Item - 2012.EX15.14

The Government of Canada and the European Union are negotiating a Comprehensive Economic and Trade Agreement (CETA) with participation from the Province of Ontario, other provinces and territories.

This agreement has far reaching implications for City procurement policies and could negatively affect City initiatives such as: supporting Woodbine Live, promoting local jobs, creating financial incentives for the film industry or development industry to invest in Toronto, or to use public spending as a tool for economic development, environmental protection or to support small businesses.

Trade negotiators are proposing, under the CETA, a dispute resolution mechanism that could utilize a private tribunal, which could have the authority to impose fines with no right of appeal as opposed to the open and transparent provincial court system currently in use.

In the CETA, Canada has exchanged an initial procurement offer with the EU (listing sub-federal entities that will be bound by the rules of the procurement chapter) that may include the City of Toronto and that would explicitly tie the City, for the first time, to the terms and conditions of an international trade agreement.

The EU is insisting on full access to procurement by municipalities, school boards, universities, hospitals, utilities and other provincial agencies, which may include the City of Toronto.

The Union of British Columbia Municipalities (representing 150 municipalities) along with over 20 other municipalities across the country have asked their provincial and federal governments to ensure their existing rights are protected under any new trade agreement and that they be excluded from the CETA.

(Submitted to City Council on November 29. 30 and December 1, 2011 as MM14.14)