Government procurement refers to purchases of goods or services, including consultancies and professional services, construction, maintenance and material supply contracts, facilities contracts, capital equipment and property and leasing arrangements, undertaken by governments for their own consumption.
Government procurement accounts for a significant part of the economy of many countries. Although a government procurement agreement did not form part of the core WTO agreement, a number of WTO member governments signed a plurilateral agreement on government procurement. However, this was optional and did not go far enough for private sector and governments vying for new opportunities for profit and control through the liberalization of this important area. Government procurement provisions in free trade agreements stipulate that governments (national and sub-national) must treat overseas tenders no less favourably than local ones. Many bilateral agreements include provisions which already commit governments to open up this lucrative market to transnational corporations. This issue has been a contentious sticking point for Malaysia in its negotiations with Washington on an FTA and India in its negotiations with the EU. Malaysia’s procurement policy has kept foreign companies from bidding for state contracts, which US negotiators object to.
8-May-2010
The Economic Times
India is not likely to entertain requests for opening government procurement in its FTA negotiations with EU and Japan respectively.
27-Oct-2009
Europolitics
Following the conclusion of an FTA with South Korea, the European Commission’s Chief Negotiator, Ignacio Garcia Bercero, has stepped up efforts to reinvigorate the trade negotiations with India. However, two key contentious issues are standing in the way of further progress, namely tariff liberalisation and public procurement.
29-Sep-2009
Business Times
One obstacle in US-Malaysia Free Trade Agreement talks may be taken off the table following high-powered discussions on government procurement between the two trade partners.
24-Sep-2009
LiveMint
India and Japan will start a fresh round of talks on a free trade agreement on 29 September after discussions in January remained inconclusive because the countries failed to find common ground on a few contentious issues.
11-Sep-2009
Business Standard
Ahead of the next round of talks on a bilateral trade treaty with India, the European Union today said it was keen that the comprehensive pact included government procurement agreement, which India has resisted so far.
12-Jun-2009
rabble
European corporations and the EU have made clear their top objective is access to procurement within provincial jurisdiction.
8-Jun-2009
AP
Canada is interested in a free trade deal with the United States that would open up local government procurements to both countries. The interest comes as Canadian companies continue to report difficulties in winning government contracts in US cities because of "Buy American" provisions in President Barack Obama’s stimulus bill.
2-Oct-2008
The Star
Malaysia has moved one step forward in the US-Malaysia free trade agreement (FTA) talks, specifically on the issue of government procurement.
5-Jun-2008
This paper on government procurement and EPAs written by Stephen Woolcock from LSE recommends that ACP countries first open their procurement markets on a regional basis, before making commitments to the EU.
21-May-2008
IHT
Malaysia urged the United States on Wednesday to drop contentious issues from their free trade talks so that a deal can be forged.
3-Dec-2007
Boston Globe
States around the US are growing increasingly worried about the threats posed to their laws and regulations by the secret tribunals that resolve disputes in international trade. "Free trade agreements are to state sovereignty and economic development what global climate change is to the environment and natural resources," said state Sen. Virginia Lyons, D-Chittenden.
17-Jul-2007
IHT
"Both sides would like to finish this as quickly as possible," a US official told reporters
28-Mar-2007
It has taken great efforts to change what has been customary in the Government, but the implementation of the Free Trade Agreement between Dominican Republic, Central America and the United States (Dr-Cafta) is forcing the official agencies to be transparent.
15-Feb-2007
New Straits Times
Will the bilateral free trade agreement between Malaysia and the US be signed?
3-Dec-2006
Alert to European civil society groups, trade unions and social movements from the Seattle to Brussels Network
18-Nov-2006
People’s Daily
Chile and Canada extended their existing free trade agreement on Wednesday, said a statement of the Chilean Foreign Ministry.
3-Nov-2006
People’s Daily
The United States is offering about 250 billion U.S. dollars worth of government procurement to Malaysia as the two countries is proceeding with the third round of negotiations of the US-Malaysia Free Trade Agreement (FTA) in Kuala Lumpur on Wednesday.
25-Aug-2006
Australia wants access to Malaysia’s government procurement market, which currently favors the country’s majority ethnic Malays, enshrined in a free trade deal, Trade Minister Mark Vaile said.
15-Aug-2006
Malaysia on Monday said it would issue a "big fat no" to any nation or group that asked it to dismantle a system of positive discrimination for its majority ethnic Malays as part of trade talks.