NIEDB Reccomendation Letter: Indigenous Procurement Government Partners

November 15, 2022
Georgina Wainwright-Kemdirim Special Advisor, GBA+; Trade & Gender; Trade & Indigenous Peoples; MERCOSUR incl. Trade Lead

Dear Ms. Wainwright-Kemdirim,

Thank you for the opportunity to engage with the Indigenous Working Group on Trade regarding the UK and Indonesia trade agreement negotiations. Through this submission, I would like to briefly introduce you to the National Indigenous Economic Development Board’s (NIEDB) thoughts on some of the issues identified in the Initial Environmental Assessments (IEA) and summaries of the Gender Based Analysis Plus (GBA+) for consultation paper.

NIEDB Input

Specific to the IEA and GBA+ summary reports, the NIEDB would like to identify areas that must be prioritized in the implementation of addressing the impacts of the UK and Indonesia trade agreement negotiations on Indigenous Peoples and to provide recommendations on some of the issue areas as identified under different chapters in the summaries.

Trade and Indigenous Peoples: We recognize and applaud the fact that Indigenous rights have started being recognized in international trade and economic agreements. We are also pleased that a trade-focused Indigenous Working Group has been established seeking provisions to increase opportunities for First Nations, Inuit, and Métis governments and entrepreneurs to benefit from trade and investment. However, a lack of firm commitments, in particular those designed to protect existing provisions supporting Indigenous businesses, is evident in the provided IEA and GBA+ summaries.

While Canada has acknowledged the importance of enhancing the ability of Indigenous businesses to benefit from Free Trade Agreements, the concrete steps necessary to accomplish this have not yet been
established. For example, while Canada has affirmed the UN Declaration on the Rights of Indigenous Peoples, it has not yet integrated its spirit and intent within trade agreements. Likewise, Canada has recognized the importance of respecting, preserving and maintaining Indigenous knowledge and environmental practices, but has not yet introduced the text necessary to accomplish this recognition within trade agreements. Finally, Canada has recommended the establishment of mechanisms between the parties to facilitate Indigenous trade interests and information sharing, but it has not yet confirmed any mandatory aspects to operating such mechanisms.

In this context, I would like bring to your attention the recently launched National Indigenous Economic Strategy1 (NIES) developed in partnership with more than 20 national Indigenous economic organizations. Built upon four Strategic Pathways (People, Land, Infrastructure and Finance), this strategy includes 107 specific “Calls to Economic Prosperity” that should be implemented in order for Indigenous Peoples to fully realize their economic potential within Canada. The NIEDB encourages you to consider the following Calls to Economic Prosperity in the provisions for the current trade agreement negotiations:

102. Establish mechanisms to recognize Indigenous free trade zones, as defined and regulated by Indigenous Peoples.

103. Create an Indigenous Export Development Corporation.

104. Implement the Jay Treaty.

105. Establish Indigenous-to-Indigenous trade agreements and networks nationally and internationally.

106. Recognize and fulfill Treaty Rights to trade and commerce, nationally and internationally.

107. All free trade agreements include chapters on Indigenous Peoples and Trade, co-developed with Indigenous Peoples.

Investment: The new Foreign Investment Promotion and Protection Agreement (FIPA) model represents important progress within Canada's inclusive approach to trade. We understand the new FIPA will provide a stable, rules-based investment environment for Canadian businesses investing abroad, and ensure all Canadians, including women, Indigenous peoples and SMEs, are able to benefit from these agreements. We further understand that FIPA requires the committed parties to encourage investors to undertake engagement and dialogue with Indigenous Peoples and local communities.

As articulated by the Shareholder Association for Research & Education (SHARE), however, it is critical to understand that for investor engagements to be effective, a significant knowledge gap needs to be addressed around investors’ understanding of Indigenous values and economic interests, corporate best practices, and what corporate disclosure is most relevant, practical, and effective to advance reconciliation and inform investment decisions2. The NIEDB recommends that investments be made in the education and training of Canadian investors and businesses on meaningful consultation and engagement with Indigenous Peoples and communities, both domestically and abroad.

Government Procurement: The NIEDB applauds the government’s commitment to ensure 5% of federal contracts are awarded to businesses managed and led by Indigenous Peoples, and encourages the Working Group on Trade to support the implementation of the following Call for Economic Prosperity specific to procurement:

94. All levels of government provide funding to establish and maintain Indigenous procurement institution(s).

Procurement policies are one of the most important levers that government holds to bring forward economic reconciliation with Indigenous Peoples, and, as such, consideration should be given to negotiating such targets in trade agreements.

The national Indigenous economic development organizations are close to finalizing a co-developed business plan for an Indigenous-led Procurement Institute with responsibility for certifying Indigenous businesses and helping them navigate federal procurement processes. The establishment of such an institute remains our key recommendation for immediate action, as outlined in the following Calls for Economic Prosperity:

95. Devolve government procurement processes to Indigenous institutions – a “Supply Nation-type” organization, including controlling centralized data bases of Indigenous businesses.

96. Require that all public servants receive mandatory training on Indigenous businesses and Indigenous procurement mandates.

99. All levels of government and corporate Canada are mandated to publicly report on Indigenous procurement.

100. Build a national database of verified Indigenous businesses for utilization by all levels of government and by industry to procure goods and services.

A new directory of Indigenous businesses, curated by an Indigenous organization such as the proposed Indigenous Procurement Institute, remains a critical requirement, and, once established, should be shared with international trading partners. Within this business directory, we hope to identify those Indigenous businesses involved in export and trade, as well as those that are export-ready.

Environment: As acknowledged in your report, it is critical to recognize the important role of the environment in the economic, social, and cultural well-being of Indigenous Peoples. However, more actions are required further to respecting, preserving and maintaining the knowledge and practices of Indigenous Peoples that contribute to the conservation of the environment. Indigenous Peoples are developing strategies to inform climate change action in Canada and internationally. Examples include the National Inuit Climate Change Strategy3 and the AFN National Climate Change Strategy4. Consistent with these Indigenous-led efforts, as stated in the NIES, Indigenous groups must be full participants at international climate change forums and committees, and their inherent role must be enshrined in law and policy as stewards of the land, water, air, and natural resources. This role should also be reflected in trade agreements. The following Calls to Economic Prosperity can guide this goal:

51. Establish a policy that directs representatives of First Nations, Métis, and Inuit are included on all Federal, Provincial, Territorial, and Municipal Regulatory bodies. Affirm the utilization of Indigenous knowledge in all aspects of land management, protection, and emergency response.

52. Direct that Indigenous environmental bodies and people are required as monitors of all energy and resource projects.

55. Strengthen the consultation process on all major resource and energy projects to ensure Indigenous interests are paramount.

56. Implement significant penalties for corporate non-compliance with Indigenous, Federal, Provincial, Territorial, and Municipal environmental laws and permitting processes.

Intellectual Property (IP): While this chapter explores options to make the IP system more inclusive and accessible to Indigenous Peoples, it is important to highlight that Indigenous Peoples have long been victims of intellectual theft, misuse and misappropriation of their traditional knowledge. As part of the inclusive trade provisions, the NIEDB encourages you to incorporate the following Calls to Economic Prosperity within trade agreements to protect Indigenous intellectual property and traditional knowledge from cultural misappropriation:

13. Create an Indigenous branch of Canadian Intellectual Property Office Cultural.

70. Create an Indigenous Knowledge Institute focused on protecting Indigenous Rights, monitoring Indigenous-focused research, protecting intellectual property rights, community-specific cultural knowledge, and development of national ethics principles to guide Indigenous-focused research.

Trade and Gender: As part of the inclusivity goals and to enhance the ability of Indigenous women-owned businesses, the NIEDB has identified concrete steps for guidance in this realm.

Firstly, ensure that adequate space is made for the experiences and interests of Indigenous women entrepreneurs within the Procurement Strategy for Indigenous Business (PSIB), and ensure that businesses owned and operated by Indigenous women make up part of the list of Indigenous business shared with international trade partners. This will be facilitated by an Indigenous-led Procurement Institute.

Secondly, support the increased representation of Indigenous women, and implement strategies to increase their equity positions and their involvement in business and decision-making positions in both the public and private sectors nationally.

Small and Medium-sized Enterprises (SMEs): In addition to providing training opportunities and entrepreneurship education programs to Indigenous Peoples, the growth of small and medium-sized enterprises can benefit from the implementation of the following NIES Calls to Economic Prosperity:

22. Strengthen supports for organizations that focus on Indigenous skills, employment, and business training.

23. Conduct meaningful data and conduct assessments on the efficacy of existing programs in relation to the skills development of Indigenous Peoples.

30. Engage Indigenous Advisors to help Indigenous and non-Indigenous organizations evaluate workplace practices and strategies, measure and monitor workplace inclusion strategies, provide inclusive workplace training, and undertake systems review of strategies.

84. Reform government policy and legislation to remove all barriers to Indigenous access to capital.

The Board looks forward to continued opportunities to provide input directly into the process related to trade agreement negotiations as well as through the Indigenous Working Group on Trade. In addition, we would welcome your thoughts and response to our recommendations contained herein at your convenience.

Thank you, Georgina, for all that you do to support Indigenous
engagement on trade!

Sincerely,

Dawn Madahbee Leach
Chairperson

  1. NIES_English_FullStrategy.pdf (niestrategy.ca)
  2. https://share.ca/wpcontent/uploads/2022/01/Business_and_Reconciliation_How_can_investors_evaluate_the_efforts_of_Canadia-public_companies.pdf, page 11
  3. https://www.itk.ca/wp-content/uploads/2019/06/ITK_Climate-Change-Strategy_English_lowres.pdf
  4. https://www.afn.ca/wp-content/uploads/2019/08/19-05-Declaring-a-First-Nations-Climate-Emergency.pdf

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