Market Size

Government Procurement Marketplace

The central and local governments have been recognized as the biggest purchasers in domestic markets and are attracting considerable attention as potential markets. Government procurement market is a public market formed through government's purchase of products and service to perform the essential roles of it. According to a research by OECD, the amount of annual government procurement market is over USD 5.55 trillion (OECD, published in 2002: researched in 1998) and only USD 2.83 trillion is the actual competitive amount to foreign nations, excluding wages and national defense expenditure. Over 10 million companies are reported to participate in this market.

Agreement on Government Procurement

Agreement on Government Procurement is one of the trade agreements among plural nations that belong to WTO foundation agreement signed in Marrakesh, Morocco on April 15, 1994. Twenty two nations came have joined this agreement and it came into force in January 1, 1996. Only Republic of Korea postponed but finally made it into effect in January 1, 1997. Below are the members and observers of the agreement on Government Procurement.

Committee Members

Austria, Belgium, Canada, Denmark, European Communities, Finland, France, Germany, Greece, Hong Kong China, Iceland, Ireland, Israel, Italy, Japan, Korea, Liechtenstein, Luxembourg, Netherlands, Netherlands with respect to Aruba, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, United Kingdom, United States

Negotiating accession

Bulgaria, Estonia, Jordan, Kyrgyz Republic, Latvia, Panama, Chinese Taipei

Observer governments

Argentina, Australia, Bulgaria, Cameroon, Czech Republic, Chile, Colombia, Croatia, Estonia, Georgia, Jordan, Kyrgyz Republic, Latvia, Lithuania, Malta, Moldova, Mongolia, Oman, Panama, Poland, Slovak Republic, Slovenia, Turkey, International Monetary Fund, Organization for Economic Cooperation and Development, International Trade Centre

Multilateral procurement

"Multilateral Procurement" market is a procurement market formed through the direct or indirect - through subordinate organizations - purchase of products or service by international organizations such as World Bank, UN, etc. The procurement performed by governments or public institutions financially sponsored by local development banks such as IBRD, ADB, AFDB or EBRD is also included in this market. For example, World Bank annually spends over USD 1 billion on approximately 300 new projects through International Bank for Reconstruction and Development (IBRD) and International Development Agency (IDA). Currently, over 2000 projects are in progress and products and services worth USD 2 ~ 2.5 billion are put into them.
"¡¦My company has used B2GPlace since the beginning of the service and have found it to be an integral part of our business. The scope of service is broad and allows us to immediately react to plenty of government contract opportunities. I would highly recommend B2GPlace to anyone who are interested in doing business with governments¡¦"
Bob Stenson
COO, Hudson Valley Uniform
© Copyright 2002-2024 Lufex, Inc. All Rights Reserved.