New Deal to Allow EU Restricted Access to Public Contracts

This article was last updated on April 16, 2022

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Several sources have revealed unconfirmed reports that the agreement-in-principle over Canada-EU free-trade deal includes major exceptions to the provisions allowing European firms to bid on provincial and municipal contracts, with provisions of Canadian-content rules for transit and an exemption for the Ontario agency responsible for major infrastructure projects.

The alleged agreement-in-principle outlined on Friday tends to include considerable signs to water down access to government procurement, though the list of exemptions has not yet been revealed. Canada and the European Union have agreed to an extremely vast range of trade agreements that will ease the atmosphere of trade and relief businesses from tariffs at borders, allowing services to be sold more smoothly, affect the prices of prescriptions, cars, cheese, and wine. In return, Canadian will also gain much more influential access to the world’s biggest market. Even though a final deal has not been agreed upon, the agreement-in-principle has shed plentiful light on the anticipated contract aimed at refining privileged access to the each other’s market.

The agreement-in-principle narrates that European firms shall be allowed to bid on public contracts of Canadian provinces, towns and utilities. Canadian goods, such as cars, electrical equipment, beef and pork will be sold to Europe tariff-free. In addition to that, The European Union is also stressing to gain access to Canada’s so-called “sub-national” contracts, as they strike them as very lucrative contracts ranging from infrastructure, transit, and utilities. The deal, so far, only allows bidding on contracts of certain sizes, i.e. more than $310,000 for provinces, $630,000 for utilities and $7.5-million for construction projects.

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