March 23, 2011

Canadian Construction Association supports reciprocity in procurement from foreign contractors

RICHARD GILBERT

joc staff writer

hawaii

The Canadian Construction Association (CCA) has adopted a new policy position to promote the principle of reciprocity for construction firms involved in both the import and export of services at home and abroad.

“We are not being protectionist and want to compete with all comers,” said CCA president Michael Atkinson.

“But we feel the ability of foreign firms to work on projects in Canada should only be when host country projects also give Canadian contractors an opportunity. It’s all about reciprocity. The same access and ability should be provided to Canadian firms in that jurisdiction.”

At the 93rd CCA annual convention in Hawaii, the International Business Committee passed a motion urging that foreign firms should only have access to publicly procured or funded projects in Canada, where their host countries offer reciprocal treatment to Canadian contractors.

“Reciprocity is paramount to the establishment and maintenance of a free-flowing international system, both in terms of goods as well as services. CCA supports international trade agreements, including provisions respecting government procurement,” the motion says.

“In this context, CCA supports the equal opportunity and access to government procured or government funded infrastructure development and/or construction opportunities for foreign firms operating in Canada, provided reciprocal access is granted to Canadian firms in the respective foreign country.”

The policy statement is designed to deliver this basic message to the federal and provincial governments, as well as CCA member associations.

“There is no question that the Canadian market is attracting more interest from foreign firms, especially due to the P3s (public private partnerships) at the provincial level,” said Atkinson. This has led to an increase in competition, which has led the CCA board to endorse this policy.”

Atkinson said that the CCA believes that the trend towards more competition and P3s will only increase in the future.

“This policy has been prompted by what appears to the construction industry as an apparent attempt to attract foreign competition, especially with P3 projects.”

“In some cases, it seems provincial governments are going out of their way to attract foreign contractors, especially because certain projects are being bundled to give them a certain mass, which means they are designed to attract foreign interest.”

For this reason, the CCA argues that Canadian governments should take this issue into account, as part of the conditions for issuing these contracts.

“This is not pointing the finger at one country. We are just asking the question,” said Atkinson.

“This policy statement is intended to be preemptive, as opposed to being a reaction to a particular tender or award process by another country. This is a case of fair trade, as much as free trade.”

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