China makes new WTO Gov't Procurement Agreement proposal

08:48, July 22, 2010      

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China has presented a new proposal to the World Trade Organization in negotiations over its entry into the Government Procurement Agreement (GPA), Ministry of Commerce spokesman Yao Jian said on July 20.

Yao said the Chinese delegation has submitted a revised proposal to the meeting of the Committee on Government Procurement under the WTO. It includes significant improvement over terms of central government entities, threshold values and service departments. The contents of the new proposal haven't been made public, and Yan didn't provide details.

He also said China hopes that other members of the WTO will take into account that China is still a developing economy. Chinese companies currently "face a bottleneck in market opportunities" in the United States, Europe and other overseas markets. Because China is not a part of the agreement, its companies are not eligible for benefits.

The new proposal "got positive comments from relevant parties in (GPA) negotiations," and further negotiations would be conducted, Yao said.

The GPA is one of the four multilateral agreements under the WTO framework. Accession negotiations with GPA members began at the end of 2007 when China presented its initial offer, but there have been no results yet.

The participation in the GPA will open up Chinese multi-billion-dollar government contracts to foreign bidders. At the same time, Chinese firms, products and services will gain access to a much larger government procurement market after China accedes to the GPA and will remain highly competitive in China's domestic government procurement market.

By People's Daily Online


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