European Commission opens a consultation on access to EU's public procurement markets

As announced in the Single Market Act, the European Commission is consulting stakeholders in all EU Member States for their views on a new policy on access to the EU's public procurement markets. The EU has shown strong advocacy for an ambitious opening of international public procurement markets, through international commitments, such as the WTO Government Procurement Agreement (GPA) and trade agreements concluded with third countries or regions.

The aim of this consultation is to create increased leverage for negotiating access to the procurement markets of other trading partners. This should help expand business opportunities for EU companies, as outlined in the EU's renewed trade strategy "Trade, Growth and World Affairs" presented in November 2010. The EU has committed itself to granting market access to its public procurement market for most foreign goods, services and companies.

Public procurement rules define how public authorities spend public money when buying goods, works or services on the open market. Solid public procurement rules prevent governments from favouring a specific economic operator and guarantee sound competition between market players which helps governments to find best value for tax payers' money. In the EU, public procurement corresponds to 17% of GDP. In contrast to the EU’s policy favouring greater openness, many third countries are reluctant to (further) open their procurement markets to international competition.

The legislation seeks to establish clear terms of access to the EU's 1,800 billion government procurement market for suppliers from outside the EU. This should bring more legal certainty for both the EU public entities that need goods and services and their prospective international suppliers.

The consultation is opened to public authorities, business and civil society until 2 August 2011.