Regional Trade Agreements & Procurement Rules: Facilitators or Hindrances?

Abstract

The Robert Schuman Centre for Advanced Studies (RSCAS), created in 1992 and directed by Professor Brigid Laffan, aims to develop inter-disciplinary and comparative research on the major issues facing the process of European integration, European societies and Europe's place in 21 st century global politics. The Centre is home to a large post-doctoral programme and hosts major research programmes, projects and data sets, in addition to a range of working groups and ad hoc initiatives. The research agenda is organised around a set of core themes and is continuously evolving, reflecting the changing agenda of European integration, the expanding membership of the European Union, developments in Europe's neighbourhood and the wider world.

Trade Barriers in Government Procurement

“…The confounding effects of deep TAs and the WTO GPA is not surprising. Anderson et al (2017) find that the legal text of chapters on government procurement in preferential trade agreements is often similar to the one of the WTO GPA (especially of the revised GPA that entered into force in 2014).…”

“…As for the WTO GPA, we also find robust effects but only for cross-border government procurement in services. Since more than half of the GPA members are EU countries and many engage in 'deep' TAs with procurement provisions, the effects of the GPA and those of TAs might be confounded (Anderson et al, 2017).…”

Measuring distortions in international markets: The rolling-stock value chain

“…While low-price strategies by bidders are not inherently anti-competitive, firms may resort to predatory bidding to enter a third-country market by submitting aggressive bids at significantly lower prices than their competitors. Although this strategy may stem from the firm's ability to use the profits gained in another branch of its business (Alexandersson and Hultén, 2006 [15]), it may also arise from distortive practices, such as the company receiving government support. These practices can undermine trade and competition by weakening competitors and excluding them from the market or preventing their entry.…”

Mapping the OECD Government Procurement Taxonomy with International Best Practices

“…The GPA is a significant and influential tool for promoting international trade in GP, both by guiding domestic policy reforms and serving as a model for procurement chapters in bilateral/regional trade agreements, including in Asia (see Anderson, Muller and Pelletier, 2016). Based on the principles of non-discrimination and transparency, the WTO GPA seeks to ensure that foreign suppliers can participate in procurement markets covered by the GPA.…”