Public procurement and the EU policies

Similar documents
International Procurement Instrument

Offsets Pros and Cons Current state of affairs

EU-Ukraine Free Trade Agreement Negotiations Stakeholder Briefing Note 9

SUSTAINABLE PROCUREMENT

Public procurement in developing countries: challenges for foreign companies

Single Market Scoreboard

Single Market Scoreboard

Success factors for governments and business in standards-based cross-border implementations: the case of e-procurement

Single Market Scoreboard

GRI Sustainability Reporting Statistics Publication year By Report Services

We shape our systems; thereafter they shape us e-procurement in Georgia. By David Marghania, CSPA for GeGF 2013, Seoul

Asiakastieto CMD 2016 ASIAKASTIETO S BORDERLESS ONLINE WORLD. Helena Kainulainen, Business Development Manager 22 September 2016

Government Procurement. Pavla Neumannová & Ludmila Štěrbová E-Leader Conference 2018, Warsaw 4 June 2018

Open Government in Public Procurement Open Data in the law and in practice

Detailed Data from the 2010 OECD Survey on Public Procurement

Recent developments in the ECJ s jurisprudence on Public Procurement. Prof Christopher H. Bovis

CBI Trade Statistics:

*** DRAFT RECOMMENDATION

Why Export? Mitigating Risk by Diversifying Your Market Portfolio

ITER: Another Way for the Nuclear Industry

Brexit paper 9: Public procurement post-brexit

Connecting public procurement and competition policies: the challenge of implementation

Trade in services KEY POINTS. PowerShift e. V. and Canadian Centre for Policy Alternatives (CCPA) *

5998/1/16 REV 1 FS/evt 1 DG G 3 C

Corporate Social Responsibility Maatschappelijk Verantwoord Ondernemen

Principles of public procurement: the basis for good performance. Istanbul, May 27-30, 2014

MEANS TO AN END: the OECD Approach for Effective Implementation of Public Procurement Systems Getting really strategic

INTERNATIONAL PUBLIC PROCUREMENT:

Ghana-EU Trading Relationship EU Trade Policy

Assessing country procurement systems and supporting good practice: The contribution of the 2015 OECD Recommendation on Public Procurement

Jaana Korhonen, 3rd International Congress on Planted Forests Porto, Portugal May 18, 2013

International Public Procurement Law

WTO Government Procurement Agreement: History and Future

Ex-post Evaluation of the EU ETS: Impacts on the Aluminium Sector

COMMISSION STAFF WORKING DOCUMENT IMPACT ASSESSMENT. Accompanying the document. Proposal for a Council Regulation

There is a need for EU rules on public procurement in the water, energy, transport and postal services sectors. (Q10)

10 ECB HOW HAVE GLOBAL VALUE CHAINS AFFECTED WORLD TRADE PATTERNS?

Commissioning Under the New Procurement Directives: Opportunity or threat for social enterprises?

ELANBiz: Government Procurement in Chile

DG COMPETITION Unit F3 01 April 2014

Public Procurement in Macedonia

The European Medical Technology Industry. in figures / 2018

Spanish Banking Association 7 th December 2010 AEB C/ Velazquez, Madrid Spain. Interest Representative Register ID:

EIB Procurement Policy

Market Advisory Council

GREEN PAPER ON PUBLIC-PRIVATE PARTNERSHIPS AND COMMUNITY LAW ON PUBLIC CONTRACTS AND CONCESSIONS

FAIR COMPETITION, TRANSPARENCY AND PROCUREMENT: ATTRACTING EU INVESTMENT TO THE PHILIPPINES

The impact of climate policies on farm trade: What implications for developing countries?

2012 WTO GPA: Facilitating participation of women-owned small and medium-sized enterprises in local and global public procurement markets

Energy efficiency: Market Report 2014 and Capturing the Multiple Benefits

Guideline for Auditors

A Grand Coalition? Climate, Trade and Water

Implementing the Regulation on cross-border parcel delivery services

Studia Mundi - Economica Vol. 1. No. 1.(2014)

UPDATE OF THE EUROPEAN DATA MARKET STUDY SMART 2016/0063. IDC Italia srl (Milan, IT) The Lisbon Council (Brussels, BE) European Commission DG CONNECT

eprocurement in Europe Oriol Bausà Invinet Sistemes May 2008 Hong Kong

Pre-Commercial Procurement (PCP)

A.I.S.E. s 11 th INFORMATION DAY: Cleanliness and Hygiene : Benefits of the Professional Cleaning sector

ACHIEVING WORLD-CLASS PUBLIC PROCUREMENT ACROSS EUROPE

Magdalena Garczyńska. Providing a unified voice for the aluminium recycling industry in Europe conclusions after one year EAA Recycling Division

Health Business Services. Health Sector Procurement Compliance & VFM

EC Contractual and Legal Framework Hans Schneider, HoS Support to Decommissioning Programme (MSU)

RWE Thames Water. GREEN PAPER ON PUBLIC-PRIVATE PARTNERSHIPS AND COMMUNITY LAW ON PUBLIC CONTRACTS AND CONCESSIONS COM(2004) 327 final

The Innovation Union Scoreboard: Monitoring the innovation performance of the 27 EU Member States

Analysis of the EU meat markets

Overview of the European sawn softwood market in 2017

COMMISSION INTERPRETATIVE COMMUNICATION

DIRECTORATE GENERAL FOR INTERNAL POLICIES POLICY DEPARTMENT A: ECONOMIC AND SCIENTIFIC POLICY

Procurement Department PROCUREMENT STRATEGY

G20 Enhanced Structural Reform Agenda

2012 Global Customer Service Barometer

Implementation of the 2014 procurement directives across EU Member States

PREPARING FOR THE PROCUREMENT PROVISIONS IN THE CANADA-EU COMPREHENSIVE ECONOMIC AND TRADE AGREEMENT

Ankara, 27 March 2013

Unlocking international public procurement: analytical priorities for policy makers S1.2

ANALYTICAL STANDARDS AND REAGENTS

Managing T&E Indirect Contracts in Asia Pacific. Issa Isaac Director, Global Service, Asia Pacific

Green Procurement in Europe. Tor Vergata, 12 November 2015 Master BA Lidia Capparelli, Head GPP Unit Consip S.p.A.

Governance versus e-governance: e Procurement

Study on Employment, Growth and Innovation in Rural Areas (SEGIRA)

The Global Context of Food Safety

Construction Services: Contribution to Sustainable Development and Issues on Trade in Services. Emily MBURU DITC-UNCTAD

Canada - European Union Comprehensive Economic and Trade Agreement

Ad-hoc Working Group. Round Table. on Mitigation Potentials. Risks and Uncertainties

Evolution of Production Network: Measuring Trade in value-added (TiVA)

HOW TO GET INFRASTRUCTURE GOVERNANCE RIGHT AND THE STATE OF PLAY IN OECD COUNTRIES

GOVERNMENT PROCUREMENT

APEC Training Course on Building and Enhancing FTA Negotiation Skills on Government Procurement. Ho Chi Minh City, Viet Nam. January 09 th 10 th, 2014

ASIA IN THE WORLD ECONOMY

Outside a garment manufacturing unit in Asia

The Role of ICT-Related Trade in Growth and Development and the Doha Development Agenda

Competitive Advantage of Europe

Inequitable WTO rules in Agriculture continue to impact farmers in the developing world Ranja Sengupta The World Trade Organisation (WTO) was

The differences between Polish and British Public Procurement. Mariusz Turek Partner, PROFITIA Management Consultants Manager, CIPS Institute

European Court of Justice Mandates Broader Use of Competitive Tendering in Defense Procurement

ASSESSMENT OF THE NEW PUBLIC PROCUREMENT DIRECTIVE AND ITS IMPACT ON SOCIAL SERVICES

Grant Agreement. Public procurement rules and Additional remuneration. DG Research and Innovation

Global Forum on Competition

Gas Markets Globalization: Perspectives and Limits

Transcription:

Public procurement and the EU policies New Delhi 8-9 Feb 2012 Dr. Burghard Ilge

Outline * EU agenda on Government Procurement from Global Europe Strategy * EU procurement market * Role of Government Procurement for economic policies * Threat of EU to restrict access to EU Government Procurement market

What is Government Procurement? Government Procurement = Public Procurement purchase of goods and services by the state or state bodies.

EU agenda on Government Procurement from Global Europe Strategy

Global Europe Strategy 9 0ct 2006 Public procurement is an area of significant untapped potential for EU exporters. This is probably the biggest trade sector remaining sheltered from multilateral disciplines.. it represents between 10% and 25% of GDP of partner countries. It is vital for sectors such as construction or engineering.

Global Europe Strategy 9 0ct 2006Annex Currently, almost all the EU's major trading partners operate restrictive procurement practices which discriminate de jure or de facto against EU suppliers,

Global Europe Strategy 9 0ct 2006 Annex In certain limited cases, it may be that greater openness in the procurement markets of major trading partners can only be achieved through the possibility of carefully targeted restrictions on access to the EU (procurement) market. This approach would not be considered for poorer developing countries

EU Government Procurement market

EU public procurement legislation Public procurement legislation in the EU is aimed at creating a common market by ensuring free movement of goods, persons, services and capital, and promoting effective competition in the Internal Market[1]. The guiding principles[2] by which these aims are sought to be achieved are: (a) Equal treatment of all economic operators; (b) Transparent behavior; (c) No discrimination based on nationality. [1] These objectives are laid out in Articles 2 and 3 of the Treaty of Rome (1957). [2] These are laid out in Articles 2 and 3 of the Public Sector Directive 2004/18/EC.

EU situation on Government procurement EU Government procurement market are open. Officially no discrimination between countries EU internal GP markets still not fully harmonized (currently an EU internal process ongoing) Governments of EU member states still procure mainly national

Thresholds for EU public procurement rules Open bidding leads to more price competition -> good for the consumer But also draw backs: increased competition may drive down prices down to a level where poor quality or predatory pricing become a concern to reduce the problem thresholds for public tender requirement 125 000 for public sector supply and service contracts 4 845 000 for public works concession contracts only 18,2% is published in the EU official journal

Government Procurement in India???

Government Procurement in India estimated to be in the order of $100 billion more than 20% of GDP

Role of Government Procurement as an economic policy tool

Government Procurement as policy tool EU and World Bank main paradigm Foreign competition in domestic government procurement markets will lead to efficiency gains for the host country Open and competitive government procurement markets will prevent corruption

Government Procurement as policy tool # During recession it can facilitate faster recovery # Domestic firms are more likely than foreign firms to source inputs domestically, to employ local staff (including senior level) and to subcontract to domestic SMEs for services and supplies # Target government procurement spending to marginalized sectors in order to redress inequality and to achieve other social objectives

* Government procurement as policy tool * Economic stimulus for national business sector Differentiation: e.g. regional discrimination Bona fide regulations might be challenged as Indirect discrimination? Counterbalance EU Business support Stabilization of agricultural markets

Threat of EU to restrict access to EU Government Procurement

Under the EU s FTA proposals it would be prohibited from favoring particular firms on the basis of their origin But allowed according to objective criteria (such as size or sector) This is what we already practice If you don't reciprocate we might have to reconsider

EU and Member states Public sector import for government Procurement in EU 7,5% Japan 4,7% US 4,6% But 7,5% contains also all import from other EU countries on country level most imports are from other EU countries 63-65% extra EU import for Public Procurement only 2,66% Other EU study: Number of contracts 1,6%

How are these average 7,5% of national imports for GP distributed? No data!!!! but estimates on trade date (accumulated public and private sector imports) other EU countries (inter EU trade) 64,5% USA 12,6% China: 12,4% Japan 5,7% Norway 5,2% Switzerland 5,1% Canada: 1,3% Rest of the world: 20,48%

How important is the EU GP market for India? Total current share of India in EU GP not known EU imports rest of the world (excluding other EU and 6 main countries): 1,5 % Canada: 0,0975 % So no big share from India but how important?

Estimate India share in EU public procurement all remaining Total GP Canada (excluding: EU,big 6) Euro billion million million EU(total) 197 192 2955 Germany 40 39 600 France 33 32 495 Italy 26 25 390 Spain 21 20 315 Netherlands 13 12 195

Impact of threat on India is one thing Impact on business in EU another

EU study asked EU business Do you (ever) include foreign subcontractor(s) when bidding domestically? Yes: 30% Did you (ever) include foreign consortium partners when bidding domestically within the last three years? Yes: 9%

How to discriminate? Different types of cross border procurement

Introduction of discrimination on GP against India the introduction of the procurement Directives in the then 15 MS increased the value for money of procurement subject to the Directives by between 2.5 % and 10 % from 1992 to 2003. There was also an increase in administrative costs of about 0.7 per cent. From: Estimating the Benefits from the Procurement Directives A Report for DG Internal Market 13 May 2011. 0,7 % of Euro 197 Billion = 1,3 Billion

Summery Introduction of discrimination on GP Increased cost of new discriminatory GP rules in EU * additional administrations cost? 0,7% of Euro 197 Billion = 1,3 Billion could be more * Decrease of value for money of procurement * Loss of flexibility for EU business sector in tendering Current share of India in EU GP market unknown but most likely not more than a few 100 million

More information: http://ec.europa.eu/internal_market/ publicprocurement/index_en.htm http://en.wikipedia.org/wiki/government_procu rement_in_the_european_union Thank You!