Procurement inquiries now cover Canada–Ukraine FTA

Summary#

These are final amendments to the Canadian International Trade Tribunal Procurement Inquiry Regulations (SOR/2024-69) that update which international trade agreements and federal entities count for procurement complaints. They add the Canada–Ukraine Free Trade Agreement and clarify what kinds of procurement-related complaints the Canadian International Trade Tribunal can consider. The rules come into force linked to section 9 of the Canada–Ukraine Free Trade Agreement Implementation Act, 2023 (see "Why it matters" for timing).

What it does#

• Replaces the definition of CUFTA to refer to the Canada–Ukraine Free Trade Agreement, done at September 22, 2023.
• Rewrites the rules about what counts as a "designated contract" so that contracts covered by specific articles or chapters in a list of international agreements are included. That list includes the Agreement on Government Procurement, CETA, TPP, and various chapters in Canada’s other free trade agreements, as well as CUFTA.
• Updates which federal government entities and federal government enterprises are treated as covered by those rules by pointing to the annexes and schedules in each trade agreement.
• Clarifies that the Tribunal can accept complaints that allege systemic issues in the procurement process for these designated contracts.
• Specifies that a complaint can proceed only if the information shows a reasonable indication the procurement was not carried out according to the applicable trade agreement chapter.

Who's affected#

• Federal departments and agencies that buy goods or services from suppliers.
• Federal enterprises and Crown corporations listed in the schedules and annexes of the referenced trade agreements.
• Canadian and foreign suppliers who bid on or are excluded from federal contracts covered by those trade agreements.
• The Canadian International Trade Tribunal, which will handle the revised scope of procurement complaints.
• It is unclear from the text whether any new provincial or municipal bodies are affected; the amendments focus on federal entities.

Why it matters#

• The changes make clear which international procurement rules apply when someone asks the Tribunal to examine a federal procurement. That affects who can file complaints and which purchases can be challenged.
• Adding the Canada–Ukraine Free Trade Agreement means procurements covered by that new agreement can be reviewed under these Tribunal rules once the related implementation law is in force.
• The amendments change which federal buyers and enterprises are covered by naming the annexes and schedules in each agreement. That can change which contracts are open to challenge by suppliers.
• These regulations come into force on the day section 9 of the Canada–Ukraine Free Trade Agreement Implementation Act, 2023 comes into force; if the regulations were registered after that day, they would come into force on the day they were registered. The Gazette lists registration as April 19, 2024 and publication as May 8, 2024, but the exact practical start date depends on when section 9 becomes effective.