Question Period Note: International competition and export restrictions impacting personal protective equipment procurement

Countries have begun curbing the export of personal protective equipment (PPE), increasing competition for the procurement of these goods. Media has also reported on several instances of medical supplies procured from unfamiliar overseas suppliers not meeting advertised quality standards.

• Our priority is making sure we get safe, effective equipment and supplies into the hands of frontline healthcare workers
  • Given the high level of complexity in the global supply chain, ensuring quality of the product Public Services and Procurement Canada (PSPC) is purchasing is extremely important
  • We are working closely with our partners around the world, including embassies, as well as with on the ground logistics expertise in the private sector to get these supplies into the hands of healthcare workers on the frontlines of this crisis
  • We are taking a multi-pronged approach by purchasing supplies internationally where possible, while at the same time directly supporting Canadian industry to scale-up and re-tool to build domestic capacity
  • Our goal is to be over prepared and we are ordering supplies in anticipation of future needs, to ensure they are available for provinces, territories, frontline health workers and Canadians

If pressed on quality issues of medical supplies:

• We are working with established suppliers and distributors, as well as quality assurance experts, and we have strong processes in place to help ensure that the supplies we receive meet all necessary standards
• In addition, the Public Health Agency of Canada (PHAC) has robust testing measures in place, and they are in place for the very purpose of ensuring quality control of these essential products before they go out to provinces and territories
• We have encountered situations where supplies were found to be substandard, and we have acted quickly to address these issues, and to ensure that replacement supplies are rolled out where they were needed most
• These actions include suspending orders with certain manufacturers, and working closely with others to ensure that production issues are identified and corrected as soon as possible
• We must make sure that the equipment that our frontline workers rely on is high quality, so they can stay safe, and keep us safe too

If pressed on international export restrictions:

• Countries have begun implementing export restrictions on the goods critical to combating COVID-19, such as PPE
• This environment has made it increasingly challenging to source and acquire the PPE that Canada needs
• This is why we have been collaborating with provinces and territories on an ongoing basis to identify their needs and establish bulk buys to purchase required equipment, supplies, and services to combat COVID-19

If pressed on a plane departing China without cargo:

• One cargo flight returned without its intended federal shipment on board because the cargo couldn’t be cleared through the handling protocols in time to be loaded resulting in the intended cargo being unable to get to the plane before its required takeoff time
• Air Canada took quick action to load standby shipments belonging to other customers, bringing much needed goods back to Canada
• Air Canada has credited the Government of Canada with the costs they recovered as a result of that transport flight

Global demand for medical supplies remains high for the fight against COVID-19, and competition remains fierce for their delivery. The federal government is procuring materials from a variety of sources, including from overseas suppliers. In addition to federal supply purchases, provinces and cities are also sourcing their own equipment.

Countries have moved to restrict the export of face masks, gloves and other medical supplies critical for frontline workers in the fight against the COVID-19 pandemic, resulting in a more time-consuming procurement process. China is the largest supplier of PPE in the world, and global supply was impacted when the country had to shut down its factories earlier this year when the outbreak began. Canada has taken a two-pronged approach to the acquisition of supplies, by scaling up domestic capacity while seeking to acquire PPE internationally.

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