Purpose
The purpose of Policy Notification (PN)-148 is to inform Public Works and Government Services Canada (PWGSC) Acquisitions Program (AP) of the entry into force of the Canada-United Kingdom Trade Continuity Agreement and its effect on government procurement. The government procurement obligations of the Canada-United Kingdom Trade Continuity Agreement are the same as those of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA).
Effective date
PN-148 is effective April 1, 2021 as the Canada-United Kingdom Trade Continuity Agreement will enter into force on that date.
Background
On January 30, 2020, the United Kingdom of Great Britain and Northern Ireland (UK) formally left the European Union (EU). Subsequently, a transition period that saw the UK continue to be treated as an EU Member State for the purposes of all of Canada’s international agreements with the EU (e.g. CETA) ended on December 31, 2020. In order to ensure trade continuity, Canada and the UK have reached a new agreement called the Canada-United Kingdom Trade Continuity Agreement (Canada-UK TCA).
On April 1, 2021, the Canada-UK TCA will enter into force. The Canada-UK TCA, which includes government procurement obligations, is an interim agreement that will be in place as Canada and the UK work towards negotiating a comprehensive free trade agreement. CETA has remained and will continue to remain in force for government procurement obligations between Canada and the EU.
Overview
The entry into force of the Canada-UK TCA will have minimal impact on the federal procurement process. This is because the Canada-UK TCA incorporates CETA by reference. As a result, the government procurement obligations of the Canada-UK TCA, including procedural obligations (such as rules on notices and bid periods) and market access obligations (e.g. thresholds, covered entities, covered commodities, etc.), are the same as those of CETA. The only substantive difference between the two agreements is that CETA applies to government procurement obligations between Canada and the EU, whereas the Canada-UK TCA applies to government procurement obligations between Canada and the UK.
Therefore, as of April 1, 2021, to meet Canada-UK TCA obligations, contracting officers must determine whether the Canada-UK TCA applies to their procurements. As mentioned, the market access obligations of the Canada-UK TCA are the same as those of CETA, including covered commodities and entities. The thresholds of the Canada-UK TCA are also the same as CETA thresholds (i.e. $238K for goods and services, $9.1M for construction – the official thresholds Contracting Policy Notice will be posted on Treasury Board Secretariat’s Contracting Policy Notices page). This means that if CETA applies to a procurement, so does the Canada-UK TCA (and vice versa).
As the Canada-UK TCA has the same coverage as CETA, contracting officers should be aware that the following procurements will once again be covered for UK suppliers upon the entry into force of the Canada-UK TCA:
- Procurements of dredging services; and
- Procurements for the Canadian Space Agency related to satellite communications, earth observation and global navigation satellite systems.
These procurements have not been covered for UK suppliers between January 1, 2021 and April 1, 2021 as neither the Canada-UK TCA nor CETA were in force for government procurement obligations between Canada and the UK.
If a procurement is subject to the Canada-UK TCA, contracting officers must ensure that the Canada-UK TCA is indicated on any tender notices. The Canada-UK TCA will also need to be indicated for reporting purposes.
There will be no other changes to the PWGSC Acquisitions Program procurement process resulting from the entry into force of this agreement.
Further information on CETA can be found in Policy Notification (PN) - 122: Canada-European Union Comprehensive Free Trade Agreement (CETA).
Revisions to the Supply Manual
The Supply Manual has been revised to reflect this PN. For more details, refer to the Affected Supply Manual sections listed below.
Revisions to the Standard Acquisition Clauses and Conditions Manual
The SACC Manual has been revised to reflect this PN. For more details, refer to the Affected SACC Manual sections listed below.
Revisions to the Standard Procurement Templates
There are no changes to the Standard Procurement Templates.
Contact information
For further questions on the entry into force of the Canada-UK TCA, or for assistance with the application of the government procurement obligations of any of Canada’s trade agreements, contracting officers may contact the Trade Agreement Unit of the Strategic Policy Sector at tpsgc.paaccordscommerciaux-aptradeagreements.pwgsc@tpsgc-pwgsc.gc.ca.
Questions regarding to the Supply Manual can be sent by email to the following email: TPSGC.PASPSPublications-APSPSPublications.PWGSC@tpsgc-pwgsc.gc.ca.
Questions regarding the SACC Manual may be sent to the following email: TPSGC.Outilsdapprovisionnement-ProcurementTools.PWGSC@tpsgc-pwgsc.gc.ca.