CSG/ERC Canada-US Relations Committee August 7, 2011 Expanding Government Procurement Opportunities in Canada and the US 1
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CSG/ERC Canada-US Relations Committee August 7, 2011
Expanding Government Procurement Opportunities
in Canada and the US
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Bedrock Principle of Procurement
Getting the “best value” for Canadian and American taxpayers by
enhancing competition.
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Best Value / Best Practices
To obtain “best value” for tax dollars,many States have adopted laws to promote transparency, fairness, and competition in procurement.
Organizations such as ABA, NASPO and NIGP have long supported “best value” principles along with transparency, fairness, and competition.
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Balancing Competing Interests
Can governments secure “best value” for taxpayers at the same time as promoting
local economic/social development?
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Resolving the Policy Debate Local procurement or competition/greater market access. Strengthening local economies through supply chains and
access to global markets. Helping SMEs to compete globally and remain the
lifeblood of local economies.
DRAFT 5
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Disrupt North America’s highly-integrated supply chains; make US and Canadian companies less competitive globally; and can lead to:
Increased project costsDelays in project start-upsRetaliatory protectionism that could further disrupt trade and create job losses
Consequences of Local Preferences
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Trade Supports Jobs Jobs supported by
Canada-US trade – 8 million jobs.
Canada is the most important export market for 35 of the 50 States.
We are each other’s first export markets for small- and medium-sized businesses.
< 30,000
30,000-70,000
70,000-125,000
125,000 - 200,000
> 200,000
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Globalization and Integrated Supply Chains Integrated supply chains continue to
emerge and grow. We already make things together for the private market. Companies want to expand to the public market.
In many sectors, local, state, and provincialgovernments are the primary purchasers.
We need commitments to maintain and strengthen supply chains.
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“We Make Things Together”
Our unique integrated trade relationship requires a unique response to procurement
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Benefits of Market Access
Access to Canadian markets at the national and subnational level offers major benefits for the US.
$6.7 billion in US exports are destined to all levels of government in Canada – $5 billion to provinces and municipalities.
$11.5 billion worth of Canadian goods are in inputs by US governments, $8.1 billion bought by State and local governments.
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Case Study: Water Infrastructure
$2.1B US trade surplus with Canada in the water/wastewater sector.
Many companies in this sector are small- and medium-sized businesses.
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The water/wastewater infrastructure sector illustrates not only the importance of our trade relations but also just how integrated the supply chain is.
Salem County, NJ: An example of the intended consequences of Buy American.
Both Canadian and American companies are delivering goods and services to ensure the highest level of public health and safety on both sides of the border.
Case Study: Water Infrastructure
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Canada-US Agreement on Government Procurement
Addressing the unintended consequences of Buy American
Canada-US Agreement on Government Procurement,February 2010 .Three major “win-win” components and signals both countries are committed to open markets.
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Canada-US Agreement on Government Procurement
A commitment to enter into discussions with a view to
exploring a long-term government procurement
agreement between Canada and the US
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Strengthening Government Procurement Barriers: High thresholds
and exclusions remain. Local governments are not
subject to trade agreements.
Confusion about what contracts companies can compete for.
13 States not signatories to the WTO’s GPA provisions.
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What State & Provincial Government Officials Can Do
Talk to economic development, international trade, and procurement colleagues about the benefits of competition.
Encourage a CSG National resolution supporting increased federal-state engagement on expanded market access for sub-federal procurement.
Contact USTR to learn more about how States can be advocates for expanded market access.
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