Purpose and Scope of the Agreement on Internal Trade
– Entered into force on July 1, 1995
– Includes government departments, agencies, commissions, and Crown corporations
– Aims to reduce and eliminate barriers to free movement within Canada
– Applies principles of non-discrimination, transparency, openness, and accessibility
– Covers procurement opportunities of governments, municipalities, and organizations
Procurement Thresholds and Equal Treatment
– Thresholds for tenders in the MASH sector (Municipal/Academic/Social Services/Healthcare)
– Public bidding contracts worth $100,000 or more (construction: $250,000 or more)
– Mandates equal treatment of people, goods, and services across Canada
– Eliminates buy local policies for procurement bids
– Exceptions allow for sole-source suppliers in specific circumstances
Goals and Benefits of the Agreement
– Ultimate goal is to eliminate barriers to trade, investments, and product mobility
– Promotes economic growth and development within Canada
– Increases competitiveness and market access for businesses
– Enhances consumer choice and lowers prices through increased competition
– Improves efficiency and productivity in the Canadian economy
Impact on Provinces and Territories
– Requires provinces and territories to comply with the Agreement’s principles
– Encourages harmonization of regulations and standards across jurisdictions
– Facilitates interprovincial trade and cooperation
– Supports economic integration and regional development
– Provides a framework for resolving trade disputes between jurisdictions
Criticisms and Future Developments
– Some stakeholders argue that the Agreement has not gone far enough in eliminating barriers
– Calls for further harmonization and standardization of regulations
– Ongoing discussions and negotiations to enhance the Agreement’s effectiveness
– Potential for expansion to include additional sectors or areas of trade
– Continual monitoring and evaluation of the Agreement’s impact and outcomes Source: https://en.wikipedia.org/wiki/Agreement_on_Internal_Trade
The Agreement on Internal Trade (AIT) entered into force on July 1, 1995, and includes government departments, agencies, commissions and Crown corporations of the 10 Canadian provinces, the three territories and the federal government.
The Agreement on Internal Trade is an intergovernmental agreement between the federal government and the provinces and territories to reduce and eliminate barriers to free movement of people, goods, services and investments within Canada. Under the Agreement, these governments have agreed to apply the principles of non-discrimination, transparency, openness and accessibility with respect to their procurement opportunities and those of their municipalities and municipal organizations, school boards and publicly funded academic, health and social services entities. The Agreement covers only those tenders where the procurement value exceeds a specified amount.
Currently, the thresholds require that all institutions in the MASH sector (Municipal/Academic/Social Services/Healthcare) tender for public bidding contracts worth $100,000 or more, or in the case of construction, $250,000 or more. The agreement mandates the "equal" treatment of people, goods and services anywhere in Canada. That means businesses in any province or territory are to be considered for procurement bids, eliminating "buy local" policies. There are some exceptions in the deal. Provinces or municipalities can still designate sole-source suppliers in particular circumstances. Its ultimate goal is to eliminate barriers to trade, investments and product mobility.
