USTR/WTO

Cross-border Procurement Issues

U.S. - Canadian Procurement Agreement

WORLD TRADE ORGANIZATION (WTO)

UNITED STATES TRADE REPRESENTATIVE (USTR)

INTERGOVERNMENTAL ADVISORY COMMITTEE (IGPAC)

What is the IGPAC?

USTR has a number of advisory committees to provide advice to the USTR to assist in accomplishing its mission. IGPAC is composed of state and local government executive, legislative and judicial representatives and provides state and local government advice on trade issues and their impacts. NASPO has one representative on the IGPAC committee who provides advice on procurement matters in regards to trade issues and the WTO/GPA.

USTR/IGPAC (IGPAC)

Procurement Briefing Papers and Key Documents

GOVERNMENT PROCUREMENT AGREEMENT (GPA) / FREE TRADE AGREEMENT (FTA) THRESHOLDS

Every two years, Executive Order 12260 requires the United States Trade Representative (USTR) to set the U.S. dollar thresholds that are applied to procurement covered under the WTO Agreement on Government Procurement (GPA) and Free Trade Agreements (FTA), in order to carry out U.S. trade agreement obligations under Title III of the Trade Agreements Act of 1979, as amended.

Accordingly, the USTR has set the new thresholds, which will be effective from January 1, 2008 through December 31, 2009. For the states that are covered by the WTO GPA and/or an FTA, the new thresholds are:

  • For procurement of goods and services: $528,000; and
  • For procurement of construction services: $7,443,000.

This means that only procurements at or above these dollar values will be covered by the agreements. 

USTR/WTO FAQs

Question: If a state signs up for the WTO/GPA does USTR automatically sign up the state for each FTA?

Answer: In the past states having signed up to the WTO/GPA were automatically signed up to existing and new FTAs. In retrospect, USTR realized that a consultation process with the states is more appropriate, and since then, the USTR practice has been to ask states whether they are willing to have their procurement covered with respect to each FTA being negotiated and to include states under the Government procurement provisions of an FTA only with their authorization.


Question: What is USTR's policy as to who from a state has the authority to sign up the state to the WTO/GPA and FTAs, i.e. Governor, legislature, etc.?

Answer: USTR sends letters to state governors asking the state to consider covering some of its government procurement under particular FTAs. However, USTR does not have any policy as to who has the authority in a state to sign up the state to the WTO/GPA or FTAs. That decision is left to each state.


Question: Do the same trade agreement thresholds for goods and services and for construction services applicable to the WTO/GPA apply to all FTAs or does each FTA have different thresholds?

Answer: The thresholds are the same that apply to the WTO/GPA and the FTAs.


Question: How does the World Trade Organization/Government Procurement Agreement and Free Trade Agreements affect Sweat Free Procurement Agreements being signed by Governors. Governors are asking state procurement directors what is the impact before signing agreements.

Answer: The consistency of any measure with the GPA/FTAs would depend upon the precise language of the measure. As a general matter on the sweat free procurement issue, the Administration has taken the approach for the four most recently negotiated Free Trade Agreements (FTAs) with Peru, Korea, Colombia and Panama to include a clarification in the Government Procurement Chapters of those agreements that technical specifications could include requirements relating to compliance with labor laws and conditions. Following is the provision from the U.S.-Korea FTA since Korea is a Party to the WTO Government Procurement Agreement (GPA)."

Article 17.7 (Technical Specifications) of the U.S.-Korea FTA provides:

"For greater certainty, a Party, including its procuring entities may, in accordance with Article VI of the GPA [Technical Specifications], prepare, adopt, or apply technical specifications:

  • to promote the conservation of natural resources or protect the environment; or
  • to require a supplier to comply with generally applicable laws regarding 
    • fundamental principles and rights at work;
    • acceptable conditions of work with respect to minimum wages, hours of work, and occupational safety and health,in the territory in which the good is produced or the service is performed."

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