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Agreement on Government Procurement

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Agreement on Government Procurement
A treaty by members of the World Trade Organization mandating openness and transparency when signatory governments buy goods and services from foreign companies. It established a framework for signatories to follow in creating laws and regulations mandating this transparency. It came into effect in 1996.


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A senior UAE government official said it could commission a study to examine the pros and cons of signing an agreement on government procurement to avoid the tax.
New US procurement contracts with foreign companies will be subject to a two percent tax if the goods or services purchased from countries that are not part of the World Trade Organization's Agreement on Government Procurement besides, State trading, state owned enterprises, and privatization is another measures that affects Production & Trade.
The industry chamber referred to the new US Health Bill that provides for imposition of two per cent excise duty on goods and services imported by the US government from countries, like India and China, which are outside the purview of World Trade Organisation ( WTO's) agreement on government procurement and said it unfairly targets foreign companies to pay for domestic imperatives which is unjustified.
 
 
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