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TPD > FTAA > Canada Proposals 2000 > Positions
 
 


Canada's Proposals for the FTAA Agreement 
FTAA Negotiating Groups - Canadian Written Submissions 
 

August 2000

ELEMENT 8B: FORMULATION OF SPECIFICATIONS FOR THE BIDDING PROCESS - OFFSETS 


Background 

Section 8.B of the FTAA NGGP Annotated Outline states that : As some delegations felt that offsets or other local content requirements should be prohibited. Canada agrees that the prohibition of offsets of any type is an essential component of a Free Trade Area of the Americas as such a provision would contribute to ensuring non-discriminatory treatment for suppliers, goods or services. 

The Annotated Outline also notes that other delegations felt that offsets could be used as a means of addressing the various needs of the smaller and developing economies of the Hemisphere. However, any such conditions for the use of offsets may be best addressed under a separate Article that deals with special and differential treatment among FTAA Parties. 

Without prejudice to Canada's future negotiating position, Canada submits the following text for this section. 

Draft Text: 
  1. Each Party shall ensure that its entities do not, in the qualification and selection of suppliers, goods or services, or in the evaluation of tenders and award of contracts, impose, seek or consider offsets. 

  2. For the purposes of this Article, offsets in government procurement are measures imposed or considered by an entity prior to or in the course of its procurement process that encourage local development or improve its Party=s balance of payments accounts by means of domestic content, licensing of technology, investment, counter-trade or similar requirements.

Source: Canadian Department of Foreign Affairs and International Trade
 

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