EU international procurement instrument

Briefing 24-11-2022

Government procurement forms an important part of national economies. The EU has opened up its public procurement markets to third countries to a large degree, while many other economies have had limited appetite to liberalise market access. In 2012, the European Commission tabled a proposal for an international procurement instrument (IPI). The IPI would give the EU leverage in negotiating the reciprocal opening of public procurement markets in third countries. The Commission revised the proposal in 2016, taking on board some recommendations from the Council and the European Parliament. However, the revised proposal did not advance owing to differences in Member States' positions. In 2019, discussions in the Council gathered new momentum in the context of a growing recognition of the need to level the playing field in international trade and the new negotiating mandate was adopted in June 2021. Parliament adopted its position on the revised IPI proposal in December 2021, modifying its design, scope and application. The trilogues concluded successfully in March 2022. Parliament approved the agreement in plenary by a large majority on 9 June 2022 and the Council formally adopted it on 17 June. The IPI entered into force on 29 August 2022. Fourth edition of a briefing, the previous editions of which were drafted by Jana Titievskaia. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure.