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PPN
Italian Presidency
Rom - 15 october 2009
Opening public procurement markets:
Contribution of trade policies to the recovery in
the field of public procurement
Marc Poulain
Procurement unit
DG TRADE
European
Commission
1
Outline

The significance of public procurement in world
economy

How the opening of PP markets can contribute to the
recovery

EC strategy towards the opening of public procurement
markets
European
Commission
2
the significance of public
procurement in world economy





Public procurement stand for 16-18 % of GDP in developed
countries and may reach 25 -30 % in developing countries
PP-related expenditures are reported to have numerous
leverage effects :
keynesian multiplier
permissive factor in developing/maintaining a industrial
and technological basis
Taking into account of social and environmental
considerations
European
Commission
3
The temptation of protectionism in
public procurement

Public procurement are therefore a key element in
various stimulus packages ( at least 258 billions US $ on
586 billions US $ in Chinese stimulus package for 2009)

Several developed and developing countries are likely to
limit the benefices of the stimulus package to domestic
suppliers ( i.e buy American and Buy Chinese policies)
European
Commission
4
How the opening of public
procurement markets can contribute
to the recovery ?

Macro-economic impact of the opening of public
procurement markets on potential growth

Opportunities and assets for European industries in the
context of stimulus package
European
Commission
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Macro-economic impact of the opening
of PP on potential growth

Economical assessments demonstrate an additional
growth even for developing countries ( case of India : a
potential gain of 0,5 to 1 % GDP)

Combination of internal and external effects
European
Commission
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Combination of internal and external
effects

Internal effects : best value for money/ enhanced
expenditures ( lower prices of domestic and imported
goods/services , better quality for the same price, better
allocation of public expenditures)

External effects : boosting exports/ gaining adding value
in the supply chain
European
Commission
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Opportunities and assets for European
Industry

Worldwide stimulus packages comprise sizeable
opportunities in numerous sectors

European industry prove competitive in most of those
sectors
European
Commission
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Sectors benefiting from worldwide
stimulus packages

Infrastructures ( transportation, energy)

Health equipments

Environment

Innovation
European
Commission
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Competitiveness of EC industry in
impacted sectors

Infrastructures : expertise in PPP solutions, railways
equipment, power production and distribution

Medical devices

Environment technologies

Utilities management

Innovative technologies
European
Commission
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EC Strategy towards the opening of public
procurement markets

Using existing tools such as plurilateral and bilateral
framework

Advocating the opening of markets at the international
level and the upgrade of multilateralism

Concluding complementary/additional agreements in the
framework of bilateral FTAs

Working on market access barriers
European
Commission
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Using existing tools

WTO and GPA provide for a forum in which protectionist
trends by current members or acceding countries is
being put under scrutiny ( general monitoring process,
specific questions) by EC

Existing plurilateral and bilateral commitments to refrain
parties to elaborate wide-ranging protectionist policies
European
Commission
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Advocating the opening of PP market on the
international level and the upgrade of
multilateralism

Supporting G20 efforts to promote new disciplines in trade,
including public procurement

Steady commitment to enhance WTO framework

Under GPA : deep involvement in the text revision, in the extension
of coverage, and in promoting new accessions such as Taiwan,
Jordan and PR China

Under GATS : ambitious proposal to extend multilateral
commitments to government procurement in the field of services.
European
Commission
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Concluding complementary /additional
agreements in bilateral FTAs



Integrating WTO commitments in a wider strategy in
favor of opening government procurement markets :
Government procurement chapters in bilateral FTAs
to complement WTO commitments ( to cover additional
sectors, entities and contracts)
or to achieve reciprocal opening with non GPA
signatories ( transparency and market access in EC
“new-generation” FTAs)
European
Commission
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Working on market access barriers
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Identifying in close cooperation with Member States
market access barriers ( discriminatory policies in third
countries but also administrative barriers) through
various tools : barriers lists, hymn sheets, studies,
questionnaires
Conducting regulatory dialogues and workshop on
business opportunities to promote EC regulatory
models, stress market barriers and highlight mutual
benefits of reciprocal commitments
Advocating European industry’s interests in the context
of stimulus packages
European
Commission
15
the way forward

Tracking protectionism and using appropriate
tools to tackle it

Highlighting promising business opportunities and
favour binding disciplines
European
Commission
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