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ARTICLE · 09 NOVEMBER 2009

Foreign Suppliers Cannot Use Agreement On Internal Trade To Launch Procurement Complaint

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On November 5, 2009, the Supreme Court of Canada issued a ruling that clearly restricts the ability of foreign companies to initiate procurement complaints under the Agreement on Internal Trade (AIT).

CanadaInternational Law
Blake, Cassels & Graydon LLP
Blake, Cassels & Graydon LLP
Roy Millen
Roy Millen
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Copyright 2009, Blake, Cassels & Graydon LLP

Originally published in Blakes Bulletin on International Trade & Investment, November 2009

On November 5, 2009, the Supreme Court of Canada issued a ruling that clearly restricts the ability of foreign companies to initiate procurement complaints under the Agreement on Internal Trade (AIT). The decision in AGC v. Northrop Grumman et al. dismissed the appeal from a 2008 decision of the Federal Court of Appeal.

BACKGROUND

The initial complaint was made by Northrop Grumman Overseas Corporation (Northrop), a U.S. company incorporated in the state of Delaware, and it arose out of a procurement by Public Works and Government Services Canada (PWGSC). The procurement was for a supply of 36 advanced multi-role infrared sensor targeting pods and 13 years of in-service support for the pods. Northrop argued that PWGSC evaluated the bids in a manner contrary to the criteria contained in the published evaluation plan. One of the

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