Government Procurement in the World Trade Organization
Summary
The document analyzes the WTO's Agreement on Government Procurement (GPA), a plurilateral agreement based on non-discrimination and transparency. It highlights the conflict of interest governments face as both rule-makers and purchasers, and discusses how the GPA interacts with environmental criteria. The author notes that while the GPA allows for some exceptions to protect health and safety, it lacks a specific exception for the conservation of exhaustible natural resources. For developing countries, the briefing suggests that accession to the GPA depends on a mercantilist assessment of national interest, though they remain affected by the standards set by signatory governments.
Key insights
- The Agreement on Government Procurement (GPA) is a plurilateral agreement, meaning it is not automatically binding on all WTO Members but only on those who sign on. As of late 2002, it included 28 Members, seven countries in the process of accession, and 23 observers.
- Governments experience a conflict of interest in procurement negotiations because they act as both the rule-makers and the purchasers of goods and services, often balancing the desire for the best price against the need to protect domestic producers.
- While governments can use environmental requirements in procurement, they often avoid doing so to prevent challenges from excluded suppliers or the risk of favoring foreign suppliers over domestic ones. The GPA allows exceptions for protecting public morals, order, safety, and health, but it does not include the GATT exception for the conservation of exhaustible natural resources.
- For developing countries, the decision to accede to the GPA is primarily a matter of national interest and whether accession benefits domestic producers more than foreign ones; however, many least developed countries and economies in transition may lack the capacity to conduct such a thorough assessment.
Cite the original document
- APA
- International Institute for Sustainable Development (2003). Government Procurement in the World Trade Organization. https://www.iisd.org/system/files/publications/investment_sdc_may_2003_4.pdf
- Chicago
- International Institute for Sustainable Development. Government Procurement in the World Trade Organization. 2003. https://www.iisd.org/system/files/publications/investment_sdc_may_2003_4.pdf.
- Wikipedia
- {{cite report |author=International Institute for Sustainable Development |title=Government Procurement in the World Trade Organization |date=2003 |url=https://www.iisd.org/system/files/publications/investment_sdc_may_2003_4.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{internationalinstituteforsustainabledevelopment2003government, author = {{International Institute for Sustainable Development}}, title = {{Government Procurement in the World Trade Organization}}, institution = {International Institute for Sustainable Development}, year = {2003}, url = {https://www.iisd.org/system/files/publications/investment_sdc_may_2003_4.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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