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Local Food Procurement: Trade Agreement Restrictions in Ontario

Learn how trade agreements impact local food procurement in Ontario, key policies, obstacles, and opportunities. Explore examples of local food procurement initiatives and how to navigate trade restrictions effectively.

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Local Food Procurement: Trade Agreement Restrictions in Ontario

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  1. Local Food Procurement: Trade Agreement Restrictions in Ontario Obstacles & Opportunities Kyra Bell-Pasht April 16, 2013

  2. Local Food Procurement in context • Trade agreements are on the rise • Under which foreign companies granted broad rights, enforceable before trade tribunals (‘ISDS mechanisms’) • e.g. the right to nondiscrimination of products on the basis of geographic origin • Companies increasingly exercising these rights ($$ litigation) • Limiting regulation in the public interest (i.e. for environmental & local development purposes) (‘chill’) • Environmental & food systems concerns are equally on the rise  one solution: local food procurement • Understanding trade agreement restrictions is key to developing effective local food procurement policies

  3. Canadian Trade Agreements: Ontario Ontario is affected by many trade agreements that potentially restrict its procurement activities, e.g.: • The General Agreement on Tariffs and Trade (GATT) • The Agreement on Government Procurement (AGP) • The North American Free Trade Agreement (NAFTA) • The Agreement on Internal Trade (AIT) And that may affect its procurement activities, e.g.: • Canada and European Union Trade Agreement (CETA) • Trans Pacific Partnership (TPP)

  4. Procurement: Trade Restrictions & Allowances • Monetary thresholds • lowest for Ontario, $25,000, $100,000 MASH Sector (AIT) • n.b. No splitting to avoid trade agreement restrictions • Exceptions (environmental, government purpose, etc.) • n.b. Interpreted narrowly • Covered entities (Federal, Provincial, Municipal, MASH) • n.b. Toronto City Council motion for exemption from CETA (app. 50 similar Canadian municipal motions to date) • Technical specifications permitted • But not if designed to avoid trade agreement provisions

  5. Examples of Local Food Procurement policies: United Kingdom • Subject to GATT & GPA procurement provisions • EU directives guide EU procurement policies,  Emphasis on technical specifications Public Sector Food Procurement Initiative, 2003 • encourages public bodies (hospitals, schools, prisons, and canteens) to procure food in a manner that considers the principles of sustainable development(sustainability criteria) • specify fresh & seasonal produce in their tenders for food • break larger contracts into lots

  6. Examples of Local Food Procurement policies: Nova Scotia • Subject to AIT Environmental Goals & Sustainable Prosperity Act, ‘07 ∙ province to develop draft procurement policy by 2009: “Nova Scotia Preference” “In order to support the local manufacturing, agriculture and aquaculture industries, Departments are authorized to apply a preference for goods up to and including $10,000 excluding taxes, which are manufactured or produced in Nova Scotia, when it is determined to be in the best interest for the Province of Nova Scotia “

  7. Ontario Local Food Procurement Local Food Plus • Local sustainable food certification, broker & consultant, have assisted • Markham, 1st Ontario municipality to develop local food procurement policy, originally %10 LFP, then %5 increase/year • University of Toronto, local food procurement policy, originally 10% LFP, incr. annually

  8. Ontario Local Food Procurement, Broader Public Sector Investment Fund • Grant program that supports increased amounts of local food served in hospitals, schools, and other broader public sector institutions • City of Toronto Local Food Procurement Policy • 2008, goal was %50 • 2011, goal adjusted to %25 in 7 years • Report of lessons learned

  9. Ontario Local Food Procurement Bill 36, Ontario’s Local Food Act • Government Bill that just passed 2nd reading “increasing awareness, access and sales by enabling the government to set local food goals and targets, in consultation with stakeholders” • Possibility for local food procurement targets? Ontario Local Food Policy: requiring ministries to consider local food procurements under $25,000

  10. Conclusions • Technical specifications • policies for food procurements that fall below monetary thresholds • Focus on the MASH sector • support non-profit organizations to facilitate procurement deals with the public sector

  11. Acknowledgements Thanks to: Sustain Ontario Kyra Bell-Pasht, Counsel kyra@cela.ca N.B. none of the information provided in this presentation consists of legal advice, and should not be relied on as such.

  12. www.cela.ca

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