Article 502: Scope and Coverage

1. This Chapter applies to measures adopted or maintained by a Party relating to procurement within Canada by any of its entities listed in Annex 502.1A, where the procurement value is:

(a) $25,000 or greater, in cases where the largest portion of the procurement is for goods;

(b) $100,000 or greater, in cases where the largest portion of the procurement is for services, except those services excluded by Annex 502.1B;4 or

(c) $100,000 or greater, in the case of construction.

2. Subject to paragraphs 3, 3P6 and 4 and Article 517, entities listed in Annexes 502.2A and 502.2B are excluded from this Chapter.5

3. The entities listed in Annex 502.2B shall be free to pursue commercial procurement practices that may otherwise not comply with this Chapter. Nevertheless, the Parties shall not direct those

entities to discriminate against the goods, services or suppliers of goods or services of any Party, including those related to construction.

3P6. Annex 502.3 establishes the provisions to cover procurement by entities of a commercial or industrial nature or those which have been granted exclusive rights by a Party.6

4. Annex 502.4 establishes the provisions to cover procurement by municipalities, municipal organizations, school boards and publicly-funded academic, health and social service entities (MASH entities). Annex 502.4 will only apply to those Provinces who subscribe to the Annex by giving written notice to the Secretariat.7




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4 See Interpretive Note No.1, immediately following Annex

5 502.1B. This paragraph was amended by the Sixth Protocol of Amendment.

6 This paragraph was added to the Agreement on Internal Trade by means of the Sixth Protocol of Amendment.

7 This paragraph was amended by the Third Protocol of Amendment.