Government Procurement Restrictions
BACKGROUND
Government procurement is the procurement of goods and services undertaken on behalf of public authority. The restriction is a discrimination against the products, services or suppliers with respect to the government procurement opportunities that are opened to foreign competition.
The Government Procurement Agreement (GPA) is one of the "plurilateral" Agreements under the WTO, which applies only to the signatory of the agreement.
SCOPE
The WTO GPA does not apply to all government procurement of the signatories. The obligations under the Agreement apply to procurement:
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By the procuring entities that each Party has listed in its schedule in Annex 1, Appendix I, relating to central government entities, Annex 1, Appendix II relating to any sub-central government entities listed and Annex 1, Appendix III, other entities such as utilities; of goods; and
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All services and construction services that are specified in positive lists found, respectively, in Annexes 4 and 5 of Appendix I; and in respect of procurement contracts above certain threshold values. Each Party indicates the levels of minimum thresholds that apply to the procurement of goods and services under Annexes 1, 2 and 3 (Article I:4).
THE INSTITUTIONAL COVERAGE
A wide range of authorities, includes:
- central government bodies;
- local government bodies (which include provincial and state government bodies); and
- regional and non-governmental bodies.
Obligations may vary according to the type of authority.
LIST OF MALAYSIA'S GPA MEASURES
Malaysia is an observer but not a signatory of the WTO Government Procurement.