Trade Agreement Thresholds 2018

On November 30, 2018, the United States, Mexico and Canada signed the CUSMA. The CUSMA contains a chapter on public procurement, but Canada is not a party to this chapter, which concerns only Mexico and the United States. Subject: Updated thresholds for the allocation of thresholds for the allocation of free trade agreements Supply thresholds are the monetary values at which public procurement obligations resulting from Canada`s free trade agreements generally apply to specific government procurement by covered companies. The thresholds for public procurement are indexed every two years at the beginning of the calendar year according to the formula of the public procurement chapter of the applicable inflation agreement. The central/federal authorities apply the following adjusted thresholds for the purchase of goods and services: the proposed market notices, also known as tender notices, must be issued for contracts subject to free trade agreements. Crown departments, agencies and some companies are required to publish through the Government Electronic Tendering Service (GETS), provided by Utilities and Supply Canada via the „Offers“ page on the Buyandsell.gc.ca website. Every two years, the thresholds are updated in free trade agreements. This notice amends the thresholds set out in the 2018-01 Contract Policy Notice to provide new thresholds expressed in Canadian dollars. Every two years, in accordance with Executive Order 12260, the USTR sets the value of U.S. dollar thresholds in accordance with the formula set out in the GPA and free trade agreements. The last threshold provision of the USTR was published in the Federal Register (82 Fed).

Reg. 58248). The USTR will provide notifications of its adjusted thresholds to the WTO Public Procurement Committee and its ESTV partners. Other parties to the GPA and free trade agreements will make similar adjustments to reflect the thresholds in their local currencies. The U.S. Trade Representative (USTR) is required by Executive Order 12260 to set U.S. dollar thresholds for the WTO agreement on government procurement and free trade agreements. U.S. obligations under these agreements apply to covered purchases above or above U.S. dollar thresholds. The thresholds are adjusted every two years. In December 2019, the USTR set the applicable supply thresholds from January 1, 2020 to December 31, 2021.

Specific thresholds for the respective trade agreements can be contained in the Federal Acquisition Regulation (FAR) 25.402. The full rate of indexed thresholds applicable to all contracting entities covered by the CFTA, including provincial and municipal entities, is available on the CFTA secretariat website. The comprehensive and progressive agreement on the Trans-Pacific Partnership (CPTPP) will enter into force on December 30, 2018. The CPTPP is an international free trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Note that the CPTPP: The Trade Agreements Act of 1979 (TAA) implements international trade agreements and ensures non-discriminatory treatment in public procurement. The United States Trade Representative (USTR) has defined and announced new U.S. dollar supply thresholds that would implement the commitments of the U.S. trade agreement effective January 1, 2018 for calendar years 2018 and 2019. The TAA gives the President of the United States the power to waive the Buy American Act and other discriminatory provisions for countries that have signed international trade agreements with the United States and those that meet other criteria, such as the „Least Developed Countries.“ The President confers the power of the USTR to waive.