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public procurement

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.


GCC-EU free trade talks make progress on issues
The European Union and the GCC wound up talks on a long stalled free trade deal yesterday without agreement on opening up the region’s lucrative services sector.
ASEAN talks hit a trade barrier
Australia and New Zealand want a comprehensive free trade agreement with ASEAN, but some ASEAN nations have no competition policy, and reject any negotiations on intellectual property and government procurement.
War support could win US contracts
Australia’s support of the US in Iraq could help local companies crack the huge US government contract market, an American consultant on the US-Australia FTA says.
Thai specialists in US for FTA technical talks
On liberalising services and investment, Thailand insists on adopting a "positive list" approach, where only those sectors explicitly outlined in the agreement would be opened. The US insists on a "negative list", under which all sectors are on the table except those listed as sensitive.
AU’s Ministerial Declaration on EPA negotiations
EPAs should serve as instruments for development and poverty reduction. They must also support the deepening of intra-African trade.
P4 Economic Partnership Agreement - key outcomes
Press release from NZ government outlining key features of the Trans-Pacific Strategic Economic Partnership Agreement between Brunei, Chile, New Zealand and Singapore.
Maryland legislature revokes Governor Ehrlich’s CAFTA commitment
The Maryland General Assembly’s override today rescinding Gov. Robert Ehrlich’s 2003 commitment to allow Maryland’s state procurement rules to be bound by pending trade agreements negotiated by the Bush administration and in previous trade agreements such as the World Trade Organization (WTO) is a victory for Maryland taxpayers and the latest evidence of state officials’ growing demands for accountability in international trade negotiations, Public Citizen said today.
FTA shakes up government procurement
The Australia-US Free Trade Agreement will bring major changes to Australian government procurement.
Divide and conquer: The FTAA, US trade strategy and public services in the Americas
Documents the progress of “competitive liberalization,” a strategy advanced by the United States Trade Representative to establish a network of bilateral international trade agreements as steps toward the multilateral GATS agreement.
Gvt procurement: FTA provides lucrative contracts for Australian businesses
Australian businesses are preparing for an assault on the $200 billion US Government procurement market when the US-Australia FTA takes effect in just over a fortnight.
EU, Mercosur fail to reach agreement
Talks between the European Union and the four-nation South American Mercosur trade bloc, aimed at building the world’s largest free-trade area, will be extended into 2005
Kuwait, Singapore agree FTA to include 4 main areas
Kuwait and Singapore have agreed that the free trade agreement between them will include four main areas of trade in goods, trade in services, investment and government procurement.
EU-Mercosur: EU presents completed offer to Mercosur
In the on-going negotiations for an EU-Mercosur Association Agreement, the EU has today sent Mercosur a completed offer.
’Singapore issues’ part of EU’s trade agenda: Lamy
Investment, competition policies, and transparency in government procurement emerged during a recent meeting between trade ministers of the Association of Southeast Asian Nations (ASEAN) and the European Union aimed at seeking ways to boost trade and economic cooperation between the two regions.