Agreement on Government Procurement (GPA) is a plurilateral agreement within the World Trade Organization (WTO) framework, meaning it is not binding on all WTO members but only on those that have expressly agreed to be bound by it. The GPA aims to make government procurement more transparent and to open it up to international competition. It is designed to ensure that the signatories treat suppliers and goods from other member countries no less favorably than their domestic suppliers and goods in government procurement.
Objective
The main objective of the GPA is to mutually open government procurement markets among its parties. It seeks to achieve this through the principles of transparency, non-discrimination, and fair competition. The agreement is intended to make government procurement more efficient and to offer better value for the money spent by governments.
Scope
GPA applies to the procurement of goods, services, and capital infrastructure by public authorities of the parties to the agreement. It covers procurement by central government entities, sub-central government entities, and other bodies (such as public utilities), but the exact coverage is specified in each party’s commitments. The agreement sets out detailed rules regarding the procurement process, including the publication of notices, tendering procedures, and the awarding of contracts.
Parties to the Agreement
As of the last update, the GPA had 48 WTO members, including countries from North America, Europe, Asia, and Oceania. These members have agreed to open up their government procurement markets to each other, according to the schedules of commitments they have each undertaken. It’s important to note that while the GPA is a plurilateral agreement, its parties collectively represent a significant share of global GDP, making the agreement substantial in terms of economic coverage.
Benefits
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For signatories:
GPA helps to create a level playing field for suppliers from member countries, giving them access to significant government procurement opportunities abroad. This can lead to increased exports and economic benefits for firms within these countries.
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For procurement entities:
By broadening the supplier base, the GPA can help public authorities to obtain better value for money and foster innovation through increased international competition.
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For the global economy:
GPA contributes to the transparency and fair conduct of international trade, reducing the risk of corruption and inefficiency in government procurement processes.
Revision and Expansion
GPA is periodically revised to update its rules and expand its coverage. The most recent version, the Revised GPA, entered into force in April 2014. This revision modernized the agreement and expanded the scope of procurement covered, thus increasing the market access opportunities for the parties’ goods, services, and suppliers.
Future Developments
There is ongoing interest in expanding the membership of the GPA, both from existing WTO members that are not yet parties to the GPA and from countries that are in the process of acceding to the WTO. Expanding the membership would further increase the coverage of government procurement markets accessible under the agreement.