Accession process for Costa Rica and Albania
Speaking in the Committee for the first time since submitting its application for accession in September, Costa Rica stated that it has benefited for many years from an open trade policy, leading to the successful integration of its economy into global trade. Costa Rica views its application for accession to the GPA “as a natural step in its trade opening strategy and as a valuable tool to guarantee predictable access to other markets, based on rules and legal certainty”, including government procurement markets.
Costa Rica initiated its negotiations for accession to the GPA 2012 by submitting information about its government procurement system. At the Committee meeting, it indicated that it wishes to conclude the accession process as soon as possible. An observer to the Committee since 2015, Costa Rica would be the first WTO member from Central America to join the GPA 2012.
Albania updated the Committee on its exchanges with GPA parties and the progress achieved in its accession negotiations since it shared information about its government procurement system in the summer. Albania also affirmed its goal of acceding to the GPA 2012 in the near future with the help of the GPA parties.
North Macedonia’s participation as a GPA party
The Committee warmly welcomed North Macedonia as a new GPA party, noting the country had completed its domestic ratification process in less than three months. Expressing gratitude to all GPA parties for having supported its accession, North Macedonia said that it is looking forward to cooperating constructively in the Committee as a new GPA party. Considering the difficult geopolitical and economic global context, the GPA should contribute to economic integration and transparency among an even larger number of countries, it added.
North Macedonia initiated its accession negotiations in 2017 and is now the 22nd party to the GPA and the 49th WTO member to be covered by the Agreement.
Information-sharing workshop
On 9 November, the Committee held its first-ever information-sharing workshop to enhance the understanding of parties’ government procurement laws, with a focus on labour standards. Under consideration was how to conduct government procurement processes in a manner that protects and advances labour standards, while respecting international trade commitments.
In her opening remarks, DG Okonjo-Iweala said: “Government procurement can help ensure that trade policy is responsive to people’s concerns about global trade. I commend the Committee for taking the initiative to reflect on these important issues in today’s workshop.””
Regulatory developments in the United States
The European Union – echoed by Australia, Canada, Switzerland and the United Kingdom – raised concerns about regulatory developments in the United States. At issue is the United States’ implementation of the “Build America, Buy America Act” (BABA Act), part of the US Infrastructure Investment and Jobs Act, in the context of the recent guidance issued by the US Office of Management and Budget, and whether the implementation complies with the United States’ obligations under the GPA.
The United States replied that it is applying the BABA Act in a way that is consistent with its international obligations. In this context, the United States referred to the publication in October 2023 by the Office of Management and Budget of a supplementary memorandum that provides guidance on consistency with international agreements.
Next meeting
The next meeting of the Committee will take place in early December.
Background
Not all WTO members are parties to the Government Procurement Agreement. While it is open to all WTO members, this plurilateral Agreement is binding only for those members that have joined it. The list of current GPA parties and observers can be found here.
Each applicant’s terms of participation are negotiated with GPA parties. These terms are set out in each party’s schedule (available from the e-GPA Gateway), which defines its commitments with respect to:
- the procuring entities whose procurement processes will be open to foreign bidders
- the goods, services and construction services open to foreign competition
- the threshold values above which procurement activities will be open to foreign competition
- exceptions to the coverage.
The GPA aims to open up government procurement markets to foreign competition in a reciprocal manner and to the extent agreed between GPA parties. It also aims to make government procurement more transparent and to promote good governance. Reciprocal market opening assists GPA parties in purchasing goods and services that offer the best value for their money. The Agreement provides legal guarantees of non-discrimination for the goods, services and suppliers of GPA parties in covered procurement activities.
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