The Strategist

US plans to withdraw government procurement from WTO agreement

02/05/2020 - 08:29

The administration of US President Donald Trump is developing a project for the country to withdraw from the World Trade Organization (WTO) agreement on government procurement, Bloomberg reported, citing sources. Mr. Trump announced the need to reconsider US participation in this type of agreement immediately after his election as President.

Gage Skidmore via flickr
Gage Skidmore via flickr
The purpose of the government procurement agreement is to open public procurement markets to foreign competition and help make public procurement more transparent. If Washington decides to withdraw from it, WTO member countries, including Britain, Japan, South Korea, Canada and the EU, will lose preferential access to tenders for public procurement in the United States.

According to sources, the United States is ready to withdraw from the agreement if it is not amended in accordance with Washington’s interests. According to analysts surveyed by Bloomberg, the US withdrawal from the agreement will complicate Washington's planned trade negotiations with the UK and the European Union.

According to a government report in 2019, in 2015, the United States provided foreign firms with $ 12 billion of government contracts. About $ 2.8 billion of these contracts went to the EU, $ 1.1 billion to Japan, $ 755 million to South Korea and $ 623.6 million - to Canada.