Trade Agreements

Canada-European Union (EU) Comprehensive Economic and Trade Agreement (CETA) and Canadian Free Trade Agreement (CFTA)

The Canada-European Union (EU) Comprehensive Economic and Trade Agreement (CETA) is a progressive trade agreement that upholds and promotes the values that Canada shares with the EU. This landmark agreement was signed on October 30, 2016 and entered into force on September 21, 2017.

In December 2014, federal, provincial and territorial governments began negotiations to strengthen and modernize the Agreement on Internal Trade (AIT). They were guided by direction from premiers and the federal government to secure an ambitious, balanced and equitable agreement that would level the playing field for trade and investment in Canada.

The new Canadian Free Trade Agreement (CFTA) resulted from these negotiations, entering into force on July 1st, 2017. It commits governments to a comprehensive set of rules that will help achieve a modern and competitive economic union for all Canadians.

The purpose of these directives and trade agreement is to ensure that procurement processes are managed consistently, and that publicly funded goods and services, are acquired through a process that is open, fair, and transparent.

This is based on five key principles:

  1. Accountability: Organizations must be accountable for the results
  2. Transparency: Organizations must be transparent to all stakeholders
  3. Value for Money: Organizations must maximize value from the use of public funds
  4. Quality Service Delivery: Receive the right product, at the right time, in the right place
  5. Process Standardization: Remove inefficiencies and create a level playing field

As a public sector entity, Western University is subject to these trade agreements and must comply with the regulations, including tendering notices and limited tendering (previously referred to as sole source exceptions).

Tender Notices

The CFTA and CETA monetary thresholds below indicate when an open, competitive procurement process (public tendering) is required.

 

Limited Tendering (Sole Source)

Limited tenders are under increased scrutiny and Western is required to publicly document and publish all sole source contracts within 72 days of award. Each report shall contain the name of the procuring entity, value and kind of goods or services procured, country of origin, and a statement of the conditions or reasons for the limited tender. Review limited tendering list

Procurement Services will be reviewing each limited tender exception and ensuring that it complies with the new regulations, as well as reviewing sole source spend on an aggregate level for vendors and departments. Where reasonable, where annual spend to a vendor is greater than $100k the goods or services should be procured through an open, competitive tendering process.

Some of the key changes to the acceptable limited tendering reasons or exceptions are as follows:

    • Loss of sole source exceptions for:
      • Services performed outside of Canada
      • Architects and Engineers
    • Additional sole source exception for:
      • IT procurement: This exemption applies to additional deliveries by the original supplier of goods or services if a change of supplier cannot be made for economic or technical reasons – such as requirements of interchangeability or interoperability with existing equipment, software, services, or installations procured under the initial procurement.