US should adopt new thinking for GPA

Despite the determined efforts by the contracting parties to conclude the 10-year old negotiations for upgrading the Agreement on Government Procurement (GPA), it is proving difficult to finalize a deal by the upcoming World Trade Organization (WTO) Ministerial Conference on Dec 15-17.

The GPA is to date the only legally binding agreement in the WTO focusing on the subject of government procurement. The present version entered into force on Jan 1,1996. It is based on the principles of openness, transparency and non-discrimination, but it does not automatically apply to all government procurement, rather, the coverage of the Agreement is determined with regard to each of the 42 members to which it is applicable. The remaining countries are not party to the Agreement, either because they feel it is not in their interests, or because the terms and conditions for accession are yet to be agreed with GPA members.

One of the major obstacles to concluding the new deal is the gaps that exist between the United States, the European Union and Japan over further expanding coverage of sectors and entities for public procurement.