The TPP Agreement and Government Procurement: Opportunities and Issues for the Philippines

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This paper assesses the alignment of the Philippine Government Procurement Reform Act (GPRA) with respect to the Trans-Pacific Partnership (TPP) Agreement, and examines the policy reforms in government procurement that the country may have to implement if it accedes to the TPP. It takes stock of the legal gaps between the current public procurement law of the country--Republic Act 9184 or the GPRA--and the obligations of TPP parties in Chapter 15 of the agreement covering government procurement (GP-TPP). The key consideration to be made by the Philippines is to determine whether joining the TPP and acceding to a party's obligations in GP-TPP would accrue net positive benefits to the country as a whole. Taking note of the need to implement compensating measures to minimize adjustment costs of local firms currently enjoying preference, the paper argues that opening up the procurement market to foreign suppliers belonging to TPP countries would confer net benefits to the Philippine government and Filipinos in general.