MBA. Hellen Ruiz Hidalgo
Strategic Communicator
Foreign Trade Observatory (OCEX)
Vice-Rectory for Research - Distance Learning State University (UNED)


Government procurement represents a high proportion of a country's GDP. For this reason, the World Trade Organization (WTO) has created the Agreement on GovernmentProcurement, among countries that adhere to it, to promote the opening of markets related to the public sector. The aim is for governments to purchase goods and services more efficiently, encouraging the participation of international suppliers on an equal footing with local suppliers. OCEX participated in a workshop organized by COMEX on this matter and the advantages that adhering to this agreement represents for Costa Rica. In this capsule we offer a summary of this activity.

The “Agreement on Government Procurement of the World Trade Organization (GPA 2012)” is a regulatory framework that promotes transparency, fair competition and non-discrimination in government procurement processes among the countries that adhere to the agreement. What is the scope of the WTO Government Procurement Agreement? What opportunities does it create for Costa Rica? This commitment seeks to make governments purchase goods and services more efficiently, encouraging the participation of international suppliers on equal terms with local suppliers.

On September 11, 2024, OCEX participated in the training workshop on access to the “World Trade Organization Government Procurement Agreement (GPA 2012)”, this training was held in Costa Rica, at the facilities of the Ministry of Foreign Trade of Costa Rica (COMEX). This activity was organized by the Institute for the Integration of Latin America and the Caribbean of the Inter-American Development Bank (IDB INTAL), in cooperation with COMEX.

This workshop was designed to identify and maximize the commercial opportunities offered by the 2012 GPA for Costa Rica, as well as to broaden knowledge and provide a better understanding of the regulatory framework, through presentations by a team of renowned international specialists in the area of trade and public procurement, and national authorities in the field. An overview of the current national context, trade opportunities and challenges facing Costa Rica in the area of international trade-related public procurement was provided.
The GPA 2012 is an international regulatory framework designed by the World Trade Organization (WTO) and established to promote transparency, fair competition and non-discrimination in public procurement processes, allowing governments to purchase goods and services more efficiently and effectively. This implies that participating countries that join must open part of their government procurement markets to suppliers from other countries, under agreed conditions and in specific sectors. The GPA 2012 promotes:

- Transparency in tendering. It ensures that procurement procedures are conducted in an open and transparent manner, which reduces opportunities for corruption.
- Non-discrimination. International suppliers should be treated in the same way as local suppliers, which promotes fair competition.
- Market access. By signing the GPA 2012, countries open their public procurement to suppliers from other member countries, creating new business opportunities.

To provide diverse perspectives, this workshop was enriched by the participation of international and national experts. Among them, Robert D. Anderson, Honorary Professor at theUniversity of Nottingham (United Kingdom), focused on the five most representative elements of the GPA 2012, encompassing them in a context of comprehensive policy, commercial dimension and fundamental principles. The following is a summary of these five elements:

1. Non-discrimination Standards. This includes the principle of National Treatment, with respect to tenders in the covered public procurement markets, which guaranteesequality of participation, avoiding discrimination against suppliers from other member countries.
2. Coverage. This is defined by means of detailed lists (Annexes) in “Appendix I”. It specifies entities included in the agreement, specific monetary thresholds, types of services covered and defined exclusions that may apply, etc.
3.  Rules to ensure transparency and free competition. Refers to minimum standards relating to key aspects of the procurement process. It includes provisions on:
               a) Bidding procedures;
               b) Evaluation and qualification of suppliers;
               c) Deadlines, required documentation, bid opening and contract award procedures.
4. Dispute Settlement. Refers to the provisions on the application of the WTO Dispute Settlement Understanding (DSU) and internal procedures for the review of protests in bidding processes.
5. Enhancement of the agreement. Mandate incorporated for future negotiations of the agreement. Establishes a framework for improving, updating and expanding the scope of the 2012 GPA, ensuring its adaptability to new circumstances and needs.

Philippe Pelletier, Legal and Economic Affairs Officer of the Intellectual Property, Government Procurement and Competition Division at the WTO, explained the market access opportunities available under the GPA 2012, through the use of the e-GPA tool as an information resource for penetrating new markets. Among the benefits offered by the e-GPA tool are the following:

1. Access to international markets: e-GPA facilitates countries and companies to identify market access opportunities in different countries that are part of the GPA 2012. This helps companies to take advantage of the commercial opportunities available under the agreement, opening doors for the penetration of new markets.
2. Transparency and centralization of information: The e-GPA tool is a valuable resource because it centralizes key information on public procurement procedures in member markets, reducing information barriers and allowing better access to essential data on international public contracts.
3. Identification of relevant entities and contracts: e-GPA provides details on the types of entities covered by the GPA 2012 and the types of contracts these entities handle (goods and services). Pelletier noted that the medical sector is particularly important within the framework of the agreement, allowing companies in this sector to focus their strategy on these contracts.
4. Table of applicable thresholds: One of the benefits of the 2012 GPA, which Pelletier highlighted, is the table of thresholds that apply to the parties to the agreement. This table is key for companies that want to participate in the bids, as it indicates the minimum values that must be exceeded in order to access the contracts.

Next, Leonor Obando, Public Procurement Coordinator of the Directorate General of Foreign Trade of Costa Rica, COMEX, presented Costa Rica's preparation process for accession to the GPA 2012. She provided an overview of our country's experience in the negotiation and implementation of international trade commitments in government procurement, focused on lessons learned and provided practical recommendations. Obando emphasized that Costa Rica's adherence to the GPA 2012 not only allows it to improve its procurement processes, but also aligns its efforts with OECD standards, promoting transparency, efficiency and economic openness, which benefits both the public and private sectors in the country. Obando also highlighted some of the advantages that the GPA 2012 offers our country, especially in the context of its membership in the OECD: Costa Rica, COMEX, presented Costa Rica's preparation process for accession to the GPA 2012. She provided an overview of our country's experience in the negotiation and implementation of international trade commitments in government procurement, focused on lessons learned and provided practical recommendations. Obando emphasized that Costa Rica's adherence to the GPA 2012 not only allows it to improve its procurement processes, but also aligns its efforts with OECD standards, promoting transparency, efficiency and economic openness, which benefits both the public and private sectors in the country. Obando also highlighted some of the advantages that the GPA 2012 offers our country, especially in the context of its membership in the OECD:

1. Increased transparency and competitiveness. Accession to the GPA 2012 promotes transparent and competitive practices in public procurement processes. This is consistent with the principles prioritized by the OECD, such as integrity in the public sector and the fight against corruption.
2. Alignment with international standards. The integration in the GPA 2012 allows Costa Rica to align with international regulations and standards on procurement, which is an aspect valued by the OECD and can facilitate joint work and cooperation with other countries in international forums.
3. Institutional capacity building. The implementation of the 2012 GPA implies improving the capacities of Costa Rican public institutions in procurement management, which may result in greater efficiency and effectiveness in the use of public resources, a common objective between the OECD and Costa Rican public policies.
4. Encouraging foreign investment. The opening of contracting processes to foreign companies may result in an increase in foreign direct investment, as companies are more motivated to invest in a country where they can participate in public tenders and contracts.

Antonella Salgueiro, International Government Procurement Specialist, discussed the key stages, flexibilities and recent trends in the introduction and overview of the 2012 GPA. In addition, she facilitated an important discussion on how government procurement is integrated into regional trade agreements in the Latin American context, highlighting the importance of regional cooperation and integration in the area of public procurement, which is critical for sustainable economic development and the strengthening of regional supply chains. This was an integrative approach that recognized the interdependence of regional and global regulations in public procurement.

ACP 2012: relevance and challenges for Costa Rica. Our nation has stood out as a leader in the region, as the first country in Latin America to adhere to the GPA 2012. This accession implies a commitment to international standards in procurement management and an opening of its market to suppliers from other member countries, which strengthens investment and promotes competitiveness. This step not only reflects an advance in the modernization policies of the Costa Rican state, but also an effort to improve governance and efficiency in the use of public resources. In addition, by being the first country in the region to join this agreement, Costa Rica positions itself as a benchmark in the implementation of public procurement practices at the international level, promoting a fairer and more equitable environment for all stakeholders.

Costa Rica's accession to the GPA 2012 opens up important advantages for its companies in the context of international trade and the opening of markets, but also poses the challenge of raising the standards of competitiveness and transparency in public procurement processes. Some key points of relevance in the Costa Rican reality are:

1. Access to international markets. Costa Rica's participation in the ACP 2012 allows Costa Rican companies to access public procurement opportunities in foreign markets. This not only expands business opportunities for Costa Rican companies, but also encourages competition and improves the quality of services and products purchased. This is crucial to diversify exports and improve the competitiveness of national companies.
2. Improved transparency. In Costa Rica, public procurement has been under scrutiny due to corruption issues. The implementation of the 2012 GPA principles will help strengthen institutions, ensure greater transparency, and reduce the risk of corruption in public procurement processes.
3. National competitiveness. While opening the public procurement market may mean more competition for local suppliers, it also motivates them to improve their standards and become more competitive in price and quality, which in the long run benefits the economy.
4. Impact on key sectors. Costa Rica has sectors of great international relevance, such as agri-food, high technology and manufacturing, which could benefit from access to international tenders under the GPA 2012. In addition, sectors such as construction and infrastructure may also be impacted by increased international competition.

GPA 2012: Challenges for Costa Rica. While Costa Rica's accession to the agreement may offer potential opportunities, it also brings significant challenges that must be considered in order to maximize the benefits of this integration. According to Alejandro Bonilla, Head of the Department of Agreements and Negotiations, Latin American Integration Association of ALADI, the effective management of possible mismatches will be crucial to mitigate the drawbacks brought by this international commitment:

1. Legal and regulatory adaptation. Costa Rica must modify and adapt national legislation on public procurement to align it with the standards and requirements established by the GPA 2012. This could involve legislative reforms and modernization of public management systems. This may involve a complex process that requires time and resources.
2. Capacity building and institutional strengthening. It is essential that the institutions in charge of public procurement have trained personnel and adequate resources toimplement the new standards. This may mean investing in local capacity building.
3. Transparency and corruption prevention. The 2012 GPA emphasizes the importance of transparency in contracting processes. Costa Rica will need to strengthen its control and oversight mechanisms to ensure that processes are fair and transparent, which may be a challenge given the need for changes in institutional culture.
4. Supplier training. It is essential that Costa Rican companies are trained to compete in international bids, knowing the requirements and standards of the markets to which they now have access.
5. Protection of vulnerable sectors. The liberalization of public procurement could make it difficult to protect economic sectors that require special treatment or government support. This is important to maintain the development of certain local industries.
6. Increased external competition. Opening the public procurement market to foreign companies may disadvantage local companies, especially small and medium-sized ones, which may not have the resources or capabilities to compete effectively against larger firms with greater international experience.
7. Drive innovation and efficiency. As international standards are integrated, Costa Rica will need to foster a culture of innovation in the public sector, which may require changes in established processes and practices.
8. Dependence on foreign inputs. Greater openness could make Costa Rica more dependent on foreign inputs and services, which may generate vulnerabilities in its economy, especially in times of international crisis or fluctuations in tariffs and availability.
9. Mismatch in training and resources. Institutions in charge of managing procurement must be adequately trained and determined to implement the 2012 GPA. Lack of preparation may lead to failures in the execution of contracting processes and, in the long run, would generate controversy regarding the benefits of the agreement.
10. Monitoring and evaluation. It is vital to implement an effective system for monitoring and evaluating the results of public contracting. This not only ensures accountability, but also allows the processes to be adjusted based on the feedback obtained.

In conclusion. The workshop represented a significant opportunity for participants to gain critical knowledge about the 2012 GPA and learn how to use this regulatory framework to enhance the country's economy. The well-organized structure of the program offered and the inclusion of high-level speakers provided a proactive and strategic approach towards improving competitiveness in the context of international public procurement.

ACP 2012 enables Costa Rica and other countries to improve their access to international markets, while providing a clear and detailed framework on the opportunities available in the global public procurement arena. In summary, the results of Costa Rica's integration into the GPA 2012 will depend on the country's ability to adapt and to strengthen its institutional framework, in line with the objectives of the agreement.