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Trade Agreements

The Ontario government has been working with the federal government, provinces and territories to build stronger ties with trading partners through the negotiation of agreements that remove barriers to trade and investment. As a covered entity, the University of Toronto is responsible for compliance with procurement-related commitments in the relevant chapters of the CFTA (Chapter 5 – Government Procurement), CETA (Chapter 19 – Government Procurement), and the OQCTA (Chapter 9 – Public Procurement).

The Canadian Free Trade Agreement (CFTA)

In effect as of July 1st, 2017, this domestic (inter-provincial) trade agreement replaced the Agreement on Internal Trade (AIT) and promotes open procurement practices among public sector organizations.

The open competitive bid thresholds under CFTA are noted below, however, the University will follow the Broader Public Sector Procurement Directive threshold of $100,000 for goods, services and construction:

  • Goods and Services = $105,700
  • Construction = $264,200

The Canada-European Union Comprehensive Economic and Trade Agreement (CETA)

In effect as of September 21st, 2017, this international trade agreement expands the opportunities for suppliers in both the EU and Canada to bid on public procurements. The rules apply only in certain circumstances, namely:

  1. Procurements by a “covered entity”
  2. Are in respect of specified goods, services or construction, which
  3. Exceed certain minimum value thresholds. The open competitive bid thresholds under CETA allowing European Union suppliers to participate in and be considered for bid calls are as follows:
    • Goods and Services = $366,200
    • Construction = $9,100,000

Note: These values will be adjusted for inflation every 2 years. Revised thresholds will be posted by the federal government.

The Ontario-Quebec Trade and Cooperation Agreement (OQTCA)

This is a bi-lateral trade agreement between Ontario and Quebec, and aligns with the CFTA. The open competitive bid thresholds under the OQTCA for goods, services and construction are the same as those stipulated by the Broader Public Sector Procurement Directive and the University Procurement Policy including construction. This threshold is set at $100,000.