CARICOMINter American Development Bank IDBPress ReleasesTrinidad and TobagoWorld Trade Organisation

Government Procurement Takes Center Stage

CHRIST CHURCH, BARBADOS – A joint WTO/IDB-INTAL 'Regional Workshop on Government Procurement for Caribbean Countries' was held in Trinidad and Tobago, October 18 to 20. The workshop was opened by Hon. Conrad Enhill, Minister of State in the Ministry of Finance, Government of the Republic of Trinidad & Tobago. Mr. William Robinson, Inter-American Development Bank (IDB) Representative in Trinidad & Tobago and Mr. Kodjo Osei-Lah of the World Trade Organization (WTO) Secretariat also addressed the opening ceremony. Attended by government procurement experts and trade officials from across the region, the workshop facilitated an exchange of information on national, bilateral, regional and multilateral trade related activities and initiatives in the area of government procurement. Designed to promote an awareness of the role of government procurement related policies for the Caribbean and the multilateral trading system, the forum enhanced understanding of key concepts, principles and practices in the area. It also enabled participants to identify and discuss capacity-building needs, with a view to assisting countries represented to engage more effectively in activities in the area of government procurement. There was preliminary consideration, in the forum, of government procurement statistics for the region. WTO Secretariat estimates for the value of government procurement expenditure being between 10 to 15% of Gross Domestic Product (GDP) or USD$ 3 to 4 billion for the region were considered to be low. Discussions indicated that CARICOM’s expenditure was closer to 15 to 20% of GDP. The workshop took into consideration the pros and cons of Transparency in Government Procurement. It was evident from the interchange that CARICOM countries are committed to Transparency in Government Procurement. “What is needed now is a concretization of that commitment with implementable measures to improve transparency,” this according to Mrs. Patrice Pratt-Harrison, Caribbean Regional Negotiating Machinery (RNM) Technical Advisor-Government Procurement. She further noted, “this can be done, for example, by injecting transparency into existing legislation, advancing procedural frameworks, employing low cost solutions like placing procurement information on websites, developing human resource capacity and strengthening relevant institutions.” For the very first time, in a regional forum of this nature, Market Access in Government Procurement was considered. Because of time constraints, a fulsome discussion was not possible. However, there was a discussion of the costs and benefits of market access. There was recognition that while there are costs, there may also be benefits; and that the two have to be weighed carefully. The rationale being, trade pacts have long-term implications; and as such, the preservation of short-term objectives have to be balanced with long-term growth goals. At this time, a ‘window of opportunity’ for technical preparations as regards government procurement negotiations has been made possible by: a WTO General Council decision some months ago, the so-called the “July Package”, which excludes government procurement from the Doha Round; the Free Trade Area of the Americas (FTAA) negotiations which are at a standstill; and, technical negotiations in regards to government procurement which have yet to begin in CARIFORUM-European Union (EU) Economic Partnership Agreement (EPA) negotiations. In addition, while underway, the development of a CARICOM Single Market and Economy (CSME) regime for government procurement is not yet complete. The discussions underscored that the current ‘window of opportunity’ should be used to analyze the issues as they relate not only to Transparency in Government Procurement but also Market Access in Government Procurement, with a view to informing the best possible negotiating positions. The forum also noted that the region needs to remain cognizant that government procurement is increasingly tied to aid and trade, and that CARICOM’s heavy dependence, in this regard, warrants that closer attention be given to this issue. The CARICOM Secretariat provided participants with an informative update on the status of the development of a government procurement regime within the context of the CSME. Participants were informed that diagnostic studies of the procurement systems in each CARICOM Member State have been competed, that the collection of regional statistics is underway and that the development of a draft policy for regional application is also nearing completion. The workshop was organized in cooperation with the RNM and the Government of the Republic of Trinidad & Tobago. It was very well attended. Participants came from Antigua & Barbuda, The Bahamas, Barbados, Belize, the Commonwealth of Dominica, Grenada, Guyana, Haiti, Jamaica, St. Kitts & Nevis, St. Lucia, St. Vincent & the Grenadines, Suriname and Trinidad & Tobago. The CARICOM and Organisation of Eastern Caribbean States (OECS) Secretariats were also represented, as was the Caribbean Development Bank (CDB). Representing the RNM were: Mr. Malcolm Spence, Technical Advisor-Intellectual Property/SPS, Mrs. Patrice Pratt-Harrison and Ms. Michele Lowe, Coordinator – FTAA & Bilateral Negotiations. Serving as workshop facilitators were: Ms. Leslie-Ann Edwards of the CARICOM Secretariat; Mr. Eliel Hasson, Chile’s former Chief Negotiator for Government Procurement; Mr. Marcos Ozorio de Almeida, Chief Advisor in the Secretariat of Logistics and Information Technology, Government of Brazil; Mr. Roger Kampf and Mr. Kodjo Osei-Lah of the WTO Secretariat; Ms. Sabine Engelhard of the IDB; Ms. Carol O’Riordane, a private sector representative from the United States; and, Mrs. Patrice Pratt-Harrison.

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