The Globe and Mail reports today that, “all 10 provinces have reportedly agreed to sign the WTO procurement agreement, which limits their ability to favour local businesses when awarding contracts.”
Signing the World Trade Organization Agreement on Government Procurement means, “Canadian provinces must (permanently) open their own markets to outside governments, both foreign and domestic, seeking to bid on provincial and municipal contracts.”
The 39 other signatories to this WTO agreement include Great Britain, France, Germany, Italy, China and Japan.
“In Ontario’s case, $10-billion worth of work will be open to all comers.”
“The agreement will also unblock a major obstacle to a proposed trade agreement between Canada and the European Union. The EU enjoys internal free trade, and wants access to provincial as well as national markets.”
US President Barack Obama had indicated that the signing of the WTO agreement would be one way for Canada to gain exemption from ‘Buy American’ provisions in US stimulus spending.
The CBC reports that, “The agreement (between Canada and the United States) applies only to U.S. funding delivered under the current stimulus program, not future legislation that might include ‘Buy American’-type provisions.”
CBC-TV reports that $199.3 billion of the original $275 billion available for infrastructure projects has already been allocated.
“(But) the Canadian government is arguing the deal sets a precedent for future stimulus spending in the U.S.”
The Financial Post adds that, “The two sides are said to have agreed to continue negotiations on a broader procurement deal.”
Details of the agreement are expected to be announced today at 8:00 am EST.
