ABSTRACT

The Community directive concerning the so-called "excluded sectors" adopted in September 1990 discriminates against third countries. Opening up government procurements is one of the main objectives of Economic Community (EC)-1992. Simply stated, government departments, public utilities, and local authorities in EC countries buy too much from local suppliers. The General Agreement on Trade and Tariffs (GATT) Government Procurements Code requires signatories to allow suppliers of products for other signatories to compete for government contracts in sectors covered by the code that meet specified criteria. Certain very important purchasing entities and public authority construction projects were excluded from the GATT Code: water, energy, transport, and telecommunications sectors. The local content rules governing the "excluded sectors" make it possible for the EC to exclude from consideration certain US bids. Opening the Community public sector markets to non-EC suppliers will provide additional export opportunities for US firms.