GOVERNMENT PROCUREMENT IN ‘FTAs’

March 30, 2022

The India-UAE Comprehensive Economic Partnership Agreement (CEPA), set to come into force on May 1, includes a chapter on government procurement, granting UAE-based companies treatment on par with domestic companies.

About:

  • This is the first instance of India including government procurement in a Free Trade Agreement (FTA).

  • The move marks a major shift in India’s stance on government procurement, which had also been a stumbling block in major FTA negotiations, including those with the European Union.

  • Government procurement is estimated to be worth about 20-22 per cent of GDP.

  • India has previously been unwilling to discuss government procurement in bilateral or multilateral trade agreements to protect domestic firms which rely on it.

  • India is also not a signatory to the World Trade Organisations Government Procurement Agreement (GPA), but has been an observer since 2010.