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A tool to open up non-EU public procurement markets to EU firms
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Uniform application in every member state
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Less exceptions to application, more tenders under scope
Parliament has adopted its position on the international procurement instrument, a tool to help restore the balance of opportunities for EU companies tendering outside the EU.
With 590 votes for, eight against and 99 abstentions, Parliament on Tuesday backed the overall aim of the proposed International Procurement Instrument (IPI) but tweaked its design, scope and member states’ discretionary powers in its application.
The IPI encourages the opening of public procurement markets of countries which protect this sector. It does so by introducing measures limiting the access to open EU public procurement tenders of non-EU companies from countries that do not offer similar access to EU enterprises. The instrument would empower the Commission to determine whether and to what extent companies from a third country must be subject to an IPI measure.
EU tools to remedy unequal access, with fewer exceptions
MEPs agree to two types of IPI measures that the Commission can choose from to remedy unequal access to public procurement markets: adjusting the score of the bid by companies subject to IPI (without affecting the price to be paid to the successful bidder), or excluding the company from bidding.
In addition, the Parliament reduces to two the number of exceptions when national contracting authorities can opt out from IPI measures – when all bids come from companies from countries subject to an IPI measure; and in cases where the public interest overrides IPI considerations, such as in areas of public health or environmental protection -, thereby extending the intended leverage of the instrument. However, MEPs insist on exempting companies from least developed countries and vulnerable developing countries.
Parliament also brings all European public contracting authorities under the scope of the IPI to ensure the uniform application in all EU countries.
More tenders affected
MEPs establish different thresholds to determine which procurement procedures are subject to an IPI measure: those worth at least €10 million for works and concessions (such as highway constructions) and €5 million for goods and services.
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“In a convincing vote Parliament cleared the way for the IPI, a much needed upgrade of the EU toolbox to respond to an increasingly hostile trade environment. With Parliament’s changes, we have an IPI that is easy to understand and to apply, and we cut bureaucracy to the bare minimum. Our goal is to complete the negotiations with EU ministers by next spring. The ball is now in Council’s court to start working with us without delay on the final version of an effective, efficient and straightforward tool,,” said rapporteur Daniel Caspary (EPP, DE).
Next steps
The adopted text serves as the negotiating mandate for the parliamentary delegation that is set to start talks on the final form of the instrument with the Council on 16 December.
Background
The EU has opened its public procurement markets to a significant degree to competitors from third countries and has been advocating for the end of protectionist measures on international public procurement markets.
Parliament has been working on the file since the Commission original proposal in 2012, then modified in 2016. Member states only reached an agreement on the topic in June 2021.