Agreement on Government Procurement
Agreement on Government Procurement: one of the WTO plurilateral agreements. It contains rules for the purchase by governments of goods and services for their own use. Such purchases are not covered either by the rules of the GATS or the GATT. The Agreement covers government purchasing contracts for goods, services and construction at the level of central government, state or provincial governments and utilities above a certain size. The Agreement aims to ensure that, subject to legitimate border measures (e.g. health and safety standards, intellectual property protection, etc.), foreign suppliers receive no less favourable treatment than domestic suppliers for relevant government purchasing contracts, i.e. they give each other national treatment. It also stipulates that the parties accord each other most- favoured-nation treatment regarding government procurement covered by the Agreement, but there is an element of direct reciprocity in the extent to which members allow firms from other members to compete in their government procurement. This applies particularly to purchases at the sub-federal or sub-central levels. The Agreement also seeks transparent government purchasing procedures and practices. See also APEC Non- Binding Principles on Government Procurement, second-level obligations and Working Party on Transparency in Government Procurement.
Source: http://ctrc.sice.oas.org/trc/WTO/Documents/Dictionary%20of%20trade%20%20policy%20terms.pdf
Web site to visit: http://ctrc.sice.oas.org
Author of the text: W. Goode
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