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International Trade: Foreign Sourcing in Government Procurement

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Report Type Reports and Testimonies
Report Date May 30, 2019
Release Date June 24, 2019
Report No. GAO-19-414
Summary:

Governments around the world spend trillions of dollars to purchase goods and services—and some of those purchases are made from foreign firms.

The U.S. and key trade partners have signed pacts like the WTO Agreement on Government Procurement and NAFTA to open their government purchasing to international competition.

Among governments we reviewed, 2–19% of their procurement was from foreign sources.

In 2015, the U.S. likely procured over twice as much from key trade partners as those countries did from U.S. firms—an estimated $5 billion vs. $2 billion in contracts. Canada and Mexico awarded most of the foreign contracts that U.S. firms won.

U.S. and Key Trade Partners under WTO Government Procurement Agreement and NAFTA

Photo of world map with flags of key U.S. trading partners.

Photo of world map with flags of key U.S. trading partners.

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