Guidance Document: Taking Privacy into Account Before Making Contracting Decisions


Appendix C: Key International Trade Agreements

Agreement on Internal Trade

The Agreement on Internal Trade (AIT) applies to most government institutions including seven Crown corporations. The AIT applies to the procurement of goods valued at $25,000 or more and to the procurement of services and construction valued at $100,000 or more. The following services are not covered by the AIT:

  • services by licensed professionals including doctors, dentists, nurses, pharmacists, veterinarians, engineers, land surveyors, architects, chartered accountants, lawyers and notaries;
  • hauling aggregate on highway construction projects;
  • services of financial analysts or the management of investments;
  • management of government financial assets and liabilities;
  • health and social services; and
  • advertising and public relations services.

In addition, 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) applies to most government institutions including ten Crown corporations. NAFTA applies to the procurement of goods valued at more than $27,300 (Canada-U.S.) and $76,600 (Canada-Mexico), to the procurement of services valued at $76,600 or more, and to construction contracts worth $9.9 million or more. For Crown corporations, NAFTA applies to the purchases of goods and services valued at $383,300 or more and construction contracts valued at $12.2 million or more.

The Agreement on Government Procurement of the World Trade Organization

The Agreement on Government Procurement of the World Trade Organization (WTO-AGP) applies to most government institutions. The WTO-AGP applies to the procurement of goods or services valued at $221,300 or more and construction requirements valued at $8.5 million or more. The WTO-AGP is a multilateral agreement that aims to secure greater international competition for government procurement.

NAFTA and WTO-AGP

In addition to some general exceptions like procurements related to national security, products for handicapped persons, philanthropic institutions or prison labour, and measures necessary to protect public morals, order or safety, the following specific commodities are excluded from NAFTA and WTO-AGP coverage:

  • ship building and repair;
  • urban rail and transportation components, materials, iron, steel and equipment;
  • transportation services that are part of, or incidental to, a procurement contract;
  • communications, detection and coherent radiation equipment in Federal Supply Classification (FSC) 58;
  • oil purchases related to any strategic reserve requirement;
  • purchases made in support of the safeguarding of nuclear materials;
  • dredging work; and
  • the following FSCs for the departments of Transport, Communications, and Fisheries and Oceans:
    70 (automatic data processing equipment, software supplies and support equipment);
    74 (office machines, text processing systems and visible record equipment); and
    36 (special industry machinery).

In addition, the following five groups of service contracts are completely excluded from NAFTA and WTO‑AGP:

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

Note: Dollar limits shown are known to change with inflation and for other reasons. Notification of such changes are issued through Contracting Policy Notices.

Source: The above information has been reproduced from information on "Trade Agreements" contained on the Contracts Canada Website..



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