Sectoral Chapters in the Agreement on Internal Trade
Procurement - Chapter 5
Governments will not be permitted to discriminate against suppliers from another province through means such as local price preferences, biasing technical specifications or imposing unfair registration requirements or unreasonable time constraints.
The Procurement Chapter:
- Prohibits policies that favour local suppliers of goods, services and construction in a market valued at over $50 billion annually. Broader coverage of Crown Corporations adds another $25 billion to the open procurement market for Canadian suppliers.
- Ensures that Canadian suppliers are able to bid on virtually all contracts of government departments which exceed $25,000 for goods and $100,000 for services and construction.
- Includes purchasing by municipalities, municipal organizations, school boards and publicly-funded academic, health and social services entities "MASH" sector where the procurement value is
- $100,000 or greater, in the case of goods or services; or
- $250,000 or greater, in the case of construction.
- Improves transparency in the government tendering process, including an undertaking to use electronic systems to facilitate access for all Canadian suppliers.
- Contains bid protest procedures for suppliers
- Includes special provisions for dispute resolution concerning the MASH sector.
Examples:
Governments cannot restrict bids to in-province firms or direct contracts to local suppliers. Governments cannot require contractors to use local materials on construction projects.
The closing date on tenders must provide sufficient time to allow bids from out-of-province suppliers.
Lists a number of federal and provincial agencies and Crown corporations, as well as some professional services, are currently excluded from the Agreement. Work is continuing to reduce the list of exceptions.
Contact Representative for Chapter 5:
Karen MacNaughton
Service Alberta
Phone: 780-427-0233
Fax: 780-415-4764
Email: karen.macnaughton@gov.ab.ca
The objective of the investment chapter is to ensure that Canadian firms are able to make business decisions based on market conditions rather than on restrictive government policies.
The Investment Chapter:
- Provides for non-discriminatory treatment of Canadian businesses regardless of where the head office is located, where the firm is incorporated or where the owners live.
- Limits the imposition of local presence and residency requirements as a condition of carrying on business or making an investment.
- Restricts the use of local content, local purchasing, and local sourcing requirements.
- Sets out a work program to reconcile corporate registration and reporting requirements, which should ease the compliance burden for firms conducting business in more than one province or territory.
- Contains a Code of Conduct on Incentives which prevents governments from giving incentives to specific enterprises to lure them away from other Canadian jurisdictions ("poaching"). It also discourages the use of incentives that could be harmful to the economic interests of other parts of Canada.
Example:
Governments cannot provide relocation incentives to firms of other provinces and agree to avoid providing subsidies which could harm firms in other provinces.
- Does not apply to municipal governments or to measures relating to procurement by governments and Crown corporations.
Shawn Robbins
International and Intergovernmental Relations
Phone: 780-422 1129
Email: shawn.robbins@gov.ab.ca
Labour Mobility - Chapter 7
The Labour Mobility chapter contains two fundamental elements that will increase access to jobs -- it restricts the use of residency requirements and establishes a process for the recognition of worker occupational qualifications and the reconciliation of occupational standards across Canada.
The Labour Mobility Chapter:
- Limits the use of residency requirements as a condition of licensing, certification and registration or as a condition of eligibility for employment and allows local hiring preferences to be used only in certain defined circumstances.
- Calls for licensing practices that are non-discriminatory, transparent and relate principally to competence.
Example:
Provinces cannot require electricians to live in the province in order to get a license to work there.
- Establishes a process for the recognition of occupational qualifications and requirements of workers -- in regulated occupations -- and provides governments with the opportunity to move toward even greater uniformity of occupational standards.
Example:
Governments must reconcile their occupational standards in order to allow for the recognition of worker qualifications.
- States that, as part of the Social Union Framework Agreement, First Ministers have committed to ensure compliance of all entities subject to the provisions of the Labour Mobility Chapter to the AIT. The work is currently underway to implement this objective.
- Contains a mechanism for dealing with complaints through consultations.
- States that certain employment and labour-related issues -- differences in social policy measures, labour standards, minimum wages and social assistance benefits -- are not covered.
- Permits some practices to continue, providing they are intended to meet certain objectives, such as public security or labour market development. However, governments are encouraged to find other ways of meeting these objectives without restricting mobility.
Vincent Athey
Employment and Immigration
Phone: 780-422-5450
Fax: 780-422-7173
Email: vincent.athey@gov.ab.ca
Consumer-Related Measures and Standards - Chapter 8
The objective of this chapter is to streamline and harmonize standards and regulations designed for consumer protection. Greater uniformity in standards allows firms to capture the benefits associated with a larger market and puts downward pressure on prices.
Consumer-Related Measures and Standards Chapter:
- Eliminates trade barriers in two ways -- it requires governments to reconcile differences in consumer-related measures and standards and ensures that consumer protection is not used to create disguised trade barriers. For example, governments are required to harmonize their cost of credit legislation, which will benefit consumers and businesses.
- Prevents governments from requiring individuals to live in the province or territory as a condition of licensing, registration or certification as a supplier, and allows the use of local presence and residency requirements for businesses only where necessary for consumer protection.
- Ensures that governments will no longer be allowed to charge discriminatory fees for licensing, registration or certification of suppliers.
- Provides a schedule for the reconciliation of specific consumer protection measures -- such as those related to labelling -- and sets out a framework for building on this process of trade liberalization.
Rob Phillips
Service Alberta
Phone: 780-422-8177
Fax: 780-427-3033
Email: rob.phillips@gov.ab.ca
Agricultural and Food Goods - Chapter 9
Canada's agricultural trade policies are being reviewed by Agriculture Ministers in parallel with the review required by international trade agreements.
- Agriculture Ministers are examining programs such as supply management, price and income stabilization, credit and other financial assistance programs within the framework of the Agri-food Policy Review.
The Agreement on Internal Trade contains a standstill on new trade restrictions except where necessary to prevent the spread of pests or disease to humans, animals, plants and agricultural products -- so-called "sanitary and phytosanitary measures".
The Agricultural and Food Goods Chapter:
- Makes those trade barriers resulting from differences in agricultural regulations and standards that do not have a policy basis subject to the Agreement immediately.
- Provides for negotiations to broaden and deepen the Agriculture Chapter.
Example:
Governments will reconcile a number of agricultural regulations such as those relating to margarine colouring and imitation dairy products.
- States that fish, fish products and alcoholic beverages are not covered by this chapter.
Len Ewanyk
Agriculture and Rural Development
Phone: 780-422-2125
Fax: 780-422-6540
Email: len.ewanyk@gov.ab.ca
Alcoholic Beverages - Chapter 10
Progress has been made on reducing barriers related to alcoholic beverages.
The Alcoholic Beverages Chapter:
- Requires non-discriminatory treatment on listing, pricing and distribution of wine, beer and spirits.
- Calls on Parties to drop all technical obstacles to access such as administrative procedures, labelling and advertising requirements.
- Eliminates any remaining barriers on distilled beverages and other alcoholic beverages, including cider and coolers.
- States that certain measures for beer and beer products and wine and wine products listed in the Agreement are not covered by this chapter. However, these measures are to be either eliminated or reviewed by specified dates.
- Asserts that this chapter does also not cover measures already in place under international trade agreements.
Norm Peterson
Gaming
Phone: 780-447-8601
Fax: 780-447-8950
Email: norm.peterson@gov.ab.ca
Governments are prohibited from introducing new trade barriers in a key area of the Canadian economy -- the processing of natural resources.
The Natural Resources Processing Chapter:
- Prohibits the introduction of new trade barriers relating to the processing of forestry, fisheries and mineral resources products.
- States that this chapter does not apply to:
- licensing, certification, registration, leasing or other arrangement of the rights to the harvesting of forestry, fisheries or mineral resources;
- management or conservation of forestry, fisheries or mineral resources; water; and,
- in certain jurisdictions, measures dealing with the export of logs, chips and residuals as well as unprocessed fish.
Joyce Ingram
Sustainable Resource Development
Phone: 780-415-2634
Fax: 780-415-9669
Email: joyce.ingram@gov.ab.ca
This chapter was not included in the Agreement when it was first signed by First Ministers in 1994. It is currently awaiting approval from Trade Ministers. At this time no complaints under this chapter will be taken forward.
Contact Representative for Chapter 12:Jane Currie
Energy
Phone: 780-415-6187
Fax: 780-422-0800
Email: jane.currie@gov.ab.ca
A barrier free communications system is a crucial condition for Canada's ability to compete in an increasingly high-tech global marketplace. Canada has a largely barrier-free market in communications, as most interprovincial barriers have been struck down by federal legislation and Supreme Court decisions. The Agreement on Internal Trade moves Canada further in that direction.
Requires that governments not discriminate in providing access to public telecommunications networks and use of public telecommunications services. States that governments cannot allow monopolies to use their economic power to engage in anti-competitive behaviour in their non-monopoly markets. Provides for SaskTel to be excluded for an interim period only.
Contact Representative for Chapter 13:Robb Stoddard
Innovation and Science
Phone: 780-422-8545
Fax: 780-422-0956
Email: robb.stoddard@gov.ab.ca
Barriers to trade in transportation services within Canada will be reduced -- particularly for trucking. An efficient trucking industry is a key to Canadian competitiveness. The provisions in the chapter will help to reduce the cost of transportation in Canada.
The Transportation Chapter:
Requires governments to reconcile a variety of measures to provide a more uniform system, which is prerequisite for a competitive trucking industry.
Example:
Governments are to reconcile their rules relating to licensing and inspection, including vehicle weights and dimensions, requirements for extra-provincial trucking operations, truck safety rules and truck bills of lading.
- Phases out existing barriers and places a standstill on new ones.
- States that certain "listed" measures such as transportation by taxis, student transportation and carriers' demerit points are not covered by this chapter. The Council of Ministers Responsible for Transportation and Highway Safety will review these measures every two years to try to liberalize or remove them.
Garry Rosko
Transportation
Phone: 780-415-0683
Fax: 780-422-1070
Email: garry.rosko@gov.ab.ca
The Agreement on Internal Trade places special emphasis on environmental protection, with the objective of ensuring coordination of trade and environmental objectives.
The Environmental Protection Chapter:
- Ensures that environmental protection is recognized as a legitimate objective and disciplines are established to ensure it is not used as an excuse to create unnecessary trade barriers.
- Encourages the harmonization of environmental regulations and standards across jurisdictions, while allowing Parties to adopt or maintain differing environmental standards based on the need to protect and enhance the environment. This harmonization will reduce the compliance and regulatory burden on firms, and lower the cost of doing business in Canada.
- Prohibits governments from relaxing their environmental regulations and standards to attract business.
- Includes consultation and dispute resolution provisions that encourage cooperation to deal with disputes.
- States that only environmental measures that have no trade-related implications are covered under this chapter.
Kathy Acheson
Environment
Phone: 780-427-2074
Fax: 780-422-5136
Email: kathy.acheson@gov.ab.ca
