Timor-Leste Moves Towards WTO Procurement Pact as Trade Restrictions Come Under Scrutiny

Before the meeting, Timor-Leste submitted an initial market access offer and a document setting out information about its government procurement system, giving GPA parties a basis for opening accession negotiations.

Timor-Leste has taken a concrete step towards joining the WTO's Government Procurement Agreement (GPA) 2012, submitting the documents needed to begin negotiations over access to its public procurement market. Parties welcomed the move at the Committee on Government Procurement meeting on 14 October, where the country's bid brought attention to the role procurement reform can play in building confidence in public institutions.

The meeting brought scrutiny of Canadian procurement restrictions and questions about US domestic purchasing requirements. A first-ever dialogue with private sector representatives gave businesses a chance to explain what the agreement means for their operations and the difficulties suppliers face when seeking government contracts abroad.

Timor-Leste puts its procurement plans on the table

Before the meeting, Timor-Leste submitted an initial market access offer and a document setting out information about its government procurement system, giving GPA parties a basis for opening accession negotiations.

The country joined the WTO in 2024 and is the first least developed country member to have launched the process of joining the GPA in 2012. For Timor-Leste, the negotiations carry importance beyond access to government contracts, with its delegation linking membership to stronger procurement rules, accountability and fair competition.

"We see the GPA accession process as an opportunity to strengthen our procurement framework and enhance public sector accountability, promote fair competition and build confidence among domestic and international suppliers," Ambassador Antonio Da Conceicao told the Committee.

The Committee discussed the accession processes of Albania, China, Costa Rica and the Kyrgyz Republic, and received an update from Mongolia concerning its commitment to seek GPA accession.

Canadian restrictions and US purchasing rules face questions

Canada's procurement policies drew concerns from the United States and the European Union, which questioned restrictions introduced at the federal level and their potential implications for the country's implementation of the GPA 2012.

Australia, Japan, the Republic of Korea, New Zealand, Norway, Switzerland, Chinese Taipei and the United Kingdom took the floor on the issue, reflecting the attention these measures have attracted among GPA parties.

The United States raised a separate concern about procurement restriction policies in three Canadian provinces, saying the measures appeared to discriminate against US suppliers. These were concerns raised by parties at the meeting, rather than findings that Canada had breached the agreement.

Canada said it remained committed to engaging with GPA parties and would carefully consider their views as it assessed how its procurement policies were being implemented and how they might develop.

US purchasing requirements came under discussion when the European Union requested an update on implementation of the "Build America, Buy America Act" of October 2023 in relation to US obligations under the GPA 2012. Canada and Japan expressed interest in the matter.

The United States said it would continue discussions with GPA parties to address their concerns and explore whether further information could be provided where appropriate.

Businesses bring the supplier's perspective

On the margins of the meeting, the Committee held its first exchange with private sector representatives under the theme "WTO Government Procurement Agreement (GPA) 2012 in a shifting global trade landscape".

Participants came from goods and services industries spanning digital security and technology, industrial, transport and infrastructure solutions, and healthcare technology. Their involvement brought the discussion closer to the practical experience of businesses trying to turn procurement opportunities into contracts.

The exchange examined the GPA's significance as both a market access agreement and an instrument for good governance, giving parties space to hear about the challenges suppliers encounter when trying to benefit from its provisions.

Government support for suppliers was another part of the discussion, with participants considering how public authorities can help businesses make better use of opportunities to compete in procurement procedures run by other GPA parties.