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Improving reciprocal access to international procurement for EU companies

A crucial tool of the EU resilience toolbox entered into force on 29 August 2022: the International Procurement Instrument (IPI) (Regulation (EU) 2022/1031) gives the EU important leverage to open public procurement markets outside the EU. The primary objective of the IPI is to provide an open, level playing field for EU companies that are or would like to be active in public procurement markets abroad.

date:  14/09/2022

The EU advocates open international public procurement markets and has itself one of the largest procurement markets in the world. On the other hand, many EU companies are experiencing difficulties in getting access to non-EU countries’ procurement markets as some of the EU’s trading partners do not offer the same kind of openness to EU businesses.

The newly introduced tool gives power to the Commission to initiate investigations in cases of alleged restrictions for EU companies in third country’s procurement markets. In parallel to such investigations, the Commission will invite the country concerned to consultations on the opening of its procurement markets. In the final instance, the Commission could apply measures that would result in restricting access to the EU PP market for operators, goods or services from the country concerned.

The IPI measures could take the form of score adjustment measure or an exclusion from the tender. Once an IPI measure is imposed, the contracting authorities or contracting entities have to apply it for contracts above certain thresholds.

If the third country improves the access of Union goods, services or economic operators to its public procurement markets, the Commission may either withdraw the IPI measure or suspend its application.

The Commission will issue guidelines within six months from the entry into force of IPI in order to facilitate the application of the IPI.

https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32022R1031&from=EN