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What Is the Government Procurement Agreement

The current signatories of this agreement (as of April 2014) are: Armenia, Canada, Chinese Taipei, the European Union – whose Member States are Austria, Belgium, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, Germany, France, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands (including Aruba), Poland, Portugal, Slovakia, Slovenia, Sweden and the United Kingdom – Hong Kong, Iceland, Israel, Japan, Norway, South Korea, Liechtenstein, Singapore, Switzerland and the United States. Any other government that is a member of the WTO may accede to this Agreement on the terms agreed between that government and the current signatories. At the heart of the WTO-GPA are legally binding rules requiring signatories to establish an open, fair and transparent playing field in public procurement processes for specific areas on which they have agreed. (2) This restriction does not apply to the purchase of supplies by the Ministry of Defence from a country with which it has entered into a reciprocal agreement, as provided for in the regulations of the Ministry. The World Trade Organization (WTO) Agreement on Government Procurement, commonly known as the GPA, establishes a framework of government procurement rights and obligations among WTO Members that have signed it. The signatories agreed that suppliers of goods and services in other signatory States will not be treated less favourably than domestic suppliers in government procurement covered by the agreement and that their laws, regulations and procedures relating to government procurement will be transparent and fair. The revised GPA, which entered into force on 6 April 2014, is attracting increasing global attention, but the liberalisation of public procurement is not a completely new idea. Within the framework of the OECD, efforts have been made at an early stage to place government procurement within the framework of internationally agreed trade rules. The issue was then incorporated into the trade negotiations of the GATT Tokyo Round in 1976. Public procurement often favours local suppliers in the domestic market. Although this approach aims to stimulate the national economy, in practice it can lead to market distortions that limit choice, increase prices and undermine economic efficiency. Increased competition from foreign suppliers for government procurement can put pressure on the cost of goods and services, provide value for taxpayers, and provide access to goods and services that can improve the quality of government services, while promoting a better allocation of resources in the economy. Accession to the GPA is limited to WTO Members that have expressly signed the GPA or have subsequently acceded to the Agreement.

WTO members are not required to join the GPA, but the United States strongly encourages all WTO members to participate in this important agreement. Several countries, including China, Jordan and Moldova, are currently negotiating to join the GPA. The WTO Agreement on Government Procurement (GPA) is a “plurilateral” agreement, meaning that it applies to a number of WTO Members, but not to all Members. Signatories to the GPA are required to publish summary notices on procurement opportunities for contracts covered by the agreement. Each member has identified publications in which these opportunities are published. The publications are listed in Annex II (off-site link). The Agreement on Government Procurement (GPA) is a plurilateral agreement under the auspices of the World Trade Organization (WTO) that regulates the purchase of goods and services by the authorities of the Parties to the Agreement on the basis of the principles of openness, transparency and non-discrimination. This project aims to further assist countries in assessing their supply systems by aligning the OECD taxonomy with international best practices. In addition, this methodology is being tested with data collection in four ASEAN countries (Indonesia, Malaysia, Philippines and Vietnam).

Yes. If you are having difficulty selling goods or services to a signatory government`s procurement entities because that government has not complied with this agreement, contact the U.S. Department of Commerce`s Trade Agreement Negotiations and Compliance Hotline. The Center can help you understand your rights under this Agreement and may notify the relevant U.S. officials. Government officials to help you solve your problem. The U.S. government may, if necessary, discuss the particular facts of your situation with the government of the other country concerned and ask officials of that government to look into the matter. As a last resort, the U.S. government can rely on the WTO dispute settlement procedure. In order to ensure an open, fair and transparent playing field in government procurement, several WTO Members have negotiated the Agreement on Government Procurement (GPA).

The following WTO Members are parties to the 1994 Agreement:[3] The Tender Review Body is a body established by States Parties that allows suppliers to challenge irregular public tenders. [5] These bodies are independent and strive to deal with each case promptly. The Review Panel also has the power to recommend prompt interim measures, which may be recommended in the following days if a Review Panel finds prima facie evidence of a challenge to tender. [6] On 30 March 2012, the Parties to the GPA adopted a revision of the GPA. The revised agreement expands the supply covered by the GPA to provide new opportunities for U.S. goods, services and suppliers to participate in central and sub-central procurement in the other GPA parties. The revised agreement also includes a substantial improvement in the wording of the agreement by modernising the text to reflect current procurement practices and clarifying its commitments. The revised Agreement shall enter into force for those Parties which have accepted it on the 30th day following such deposit by two-thirds of the Parties to the current Agreement and thereafter for each Party which accepts it on the 30th day following its adoption. Any enterprise from a signatory country wishing to sell goods or services covered by the GPA to a procuring entity from another signatory country listed in Annex I to the GPA may benefit from this Agreement. The World Trade Organization estimates that the value of the government procurement opportunities covered by the agreement amounts to hundreds of billions of dollars per year. (a) Eligible products from the WTO GPA and free trade agreements shall be entitled to the non-discriminatory treatment referred to in point (1)(25.402(a).

The WTO-GPA and free trade agreements establish procurement procedures to ensure fairness (see 25.408). The text of the agreement contains rules stipulating that open, fair and transparent conditions of competition in public procurement must be guaranteed. However, these rules do not automatically apply to all procurement activities of each party. Rather, coverage plans play a crucial role in determining whether or not a procurement activity is covered by the agreement. Only procurement activities carried out by covered companies that purchase listed goods, services or construction services with a value exceeding certain thresholds are covered by the Agreement. These schedules are accessible to the public here. The GPA is a plurilateral agreement within the WTO, which means that not all WTO members are parties to the agreement. Currently, the Agreement has 20 parties comprising 48 WTO Members.

36 WTO members/observers participate as observers in the GPA Committee. Of these, 12 members are in the process of acceding to the agreement. If a signatory Government considers that its rights under this Agreement are nullified or affected by another Signatory, it may request the opening of WTO dispute settlement proceedings to resolve the matter. The WTO dispute settlement procedure is described in the Exporter`s Guide to the WTO Dispute Settlement Agreement. For the full text of the revised GPA and the new annexes setting out the procurements covered by all GPA Parties, see GPA-113. As a result, the first agreement on government procurement (the Tokyo Round Government Procurement Code) was signed in 1979 and entered into force in 1981. It was amended in 1987 and entered into force in 1988. Subsequently, in parallel with the Uruguay Round, the parties conducted negotiations on the extension of the scope and scope of the Agreement. Finally, on 15 April 1994, a new Agreement on Government Procurement (GPA 1994) was signed in Marrakesh at the same time as the Agreement Establishing the WTO, which entered into force on 1 January 1996. In the OECD iLibrary you will find all OECD publications on public procurement.

The signatories to the GPA agreed that companies from other signatory countries will not be treated less favourably than domestic companies in public procurement, in accordance with the principles of national treatment and non-discrimination. Locally established enterprises are also not treated less favourably because of their foreign affiliation or ownership or because the goods and services they offer are of foreign origin. Surrogacy applies to procurement by any contractual means, including purchase, lease or lease with or without an option to purchase. .