Canadian Agreement on Internal Trade
Encyclopedia
The Agreement on Internal Trade (AIT) entered into force on July 1, 1995 and includes government departments, agencies, commissions and Crown corporations of the 10 Canadian provinces, the three territories and the federal government.
The Agreement on Internal Trade is an intergovernmental agreement between the federal government
and the provinces and territories
to reduce and eliminate barriers to free movement
of people, goods, services and investment
s within Canada. Under the Agreement, these governments have agreed to apply the principles of non-discrimination, transparency, openness and accessibility with respect to their procurement opportunities and those of their municipalities and municipal organizations, school boards and publicly funded academic, health and social services entities. The Agreement covers only those tenders where the procurement value exceeds a specified amount.
Currently, the thresholds require that all institutions in the MASH sector tender for public bidding contracts worth $100,000 or more, or in the case of construction, $250,000 or more. The agreement mandates the “equal” treatment of people, goods and services anywhere in Canada. That means businesses in any province or territory are to be considered for procurement bids, eliminating “buy local” policies. There are some exceptions in the deal. Provinces or municipalities can still designate sole-source suppliers in particular circumstances. Its ultimate goal is to eliminate barriers to trade, investments and product mobility.
The Agreement on Internal Trade is an intergovernmental agreement between the federal government
Government of Canada
The Government of Canada, formally Her Majesty's Government, is the system whereby the federation of Canada is administered by a common authority; in Canadian English, the term can mean either the collective set of institutions or specifically the Queen-in-Council...
and the provinces and territories
Provinces and territories of Canada
The provinces and territories of Canada combine to make up the world's second-largest country by area. There are ten provinces and three territories...
to reduce and eliminate barriers to free movement
Freedom of movement
Freedom of movement, mobility rights or the right to travel is a human right concept that the constitutions of numerous states respect...
of people, goods, services and investment
Investment
Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time...
s within Canada. Under the Agreement, these governments have agreed to apply the principles of non-discrimination, transparency, openness and accessibility with respect to their procurement opportunities and those of their municipalities and municipal organizations, school boards and publicly funded academic, health and social services entities. The Agreement covers only those tenders where the procurement value exceeds a specified amount.
Currently, the thresholds require that all institutions in the MASH sector tender for public bidding contracts worth $100,000 or more, or in the case of construction, $250,000 or more. The agreement mandates the “equal” treatment of people, goods and services anywhere in Canada. That means businesses in any province or territory are to be considered for procurement bids, eliminating “buy local” policies. There are some exceptions in the deal. Provinces or municipalities can still designate sole-source suppliers in particular circumstances. Its ultimate goal is to eliminate barriers to trade, investments and product mobility.
See also
- Canada Minister for Internal TradeMinister for Internal Trade (Canada)The Minister for Internal Trade is a member of the Cabinet of Canada. The minister can be appointed under the Agreement on Internal Trade Implementation Act of 1996, however it was not used until 2005 and by default the Minister of Industry was responsible for the administration of the act.To date...
- New West PartnershipNew West PartnershipThe New West Partnership is set of agreements that integrate the Canadian provinces of Alberta, British Columbia and Saskatchewan. They were created on April 30, 2010.It is composed of:* the New West Partnership Trade Agreement ...
- Single marketSingle marketA single market is a type of trade bloc which is composed of a free trade area with common policies on product regulation, and freedom of movement of the factors of production and of enterprise and services. The goal is that the movement of capital, labour, goods, and services between the members...
- Internal Market (European Union)Internal Market (European Union)The European Union's Internal Market seeks to guarantee the free movement of goods, capital, services, and people – the EU's four freedoms – within the EU's 27 member states.The Internal Market is intended to be conducive to increased competition, increased specialisation, larger...