International cooperation on public procurement regulation

Abstract

Most governments have yet to agree to binding disciplines on government procurement, whether in the WTO or a preferential trade agreement. Empirical research suggests that reciprocally negotiated market access commitments have not been effective in inducing governments to buy more from foreign suppliers. Foreign sourcing by governments has been rising for most countries, however, independent of whether states have made international commitments to this effect—although there is some evidence that this trend was reversed post-2008 in several countries that had the freedom to do so. This may reflect diffusion of international good practices. The stylized facts suggest a reconsideration of the design of international cooperation on procurement regulation, with less emphasis on specific market access reciprocity and greater focus on international regulatory cooperation and learning, efforts to boost transparency, and pursuit of pro-competitive policies more generally.