Nations finally agree on global procurement deal

After 14 years of debate and delay, dozens of industrialised nations have finally agreed on the World Trade Organisation’s (WTO) global procurement agreement.

European Union officials said the agreement was reached after the 27-nation EU and Japan ironed out remaining differences this week.

The WTO estimates that the agreement could add between $80 billion and $100 billion to global trade each year initially, rising to $450 billion once access is expanded to other nations. Currently the deal applies to the 27-nation EU and 14 other industrialised nations, including the United States, Japan and Australia. 

The deal is aimed at widening and modernising the Government Procurement Agreement (GPA), a voluntary part of the World Trade Organisation (WTO) that 42 countries have signed.

As part of the agreement Japan will allow foreign companies to bid for contracts in the $100-million reconstruction of regions hit by this year's tsunami.

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