What does the GATS say about government procurement?
In addition to the exclusion for “services supplied in the exercise of governmental authority”, the GATS also excludes government procurement. This means that purchases of services by public bodies (even services that have been “contracted-out” or “opened to foreign competition”) are not affected by the GATS. Although the current negotiations have discussed some procurement issues, the future inclusion of government procurement in the GATS is far from assured. In any case, international procurement obligations, whether in the GATS or elsewhere, apply only at the federal level. Ontario has not undertaken any international procurement obligations, and is not prepared to do so. This freedom from procurement commitments also extends to municipalities and local institutions such as libraries. Thus, to the extent that library activities may be characterized as procurements, they are not affected by trade agreements such as the GATS.
