GPA Agreement Countries: What You Need to Know
The Government Procurement Agreement (GPA) is a plurilateral agreement that was established by the World Trade Organization (WTO). The agreement aims to promote fair and transparent government procurement practices among the member countries.
As of 2021, there are 20 parties to the GPA, including the European Union (EU) and its member states. Other parties include the United States, Japan, South Korea, Canada, Israel, Hong Kong (China), Liechtenstein, Norway, Iceland, Switzerland, Aruba, Chinese Taipei, New Zealand, Singapore, Montenegro, North Macedonia, Ukraine, Moldova, and Albania.
If you are looking to do business with any of these countries, it is important to understand the GPA and how it affects government procurement. Here are some key things to keep in mind:
1. GPA Membership Matters
If a country is a member of the GPA, it means that its government procurement market is open to foreign businesses on a level playing field. This means that foreign companies can bid on government procurement contracts in the same way that local companies can.
2. GPA Covers Certain Procurement
The GPA covers government procurement of goods, services, and construction works. However, it only applies to procurement above a certain threshold. The threshold varies by country and by type of procurement, so it’s important to check the specific rules for the country you are interested in.
3. GPA Promotes Transparency and Fairness
One of the main goals of the GPA is to promote transparency and fairness in government procurement. Member countries are required to publish their procurement rules and procedures in a transparent and non-discriminatory manner. This means that all potential bidders have access to the same information and are evaluated based on the same criteria.
4. GPA Provides Dispute Resolution
If there is a dispute between a foreign company and a member country’s government regarding a procurement contract, the GPA provides a dispute resolution mechanism. This allows companies to seek redress if they believe that they were treated unfairly or if their bid was unfairly rejected.
In conclusion, understanding the GPA and its member countries is important for businesses looking to expand their international reach. While there are certain rules and regulations to follow, the GPA ultimately provides a fair and transparent way for foreign businesses to bid on government contracts in these countries.