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Journalism of Courage
India is likely to include a chapter on government procurement in a free trade agreement (FTA) with the European Union (EU) though it would be only for information sharing.
If done,it would be a major change in Indias stand ever since the FTA negotiations began in 2007. It is to be noted that India has maintained that it doesnt want to have the plurilateral arrangement with WTO.
The information sharing,in this case,would mean that the countries involved would be allowed to study the size of each others market,workshops on government procurement would be organised,and exchanging experience and information of potential areas would be provided.
Government procurement refers to purchases of goods or services,including consultancies and professional services,construction,maintenance and material supply contracts,facilities contracts,capital equipment and property and leasing arrangements,undertaken by governments for their own consumption.
India has entered into the same kind of arrangement with Japan,with which it recently signed a Comprehensive Economic Partnership Arrangement (CEPA).
According to rough estimates,Indias government procurement is $3 trillion,contributing around 13 per cent of the countrys GDP. Being a significant part of many economies,several WTO member governments have signed plurilateral agreements on GP. According to the agreement,WTO members agree not to discriminate against one another or favour domestic producers over foreign competitors. But rules covering GP are subject to a separate voluntary deal in which countries arrive at an agreement what parts of their state procurement they will open up in return for access to contracts with the others.
Though,currently,India does not bar foreign companies from applying for government contracts,it is not obligatory for the country to invite foreign tenders.
