UK strikes deal to retain WTO procurement membership after Brexit

Britain has secured a deal to remain within the World Trade Organisation’s Government Procurement Agreement (GPA) after the nation leaves the European Union.

The deal gives UK firms access to government procurement markets of a combined value of $1.7 trn from the 47 GPA member nations, which they had previously had access to courtesy of the nation's EU member status.

Conversely, overseas businesses from fellow member states will be able to bid for £67bn-worth of public sector contracts in the UK every year.

International Trade Secretary Dr Liam Fox said: "I’m delighted to have confirmation from the GPA Committee today that the UK will be an independent member of the agreement as we leave the EU. This is a hugely successful global agreement which will give British businesses certainty that they can continue bidding for £1.3trn worth of government procurement contracts overseas."

A statement from the department for international trade called the agreement "a significant step in the UK establishing its independent trade policy for the first time in more than 40 years."

Diplomats had in November indicated that the UK's membership would continue as it stated that few changes would be necessary and that continued UK membership remained in the group's best interests.

Membership is gained by opening up a sufficient amount of a nation's procurement market to attract current members to reciprocate.

With the agreement now in place, UK firms will be able to continue bidding for government work in the EU and nations such as the US, Japan and Canada.

Meanwhile, several countries, including China, Jordan, and Ukraine, are currently negotiating accession to the GPA.

US WTO ambassador Dennis Shea said: "In 2013, the United Kingdom accounted for over a quarter of the EU’s total procurements covered by the GPA. The importance of the UK is even more significant when you look at just central government entities where the UK accounts for 46 percent of the EU’s covered procurements."

Meanwhile, Norway’s $1trn sovereign wealth fund, the world’s largest, said on Wednesday that it intends to keep increasing its investments in the UK, as it stated that the current Brexit uncertainties that have spooked some investors "do not change our view of the situation".

Of the fund's portfolio, 8.5% was in British equities, bonds and real estate at the end of 2018 but its investment in Japan now outstrips that in UK based entities, with the UK's share of the fund having dropped from second to third.