Trade Effects of Rules on Procurement for Commonwealth ACP Members

image of Trade Effects of Rules on Procurement for Commonwealth ACP Members

This Economic Paper assesses the potential trade effects of rules on procurement policies in Commonwealth ACP countries. It provides a practical guide for policymakers and negotiators to determine the impact of government procurement rules and policies taken at the national level or negotiated in trade agreements.



Market Access

That procurement is now firmly part of the international trade debate is in no doubt, as is evidenced by the large number of bilateral and regional trade arrangements which contain provisions relating to it.53 These include the numerous bilateral free trade agreements (FTAs) entered into by the USA, the EU and EFTA with parties around the world, as well as the EU’s move towards economic partnership agreements (EPAs) with the 77 ACP countries. Whilst the provisions of each of these agreements are somewhat, and in some cases very, different,54 the general trend is that most are now beginning to follow the model provided by the WTO’s GPA, i.e. they include text establishing basic transparency provisions (the legal framework) and separately negotiate the coverage (market access) conditions. The transparency provisions will reflect those discussed above and will be based on an underlying procurement system which meets the requirements of the organisation in question. These may include the EU directives on procurement, the main text of the GPA 1994, the UNCITRAL model law on procurement55 or the OECD/DAC baseline indicators and their associated scoring methodology, which rewards features in a system that reflect good practice. In addition, the ‘coverage’ (market access conditions) of the provisions is be negotiated separately. These contain reference to the entities and contracts covered as well as any exemptions and reciprocity conditions.


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