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Strategic Investment and Procurement Agreements (SIPAs) with U.S. States

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Strategic Investment and Procurement Agreements (SIPAs) with U.S. States

Office of the Premier

Ontario's longstanding trade relationship with the United States has benefited businesses, workers and communities on both sides of the border.

Strategic Investment and Procurement Agreements (SIPAs) with U.S. states would seek to secure improved access to government procurement opportunities for businesses and identify key actions to enhance and promote overall trade and investment. By increasing openness and competition in government procurement markets, businesses and governments can deliver better value for taxpayer dollars in sectors like infrastructure and transportation.

Pursuing SIPAs in the U.S. supports the government's commitment to remove barriers to trade and aligns with the government's plan to make Ontario Open for Business and Open for Jobs.

Ontario — along with 37 U.S. states — has procurement obligations under the World Trade Organization Government Procurement Agreement (GPA), which provide for open and non-discriminatory procurement access to goods and services suppliers of other GPA parties. Some states have exemptions to the GPA, in sectors such as construction services, motor vehicles, and steel. 13 U.S. states are not covered by the GPA. As part of its trade strategy, Ontario will pursue opportunities to make it easier for businesses to work with each other across the border, according to the specific circumstances of each state.

Other opportunities to enhance investments could be explored through these agreements, including further harmonizing of regulations, and promotion of joint business visits and research and development collaboration.

If finalized, the proposed SIPAs would be the first sub-national agreements between Ontario and U.S. states to improve market access to U.S. state-level procurement for Ontario businesses.

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