Trade Agreement Threshold

As part of the Caribbean Basin Trade Initiative, the U.S. Trade Representative established that acquisitions covered by the WTO ACCORD must be considered eligible for finished products, building materials and services in the Caribbean Basin. In accordance with Section 201 (a) (3) of the Dominican Republic-Central America-United States Free Trade Implementation Act (Pub). L. 109-53) (19 U.S.C 4031), when the CAFTA-DR agreement enters into force for a country, that country is no longer designated as a recipient country for the Caribbean Basin Economic Recovery Act and is therefore no longer included in the definition of the “Caribbean Basin Country” for the Caribbean Basin Trade Initiative. This rule amends the far to make minor changes to the WTO GPA and free trade agreements. The revisions do not result in new charges or, with the exception of changes to the threshold themselves, the applicability of clauses and provisions on or below the simplified acquisition threshold or commercial positions. As part of Canada`s free trade agreements with Chile, Colombia and Ukraine, there are “increased transparency” obligations to provide suppliers with information on purchases that they cannot provide, but for which a procedure (1) is applied to open tendering, and (2) the supply value exceeds US$124,000 for Chile and Ukraine and US$150,000 for Colombia. The public procurement obligations of other trade agreements to which the Government of Canada is a party will continue to apply. It is strongly recommended that companies review the obligations under these agreements to ensure that they establish the changes resulting from the resignation of NAFTA. 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. All thresholds apply for the period from January 1, 2020 to December 31, 2021.

(2) This restriction does not apply to purchases of supplies by the Ministry of Defence from a country with which it has a mutual agreement, as stipulated in the department`s provisions. In December 2019, the USTR set the applicable supply thresholds from January 1, 2020 to December 31, 2021. For gases, all products apply, unless they are listed in the provision on the non-application of the chapter for public procurement or in the schedule to specific exceptions for public procurement. As a general rule, international trade agreements apply to all products. For the Department of National Defence (DND), the Royal Canadian Mounted Police (RCMP) and the Canadian Coast Guard (CCG), only certain goods are covered. Examples: from July 1, 2020, the following thresholds will apply to markets subject to free trade agreements in which the federal government participates: b) under the World Trade Organization Agreement on Public Procurement (WTO) and any free trade agreement, there is a U.S. timetable listing services excluded from this agreement if adopted by the United States. The acquisition of the following services is excluded from coverage by the U.S. schedule of the World Health Organization (AMP) or by an ESTV as shown in this table: a version of Article 504, which is suitable for printers, with the appropriate thresholds, is also available here.

(1) Under the Trade Agreements Act (19 U.S.C. 2512), you only purchase finished products from the United States or a particular country or country, unless the offers for these finished products or services are insufficient or insufficient to meet the requirements. This purchase restriction does not apply below the WTO GPA threshold for supplies and services, even if the acquisition is covered by a free trade agreement.