Canadian Federal Reciprocal Procurement Policy Regarding Foreign Suppliers Takes Effect

Beginning on July 14, a new federal procurement policy regarding foreign vendors took effect.

The new policy requires all new non-defense procurements over $10,000 involving an open competition by or on behalf of any federal department or agency of Canada by a foreign supplier be limited to whether the solicitation is subject to a trade agreement between Canada and the supplier’s jurisdiction. If a supplier is from a jurisdiction that does not have a trade agreement with Canada and applies to a procurement process, it will no longer be eligible to compete, with limited exceptions. Canadian suppliers will continue to be eligible to compete for all federal procurement opportunities.

The Treasury Board of Canada Secretariat issued a Contracting Policy Notice on July 10 regarding the policy, entitled the Interim Policy on Reciprocal Procurement, for all departments and agencies that have delegated authority for procurement from the Minister responsible for Public Services and Procurement Canada.

Contracts and solicitations posted prior to July 14 are not subject to this new rule

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