The World Trade Organization’s (WTO) Committee on Government Procurement adopted the accession of Taiwan to the WTO Agreement on Government Procurement (GPA) on 9 December 2008 and Taiwan will formally become the 41st signatory of the GPA as soon as the domestic legislative procedures are completed.
The measures of Taiwan’s government procurement policy that protect Taiwanese domestic companies, such as the requirement to use a certain proportion of Taiwanese local products, will be lifted after Taiwan’s accession to the GPA. Government procurement contracts for goods and services above the amount set forth below will all be opened to international bidding.
Taiwanese companies may also take the advantage of the accession of GPA. It is estimated that the government procurement markets opened to Taiwanese companies by other GPA signatories (including the United States and the European Union) will be worth approximately US$ 390 billion annually, which is sixty times larger than Taiwan’s potential government procurement market.
【Government procurement that must be opened to competitive bidding by foreign companies】
|
Procuring Entities |
Thresholds |
|
Service and financial contracts that must be opened to foreign bidders |
Central Government entities |
NT$ 6.52 million |
|
Taiwan Provincial Government entities, and special municipalities (currently Taipei and Kaohsiung Cities) |
NT$ 10.03 million |
|
Certain state-owned enterprises and state colleges and universities |
NT$ 20.07 million |
|
Construction contracts that must be opened to foreign bidders |
Central Government entities |
NT$ 250.9 million |
|
Taiwan Provincial Government entities, special municipalities, and certain state-owned enterprises and state colleges and universities |
1st year: NT$ 752.7 million
2nd year: NT$ 518 million
3rd year: NT$ 250.9 million |
Source: Council for Economic Planning and Development 
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