Guidance Document: Taking Privacy into Account Before Making Contracting Decisions

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Appendix C: Key International Trade Agreements

Agreement on Internal Trade

The Agreement on Internal Trade (AIT) applies to most federal government departments and 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 AIT does not apply to procurement related to cultural industries, Aboriginal culture, or national security.

North American Free Trade Agreement

The North American Free Trade Agreement (NAFTA) applies to most federal government departments and 10 Crown corporations. NAFTA applies to the procurement of goods valued at more than $38,000 (Canada-U.S.) and $89,000 (Canada-Mexico), to the procurement of services valued at $89,000 or more, and to construction contracts worth $11.5 million or more. For Crown corporations, NAFTA applies to the purchases of goods and services valued at $445,000 or more and construction contracts valued at $14.2 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 federal government departments. The WTO-AGP applies to the procurement of goods or services valued at $261,300 or more and construction requirements valued at $10.0 million or more. The WTO-AGP is a multilateral agreement that aims to secure greater international competition for government procurement.

NAFTA and WTO-AGP

Excluded goods and services for Canada

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 publication services.

All procurements can be subject to a determination, on a case-by-case basis and by appropriate levels of authority, of what is necessary for the protection of essential security interests relating to the procurement of arms, ammunition or war materials, or to procurement indispensable for national security or for national defence purposes. If such a determination is made, then the procurement may be exempted from the coverage of the trade agreements.

The following exceptions apply:

• purchases for commercial resale or use in the production of goods for commercial resale;
• for Canada, purchases under set-asides for small and minority businesses; and
• purchases for Transport Canada and Fisheries and Oceans Canada and communications equipment relating to Federal Supply Classifications 36, 70, 74.

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

Source: The above information has been reproduced from the Public Works and Government Services Canada document entitled Bidding Opportunities Under Trade Agreementson the Canada/Nova Scotia Business Service Centre Web site.

 

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