The Government Procurement Agreement (GPA) is a plurilateral agreement within the World Trade Organization (WTO) framework that allows the signatories to open up their public procurement markets to foreign competition. This agreement aims to promote transparency, accountability, and fairness in government procurement processes.
There are currently 20 signatories to the GPA, including the European Union (EU) and its member states, the United States, Japan, Canada, Norway, Switzerland, South Korea, Israel, Hong Kong China, Iceland, Liechtenstein, Singapore, Montenegro, New Zealand, Aruba, Moldova, Ukraine, North Macedonia, and Georgia. China joined the GPA in July 2020, making it the most recent member.
To become a signatory to the GPA, a country must go through a rigorous negotiation process and meet certain requirements related to transparency and fair competition. Once a country joins, it must also comply with the GPA`s rules and regulations, including the use of open and transparent procurement procedures, non-discrimination against foreign suppliers, and the establishment of independent review procedures.
The GPA covers a wide range of goods and services, including construction services, information technology, transportation, and medical equipment. It also sets out specific thresholds for the procurement of goods and services that must be open to international competition.
The benefits of the GPA include increased market access for goods and services, improved transparency and fairness in procurement processes, and the promotion of competition, which can lead to more competitive prices and better quality goods and services. It also provides a level playing field for both domestic and foreign companies to compete for government contracts, which can help stimulate economic growth and create jobs.
In conclusion, the Government Procurement Agreement is an important tool for promoting transparency and fair competition in government procurement processes. With 20 signatories, it represents a significant portion of the world`s public procurement market. By opening up their markets to foreign competition, signatories stand to benefit from increased market access, improved transparency, and greater competition, which can lead to better prices and higher quality goods and services.