Bidding Opportunities Under Trade Agreements

Canada has signed a number of national and international agreements to eliminate trade barriers, facilitate the cross-border movement of goods and services, and increase investment opportunities for Canadian business. These include the Agreement on Internal Trade (AIT), an agreement between the federal government and the provinces; the North American Free Trade Agreement (NAFTA), an agreement between Canada, the United States and Mexico; the World Trade Organization Agreement on Government Procurement (WTO-AGP), an agreement between a number of countries worldwide.

Eligibility Criteria

In general, qualification requirements include an assessment of the financial, technical and managerial skills of the supplier to ensure that the supplier can fulfill the contract.

Summary

The AIT and NAFTA agreements deal with all aspects of trade including government procurement. The WTO-AGP only deals with government procurement. This means that for procurements covered by these agreements, Public Works and Government Services Canada (PWGSC) and other government departments have to follow certain rules. The procurement process must be open, fair and transparent. The agreements emphasize a consistent approach to the procurement process and each contains a principle of non-discrimination to ensure that a supplier can expect to be treated no less fairly than any other supplier.

Coverage varies widely from agreement to agreement. The following are the main points for each of the agreements.

Agreement on Internal Trade
The Agreement on Internal Trade (AIT) came into effect on July 1st, 1995 and applies to most federal government departments and seven Crown corporations. The AIT applies to all procurement of goods valued at $25 000 and up, and the procurement of services and construction valued at $100 000 and up. The AIT does not apply to procurement related to cultural industries, Aboriginal culture, national security or financial services.

North American Free Trade Agreement
The North American Free Trade Agreement (NAFTA) came into effect on January 1st, 1994 and applies to most federal government departments and ten crown corporations. NAFTA applies to the procurement of goods valued at more than $32 400 (Canada/US) and $84 000 (Canada/Mexico), the procurement of services valued at $84 000 or more, and to construction contracts worth $10.9 million or more. For Crown corporations, NAFTA applies to the purchases of goods and services valued at $420 000 or more, and construction contracts valued at $13.4 million or more.

World Trade Organization Agreement on Government Procurement
The World Trade Organization Agreement on Government Procurement (WTO-AGP) came into effect on January 1st, 1996 and applies to most federal government departments. The WTO-AGP applies to the procurement of goods or services valued at $245 000 or more, and construction requirements valued at $9.4 million or more. The World Trade Organization Agreement on Government Procurement (WTO-AGP) is a multilateral agreement which aims to secure greater international competition for government procurement.

NAFTA and WTO-AGP
Excluded Goods and Services for Canada
In addition to some general exceptions like procurements related to national security, the following five groups of service contracts are completely excluded from NAFTA and/or WTO-AGP:

• research and development;
• health and social services;
• financial and related services;
• utilities;
• communications, photographic, mapping, printing and publications services.

How can I find out about opportunities?
All publicly advertised opportunities are listed on MERX^TM - an electronic tendering service (see the document MERX - Electronic Tendering Service).

U.S. opportunities are published in the Commerce Business Daily (CBD) and Mexican opportunities in the Diario Oficial de la Federación. Extracts from the publications appear on MERX^TM.

What can I do if I think I have not been treated fairly?
The NAFTA, the AIT and the WTO-AGP have a bid challenge mechanism for suppliers who believe that they have been treated unfairly, in accordance with the agreements. For the federal government, the Canadian International Trade Tribunal (CITT) is the independent third party for the bid challenge mechanism for contracts covered under the Agreement on Internal Trade, the NAFTA or the WTO-AGP.

Quebec Contact(s):
Eastern Quebec - Quebec
Public Works and Government Services Canada
Champlain Harbour Station
901 du Cap Diamant Street
Québec, Quebec  G1K 4K1
Telephone: 418-649-2872
Fax: 418-648-2209
Web site: http://www.pwgsc.gc.ca/text/index-e.html

Western Quebec
Public Works and Government Services Canada
Suite 7300, Place Bonaventure, South-East Portal
800 de la Gauchetière Street West
Montréal, Quebec  H5A 1L6
Telephone: 514-496-3390
Fax: 514-496-3822
Web site: http://www.pwgsc.gc.ca/text/index-e.html

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National Contact(s):
Business Access Canada
Public Works and Government Services Canada
Room 6C1, Phase III, Place du Portage
11 Laurier Street
Gatineau, Quebec  K1A 0S5
Fax: 819-956-6123
Toll-free (information): 1-800-811-1148
E-mail: ncr.contractscanada@pwgsc.gc.ca
Web site: http://www.pwgsc.gc.ca/text/index-e.html