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Close the nearly trillion dollar market? The United States considers withdrawing from the WTO Government Procurement Agreement

category:Finance
 Close the nearly trillion dollar market? The United States considers withdrawing from the WTO Government Procurement Agreement


According to a report released by the U.S. Government Accountability Office in 2019, the U.S. awarded $12 billion in government procurement contracts to foreign companies in 2015. Among them, the contract amount to the European Union, Japan, South Korea and Canada is US $2.8 billion, US $1.1 billion, US $755 million and US $623 million, respectively.

If the United States withdraws from the agreement, the parties, including the United Kingdom, Japan, South Korea, Canada and the European Union, will lose preferential access status in the United States government bidding, and then be subject to the United States purchase of American products act. Under the act, most foreign companies cannot bid for U.S. government contracts without a special exemption.

Bloomberg reported that if the United States withdraws from the GPA, it will complicate the trade negotiations between the United States, the United Kingdom and the European Union, and at the same time bring more challenges to the implementation prospect of the U.S. - Mexico - Canada agreement.

The US Mexico Canada agreement will replace the original North American Free Trade Agreement. It has been approved by Mexico and the US legislature, and it needs to be approved by the Canadian Parliament before it can enter into force. Government procurement is an important issue of this agreement. In case of major changes, it will be more difficult for prime minister Justin Trudeau to lobby Parliament. [inertia thinking] according to some political analysts, the trump administration revealed the idea of withdrawing from the GPA, the real purpose of which is to force the parties to renegotiate a framework that is more conducive to the United States. The U.S. side is accustomed to the formula of pushing for concessions by retreating from the group. Even if the negotiation object is an ally, there will be no scruples. Its no surprise to me that the U.S. government is doing this, said Stuart habinson, a former WTO official. Their overall view is that the WTO needs the United States more than the United States needs the WTO. (Xu Chao) (special draft of Xinhua News Agency) source of this article: xinhua.com editor in charge: Chen Hequn ufe63 nb12679

The US Mexico Canada agreement will replace the original North American Free Trade Agreement. It has been approved by Mexico and the US legislature, and it needs to be approved by the Canadian Parliament before it can enter into force. Government procurement is an important issue of this agreement. In case of major changes, it will be more difficult for prime minister Justin Trudeau to lobby Parliament.

[inertia thinking

Some political analysts believe that the trump administrations idea of withdrawing from the GPA is really aimed at forcing the parties to renegotiate an agreement framework that is more conducive to the United States. The U.S. side is accustomed to the formula of pushing for concessions by retreating from the group. Even if the negotiation object is an ally, there will be no scruples.

Its no surprise to me that the U.S. government is doing this, said Stuart habinson, a former WTO official. Their overall view is that the WTO needs the United States more than the United States needs the WTO. (Xu Chao) (special draft of Xinhua News Agency)