Members' Research Service By / April 30, 2020

EU international procurement instrument [EU Legislation in Progress]

The EU has opened up its public procurement markets to third countries to a large degree, yet many of these countries have not granted the EU comparable access.

© sahachat / Adobe Stock

Written by Jana Titievskaia (2nd edition, updated on 20.10.2021),

© sahachat / Adobe Stock

Government procurement forms an important part of national economies. The EU has opened up its public procurement markets to third countries to a large degree, while many other economies have had limited appetite to liberalise market access.

In 2012, the European Commission tabled a proposal for an international procurement instrument (IPI). The IPI would give the EU leverage in negotiating the reciprocal opening of public procurement markets in third countries. The Commission revised the proposal in 2016, taking on board some recommendations from Council and Parliament. However, the revised proposal did not advance owing to differences in Member States’ positions.

In 2019, discussions in Council gathered new momentum in the context of a growing recognition of the need to level the playing field in international trade. In June 2021, Council adopted a negotiating mandate that added the threat of market exclusion to the price adjustment mechanism. Once Parliament’s position on the revised IPI proposal has been finalised, the three institutions will launch trilogue negotiations. These are likely to centre on the scope and type of measures necessary to encourage reciprocity.

Versions

Amended proposal for a regulation of the European Parliament and of the Council on the access of third-country goods and services to the Union’s internal market in public procurement and procedures supporting negotiations on access of Union goods and services to the public procurement markets of third countries
Committee responsible: International Trade (INTA) Revised legislative proposal:
COM(2016) 34
Rapporteur: Daniel Caspary (EPP, Germany)

Initial proposal: COM(2012) 124

Shadow rapporteurs: Inmaculada Rodríguez-Piñero Fernández (S&D, Spain)
Liesje Schreinemacher (Renew, the Netherlands)
Reinhard Bütikofer (Greens/EFA, Germany)
Geert Bourgeois (ECR, Belgium)
Emmanuel Maurel (The Left, France)
2012/0060(COD)

Ordinary legislative procedure (COD) (Parliament and Council on equal footing – formerly ‘co-decision’)

Next steps expected: Awaiting committee vote

EU Legislation in progress timeline


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