Date: 11/02/2010
Source: World Trade Organisation
Title: WTO: Lamy: Opening remarks by the WTO DG at the Symposium on the
Agreement on Government Procurement, Geneva

Ladies and gentlemen,

Welcome to this Symposium on the Agreement on Government Procurement ("the
GPA").

There are several reasons why it is appropriate to hold an event such as
this at the present time. The economic crisis has reminded us that markets
require adequate governance mechanisms, if they are to function properly.

While needless or excessive regulation should obviously be avoided, the
mere removal of obstacles to trade may not, by itself, ensure optimal
performance if rules are not in place to ensure fair procedures,
appropriate transparency of markets, and responsible competitive behaviour
that is environmentally sustainable. It is time to recognize that such
rules are an essential counterpart to market opening.

The GPA is a paradigm example of a trade opening instrument that also
recognizes the need for governance mechanisms - in this case, the
procedural rules that Parties to the Agreement must follow to ensure fair
and transparent contracting practices and the domestic review or bid
challenge mechanisms that the Agreement requires all Parties to put in
place. These rules and enforcement mechanisms are built around the WTO's
fundamental principles of non-discrimination, transparency and procedural
fairness.

Currently, the GPA appears to be in the process of taking on relatively
greater importance in the constellation of the WTO Agreements. I say this
in light of: first, the gradually growing membership of the Agreement, and
the negotiations that are now under way concerning the future accession of
important developing and transition economies; second, the importance that
public infrastructure spending has taken on in the context of the economic
crisis, as an element of many countries' recovery strategies; third,
related concerns over the implementation of buy-national policies by some
countries during the past year, and the significance that these could take
on as a barrier to trade; and fourth, and possibly most important, the
progress that has been made on procurement reforms in many non-GPA Parties,
which may be bringing them, over time, closer to being ready to consider
GPA accession.

With respect to accessions to the Agreement, I am pleased to learn that
Armenia has circulated a revised accession offer just this week, and has
asked that it be considered on an expedited basis. Clearly, also, India's
request for observership in the Committee on Government Procurement, which
I understand was approved yesterday, is an important development for the
Committee and for the Agreement.

Concerning the reforms that have been undertaken in many developing and
transition economies, these have, in turn, been encouraged by policies and
initiatives of multilateral and regional lending institutions which are
aimed at facilitating greater reliance on national procurement systems as a
vehicle for the delivery of development assistance. In this regard, I see
an important synergy between the work of these organizations and the aims
and modalities of the GPA.

The Symposium today and tomorrow will also be an opportunity to examine
together the highlights of the revised GPA text, which has provisionally
been agreed, but is pending entry into force once the coverage negotiations
are completed. Perhaps, the arrangement that was announced last Friday
between Canada and the US, which will involve Canada's listing of
previously uncovered sub-central government entities in its GPA schedules
in return for reciprocal benefits from the US, will help to facilitate
movement in the coverage negotiations more generally.

The revised GPA text preserves the main elements and principles of the
1994 GPA, but it updates the text, streamlines it in important ways, and
introduces new flexibilities for Parties that are made possible, for
example, by the use of electronic procurement tools.

The revised text also includes new transitional measures for acceding
developing countries that are more specific and concrete than those offered
under the existing Agreement. The above clearly plead for a rapid entry
into force of the revamped GPA.

Beyond this, there is an array of intriguing and challenging issues
concerning national procurement policies and international coordination of
such policies that will require the attention of GPA Parties and other WTO
Members in the years to come. These include matters such as the treatment
of environmental policies in relation to the GPA. Ensuring environmental
sustainability is a challenge that cuts across all areas of national and
international policy-making. The revised text of the GPA already clarifies
the scope for application of technical specifications to promote the
conservation of natural resources and protect the environment. I understand
that, in the course of the Symposium, consideration will be given not only
to these provisions but to the question of sustainable procurement more
widely and how it can best be promoted consistent with international rules.

Another issue which is worth looking at is the articulation between the
GPA and provisions on government procurement in regional trade agreements.
The majority of the regional agreements that have been notified to the WTO
in recent years contain at least some provisions on government procurement,
and a good number, by one, admittedly provisional, count, 37 of 138
agreements notified since the year 2000 contain detailed provisions on
procurement.

An innovative aspect of the revised GPA text is a new provision relating
to the conduct of procurement, and the avoidance of conflicts of interest
and corrupt practices. This will be explored in one of the panels of this
symposium, together with the harm that can be caused by collusive tendering
practices among suppliers and the ways that these can be deterred and
addressed through national legislation. This is clearly an area where there
are strong complementarities between trade opening and national competition
policies.

Considering the range of issues to which the GPA relates and the nature of
the Agreement itself, it seems to me that this is a paradigm example of an
area in which good policy requires not only the removal of barriers to
efficient international competition, but also the creation of appropriate
rules and institutions to govern trade and competitive behaviour. The
challenge for all of us is to ensure that these rules and institutional
provisions are up to date and in tune with commercial realities, while
ensuring good governance for citizens.

To be sure, the WTO is not the only organization addressing these
questions at the international level. I am pleased to see that UNCITRAL,
whose Model Law on Procurement is complementary with the GPA in important
ways, is part of the programme. We also look forward to the comments and
observations of other participating intergovernmental organizations that
are present, including the World Bank, UNCTAD, the International Trade
Centre and the European Bank for Reconstruction and Development, and those
of the various non-governmental organizations that have been invited to
observe the proceedings.

This concludes my opening remarks. I am delighted that so many of you are
present for the Symposium and look forward to hearing the reports of your
discussions.