Post on 02-Feb-2018
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CANADA - EUROPEAN UNION TRADE NEGOTIATIONS CLINIC
Presented at the Annual Convention of the Union of British Columbia Municipalities
September 19, 2013 7:30 AM to 8:15 AM
Outline
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1. Why Trade? 2. Benefits of Trade 3. Trade Agreements – What They Do and Don’t Do 4. Update on Canada’s International Trade Negotiations 5. Update on the Canada-EU Comprehensive and
Economic Trade Agreement (CETA) 6. Principle Commitments Applicable to Municipalities 7. Guidelines for Procurement Obligations 8. Discussion
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British Columbia is highly trade dependant
We produce more than our domestic market consumes
1 in 5 jobs in British Columbia is dependent on trade
Why Trade?
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Achieve economic growth and prosperity
Increase opportunities, jobs and investment
Gain access to a wider choice of products and services
Obtain best quality and price for consumers and taxpayers
Encourage the exchange of ideas, research, innovation and latest technological advancements
Benefits of Trade
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Trade Agreements
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International • World Trade Organization
General Agreement on Tariffs and Trade General Agreement on Trade in Services General Agreement on Government Procurement
• FTAs, e.g., North American Free Trade Agreement • More to come, e.g., CETA
Domestic • Agreement on Internal Trade • Trade, Investment and Labour Mobility Agreement • New West Partnership Trade Agreement
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Trade Agreements - What they do
Reduce costs for businesses and consumers through the elimination of tariffs
Provide open, non-discriminatory treatment of businesses, workers and investors
Protect important public policy objectives such as environment, health, public services
Reconcile unnecessary and burdensome differences in standards and regulations
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Trade Agreements - What they don’t do Require local government to choose
lowest priced goods and services
Erode local government authority over public policy goals, so long as they are non-discriminatory
Force privatisation/commercialisation of public services
Compromise water quality/safety
Restrict the ability of government to protect consumers and the health, safety and well-being of workers
Canada’s International Trade Negotiations
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• European Union • Trans Pacific Partnership • India • Japan
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Canada – European Union Negotiations towards a Comprehensive Economic and Trade Agreement
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Joint study 2008
Negotiations started May 2009
Comprehensive: tariff and non-tariff barriers, goods and services, regulatory cooperation, investment, labour mobility, and procurement
Provinces and Territories at the table for the first time (in areas of provincial jurisdiction)
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Services & Investment
Environment
Labour
Regulatory Cooperation and Technical Barriers to Trade
State Enterprises
Procurement
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Municipal Feedback
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Consultations with your members, executive and businesses in your community
Federal government (e.g., Federation of Canadian Municipalities, Canada Gazette, Canadian industry and sector associations)
April 2011 presentation to UBCM Executive Work closely with Ministry of Community, Sport and Cultural
Development Industry consultations and survey
We’ve heard issues of concern from municipalities: Municipal procurement Water Privatization and commercialization of public services
Municipal Procurement
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A key “ask” of the European Union is that all provincial ministries, Crowns, and the MASH sector are covered
Considerable flexibility, high thresholds
Do not have to accept lowest bid
Businesses in your communities gain access to vast EU market opportunities
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Water
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Water, in its natural state, is not considered a good
Federal and provincial measures prohibit the bulk removal of boundary waters
Trade agreements do not set safety standards for drinking water
All companies operating in Canada, both domestic and foreign, must respect Canadian laws and regulations
Privatization of Public Services
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Trade agreements do not require countries to privatize or deregulate their public services
Decisions to either privatize or deregulate in certain public sectors are guided by domestic policy decisions, not by foreign governments or suppliers
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Timelines & Next Steps
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Negotiations could be concluded in 2013 Agreement-in-principle Legal review; translation Ratification and implementation period 18-24 months In effect 2015
Principle Commitments applicable to Municipalities
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Subsidies – must avoid targeted subsidies that harm the economic interests of others
Procurement
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General Procurement Obligations
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All agreements have common procurement obligations:
1. Openness – open tendering, sole source in narrowly defined circumstances only.
2. Non-Discrimination – no local preference, treat all qualified suppliers equally.
3. Transparency – post all requirements on-line (BC Bid), make procurement policies available, etc.
Guidelines for Procurement Obligations
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The Guidelines incorporate obligations under three major trade agreements:
NWPTA -- New West Partnership Trade Agreement AIT -- Agreement on Internal Trade GPA -- World Trade Organization General Procurement Agreement
• Municipalities are currently covered by the NWPTA and the AIT
• Municipalities will likely be covered under the proposed CETA agreement between Canada and the EU
• Thresholds much higher, coverage narrower than the NWPTA
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Procurement Guidelines
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• By following them, municipalities can be reasonably assured of being in compliance with their trade obligations
• Are not a legal document; actual text of the trade agreements prevails in a dispute
• If you are compliant with the New West Partnership Trade Agreement, you are likely to be compliant with the other agreements
Thresholds
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Procurement of Ministries Crown corporations MASH*
NWPTA
Goods $10,000 $25,000 $75,000
Services $75,000 $100,000 $75,000
Construction $100,000 $100,000 $200,000
AIT
Goods $25,000 $ 25,000 $100,000
Services $100,000 $100,000 $100,000
Construction $100,000 $100,000 $250,000
GPA (updated every two years)
Goods $560,300
Not covered Services $560,300
Construction $7,800,000
*regional, local, district or other forms of municipal government, school boards, publicly-funded academic, health and social service entities, as well as any corporation or entity owned or controlled by one or more of the preceding entities.
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Advantages
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These obligations provide: • A fair and level playing field for British Columbia
suppliers seeking markets outside of the Province
• A competitive market within British Columbia that assures taxpayers of value for taxpayer dollars spent in public procurements
Useful links for more information
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Ministry of International Trade http://www.gov.bc.ca/mit/
New West Partnership Trade Agreement http://www.newwestpartnershiptrade.ca/
Department of Foreign Affairs and International Trade Canada-EU Negotiations
http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/eu-ue/can-eu.aspx?view=d
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Janel Quiring Director International Trade
Janel.Quiring@gov.bc.ca 250-356-5867
Robert Musgrave Director Trade Policy
Robert.Musgrave@gov.bc.ca 250-356-5867
Contacts Ministry of International Trade Trade Initiatives Branch E-mail: ceta@gov.bc.ca