The evolution of EU public procurement rules and its interface with WTO: SME promotion and policy space

This chapter examines the evolution of the EU public procurement directives and their interface with the EU’s obligations under the WTO Government Procurement Agreement (WTO GPA). The analysis indicates that the EU’s directives have evolved through reform, to meet its changing environment and policy objectives. However, it also suggests that while the EU was a pioneer party to the WTO’s plurilateral agreement on government procurement, not all of its new horizontal policy statements, such as towards small and medium enterprises, appear to be fully compatible with its commitments under the WTO GPA and enshrined in its Appendix to the Agreement. Consequently, while the EU has identified new initiatives to promote or protect SMEs, in order to be fully compliant with its international obligations they may not be able to meet their objectives effectively.