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Title page 1
Contents 6
Foreword 4
Acknowledgements 5
Executive summary 8
1. Overview 10
References 16
2. Using public procurement to strengthen national economies through industrial policies 18
2.1. Direct measures to strengthen the national economy affecting international trade and public procurement 20
2.1.1. Favouring domestic production and companies in public procurement procedures 21
2.1.2. Facilitating SME's access to public procurement to support national economies and resilience affecting trade 32
2.1.3. The impact of subsidies on public procurement 35
2.2. Indirect measures supporting national economies and impacting trade 38
2.2.1. The indirect consequences of promoting security of supply on the national economy 40
2.2.2. Bolstering innovation through public procurement could create comparative advantages for domestic firms and affect trade by stimulating exports 42
References 43
Notes 51
3. Trade measures involving public procurement impacting industrialisation policies and the resilience of global value chains 52
3.1. The key role of international procurement to deliver public services effectively through public procurement 53
3.1.1. What do we mean by trade in public procurement? 53
3.1.2. Public procurement related to trade agreements: a means to foster cross border procurement 55
3.1.3. Digital tools, a key tool to enhance cross-border procurement 60
3.2. Ensuring reciprocity of exchanges through public procurement 63
3.2.1. Regulations ensuring reciprocity in access conditions to public procurement markets for businesses 63
3.2.2. Ensuring fair competition conditions in global public procurement markets 68
3.3. The relevance of international trade and global value chains for public procurement 72
3.3.1. International trade and global value chains play an important role in public procurement 72
3.3.2. Ensuring resilient value chains to ensure the delivery of public services 73
References 75
Notes 81
4. Conclusions 82
4.1. Updating the 2017 OECD Taxonomy of measures affecting trade in government procurement processes 83
4.2. Advancing further the impact assessment of using public procurement to support industrial goals 83
4.3. Leveraging digital technologies to enhance access to public procurement markets 84
References 84
Annex A 85
Figure 1.1. The formulation of industrial policy 11
Figure 1.2. Interrelations between public procurement, industrial policies and trade 12
Figure 1.3. OECD and accession candidate countries using public procurement as a strategic tool for re-industrialisation 14
Figure 1.4. Evaluation of the impact of public procurement, 2024 15
Figure 2.1. Trade Distortive Industrial Policy Tools in 2023 by Income Group 19
Figure 2.2. Categorisation of measures aiming directly at strengthening the national economy affecting public procurement 21
Figure 2.3. Measures aiming at empowering domestic companies and production in procurement procedures 21
Figure 2.4. Categorisation of public procurement measures supporting domestic companies 25
Figure 2.5. Example of measures to support SMEs' access to public procurement opportunities 33
Figure 2.6. Examples of strategic objective that may be used to indirectly favour domestic actors and strengthen the national economy... 39
Figure 3.1. Domestic procurement and direct cross-border procurement 53
Figure 3.2. Types of indirect cross-border exchanges through public procurement 54
Figure 3.3. Potential impact expected from the principles contained in the GPA 57
Figure 3.4. Example of non-tariff barriers to cross border public procurement 60
Figure 3.5. E-procurement can enhance transparency and access of foreign companies to the public procurement market 62
Figure 3.6. Documents or data that are publicly available via the e-procurement system 62
Figure 3.7. Decision process that could be followed by EU contracting authorities before excluding tenders from non-covered third countries 67
Figure 3.8. Global trade impact public procurement through global value chains 72
Boxes 23
Box 2.1. National preferences through domestic content in the United States for federal public procurement 23
Box 2.2. The "Building Ontario Businesses Initiative", Canada 26
Box 2.3. SecNumCloud certification in France 30
Box 2.4. Privileged access to public procurement markets for SOE's in Philippines 31
Box 2.5. Set asides for domestic SMEs in the United States 34
Box 2.6. Preferences granted to domestic SMEs in procurement procedures in Argentina 35
Box 2.7. Subsidies to Chinese companies under the "Made in China 2025" plan and their implication on low pricing strategies in public procurement 37
Box 2.8. Proposal by the European Commission of a "Critical Medicines Act" in June 2025 42
Box 3.1. Diverging results on the assessment of cross-border procurement 55
Box 3.2. The GPA principles 56
Box 3.3. EU regulation on the access of third-country economic operators, goods, services and works to the EU public procurement and... 64
Box 3.4. First investigation under EU international Procurement instrument in response to measures and practices in the Chinese... 65
Box 3.5. The 1979 US Trade Agreements Act 68
Box 3.6. EU Foreign subsidies regulation 70
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