Georg Roebling European Commission DG Trade, 14 June 2005 Government Procurement - a regional and international perspective

European Commission - DG Trade2 Government Procurement basics GP market: –World : 6,000 billion $ 70% in public works High risks of corruption Opening-up brings 30% savings Better Value (Quality / Price) for Money Key element of competitiveness

European Commission - DG Trade3 Government Procurement Basics II Government procurement has over the last 10 – 15 years become a bread and butter issue in international trade talks AND developmental policies. Recognition: in-transparent and closed procurement markets are a key hindrance to economic development and growth

European Commission - DG Trade4 The WTO Agreement on Government Procurement (GPA) Government procurement regulations have been kept out of key market-access rules undertaken by countries under both the GATT and GATS Growing awareness of the trade-restrictive effects of discriminatory policies lead to the first GPA signed in 1979 (Tokyo round), greatly improved in 1994 (Uruguay round)

European Commission - DG Trade5 The 13 WTO member countries parties to the GPA Canada, the European Union, Hong Kong China, Iceland, Israel, Japan, Korea, Liechtenstein, the Kingdom of the Netherlands with respect to Aruba, Norway, Singapore, Switzerland, the United States

European Commission - DG Trade6 GPA Rules:, non-discrimination, national treatment and transparency Each Party does not discriminate and give products, services and suppliers of any other Party « no less favourable » treatment than given domestically Each Party do not discriminate/treat less- favourably locally-established supplier on basis of degree of affiliation or ownership, or on country of production of good or service Transparency of laws, regulations, procedures and practices

European Commission - DG Trade7 Scope and Coverage The GPA applies to tenders made by public entities above specific thresholds for goods, services and supplies (for the CE):  154,000 € for central government purchases of goods and services;  237,000 € for purchases of goods and services by sub-central government entities;  474,000 € for goods and services for utilities;  5,924,000 € for construction contracts.

European Commission - DG Trade8 Towards GPA III New rules and procedures: simpler, easier to apply, and more DCs-friendly Increase coverage by: –Bringing in new entities, new sectors, new services –Eliminating numerous exceptions and country specifics

European Commission - DG Trade9 Special rules for Developing Countries GPA recognizes development needs of DCs and allows S&DT Transitional measures with regard to: –Market access commitments (price preference, offset, higher thresholds, sectors exclusion) –Implementation of procedures

European Commission - DG Trade10 A case for a “Regional Procurement Agreement”? Limited to 1 region; opens markets to suppliers from (only) within that region Content: Procedural rules; transparency, non-discrimination, etc. Effective tool for domestic economic policy AND a stepping stone for subsequent adherence to WTO procurement regime (same principles)

European Commission - DG Trade11