Trade: Orgalim Position Paper on the International Procurement Instrument
Published: 6 July 2020
Policies & Issues: Trade
The European procurement market is generally open to bidders, goods, and services from third countries. The EU is advocating for the opening up of public procurement markets in third countries, both at the plurilateral level through a revised Agreement on Government Procurement (GPA), and in its bilateral trade negotiations, to grant European companies equivalent market access in non-EU countries.
In this context, the European Commission proposed a Regulation on an International Procurement Instrument (IPI) in 2012 and then revised the proposal in 2016. Under the proposal, the IPI can empower the Commission to conduct investigations aimed at determining whether third countries are closing off their public procurement markets to EU companies. If this were the case, the Commission would start negotiations with the country concerned. However, if such negotiations do not result in a successful conclusion, bids in which more than 50% of the total value is created by goods and services originating in the country concerned could face sanctions in terms of price supplements.
As the Council is currently discussing the proposal, Orgalim would like to put forward its support in principle as well as its specific views on the IPI.
To read our recommendations in full, please download the position above.
Senior Adviser - Trade and Legal