Government Procurement Agreement: An Overview for German Businesses

The Government Procurement Agreement (GPA) is an international trade agreement that allows companies to bid for government procurement projects in other countries. The German government is a signatory to the agreement, which means that German companies can participate in government procurement projects in other GPA member countries.

What is the GPA?

The GPA is a multilateral trade agreement that was negotiated under the auspices of the World Trade Organization (WTO). It aims to promote the principles of open, fair, and transparent competition in government procurement. The GPA covers a wide range of procurement activities, including goods, services, and construction projects.

Which Countries Are Party to the GPA?

As of 2021, there are 20 parties to the GPA, including the European Union and its member states, the United States, Canada, Japan, South Korea, New Zealand, Singapore, Hong Kong, and Norway. The GPA is open for accession by all WTO members, but not all countries have chosen to join.

How Does the GPA Work?

Under the GPA, participating countries agree to open their government procurement markets to foreign competition. This means that foreign companies can compete for government contracts on an equal footing with domestic companies. To ensure fair and transparent competition, participating countries must establish procedures for conducting procurement processes and must publish notices of upcoming procurement opportunities.

What Are the Benefits of the GPA for German Companies?

For German businesses, the GPA provides access to government procurement opportunities in other countries, which can be a valuable source of new business. By participating in government procurement projects in other GPA member countries, German companies can expand their operations and reach new markets. Additionally, the GPA helps to promote fair competition and reduce corruption in government procurement processes, which benefits all businesses.

Conclusion

The Government Procurement Agreement is an important international trade agreement that provides German companies with access to government procurement markets in other countries. By promoting fair and transparent competition, the GPA helps to create a level playing field for businesses of all sizes. As a signatory to the agreement, Germany has an important role to play in promoting the principles of open and fair competition in government procurement.