How will NAFTA Chapter 11 affect municipalities ability to use public-private partnerships for government procurement?
Private-public partnerships where governments contract for goods or services are government procurement. Certain provisions of Chapter 11 (Article 1102/National Treatment and Article 1106/ Performance Requirements) do not apply to government procurement. This means that all levels of Canadian government are not required to accord foreign investors national treatment in procurement nor are they prevented from requesting local preference requirements in the procurement of goods or services through a public-private partnership. Contracts establishing a public-private partnership would normally specify the operational requirements and standards to be met by the contractor, including provision for termination. The NAFTA does not extend to protect investors from mere claims of breach of contract. For greater certainty, municipalities should seek competent and informed legal advice in to order address any questions concerning contracts with NAFTA investors. It should also be noted that govern
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