Analysis, Advice, Solutions, and Commentary
Expertise:
Global Procurement and Trade Policy
International Trade Agreements and the World Trade Organization
U.S. and Foreign Procurement Measures
Principal: Jean Heilman Grier
35 years experience in international trade
Lawyer, Negotiator, and Adviser
Former Senior Procurement Negotiator, Office of the U.S. Trade Representative
The Djaghe Trade Blog, Perspectives on Trade, provides regular analysis and commentary on timely topics.
China has at last adopted rules that define “domestic product” for purposes of government procurement and provide a 20% price evaluation advantage for qualifying domestic products. The new rules also include requirements for components to achieve a specific localization ratio. This measure fills a gap in implementation of China’s 2003 Government Procurement Law, which requires government entities to purchase domestic..
Government procurement required 40 years and substantial efforts to become part of the international trade regime, even though it comprises a significant part of the global economy. Typically, procurement represents 15% to 20% of global Gross Domestic Product. However, procurement is a politically sensitive activity.