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The International Agreement on Government Procurement: An Assessment of Its Commercial Value and U.S. Government Implementation

NSIAD-84-117 Published: Jul 16, 1984. Publicly Released: Jul 16, 1984.
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Highlights

GAO reviewed the government's implementation of the multilateral Agreement on Government Procurement, which was meant to limit signatory governments' use of discriminatory procurement practices as barriers to trade.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Commerce The Secretaries of State and Commerce, in consultation with the U.S. Trade Representative, should direct U.S. embassies and Commerce district offices to include, as part of their ongoing commercial activities, programs devoted to informing U.S. business officials about the Government Procurement Agreement, their rights under it, and sources of information on covered procurements.
Closed – Implemented
Commerce instructed overseas posts to intensify their efforts to help firms benefit from the agreement. It recommended that the posts enhance their efforts to help in-country U.S. firms take advantage of procurement opportunities opened by the agreement through seminars, published articles, business surveys, and informational materials.
Department of State The Secretaries of State and Commerce, in consultation with the U.S. Trade Representative, should direct U.S. embassies and Commerce district offices to include, as part of their ongoing commercial activities, programs devoted to informing U.S. business officials about the Government Procurement Agreement, their rights under it, and sources of information on covered procurements.
Closed – Implemented
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Department of Commerce The Secretaries of State and Commerce, in consultation with the U.S. Trade Representative, should revise efforts to distribute notices of procurements covered by the Government Procurement Agreement by: (1) discontinuing the high priority distribution of individual notices through the TOP system and, instead, relying on the weekly distribution of compiled notices; and (2) instructing embassies in signatory countries to establish systems for distributing notices to in-country representatives of U.S. firms, where appropriate.
Closed – Implemented
Commerce, the lead agency in implementing this recommendation, plans to address only the portion of the recommendation dealing with dissemination of notices to in-country representatives of U.S. firms. It does not intend to discontinue the high priority dissemination of notices domestically and, instead, rely on weekly distribution of compilation of notices.
Department of State The Secretaries of State and Commerce, in consultation with the U.S. Trade Representative, should revise efforts to distribute notices of procurements covered by the Government Procurement Agreement by: (1) discontinuing the high priority distribution of individual notices through the TOP system and, instead, relying on the weekly distribution of compiled notices; and (2) instructing embassies in signatory countries to establish systems for distributing notices to in-country representatives of U.S. firms, where appropriate.
Closed – Implemented
Commerce, the lead agency in implementing this recommendation, plans to address only the portion of the recommendation dealing with dissemination of notices to in-country representatives of U.S. firms. It does not intend to discontinue the high priority dissemination of notices domestically and, instead, rely on weekly distribution of compilations of notices.
Department of Commerce The Secretaries of Commerce and State, in consultation with the U.S. Trade Representative, should instruct U.S. embassies in signatory countries to more vigorously monitor foreign-government compliance with the Government Procurement Agreement by actively seeking information from the in-country American business community. These instructions should cover: (1) the level of resources embassies should devote to monitoring host-government compliance with the agreement; (2) the types of tasks they should perform; (3) the extent to which they can follow up on complaints brought to their attention; and (4) whether they should assist subsidiaries of U.S.-based firms offering goods made outside the United States.
Closed – Implemented
Commerce instructed the overseas posts to intensify their efforts to solicit feedback from U.S. firms on host-government compliance with the agreement and asked them to report periodically on their monitoring efforts. A number of embassies have taken or planned specific action in this regard.
Department of State The Secretaries of Commerce and State, in consultation with the U.S. Trade Representative, should instruct U.S. embassies in signatory countries to more vigorously monitor foreign-government compliance with the Government Procurement Agreement by actively seeking information from the in-country American business community. These instructions should cover: (1) the level of resources embassies should devote to monitoring host-government compliance with the agreement; (2) the types of tasks they should perform; (3) the extent to which they can follow up on complaints brought to their attention; and (4) whether they should assist subsidiaries of U.S.-based firms offering goods made outside the United States.
Closed – Implemented
Commerce instructed the overseas posts to intensify their efforts to solicit feedback from U.S. firms on host-government compliance with the agreement and asked them to report periodically on their monitoring efforts. A number of embassies have taken or planned specific action in this regard.

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Topics

Foreign trade agreementsInternational agreementsInternational tradeReorganizationProcurement policyProgram managementRestrictive trade practicesProcurementEmbassiesRegulatory noncompliance