the estimated contract value and any stated exclusions or exceptions. Then follow the bidding instructions exactly. A threshold does not give any supplier an automatic right to win a contract.