Brazil withdraws offer to accede to the WTO Government Procurement Agreement

Today, May 30, Brazil informed the members of the Government Procurement Agreement (GPA) of the World Trade Organization (WTO) of its decision to withdraw the market access offer made by the country in the process of accession to that agreement.

The GPA establishes common rules on goods and services procurement through bidding procedures and opens them to the participation of companies from foreign countries. As a plurilateral instrument, the obligations under the GPA apply only to WTO members that are parties to the agreement.

Brazil formalized its interest in acceding to the GPA in May 2020. In June 2022, it submitted a final offer for access to its public procurement market. The offer included a detailed list of the contracting entities, goods and services that would be covered by the rules of the agreement, as well as the conditions and caveats for its application.

The Brazilian offer included coverage equivalent, and even superior, to that offered by the current GPA members. Its terms would impose severe limits on the use of the government's purchasing power as an instrument to induce the country's economic and social development, particularly in areas such as  public health, technology, and innovation.