Frequently Asked Questions: Canada-Chile Free Trade Agreement (CCFTA)

This Qs&As document is being developed through questions posed by the procurement community. The initial questions were asked by procurement practitioners who graciously reviewed the Contracting Policy Notice (2008-5) while it was still in draft form. New questions are welcome, and answers will be posted as questions are received. Please send your questions to barbara.brackett@tbs-sct.gc.ca.

1. Given that NAFTA and the WTO-GPA require posting for 40 days, what is the purpose of a 30 day time limit for tendering under CCFTA, and under what circumstances could Canada take advantage of the reduced period?
2. What is the purpose of “extended transparency”?

1. Given that NAFTA and the WTO-GPA require posting for 40 days, what is the purpose of a 30 day time limit for tendering under CCFTA, and under what circumstances could Canada take advantage of the reduced period?

Although NAFTA and the WTO-GPA each require a period of 40 days for open tendering procedures, the posting period may be reduced to no less than 24 days where a notice has been published for a period of no less than 40 days and no more than 12 months [NAFTA Article 1012(3) and WTO-GPA Article XI(3). An example of a notice being published in advance of the mandatory posting period would be an annual procurement plan that a department makes public. In this situation, if the procurement is also covered by CCFTA, then the posting period could be 30 days.

2. What is the purpose of “extended transparency”?

A primary purpose of trade agreements is to open foreign markets for Canadian suppliers. Generally, trade agreement partners open their markets on the basis of reciprocity. In other words, if Canada permits foreign suppliers access to our markets, then Canadian suppliers would be given reciprocal privileges to the market of the other Party to the trade agreement.

While extended transparency obligations do not require either Party to accept bids or to provide market access to the other Party's suppliers, the benefit is that Canadian suppliers will gain information with respect to the operation of foreign government procurement markets. The information is useful to a company's marketing interests. It can learn how a foreign government market operates and can market its goods and services regardless of market access.