The World Trade Organization`s (WTO) Government Procurement Agreement (GPA) is an international treaty that promotes transparency, competition, and non-discrimination in government procurement. China is one of the signatories to this agreement, and its compliance with the GPA has been a subject of scrutiny and discussion in recent years.
Under the GPA, participating countries agree to open their government procurement markets to foreign suppliers and to treat them on an equal footing with domestic suppliers. This means that foreign suppliers can bid for government contracts in the same way that domestic suppliers can, and they cannot be discriminated against based on their nationality.
In 2001, China joined the WTO and committed to comply with the GPA. However, it was only in 2019 that China made substantial revisions to its laws and regulations to bring them in line with the GPA. These revisions included, among others, extending the scope of the GPA to cover sub-central entities and state-owned enterprises, and establishing an independent review mechanism for procurement complaints.
China`s compliance with the GPA has been a subject of concern for some of its trading partners, particularly the United States. In 2020, the US Trade Representative`s office conducted a review of China`s compliance with the GPA and expressed concerns about the lack of transparency and due process in Chinese procurement procedures.
Despite these concerns, China`s participation in the GPA has been seen as a positive step towards opening up its government procurement market and promoting fair competition. The GPA provides a framework for China to improve its procurement practices and to attract more foreign investment and technology transfer.
In conclusion, the WTO`s Government Procurement Agreement is an important international treaty that promotes fair competition and non-discrimination in government procurement. China`s compliance with the GPA has been a subject of concern, but its recent revisions to its laws and regulations are seen as a positive step towards opening up its government procurement market. As China continues to implement the GPA, it has the potential to attract more foreign investment and to promote innovation and development in its economy.