* Footnotes are currently missing from this article due to technical challenges with WordPress. For footnotes, please see the attached PDF version of this paper. Footnotes in the WordPress version will be replaced with links in the near future.
How Government Regulations Define the
U.S.-EU Public Procurement Landscape
by Jared Angle
This paper surveys the contemporary international public procurement landscape to identify the U.S. and European Union (EU) procurement policies that determine access by private foreign firms to their respective public purchasing opportunities. The paper finds that smaller EU countries tend to be more open to foreign procurement than large ones as a result of having smaller domestic industries from which to source government purchases. It also finds that defense, transportation, and services are the sectors most affected by national procurement policies. Furthermore, while the U.S. and EU markets are moderately open to procurement from foreign venders, they also seek mutual procurement liberalization to expand export and investment opportunities for their respective domestic firms. These findings are based on an examination of quantitative and qualitative analyses of foreign vendor participation in U.S. and EU procurement opportunities, a review of relevant U.S. and EU laws on procurement sourcing and domestic content, and a survey of notable regulations concerning cross-border procurement and their actual application. Finally, this paper analyzes existing procurement data and proposes a research plan to develop a comprehensive estimate of U.S. and European procurement openness through further quantitative analysis. Extended research and macroeconomic modeling based on current levels of procurement openness could attempt to determine the probable economic impact of expanding mutual preferential access to the U.S. and EU public procurement markets, whether through a smaller procurement-specific agreement or through a free trade agreement such as the Transatlantic Trade and Investment Partnership or a similar framework.
By Jared Angle
October 19, 2015
*Note: this article is a hypothetical policy memo for a graduate school assignment and does not necessarily reflect my exact opinions on aspects of the TTIP negotiations.
Despite strong indications that the Transatlantic Trade and Investment Partnership (TTIP) will be successfully concluded in the near future, the European Commission must take several steps to ensure the agreement’s ratification by European Union member states.
- Increase public and media access to TTIP negotiation texts and draft proposals
- Dismantle the existing investor-state dispute settlement (ISDS) framework and establish an investment court system that is equitable, democratically accountable, and publicly accessible
- Establish a comprehensive food labeling system to protect regional agricultural traditions, identify GMO products, and facilitate consumer choice in European and American markets
For the past two years, citizens of EU member states have paid considerable attention to the ongoing TTIP negotiations. Multiple public consultations have demonstrated significant dissatisfaction surrounding the quality and impact of TTIP as it currently stands. This public opposition gives the European Commission renewed incentive to use the next round of negotiations as an opportunity to coordinate with our counterparts at the Office of the United States Trade Representative (USTR) to make key revisions to the proposed text of the agreement in a manner that addresses the concerns of European civil society while also reconciling the economic interests of private individuals and enterprises in each sector.
By Jared Angle
BRUSSELS — American and European trade officials met with interest group representatives to discuss potential outcomes of the Transatlantic Trade and Investment Partnership (TTIP) in a panel discussion at the European Parliament on Nov. 18.
Hosted by the EP’s centre-left Socialists and Democrats bloc and the International Trade committee, the panel brought Deputy US Trade Representative Michael Punke and EU Trade Commissioner Cecilia Malmström together with experts from European and American consumer protection and labor rights groups.
Projected tariff reductions under TTIP will allow companies to pass savings onto consumers and will allow new companies to begin exporting to international markets, according to Malmström.
“We will deliver a TTIP that is good for consumers; not bad, not ugly,” Malmström said.
By Jared Angle
WASHINGTON — The upcoming Transatlantic Trade and Investment Partnership (TTIP) will provide a boost for small and mid-sized companies (SMEs) in the United States and Europe, according to business leaders and industry analysts in a panel discussion on Nov. 14.
The event, hosted by the Atlantic Council, a Washington-based international relations think tank, coincides with the release of a report examining the agreement’s effect on SMEs.
The report, written by Garrett Workman of the Atlantic Council’s Global Business and Economics Program, identifies major export challenges for SMEs and proposes policy changes that would encourage American and European SMEs to begin exporting products or increase the volume of their existing exports.
By Jared Angle
BRUSSELS — Much of the recent debate over European Union trade negotiations, specifically regarding transatlantic trade agreements with Canada and the United States, has fixated on the inclusion of investor-state dispute settlement, commonly known as ISDS.
Incoming Trade Commissioner Cecilia Malmström said Sept. 29 that the ISDS chapter of TTIP negotiations is currently frozen, and will be revisited at a later date.
Outgoing Trade Commissioner Karel de Gucht initially stripped ISDS from TTIP negotiations due to German resistance to the legal mechanism, but he insists that ISDS is a crucial investment protection tool that belongs in a finalized version of TTIP, according to Martina Ferracane, a policy analyst at the European Centre for International Political Economy (ECIPE), a think tank based in Brussels.
Members of the European Parliament, led by the Committee on International Trade, questioned Commissioner Cecilia Malmström (ALDE, Sweden) on her ability to serve as the EU’s 15th trade commissioner during a two-and-a-half hour hearing on Sept. 29.
Malmström, 46, currently holds the Commission’s Home Affairs portfolio, and is expected to begin her second term in the Commission on Nov. 1.
By Jared Angle
American and European trade representatives will meet next week for a seventh round of negotiations for the Transatlantic Trade and Investment Partnership (TTIP), a prospective free trade agreement between the United States and the European Union.
The negotiations, which will take place outside Washington, are scheduled to last from Sept. 29 to Oct. 3, according to the European Commission.
The US is the EU’s largest trading partner; in 2011, the EU exported €250 billion in goods and services to the US and imported €187 billion. With the tariff reductions and other market liberalization features in a prospective TTIP agreement, trade volume and job growth would increase significantly for both economies.
By Jared Angle
Americans import thousands of European products, including famous brands like Fiat, Ikea and Heineken that have become ubiquitous in daily American life. However, the trade of industrial goods, which makes up a large market share in the United States and European Union, can benefit from free trade under an upcoming agreement known as the Transatlantic Trade and Investment Partnership, also known as TTIP.
TTIP is a proposed U.S.-EU free trade agreement intended to bolster investment and increase movement of goods and services between the two regions, and is projected to generate additional income for the U.S. and the EU, according to Silvia Kofler, head of press and public diplomacy at the European Union Delegation to the United States.