Abstract
China committed to initiate the accession to Government Procurement Agreement when it entered the WTO as a compromise to the requirements made by GPA parties, mostly the developed western countries such as the United States. China started its official attempt to join the GPA on December 28, 2007 by submitting the first offer to the GPA Commission. Six revised offer were then submitted during the past years. The position of the United States and China in international trade changed dramatically since then. This article finds that Trump Administration’s attitude toward China’s accession to GPA is mixed and the US government might impede China’s accession with the analysis on the current American foreign trade policy and the latest development in government procurement in the US’s related international agreements and domestic laws. However, this accession process can only be delayed but not terminated even if the standpoint of the US is proved to be negative due to the theoretical and technical analysis on GPA. Effective and significant measures will be taken by Chinese government since the president Xi Jinping made the statement to accelerate the accession to GPA in Boao Forum in early 2018.
Highlights
Government procurement is an important financial tool for all the governments and the open-up of markets of government procurement is the requirement of globalization
China and Israel had a consultation on the issue of government procurement for the first time in May 2019 and Israel introduced its experience about accession to Government Procurement Agreement (GPA)
Bilateral trade agreements can lead to trade diversion.(Clausing, 2001) The country which enters into free trade agreements (FTA) on government procurement with China will achieve advantages in China’s large government procurement market
Summary
Government procurement is an important financial tool for all the governments and the open-up of markets of government procurement is the requirement of globalization. Under Trump Administration, American foreign trade policy transforms from supporting and advocating economic globalization to protectionism, from multilateral mechanism to bilateral trade negotiation, from actively applying WTO international trade dispute settlement mechanism to implement unilateral sanctions under domestic laws, from defending the current international trade system to advancing the reform of the international trade system. It aims to build a new global trade order that is more in line with American national interests, including national security, development of American manufacturing, elimination of trade deficits, decrease of unemployment and economic growth in the United States.(Hoda, 2019; Yong, 2019)
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