Canadian government procurement glossary

Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

A multi-country Pacific trade agreement whose procurement chapter opens covered Canadian government contracts above set thresholds to suppliers from member economies.

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Definition

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership, abbreviated CPTPP, is a trade agreement among a group of Pacific Rim economies, in force for Canada since 2018. Like other trade agreements, it includes a government procurement chapter that commits covered Canadian entities to open procurements above specified thresholds to suppliers from member countries on a non-discriminatory basis, with reciprocal access for Canadian suppliers. For cleaning and facilities services, CPTPP is one of several international agreements that can apply to a large tender alongside the domestic CFTA.

How it works in Canadian procurement

When a covered procurement exceeds the CPTPP threshold for the entity and category, the buyer must use open, transparent, and non-discriminatory procedures and provide access to a bid-challenge mechanism. As with CETA, thresholds are expressed in special drawing rights and republished in Canadian dollars on a set cycle, with services thresholds higher than goods. The CPTPP coverage schedules list which federal and sub-central entities and which services are covered, and they include exceptions and transition arrangements. Most routine cleaning contracts fall below these international thresholds; the agreement is most relevant to large facilities-management and multi-site service contracts.

Common confusions

CPTPP, CETA, and the WTO Agreement on Government Procurement are separate agreements with different members and coverage; a single high-value tender can be subject to more than one, and the buyer applies the obligations of each that covers it. CPTPP does not require awarding to foreign suppliers; it requires an open process and non-discrimination above threshold. Finally, the CPTPP is the successor to the original Trans-Pacific Partnership after the United States withdrew, so older references to the TPP describe a different, never-ratified agreement.

Frequently asked questions

What is the CPTPP in procurement?

A Pacific trade agreement whose procurement chapter opens covered Canadian government contracts above set thresholds to suppliers from member economies, with reciprocal access for Canadian firms.

Does CPTPP apply to most cleaning contracts?

No. Most routine cleaning contracts fall below the international thresholds and are governed mainly by the domestic CFTA. CPTPP matters for large facilities and multi-site contracts.

How is CPTPP different from CETA?

They are separate agreements with different member countries and coverage schedules. CETA covers the European Union; CPTPP covers a group of Pacific Rim economies. A large tender can be subject to both.

Related terms

See Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) terms in real Canadian government contracts

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