Pursuant to Executive Order 12260, the United States Trade Representative (USTR) is required to set the thresholds in United States dollars for the WTO Agreement on Government Procurement and Free Trade Agreements. U.S. obligations under these agreements apply to covered government procurement that is on or above the usual dollar thresholds indicated. The thresholds are adjusted every two years. Every two years, in accordance with Executive Order 12260, the USTR determines the dollar value of the threshold values according to the formula defined in the MPAs and FTAs. The latest determination of the USTR threshold was published in the Federal Registry (82 Fed. Reg. 58248). The USTR will submit notifications of its appropriate thresholds to the WTO Committee on Government Procurement and its FTA colleagues. The other parties to the GPA and the free trade agreements will make similar adjustments to reflect the thresholds in their local currencies. The CPTPP will coexist with Canada`s other trade agreements and the commitments set out in Canada`s other trade agreements will continue to apply. The following chapters of the CPTPP should be consulted in order to understand Canada`s obligations and available exceptions with respect to potential contracts: Construction services: The following thresholds apply to the purchase of construction services.
Every two years, the thresholds for free trade agreements are updated. This communication amends the thresholds in Contracting Policy Notice 2018-01 to provide new thresholds expressed in Canadian dollars. All thresholds apply for the period from 1 January 2020 to 31 December 2021. The U.S. Trade Representative (USTR) has established and announced new U.S. dollar supply thresholds that would meet the commitments of the U.S. trade agreement with effect from January 1, 2018 for the 2018 and 2019 calendar years. On December 11, the U.S. Trade Representative (USTR) gave the U.S.
dollar values of the thresholds applicable to federal and domestic government procurement in the U.S. in 2018 and 2019, which fall under the WTO Agreement on Government Procurement (GPA) and free trade agreements (SAA). Thresholds are a key element in determining whether government procurement falls under a trade agreement. U.S. government procurements valued at or above specified thresholds must be performed in accordance with the agreements. This contribution describes the new thresholds in force under the GPA and free trade agreements and contrasts them with the thresholds for 2016-17. Thresholds for which the value of the US dollar is never adjusted are also quoted. Supply thresholds are the monetary values for which and beyond which commitments under Canadian free trade agreements generally apply to a given market by covered firms.
Procurement thresholds shall be indexed to inflation every two years at the beginning of the calendar year, in accordance with the formula set out in the government procurement chapter of the applicable Agreement. Three central government thresholds will never be adjusted: a $25,000 threshold in NAFTA, which only applies to the purchase of goods from Canada; a $50,000 threshold for goods covered by the U.S.-Israel Free Trade Agreement; and a threshold of $100,000 applies to both goods and services under the U.S.-Korea Free Trade Agreement.
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