Expanding
Government Procurement Opportunities
in Canada and the US
CSG/ERC Canada-US Relations Committee
August 7, 2011
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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.
3
Balancing Competing Interests
Can governments secure “best value” for taxpayers
at the same time as promoting
local economic/social development?
4
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
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Consequences of Local Preferences
Disrupt North America’s highlyintegrated supply chains; make US
and Canadian companies less
competitive globally; and can lead
to:
Increased project costs
Delays in project start-ups
Retaliatory protectionism that
could further disrupt trade and
create job losses
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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 provincial
governments 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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Case Study: Water Infrastructure
 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.
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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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THANK YOU
John F. Prato
Consul General of Canada in New York
john.prato@international.gc.ca
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