Bill C-392

2nd Session, 40th Parliament,

57-58 Elizabeth II, 2009

house of commons of canada

BILL C-392

An Act respecting the use of government procurements and transfers to promote economic development

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

SHORT TITLE

1. This Act may be cited as the Made in Canada Act.

INTERPRETATION

2. The following definitions apply in this Act.

“Canadian product” means any product that is part of, or incidental to, a procurement contract or a transfer

(a) of which more than 50% of the total value is manufactured, produced or assembled in Canada and, in the case of an assembled product, where final assembly is done in Canada; or

(b) in the case of a natural resource, of which more than 50% of the total value originates in Canada.

“Canadian service” means a service offered by

(a) a Canadian citizen;

(b) a permanent resident within the meaning of subsection 2(1) of the Immigration and Refugee Protection Act;

(c) the Government of Canada, a provincial or local government or an agency of a provincial government;

(d) a partnership, trust or joint venture in which a person or any combination of persons referred to in paragraph (a), (b), (c) or (e) beneficially owns or controls, directly or indirectly, interests representing in value more than half of the total value of the assets of the partnership, trust or joint venture, as the case may be;

(e) a Canadian corporation; or

(f) a non-profit organization in which more than half of its members are persons referred to in paragraph (a) or (b).

“Government of Canada” means

(a) the Government of Canada or any department or agent of that government;

(b) any Crown corporation; or

(c) any foundation or trust established by the Government of Canada that receives over 75% of its income or funding from that government.

“infrastructure” means any of the following fixed capital assets that are used or operated for the benefit of the public:

(a) highway or rail infrastructure;

(b) local transportation infrastructure;

(c) tourism or urban development infrastructure;

(d) sewage treatment infrastructure;

(e) water infrastructure; or

(f) infrastructure prescribed by regulation.

“similar product” means any product whose nature, quality or terms of delivery are substantially the same as those of another product and meet the requirements of the entity that procures it.

“similar service” means any service whose nature is substantially the same as that of a Canadian service and that is offered under substantially the same terms and conditions.

“transfer” means any transfer of more than $100,000

(a) to a province, municipality or private party for infrastructure enacted through an appropriation act or budget implementation legislation; and

(b) for a fixed capital asset.

PREFERENCE GIVEN TO CANADIAN PRODUCTS

3. When the Government of Canada procures a product or service, it shall, where similar products or services are available, give pref- erence to a Canadian product or service over a non-Canadian product or service.

4. The Government of Canada may, where similar products or services are available, fix conditions on access to a transfer to give preference to a Canadian product or service over a non-Canadian product or service.

EXCEPTIONS

5. (1) Despite sections 3 and 4, the Government of Canada may grant a waiver in the following circumstances:

(a) a product is required to deal with an emergency in which there is danger to public health or safety, and there are reasonable grounds to believe that it would not be possible to procure the product in the quantity or within the time period required to deal with the emergency;

(b) it is not possible to procure a Canadian product of sufficient quality or quantity or within the time period required;

(c) a product is acquired to provide humanitarian assistance outside Canada or for the purposes of international development; or

(d) the product is intended for use outside Canada, except in the case of ships, aircrafts and other aerospatial products.

(2) The minister responsible for an entity that grants a waiver under subsection (1) shall, within 30 days, cause a notice justifying the exception to be published in the Canada Gazette.

NON-APPLICATION

6. As regards a country that is a party to the North American Free Trade Agreement (NAFTA), this Act does not apply to procurements or transfers in respect of which NAFTA requires that Canada accord to the suppliers of another NAFTA country a treatment no less favourable than the most favourable treatment that Canada accords to its own suppliers.

7. As regards countries that are parties to the Agreement on Government Procurement of the World Trade Organization and with which Canada has negotiated mutually acceptable commitments, this Act does not apply to procurements or transfers subject to that Agreement in respect of which Canada has made specific commitments.

8. Section 7 does not apply in respect of a country that is a party to the Agreement referred to in that section if the acquisition is for a product or a service in respect of which the country has not accorded Canada reciprocal access.

COMING INTO FORCE

9. This Act comes into force six months after the day on which it receives royal assent.