Transcending mercantilism: identifying the positive externalities from international public procurement agreements

This paper identifies the regulatory synergies that can be realised between the WTO GPA and the growing number of RTAs with public procurement chapters that include provisions to control corruption. It submits that despite the multiplicity of international procurement agreements being negotiated outside of the WTO GPA, the relationship between the different agreements has more potential to produce a beneficial ‘accumulation’ of global regulatory enhancements than a system-damaging ‘fragmentation.’ This paper highlights the discernible convergence in the design of international procurement systems, as reflected in both the WTO GPA and leading RTAs. The general principles of these commitments – whether at the regional or plurilateral level - reflect the growing acknowledgement that transparent, competitive and accountable government procurement systems benefit economic development, good governance and effective policy implementation. And this, in and of itself, may encourage inbound FDI and further economic and social development. These developments indicate a widespread understanding that ensuring good government procurement processes has a developmental significance that transcends its magnitude as an aspect of economic activity