Introduction

In recognition of the fact that governments are often the single largest buyer of goods and services in an economy, the World Trade Organization (‘WTO’) implemented the Agreement on Government Procurement (‘GPA’) to foster international competition in procurement among member governments in a transparent manner free from discrimination. Yet even within one nation, ‘government’ may consist of a myriad of smaller bodies, each with its own regulatory approach to procurement activities. The GPA made provision for the inclusion of sub-central entities because of the economic significance of such transactions but also because procurement at the regional level, as at the national level, can be implemented to achieve social or economic ends that often conflict with the principles of free trade. This chapter will examine an aspect of the WTO GPA that has attracted relatively little attention from critics: the failure of Canada until recently to commit its ten sub-central governments to the Agreement. Several reasons for Canada's past reluctance to make GPA commitments at the sub-central level of government will be explored, as will the procurement regulations that exist in its place at the provincial level. Potential benefits for regional accession to the GPA will be considered and the chapter will conclude with a brief explanation of the new provincial commitments under the GPA that were implemented by Canada in February 2010, subsequent to a related bilateral agreement reached by Canada with the United States.