Governments must identify contracts under international procurement agreements and ensure that they comply with the requirements of these agreements. The New South Wales Public Procurement Council`s guide contains guidelines on agreements currently in place for NSW government authorities. Australia is involved in five free trade agreements that contain public procurement rules that apply to NSW government authorities: public procurement often favours local suppliers in the domestic market. While this approach is intended to stimulate the domestic economy, it can, in practice, cause market distortions that limit choice, increase prices and undermine economic efficiency. Increased competition among foreign public procurement providers can reduce the cost of goods and services, provide taxpayers with good value for money, and provide access to goods and services that can improve the quality of public services, while promoting the economy through better allocation of resources. Government procurement accounts for between 15 and 20% of global GDP, and GPA commitments alone account for around 1.3 trillion euros of global business opportunities. The EU supports the opening of international public procurement and is committed to granting access to public procurement for certain goods and services. On the other hand, many EU companies are having difficulty accessing public procurement in third countries. Some trading partners have maintained or implemented protectionist or discriminatory measures affecting EU businesses. In response, the EU is taking action in several areas to ensure a level playing field and increase market opportunities for EU businesses. As a result, the first Tokyo Round Code on Government Procurement was signed in 1979 and came into force in 1981.
It was amended in 1987 and the amendment came into force in 1988.