Ontario's Procurement Restriction Policy Affects US Businesses Seeking Provincial Government Contracts
Ontario has implemented a Procurement Restriction Policy impacting US businesses seeking provincial government contracts amidst ongoing trade disputes between the US and Canada. This policy effectively bars US-based companies from bidding on new procurements of goods and services, regardless of value, for government entities and Broader Public Sector organizations. A US business is defined as one headquartered or with a main office in the US, possessing fewer than 250 Canadian full-time employees. The definition extends to subsidiaries controlled by US corporations. A narrow exemption exists if a US company is the sole provider and delays are impossible, requiring high-level approval even for smaller procurements. These restrictions potentially conflict with Canada's commitments under the World Trade Organization Agreement on Government Procurement, which promotes non-discriminatory practices. The policy remains in place pending resolution of tariff issues, but the US may initiate a WTO challenge. US companies interested in bidding on Ontario contracts should verify their eligibility with the relevant contracting authority. This article provides general guidance and should not be considered legal advice.
