Trade Agreement Thresholds Compliance

Trade Agreement Thresholds Compliance is the practice of meeting the procurement obligations that apply once a contract's estimated value reaches the applicable trade-agreement threshold. A threshold is a monetary value. At or above it, a procurement may be covered by one or more trade agreements, and the buyer must follow the rules those agreements set out.

In Canada, the Government of Canada's CanadaBuys Buyer's Guide explains how buyers decide whether trade agreements apply. Treasury Board Contracting Policy Notices publish the threshold values that federal buyers use. The label is descriptive. It covers the valuation, coverage and notice steps that buyers carry out and that suppliers see in solicitations.

How buyers estimate value against the threshold

The first step is valuation. The CanadaBuys guidance requires buyers to estimate the total value of the procurement in Canadian dollars. That estimate must include any options and applicable taxes. A contract with several option years is therefore measured on its full potential value, not only its base period.

If the estimate reaches the threshold defined in the applicable Treasury Board Contracting Policy Notice, the procurement may be subject to trade agreements. The buyer then checks coverage before deciding which obligations apply.

Where the federal thresholds are published

Treasury Board issues the thresholds through Contracting Policy Notices. Notice 2025-8 sets the thresholds in effect from January 1, 2026, to December 31, 2027, for federal procurements subject to free trade agreements. You can read it in the Treasury Board notice.

The tables distinguish among departments and agencies, Crown corporations, and other government enterprises. They also separate goods, services and construction, so the same contract value can be covered for one buyer and category but not for another.

Coverage rules beyond the dollar value

Reaching a threshold does not settle the question alone. The procurement must also fall within the agreement's coverage rules, including the procuring entity, the goods or services being bought, exclusions and other conditions.

The Canada–Ukraine government procurement chapter shows how this works. It states that covered procurement is subject to thresholds of 130,000 SDRs for goods, 130,000 SDRs for services and 5,000,000 SDRs for construction services, unless otherwise specified. The text is available in the Canada–Ukraine agreement chapter.

The same framework applies outside core departments. The Canadian Air Transport Security Authority lists thresholds of SDR 355,000 for goods and services and SDR 5,000,000 for construction services in its Trade Agreement Covered Procurements Procedure, with Canadian-dollar equivalents shown in the procedure.

Notices and uncertain-value procurements

Two further obligations tie to the threshold. First, procurements subject to the applicable free trade agreements must have a notice of intended procurement, also called a tender notice, published.

Second, some procurements have an uncertain maximum value. CanadaBuys provides that tender and contract provisions must be included where the maximum value is uncertain, likely to fall below the applicable threshold, and the buyer intends to proceed without trade-agreement obligations.

What it means for a supplier

• A covered procurement generally must be competed and administered under the trade-agreement rules stated in the solicitation. Read the tender notice and the trade agreement section of the solicitation to see which rules apply.
• Contract value includes options and taxes, so a bid on a multi-year contract with options may be covered even when the base term looks small.
• Thresholds differ by buyer type and by goods, services or construction. Check the category and the buying entity, not only the dollar figure.
• The sources reviewed identify no supplier form or certification with this name. The compliance duties sit mainly with the buyer, and the solicitation tells you how they apply.