8 - The IPI Regulation

Summary

Chapter 8 is dedicated to the EU’s International Procurement Instrument (IPI) and its aim to ensure access and a level the playing field for EU companies in third countries’ public procurement markets. It introduces the reader to the long-lasting legislative history of the instrument, the causes that lead to the EU’s change of heart leading to its adoption, and describes the final adopted version. The chapter then provides a comprehensive analysis of the IPI’s legality under WTO rules. In particular, the chapter explores the instrument’s compliance with the WTO National Treatment and Most Favored Nations Obligations, and subsidies and dispute settlement rules. Since FTA rules contain similar language to core non-discrimination WTO obligation, the chapter also considers the IPI in light of the bilateral confines. Finally, it considers potential broader political implications of the adoption of the IPI for the EU and European economic operators. The chapter puts forward suggestions for an IPI compliant with EU’s international commitments to avoid accusations of protectionism and to stay true to its multilateralist stance.