Government Procurement Code

Summary of Government Procurement Code

A multinational agreement among trading nations, concluded at Geneva in April 1979, opening government purchasing contracts to competitive bids from firms in other signatory nations. The code was adopted by the United States as Title III of the Trade Agreements Act of 1979 and provides that, after January 1, 1981, the president is empowered to waive any so-called Buy-American law or regulation on behalf of specified eligible products from a prescribed list of countries or instrumentalities.

The underlying principle of the code is reciprocity among signatory states, although each nation has imposed limitations upon foreign-origin tenders.

(Main Author: William J. Miller)

Government Procurement Code and the GATT Policy Negotiations

In relation to the GATT Policy Negotiations, Christopher Mark (1993) provided the following explanation and/or definition of Government Procurement Code: A GATT Code negotiated during the Tokyo Round, prohibiting signatories from discriminating against or among the products of other signatories in certain types of government procurement covered by the Code –i.e., purchases valued at more than 150,000 special drawing rights, or SDRs (Sec. 11) by specified government entities listed in the Agreement. Exceptions include contracts for most services, construction, procurement related to national security, and purchases by political subdivisions. The Code seeks to increase transparency in signatories' regulations and practices regarding government procurement, and to ensure that they do not discriminate against foreign suppliers or products. It contains detailed rules on the way in which tenders should be invited and awarded. Signatories include Austria, Canada, the European Community, Finland, Hong Kong, Israel, Japan, Norway, Singapore, Sweden, Switzerland, the United Kingdom, and the United States.