CETA - 5. Public procurement (Fr)

CETA - 5. Public procurement (En)

The provisions of CETA for the liberalization of the public market will allow a great opening to foreign competition on the public markets of the territory of the Parties.

However, derogations apply regarding sensitive issues. Governments retain the ability to introduce broad exclusions for the following reasons:

1. Reasons for national security and necessary measures for the protection of public morals, order and security;
2. Reasons related to human, animal and plant health;
3. Intellectual property;
4. Measures concerning the goods and services of disabled people, philanthropic institutions and work in penitentiary centers;
5. Aboriginal trade issues. Governments retain the right to give preference to their domestic enterprises when granting scholarships, loans, tax incentives, or in cases where the market is below a given threshold (see Sections 1. and 2. below regarding these thresholds). They are also flexible in determining technical considerations, social and environmental criteria, as well as in the form to choose for the market (open or limited).

1. The European Union

By granting Canada preferential access to the EU public market estimated at $2.7 trillion from the EU, the latter grants it the widest and most favorable access ever granted to a member of the G20. Canadian companies will have the opportunity to sell to the 28 EU member states, the European institutions (European Commission, European Parliament, and the Council of Europe), as well as the thousands of regional and local government entities within The union. For EU companies, this possibility applies for markets above a certain threshold (markets varying between 130,000 to 5 million special drawing rights). The EU market also covers a more comprehensive field than Canada in certain important sectors such as energy, institutions subject to public law, cultural industries and public transport.

Note that there are specific exclusions to the European Union public market, in particular with regard to:

1. At ports and airports;
2.  Broadcasting;
3. The postal sector;
4. Shipbuilding by public services, organizations subject to public law and local authorities.

2. Canada

Similarly, CETA allows EU businesses to compete in Canadian public markets at the federal, provincial and municipal levels; representing the most comprehensive and favorable access offered by Canada among all of its free trade agreements.

The Canadian threshold varies between $205,000 to $7.8 billion, and covers a wide range of sectors such as energy and public transit.

However, the market for certain sectors, such as those affecting public health and indigenous populations, is excluded from the scope of the Agreement.

Derogations also exist in sectors such as:

1. Agricultural products that are part of a food program;
2. Works of art and culture in Quebec and in municipalities, school boards, academic institutions in Canadian provinces and territories;
3. The co-production and airtime market (across Canada);
4. Research and development; Shipbuilding and repair (in some provinces);
5. Sensitive goods required by entities with a security mandate, such as the police force;
6. All major ports and airports; Some other regional exclusions for economic development.

© Weissberg & Weissberg 2015

All articles on CETA

All articles on CETA
1. Elimination of agricultural tariffs
2. Elimination of industrial tariffs
3. Services and labor mobility
4. Investment protection
5. Public procurement
CETA – 5. Marchés publics (FR)
CETA - 7. Sustainable development, environment and work
CETA - 8. Dispute resolution and monitoring

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