Government Procurement in the World Trade Organization

This briefing paper examines the Agreement on Government Procurement (GPA) within the WTO framework, focusing on its structure, the challenges of reaching consensus, and its implications for sustainable development and developing countries.

• The Agreement on Government Procurement (GPA) is a plurilateral agreement, meaning it only binds WTO Members who explicitly sign on rather than all Members automatically. Its core principle is non-discrimination, which is implemented through national treatment, most favoured nation treatment, transparency, and dispute settlement. Unlike the GATT, the GPA's obligations are limited to specific jurisdictions and products listed in Annexes, and countries may set thresholds below which the agreement does not apply.
• Negotiating government procurement rules is difficult because governments act as both the rule-makers and the rule-followers (the purchasers). This creates a conflict where governments seek the best price as consumers but simultaneously act as defenders of domestic producers. For example, the document notes that the Canadian government is unlikely to buy uniforms from foreign sources if the domestic textile industry is struggling, and a German Chancellor would likely avoid using a U.S.-made car.
• While public entities typically represent 10–15 per cent of domestic markets, governments have rarely been path-breaking purchasers of environmentally sound goods. This is often due to the risk of challenges from excluded suppliers or the risk of favouring non-domestic suppliers. The GPA allows for exceptions to protect public morals, order, safety, and human, animal, or plant life or 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 depends on a mercantilist assessment of whether accession benefits domestic producers more than foreign ones, which is likely to be 'no' for most. Regardless of accession, these countries have a stake in ensuring standards are non-discriminatory, as their exports are affected when competing for sales to signatory governments. The document suggests that the tendency of OECD governments to use environmental criteria encourages exporting governments to pursue industrial strategies for 'greener' products.

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} }