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Hub AI
Defence Production Sharing Agreement AI simulator
(@Defence Production Sharing Agreement_simulator)
Hub AI
Defence Production Sharing Agreement AI simulator
(@Defence Production Sharing Agreement_simulator)
Defence Production Sharing Agreement
The Defence Production Sharing Agreement (DPSA) is a bilateral trade agreement between the United States and Canada that aims to balance the amount of military cross-border buying in order to avoid trade imbalances. Since its signing in 1956, it has led to a number of US companies sending military production to Canada in order to "offset" Canadian purchases of US military equipment. The Agreement has been amended on several occasions. The similar Defense Development Sharing Program organized sharing of military research and development.
The Canada-U.S. Defence Production Sharing Agreement (DPSA) was formalized in 1959 and codified specific measures to remove barriers to reciprocal procurement and integration of defense production, resulting in a “quid pro quo” arrangement. The U.S. waived the Buy American Act, putting Canadian industry on equal footing with U.S. firms when bidding on U.S. defense contracts. The U.S. also removed domestic price preference and import duties for Canadian defense goods produced for the Department of Defense and U.S. prime contractors. For the Canadians, the DPSA established “the US as producer of major defense systems and Canada as the producer of subsystems and components for the US market”, which inextricably linked U.S. and Canadian production capacity and supply chains of the joint industrial base.
The Canadian Commercial Corporation (CCC) is a Crown corporation that administers the DPSA on behalf of the Government of Canada. Under the DPSA, CCC acts as Prime Contractor on U.S. DoD contracts for purchases from Canada and supports Canadian export activity under the DPSA. The DPSA is CCC's core public policy mandate, which enables Canadian exporters to compete for contracts as part of the U.S. Department of Defense domestic supply base. In 2019–2020, CCC facilitated $928 million in sales to the US DoD under the DPSA.
The objectives of the Defense Production Sharing Agreement include:
(a) Achieving greater integration of both Canada’s and the United States’ military development and production capabilities while maintaining greater standardization of military equipment, wider dispersal of production facilities, and establishing a supply of supplemental sources.
(b) Establishing Canada as a trusted acquisition partner, and ensuring that Canadian defense vendors are given equal and immediate consideration for U.S. Department of Defense (U.S. DoD) procurements—similar to American vendors—with certain exceptions.
(c) Setting forth policies and procedures with respect to all contracts for supplies and services placed by the U.S. DoD with the Canadian Commercial Corporation (CCC).
The DPSA applies to all contracts placed, on or after October 1, 1956, by any U.S. military department with the Canadian Commercial Corporation (CCC). It remains in force from year to year until terminated by mutual consent; however, it can be terminated by either party provided that six months' notice of termination has been given in writing.
Defence Production Sharing Agreement
The Defence Production Sharing Agreement (DPSA) is a bilateral trade agreement between the United States and Canada that aims to balance the amount of military cross-border buying in order to avoid trade imbalances. Since its signing in 1956, it has led to a number of US companies sending military production to Canada in order to "offset" Canadian purchases of US military equipment. The Agreement has been amended on several occasions. The similar Defense Development Sharing Program organized sharing of military research and development.
The Canada-U.S. Defence Production Sharing Agreement (DPSA) was formalized in 1959 and codified specific measures to remove barriers to reciprocal procurement and integration of defense production, resulting in a “quid pro quo” arrangement. The U.S. waived the Buy American Act, putting Canadian industry on equal footing with U.S. firms when bidding on U.S. defense contracts. The U.S. also removed domestic price preference and import duties for Canadian defense goods produced for the Department of Defense and U.S. prime contractors. For the Canadians, the DPSA established “the US as producer of major defense systems and Canada as the producer of subsystems and components for the US market”, which inextricably linked U.S. and Canadian production capacity and supply chains of the joint industrial base.
The Canadian Commercial Corporation (CCC) is a Crown corporation that administers the DPSA on behalf of the Government of Canada. Under the DPSA, CCC acts as Prime Contractor on U.S. DoD contracts for purchases from Canada and supports Canadian export activity under the DPSA. The DPSA is CCC's core public policy mandate, which enables Canadian exporters to compete for contracts as part of the U.S. Department of Defense domestic supply base. In 2019–2020, CCC facilitated $928 million in sales to the US DoD under the DPSA.
The objectives of the Defense Production Sharing Agreement include:
(a) Achieving greater integration of both Canada’s and the United States’ military development and production capabilities while maintaining greater standardization of military equipment, wider dispersal of production facilities, and establishing a supply of supplemental sources.
(b) Establishing Canada as a trusted acquisition partner, and ensuring that Canadian defense vendors are given equal and immediate consideration for U.S. Department of Defense (U.S. DoD) procurements—similar to American vendors—with certain exceptions.
(c) Setting forth policies and procedures with respect to all contracts for supplies and services placed by the U.S. DoD with the Canadian Commercial Corporation (CCC).
The DPSA applies to all contracts placed, on or after October 1, 1956, by any U.S. military department with the Canadian Commercial Corporation (CCC). It remains in force from year to year until terminated by mutual consent; however, it can be terminated by either party provided that six months' notice of termination has been given in writing.