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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 [email protected]
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 ?
