Procurement Inquiry Rules Updated (NAFTA Removed)

Summary#

Canadian International Trade Tribunal Procurement Inquiry Regulations (Miscellaneous Program) (SOR/2020-66) are final amendments published on April 29, 2020. They remove references to NAFTA and update which international trade agreements the Tribunal must use when handling federal procurement complaints. The changes come into force when section 138 of the Canada‑United‑States‑Mexico Agreement Implementation Act comes into force (or on registration if later).

What it does#

• Repeals the old definition of NAFTA and replaces parts of the regulations so that “designated contracts” and complaint rules point to the current set of trade agreements instead.
• Updates wording throughout the regulations to refer to the relevant chapters, articles and annexes of a long list of trade agreements and procurement schedules (for example, the Agreement on Government Procurement, CETA, and the TPP are among those named in the text).
• Keeps a short transitional rule so contracts that were already designated under NAFTA and had procurement decisions made before these amendments come into force remain treated as designated for inquiries that were already in progress.
• Removes references to bilateral safeguard provisions that were repealed when Canada implemented CUSMA.

Who's affected#

• Potential suppliers (companies and individuals) who bid on or challenge federal government contracts that are covered by international procurement rules.
• Federal departments and federal enterprises that buy goods and services under the procurement schedules listed in the trade agreements.
• The Canadian International Trade Tribunal, which will apply the updated list of trade agreements when deciding procurement complaints.
• The regulatory documents note that the changes do not impose new costs on small businesses.

Why it matters#

• This changes which international agreements the Tribunal looks at when deciding if a federal procurement followed the right rules. In practice, some procurement complaints that used to be tied to NAFTA will now be judged under other agreements or CUSMA outcomes.
• It clarifies which government entities and contracts fall under Tribunal review, so businesses and procurement officials know which trade rules apply when a bid or tender is disputed.
• It removes a temporary (transitional) safeguard tool that existed under NAFTA, so one type of trade remedy is no longer available in the same way.