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The WTO GPA:
Global Context, Potential Benefits,
Opportunities & Challenges
Nicholas C. Niggli
Head of Economic, Finance, Science & Innovation Section
Embassy of Switzerland in the United Kingdom
Chairman, Association of Economic Representatives in London (AERL)
Chairman, WTO Government Procurement Agreement (2007-2012)
EBRD, London EC2A 2JN, 09 December 2014
The views expressed in this presentation are exclusively those of the author and may
not be attributed to the WTO, the Swiss Confederation or the AERL
Outline
•The State as economic actor: Far-reaching economic,
fiscal and governance-related implications.
•The WTO GPA: Benefits and opportunities arising from
this « Swiss army knife » arrangement.
•The WTO GPA: How to overcome the challenges and
be amongst tomorrow’s winners?
•Concluding thoughts
1
The State as economic actor:
Far-reaching economic, fiscal and
governance-related implications.
The State: A mighty economic player
• Lots of goods, services and intellectual property to
buy / infrastructure to construct to function &
provide the best possible public services
• Historically, few constraints, little competition & nontransparent markets
• High quality & low price: the indispensable mantra in
a time of fiscal tightening and growing transparency
Globalization: The Four “I”s can’t be ignored!
•Integration
•Interdependency
•IT innovations
•Inequality
How to improve government efficiency and
fiscal latitude while also stimulating growth
and promoting good governance?
Sound management of Government Procurement
helps States to:
• Better utilize their (often scarce) resources
• Increase their political, economic and fiscal options
• Tighten their belts to reduce their debt/GDP ratio
2
The WTO GPA:
Benefits and opportunities arising
from this « Swiss army knife » arrangement.
The GPA? A historical perspective
• An instrument originally developed by the OECD
• Introduced into the GATT as Tokyo Round Code on
GP in 1979 and revised in 1987
• Signature of the first GPA in 1994
• Revision of the GPA agreed to in 2012 and entered
into force in 2014 (12 years negotiations)
The 2012 GPA: Multiple dimensions and benefits (I)
•Rules
- Transparency, predictability, non-discrimination, legal certainty
- ‘Policy space’ / development considerations: tailor-made approach
- Enhanced transitional measures for developing countries
- Help provide harmonised procurement regime across region
- Locks in reforms while supporting regional integration efforts
• Trade: Market Access
- States spend about 15-20% of GDP on Procurement
- 15 (soon 17) Parties, 43 (soon 45) WTO Members, 28 Observers.
- Reciprocal access to $1.7 trillion GPA covered procurement
market: guarantees opening towards key economic partners
The 2012 GPA: Multiple dimensions and benefits (II)
• Governance instrument
- International good governance ‘stamp of approval’
- Foster inward investment through many channels
- Facilitates global value chain integration
• Further benefits and opportunities
- The lessons from WTO Accession & DSB protection
- Sense of history: Capital & Investment is moving fast
- First movers amongst EC’s, DC’s and LDC’s will likely get extra
political credit
3
The WTO GPA:
How to overcome the challenges
and be amongst tomorrow’s winners?
Acceding to the GPA - Potential challenges:
• Costs of accession
• Implementation
• Adjustment
Barriers might be less high than one thinks!
Autonomous reforms as well as FTA’s or RTA’s might
already pave the way to the GPA
4
Concluding thoughts:
Good governance, the GPA,
public infrastructure provision,
trade and development
Trade, Growth / Devt
Public Welfare
Public
Infrastructure /
Services
Public
Procurement
Good
Governance
Thank you very much for your attention!
Nicholas C. Niggli
Head of Economic, Finance, Science & Innovation Section
Embassy of Switzerland in the United Kingdom
Chairman, Association of Economic Representatives in London (AERL)
Chairman, WTO Government Procurement Agreement (2007-2012)
The views expressed in this presentation are exclusively those of the author and
may not be attributed to the WTO, the Swiss Confederation or the AERL