CPTPP and Government Procurement

CPTPP’s chapter on government procurement will bring about a significant change to international liberalisation of procurement markets in Trans-Pacific dimension. Previous procurement-related commitments in the region were very limited. Only four of the CPTPP signatories are bound by the GPA. Procurement-related commitment within the ASEAN have been very limited. APEC’s procurement principles have been non-binding. Procurement markets were largely closed until the conclusion of the TSEP/ P4 and until recent proliferation of procurement chapters in bilateral agreements directly preceding the conclusion of the CPTPP. CPTPP’s procedural provisions largely repeat provisions of the GPA with only minor modifications. Major deficiencies in CPTPP’s coverage can be seen in some parties’ refusal to cover sub-central agencies (Malaysia, Mexico, New Zealand, United States and Vietnam) and utilities services (Canada, Mexico, Vietnam) as well as in transition periods (exceeding even twenty years) for decreasing value-thresholds of procurement chapter’s application to standard levels (Malaysia and Vietnam). In terms of allowed integration of non-commercial considerations in procurement process, the CPTPP allows advancing sustainability-related goals to a greater extent than the GPA. At the same time, country-specific derogations allow advancing extensive traditional protectionist industrial policies, particularly by granting significant set-asides from CPTPP’s procurement-related obligations (Mexico and Vietnam).