"The several GPA parties (which includes the major key exports destinations of India i.e US and Europe) will discuss the measures to protect and promote Small and Medium Enterprises," Anderson said at a FICCI-IIFT function.
He said that the discussion would depend on the content of the negotiations, which will be in terms of the market accession and safeguard mechanism, thereby promoting the SMEs.
The GPA is an effort by to liberalise access to billions of dollars worth of public procurement contracts among the WTO members, which are parties to the agreement. Since 1996, it has opened up access to several types of public tenders to companies from all participating countries. Talks on to update the agreement is likely to be held soon to resolve remaining political differences and also to discuss accession of new countries to the accord.
Anderson urged India to be a part of every GPA discussion as India is not a member of the WTO on government procurements; it will help India to get the insight on how the governments of the most developed countries actually places multi-billion procurement orders with the industry, he added.
While speaking at the event, Commerce Ministry official Amar Sinha underscored that the Prime Minister Manmohan Singh has constituted a committee that put in place different rules and regulation for applying the global best practices in government procurements.
“The committee will come up with suggestions which would bring rules, regulations and procedures... in terms of adopting best practices around the globe,” he said. “We have become an observer, we do not have a time line when we will become a member,” he added.
The global state procurements are estimated at a huge $1.6 trillion and are a big attraction for the multi-lateral corporations.
"There are opportunity costs for non-participation in GPA in terms of foreign trade opportunities...", Anderson pointed out.
For instance, he said, if India becomes a member of the GPA in WTO then it could protect India from protectionism measures, as in the year 2009 US “Buy American” measures concerning steel and manufactured products are not applicable to the several GPA member countries.
The recent 2 percent tax on certain US procurements are also not applicable to suppliers from GPA member countries. The GPA explicitly guarantees non-discriminatory treatment, Anderson added.
Currently, the GPA covers 41 WTO Members including the EC and its 27 member states and also most other developed countries (i.e. US, Canada, Japan; Norway and Switzerland). Also, Hong Kong, China, Iceland, Israel, Korea, Singapore, Chinese Taipei, and Aruba are parties to the GPA.
Some countries like Albania, Armenia, China, Georgia, Jordan, the Kyrgyz Republic, Moldova, Oman, Panama and Ukraine are seeking accession to the GPA. Four more countries that have commitments to join the GPA, as part of their WTO accession protocols include Croatia, the former Yugoslav Republic of Macedonia, Mongolia and Saudi Arabia.
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