Access to US$1.7 trillion govt procurement market

Australia has received support to join the World Trade Organisation Agreement of Government Procurement (GPA) following nearly three years of negotiations with the federal government.

The GPA will unlock opportunities for Australian businesses to participate in procurement markets worth an estimated US$1.7 trillion ($2.3 trillion).

Exporters will be guaranteed to compete on an equal basis in many large foreign government procurement markets.

The GPA now comprises 46 economies, including the EU’s 28 member states, New Zealand, the US and Canada, Singapore, Hong Kong, and Taiwan. Nine more economies, including China and Russia, are in negotiations to join.

GPA members are now expected to commence formal procedures to welcome Australia to join, and once this is complete Australia will begin a domestic treaty-making process to join the GPA.

The Export Council of Australia (ECA) has welcomed the news, noting that it will open up new markets for Australian businesses while having little if any impact on Australian procurement processes, which are already largely consistent with the GPA.

“Australia joining the GPA will deliver immediate benefits to Australian businesses in two ways. Firstly, it will guarantee access to GPA markets that are not currently covered by trade agreements with Australia. Most notably, this includes the EU and its member states,” ECA CEO Alina Bain said.

“Secondly, and perhaps more importantly, it will allow Australian businesses to have complaints about government procurement reviewed by independent bodies. This is important, as members have told the ECA of discriminatory practices when they try to access government procurement in some GPA member markets.”

Image credit: ©iStockphoto.com/Guido Vrola

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