Does foreign sourcing affect government procurement?

GAO was asked to review the extent of foreign sourcing in government procurement across countries. GAO focused on the United States and the other six main parties to the GPA and NAFTA, selected international agreements that open procurement markets on a reciprocal basis.

Is government procurement a potential market for international trade?

Government procurement, which typically accounts for 10 to 15 percent of a country’s gross domestic product, constitutes a significant potential market for international trade, according to the World Trade Organization (WTO).

Which international trade agreements cover USG procurement?

U.S. international trade agreements that cover USG procurement include the GPA12 and bilateral and regional FTAs. The revised GPA has 20 parties (including the EU) covering 48 WTO member countries (including the 28 EU member countries).13 Another 33 WTO members are observers; of these, 10 are in the process of acceding to the agreement.

How much do governments buy from foreign sourcing?

Foreign sourcing by all levels of government, estimated from data on trade and public sector purchases, showed that the governments’ imports likely ranged from about 7 to 18 percent of the goods and services the governments purchased.

How much money does the US spend on foreign procurement?

Conversely, government procurement databases indicated the central governments of these parties awarded an estimated $7 billion to foreign sources, out of which about $2 billion was U.S.-sourced. Canada and Mexico awarded most of the U.S.-sourced contracts.

What percentage of procurement contracts are awarded to foreign-located firms?

The central governments of the EU, Mexico, and the United States awarded less than 5 percent of the aggregate value of their procurement contracts to foreign-located firms. The proportions for Canada and Norway were about 11 and 19 percent, respectively.