Industry News

U.S., Canada Reach Deal on "Buy American" Requirements, Agree to Open Sub-Federal Government Procurement

February 8, 2010


United States Trade Representative Ron Kirk announced Friday that the U.S. and Canada have tentatively agreed to reciprocally eliminate domestic content requirements in sub-federal government procurement. The tentative agreement includes permanent and reciprocal commitments under the World Trade Organization (WTO) Government Procurement Agreement (GPA) with respect to provincial, territorial and state procurements on both sides of the border.

As a result, U.S. companies will have permanent access to Canadian provincial and territorial procurement markets under the GPA and Canadian companies will have access to the procurement markets of the 37 U.S. states already covered by the GPA.

The U.S. had resisted opening up its sub-federal procurements to Canadian companies because Canada had never covered any of its provinces under the GPA. Canada had resisted opening its sub-federal procurement market to U.S. companies because of complaints over U.S.Canada would provide U.S. suppliers with access to a range of construction contracts across Canada's provinces and territories, as well as in a number of municipalities.

Both sides will have to complete their respective domestic approval processes and sign the agreement before it can take effect. Approval and signing are expected to take effect by approximately February 16, 2010.