TORONTO, ONTARIO--(Marketwire - May 29, 2010) - A proposed trade deal between Canada and the European Union could stop local governments from using their purchasing power to meet local priorities like economic development and environmental concerns. The deal would prevent 'Made in Canada' content requirements, local hiring preferences and environmental protection as factors in public procurement decisions, says a legal opinion released today by the Centre for Civic Governance.

"We're deeply concerned about what the Canada-EU Comprehensive Economic and Trade Agreement (CETA) means for Canadian communities" said Centre for Civic Governance Executive Director Charley Beresford. "It's crucial that the Federal Government consult closely if they are making changes to the very powers communities need to build stronger, greener, healthier local economies."

"If our government agrees to the EU requests found in the leaked draft of the CETA deal, local governments in Canada will no longer legally be able to give first preference to local or Canadian suppliers," said report author Steven Shrybman, an international trade lawyer with Sack Goldblatt Mitchell LLP.

"Municipalities would lose what is probably the most important tool they now have for fostering community economic development, creating local employment, stimulating innovation and achieving other public policy goals, from food security to social equity," said Shrybman.

"To make matters worse, this deal would give European companies the power to tie local governments up with expensive legal challenges," said Beresford. "The federal government needs to consult extensively with municipalities and provide more research on potential impacts before signing on to CETA or any other trade agreement that deals with public procurement."

In light of the information in the legal opinion, the Federation of Canadian Municipalities (FCM) amended their policy on trade at their Annual Conference today. FCM asked that Ottawa provide objective information about the costs and benefits for municipalities, give municipalities a meaningful place at the table and allow municipalities time to gain public input on the impacts of these changes.

The Centre for Civic Governance is an initiative of the Columbia Institute, a charitable organization focused on nurturing leadership for inclusive, sustainable communities.