Canada Updates Federal Procurement Thresholds Under Free Trade Agreements For 2026–2027

The updated thresholds determine when Government of Canada procurements are subject to trade agreement rules.

The Treasury Board of Canada Secretariat (TBS) has updated the procurement threshold values that determine when a federal procurement must follow trade agreement requirements.

The new thresholds, updated every two years and published in Contracting Policy Notice 2025-8, apply from January 1, 2026, through December 31, 2027.

They replace the thresholds previously set out in Contracting Policy Notice 2023-6.

Government procurement involves the purchase of goods, services, and construction services, which range from everyday operational needs to major infrastructure projects.

Thresholds are separate for entities (departments and agencies) and for Crown corporations and other government enterprises.

Procurement thresholds for internal agreements

Canadian Free Trade Agreement (CFTA)

Entities (departments and agencies)

• Goods: $34,700
• Services: $139,000
• Construction: $139,000

Crown corporations and other government enterprises

• Goods: $694,700
• Services: $694,700
• Construction: $6,943,900

Procurement thresholds for international agreements

Canada–Chile Free Trade Agreement

• Entities: $145,900 for goods, $145,900 for services, and $9,200,000 for construction
• Crown corporations and other government enterprises: $729,700 for goods, $729,700 for services, and $23,300,000 for construction

Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

• Entities: $239,200 for goods, $239,200 for services, and $9,200,000 for construction
• Crown corporations and other government enterprises: $653,200 for goods, $653,200 for services, and $9,200,000 for construction

Canada–Colombia Free Trade Agreement

• • Entities: $145,900 for goods, $145,900 for services, and $9,200,000 for construction
  • Crown corporations and other government enterprises: $729,700 for goods, $729,700 for services, and $23,300,000 for construction

Canada–European Union Comprehensive Economic and Trade Agreement (CETA)

• • Entities: $239,200 for goods, $239,200 for services, and $9,200,000 for construction
  • Crown corporations and other government enterprises: Section A: $653,200 for goods and $653,200 for services; Section B: $736,000 for goods and $736,000 for services; and $9,200,000 for construction

Canada–Honduras Free Trade Agreement

• • Entities: $145,900 for goods, $145,900 for services, and $9,200,000 for construction
  • Crown corporations and other government enterprises: $729,700 for goods, $729,700 for services, and $23,300,000 for construction

Canada–Korea Free Trade Agreement

• • Entities: $100,000 for goods, $100,000 for services, and $9,200,000 for construction
  • Crown corporations and other government enterprises: Not listed

Canada–Panama Free Trade Agreement

• • Entities: $145,900 for goods, $145,900 for services, and $9,200,000 for construction
  • Crown corporations and other government enterprises: $729,700 for goods, $729,700 for services, and $23,300,000 for construction

Canada–Peru Free Trade Agreement

• • Entities: $174,800 for goods, $174,800 for services, and $9,200,000 for construction
  • Crown corporations and other government enterprises: $729,700 for goods, $729,700 for services, and $23,300,000 for construction

Canada–Ukraine Free Trade Agreement

• • Entities: $239,200 for goods, $239,200 for services, and $9,200,000 for construction
  • Crown corporations and other government enterprises: $653,200 for goods, $653,200 for services, and $9,200,000 for construction

Canada–United Kingdom Trade Continuity Agreement

• • Entities: $239,200 for goods, $239,200 for services, and $9,200,000 for construction
  • Crown corporations and other government enterprises: Section A: $653,200 for goods and $653,200 for services; Section B: $736,000 for goods and $736,000 for services; and $9,200,000 for construction

World Trade Organization – Agreement on Government Procurement (WTO-GPA)

• • Entities: $239,200 for goods, $239,200 for services, and $9,200,000 for construction
  • Crown corporations and other government enterprises: $653,200 for goods, $653,200 for services, and $9,200,000 for construction

At Cole International, we offer trade consulting services to help Canadian businesses navigate evolving trade regulations and requirements.

For more information about this update, reach out to one of our trade professionals.