Leaked CETA Treaty: Major Blow to Buy Local

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Leaked CETA Treaty: Major Blow to Buy Local

[ http://thetyee.ca/News/2014/08/14/CETA- ... ign=180814 ]

Final draft language spells end of local procurement policies by all levels of Canadian governments.

By Andrea Rexer, 14 Aug 2014, TheTyee.ca

If one country is negotiating a treaty with a union of 27 countries, you might think that those 27 countries would have by far the most people in the negotiations. Not true for CETA: In some negotiations of the free trade deal between Canada and the European Union, Canadians have greatly outnumbered Europeans, one participant told the Tyee.

The reason Canada sent so many people is that the provinces have a say in CETA, and they will be heavily affected by the deal. The treaty will open up public procurement not only at the national level, but also at the provincial and local level. CETA is going much further in this regard than any previous trade agreements signed by Canada.

The outcome isn't what the provinces and municipalities had hoped for. CETA will likely severely crimp if not end "buy local" strategies at all levels of government in Canada.

Many local governments and municipalities have used public tenders to foster a stronger local economy, requiring, for example, that winning bidders employ people in the region. Or governments have tried to strengthen the local food movement, as the city of Toronto does with its local food procurement for public child care.

But with CETA in place, it won't be possible to favour local suppliers when governments buy. Under the rules of free trade, European companies must not be discriminated against.

Thresholds vary

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