New Zealand accedes to WTO government procurement pact

The New Zealand government said Tuesday it has acceded to the World Trade Organization Agreement on Government Procurement (GPA), opening government contracts to international competition.

The GPA, when it took effect next month, would also enable New Zealand businesses to bid for overseas government contracts totaling 1.7 trillion U.S. dollars a year, Economic Development Minister Steven Joyce said in a statement.

New Zealand companies would be able to do business freely across 43 World Trade Organization member countries, including the U.S., Canada, Japan and 28 countries of the European Union.

The GPA covered the purchase of a broad range of goods and services that government agencies bought from the private sector, including construction, and it prohibited member countries from discriminating against businesses from another GPA member country.

"Selling to international governments without having to set up offshore branches or other 'work arounds' is a key area of opportunity for New Zealand exporters," said Joyce.

The accession would have little impact on New Zealand government agencies because they already conducted their procurement in line with the agreement's fundamental principles, Trade Minister Tim Groser said in a statement.

"We already follow the rules, but until now have not had the same opportunity for our New Zealand exporters. Joining up to the GPA will improve all access and reduce costs for exporters," said Groser. Endi