A recently published briefing paper outlines key developments in international procurement that may be of particular interest to US suppliers. The paper, Key International Procurement Developments in 2023, published by Thomson Reuters, outlines activities in three areas. It begins with the expansion of the WTO Government Procurement Agreement (GPA) and challenges that plurilateral agreement faces in adding new members. It then examines US treatment of its international obligations amidst the Biden administration’s focus on protecting domestic procurement. Finally, the paper considers the European Union’s (EU) trade agreement agenda, including how it facilitates access to procurement provisions in agreements, as well as its adoption of trade defense measures that could affect participation in its vast procurement market.
Guidelines: The briefing paper also provides Guidelines to assist US suppliers in understanding the potential impact of the 2023 developments on their participation in government procurement. They include:
-- US suppliers gain rights to participate in foreign procurement markets only when countries join the GPA since the Biden administration is not negotiating bilateral agreements that open foreign markets.
-- US suppliers will gain rights to participate in China’s government procurement on the same basis as domestic suppliers only when China becomes a party to the GPA.
-- The Biden administration requires a public interest waiver of the Build America, Buy America Act’s domestic preference before nonfederal entities can purchase goods covered by trade agreements.
-- The EU’s Access2Procurement on-line tool may be useful in ascertaining whether the United States covers a particular procurement under an agreement with the EU.
-- To participate in large-scale EU procurements, US suppliers will need to provide notifications of foreign subsidies received over the prior three years.
-- The European Commission’s handling of the recently initiated investigation of foreign subsidies in a Hungarian train procurement will indicate how it intends to apply its Foreign Subsidies Regulation.
Jean Heilman Grier
March 6, 2024
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