Procurement Thresholds

Letter From United States to Canada

February 4, 2016

The Honorable Chrystia Freeland
Minister of International Trade
Canada

Dear Minister Freeland:

In connection with the signing on this date of the Trans-Pacific Partnership Agreement (the TPP Agreement), I have the honor to confirm the following agreement reached between representatives of the Government of the United States of America (United States) and the Government of Canada (Canada).

Seeking to facilitate effective government procurement systems in our two countries, and further to the agreement between the Governments of Canada, Mexico and the United States of this date to apply Chapter 15 (Government Procurement) of the TPP Agreement to procurement covered by Article 1001 of Chapter 10 of the North American Free Trade Agreement (NAFTA) in place of the provisions of Chapter 10 of NAFTA, the United States and Canada agree to apply the goods and services thresholds and construction services threshold for Central Government Entities government procurement set out in their respective schedules to Chapter 15 (Government Procurement) of the TPP Agreement, as adjusted from time to time in accordance with those schedules, to the respective obligations of the United States and Canada for the goods threshold, services threshold and construction services threshold for federal government entities procurement under Chapter 10 of NAFTA.

With regard to the World Trade Organization Agreement on Government Procurement, the thresholds specified in our respective schedules to that Agreement shall continue to apply.

I have the honor to propose that this letter and your letter of confirmation in reply, equally valid in English and French, shall constitute an agreement between our two governments, subject to dispute settlement under Chapter 28 (Dispute Settlement) of the TPP Agreement, which shall enter into force on the date of entry into force of the TPP Agreement as between the United States and Canada.

Sincerely,

Ambassador Michael B.G. Froman