Impact of Trade Agreements on Procurement in New · PDF fileProcurement Act are required in...

Impact of Trade Agreements

on

Procurement in New Brunswick

Service New Brunswick

October 25, 2017

Agenda

• Current legal environment

• Provincial Legislation

• Trade Agreements

– Purpose of Trade Agreements

– Types of Trade Agreements

• Preferential Treatment

• Pending Regulation Changes

• Questions

The Legal Environment

Internal Policies /

Standard Terms and Conditions

Most

Authority

Least

Authority

Canadian Statutes/Case Law

Provincial Legislation

Trade Agreements

Provincial Legislation

Two acts govern public procurement in NB:

• Procurement Act and Regulation 2014-93

– Goods

– Services

• Crown Construction Contracts Act

– Construction and building repairs

– Highways and road repairs

Purpose of Trade Agreements

• To reduce trade barriers, such as tariffs, quotas

or non-tariff barriers.

• To create more predictable, fair and transparent

conditions for businesses operating in other

jurisdictions or within foreign countries.

Purpose of Trade Agreements (cont’d)

• The procurement chapter establishes:

– A transparent and efficient framework to ensure fair

and open access to government procurement

opportunities

– General procurement rules/principles

– Scope of coverage (who and what is covered)

– Thresholds (when must we publicly tender)

– Dispute mechanisms

Trade Agreements

New Brunswick is party to 5 agreements:

• Atlantic Procurement Agreement (APA)

• Canadian Free Trade Agreement (CFTA)

• Quebec – NB Procurement Agreement

• Canada-EU Comprehensive Economic and Trade

Agreement (CETA)

• World Trade Organization Agreement on Government

Procurement (GPA)

Types of Trade Agreements

NB is subject to two types of trade agreements

that relate to procurement;

• Reciprocal

• Comprehensive

Preferential treatment

Preferential treatment can be applied:

• Below thresholds

• For goods and services in certain

circumstances (Emergency situation)

• For goods and services not covered by trade

agreements (health and social services)

• Treated unfairly by another Province?

– Please contact us at NBON@snb.ca

Thresholds for Government

Departments/Agencies

Goods

– $10,000 (APA)

– $25,000 (NB-QC & CFTA)

– $340,000 (CETA)

– $604,000 (GPA)

Services

– $50,000 (APA)

– $100,000 (NB-QC & CFTA)

– $340,000 (CETA)

– $604,000 (GPA)

Definitions

• “NB Manufacturer” means a manufacturer of

goods that has a place of business in NB

• “NB Supplier” means a NB manufacturer or

vendor

• “NB Vendor” means a vendor of goods or

services that has a place of business in NB

• “Place of Business” means an establishment

where a vendor or manufacturer regularly

conducts its activities on a permanent basis, is

clearly identified by name and is accessible

during normal business hours

The Numbers In 2016-17, Strategic Procurement procured over 893$

millions in goods and services on behalf of GNB

departments, agencies and school districts.

Pending Regulation changes

• Changes to the General Regulation under the

Procurement Act are required in order to comply

with trade agreement obligations (specifically

CFTA and CETA)

• Changes are expected this year

• Some new provisions cannot be used until the

new Regulation is in place

– Example: exemption for local food up to $340,000

Questions ?