Canada - European Union Comprehensive Economic and Trade Agreement

Transcription

1 Canada - European Union Comprehensive Economic and Trade Agreement Chapter 19: Government Procurement Presentation to: Canadian Public Procurement Council Forum Global Affairs Canada Wednesday, November 8, 2017

2 Why CETA? Canada A Trading Nation 1 in 6 jobs is related to exports Canadian exports of goods and services are equivalent to 2/3 of GDP Canada ranks 2 nd among the G7 for both trade and FDI as a share of GDP More than 40,000 Canadian companies export goods mostly SMEs! Canada-EU Bilateral Trade, 2016 Merchandise Services 2

3 Why CETA? Creating a Strategic Advantage for Canada The EU is the world s second largest integrated economy, with more than 500 million consumers and a $22 trillion GDP. * Excludes Canada ** Includes the UK Source: CETA Secretariat, GAC Data: International Monetary Fund - World Economic Outlook Database,

4 Why CETA? How did we get there? 4

5 Why CETA? Setting New Standards Tariffs Investments Barriers to Trade CETA Labour Mobility Public Contracts Services 5

6 EU s Key Request EU request: full coverage of government procurement substantially improved access to public procurement markets aiming to achieve full coverage of central and subcentral government procurement in all sector Source: Canada-European Union Joint Report: Towards a Comprehensive Economic Agreement Opportunities for Canadian suppliers: preferential access to the EU s $3.3 trillion procurement market. Federal and Provincial/Territorial (P/T) governments recognized that successful outcome in the Agreement as a whole would require comprehensive procurement commitments. 6

7 Overview Procedural Rules Set of rules requiring non-discrimination, transparency, impartiality and accountability Market Access Commitments Set of annexes specifying the entities, the goods and services (including construction services) as well as the thresholds that are subject to the procedures and obligations of the GP Chapter Specifies which procurements are subject to certain exceptions and exclusions 7

8 Key Principles Non-Discrimination Equal treatment for Canadian and EU firms [Article 19.4] Prohibition on offsets [Article 19.4 (6)] Transparency Clear rules and procedures are in place Contracting opportunities (e.g. notices, tender documentation) and award notices are posted [Articles 19.6 and 19.15] Laws, regulations, policies, and judicial ruling are published [Article 19.5 (1)] A Single Point of Access for procurement notices is created [Article 19.6 (1)] 8

9 Key Principles Impartiality Procedural rules are designed to ensure that all potential suppliers are treated equally Conditions for participation [Article 19.7] Qualification of Suppliers [Article 19.8] Technical Specifications and Tender Documentation [Article 19.9] Time Periods [Article 19.10] Negotiations [Article 19.11] Limited Tendering [Article 19.12] Electronic Auctions [Article 19.13] Treatment of Tenders and Awarding of Contracts [Article 19.14] Accountability Bid challenge mechanisms are in place [Article 19.17] 9

10 Key Provisions Article 19.2 (Scope and Coverage) The Chapter does not apply to: goods and services purchased for commercial sale or resale; acquisition or rental of land or immoveable property; and cooperative agreements, grants, loans, and procurements conducted under an international agreement. Article 19.3 (Security and General Exception) National security exceptions can be applied for procurements indispensable for national security interests or for national defense purposes. Procurements conducted to protect public safety, human, animal or plant life or health or intellectual property are not covered. Article 19.6 (Notices) By September 2022, all the notices of intended procurement shall be accessible online free of charge through a Single Point of Access (SPA). The types of information required in the notice of intended procurement are listed. 10

11 Key Provisions Article 19.9 (Technical Specifications) Procuring entities can apply technical specification to promote the conservation of natural resources or protect the environment. Article (Time-periods) Requires procuring entities to provide suppliers with sufficient time to submit request for participation and responsive tenders. Flexibility to use shorter timeline for tendering in certain instances (e.g. notice of intended procurement is published online). Article (Limited Tendering) Specifies the circumstances under which sole sourcing is permitted. 11

12 Key Provisions Article (Domestic review procedures) Canada and the EU are required to have in place administrative or judicial review procedure to allow suppliers to challenge any procurement decisions. Article (Committee on Government Procurement) CETA establishes a Committee on Government Procurement that will meet as necessary to provide the Parties an opportunity to consult on any matters relating to the operation of the GP Chapter. 12

13 Market Access Commitments Annex 19-1: Central Government Entities Almost all federal government departments and agencies are covered. Security/intelligence agencies are excluded as well as parliament and agents of parliament. Annex 19-2: Sub-Central Government Entities Each Province and Territory defines its scope of coverage. Annex 19-3 (Section A): Other Entities Lists the federal, provincial and territorial Crown Corporations that are covered. Annex 19-3 (Section B): Public Utilities Public utilities covered in Canada s schedule include: airports and terminals, urban transit, port facilities, drinking water and sewage infrastructure, electricity (generation and distribution), gas (heat generation and distribution). Special rules and exceptions may apply to these utilities. 13

14 Annex 19-4: Goods Generally all goods are covered, subject to certain exceptions. Annex 19-5: Services Only designated services (identified in accordance with the UN Central Product Classification UN CPC) are covered. E.g. engineering and architectural services, urban planning, consulting services, legal services, technical testing and analysis Annex 19-6: Construction Services Generally all construction services in the Division 51 of the UN CPC, subject to exceptions, are covered. Annex 19-7: General Notes Market Access Commitments Examples of specific exclusions for Canada: shipbuilding and repair; measures adopted or maintained for Aboriginal peoples; international crossings; broadcasting material; any in-house procurement or procurement made on behalf of noncovered entities 14

15 Thresholds Canadian firms will be able to compete for public contracts on a level playing field with their EU counterparts, for contracts at or above the following thresholds Goods and Services Thresholds* Annex 19-1: Central Government Entities 130,000 SDR 135,000 CAD$221,400 Annex 19-2: Sub-central Government Entities 200,000 SDR 209,000 CAD$340,600 Annex 19-3 (Section A): Other Entities 355,000 SDR 371,000 CAD$604,700 Annex 19-3 (Section B): Public Utilities 400,000 SDR 418,000 CAD$681,300 Construction Services All entities 5,000,000 SDR 5,225,000 CAD$8,500,000 *Thresholds are valued in Special Drawing Rights (SDR) and converted into Canadian and European currencies biannually. 15

16 Useful Links Canada s Trade Commissioner Service (tradecommissioner.gc.ca) Exporting to the EU - A Guide for Canadian Business (available at international.gc.ca/ceta) The European Union Government Procurement Guide for Canadian Businesses (international.gc.ca/ceta) Canada-EU CETA Canadian Statement on Implementation (international.gc.ca/ceta) Canadian notices of intended procurement at the federal level (Buyandsell.gc.ca) All tender notices for the EU Member States (ted.europa.eu) International Trade Agreements and Local Government: A Guide for Canadian Municipalities (international.gc.ca) 16

17 Questions? Nadine Nickner Deputy Director Government Procurement, Trade and Environment Global Affairs Canada Tel: