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The Internationalization of Government Procurement Regulation$
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Aris C. Georgopulos, Bernard Hoekman, and Petros C. Mavroidis

Print publication date: 2017

Print ISBN-13: 9780198796749

Published to Oxford Scholarship Online: March 2017

DOI: 10.1093/acprof:oso/9780198796749.001.0001

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PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 02 December 2021

Government Procurement Polices across the Tasman

Government Procurement Polices across the Tasman

What Role Is Played by (Preferential) Trade Agreements?

(p.462) 17 Government Procurement Polices across the Tasman
The Internationalization of Government Procurement Regulation

Malcolm Bosworth

Oxford University Press

This chapter examines government procurement arrangements across the Tasman to assess if recent Australia and New Zealand trade, especially preferential, agreements have reformed these policies. It concludes that (preferential) trade agreements have had little or no impact. Indeed, for Australia, such commitments in PTAs have not prevented procurement arrangements, especially at the state level, from backsliding. Transparent, relatively straightforward price preferences favoring local content have been largely replaced by hidden and costlier discretionary discriminatory measures, including requiring suppliers to incorporate local content plans in tenders and procuring entities to weight them in evaluating contracts. Australia’s PTA government procurement commitments, as for its trading partners, have accommodated these negative developments by adopting broad exemptions excluding localization measures, including promoting regional development and especially of SMEs and indigenous enterprises. Moreover, PTA commitments are conditionally MFN and automatically discriminate between trading partners.

Keywords:   Australia, government procurement, New Zealand, localization, local content, discrimination, preferential trade agreements, SMEs

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