The Agreement On Government Procurement

We examine the impact of the World Trade Organization (WTO) agreement on public procurement (GPA) on procurement practices in the European Union (EU). We empirically analyze the effectiveness of the WTO GPA in promoting non-discriminatory, open, transparent, competitive and inexpensive public procurement. To examine this issue, we use a unique dataset recently published by the EU, which includes more than three million tenders launched in 2006-2016 in the European Economic Area, Switzerland and Macedonia. We find that the WTO GPA promotes competition by increasing the likelihood of awarding a contract to a foreign company. In addition, the WTO GPA significantly reduces the risk of corruption by reducing the number of contracts with individual suppliers and reducing the total number of profits of a single company. Finally, the WTO GPA encourages public procurement at a more favourable cost by reducing the likelihood that the price of government contracts will exceed the estimated costs. Many buying opportunities are also published electronically. The GPA`s fundamental objective is to open mutual public procurement between its parties. Following several rounds of negotiations, the GPA parties have opened purchase activities valued at an estimated $1.7 trillion per year for international competition (i.e., suppliers of construction products, services or services). When a undersigned government feels that its rights under this agreement are nullified or compromised by another signatory, it may request the initiation of WTO dispute settlement procedures to resolve the issue. The WTO dispute settlement procedure is described in the exporter`s guide to the WTO dispute settlement agreement. The current signatories to this agreement (april 2014) are: Canada, Chinese Taipei, the European Union – whose member states are Austria, Belgium, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands (including Aruba), Poland, Portugal, Slovakia , Slovenia, Sweden and the United Kingdom – Hong Kong, Iceland, South Korea, Liechtenstein, Singapore, Switzerland and the United States.