Public procurement accounts for roughly 18% of EU GDP and it is important that both US and EU markets are open to competition on public contracts, for two reasons. Firstly, on opening US markets, British companies through greater access, can challenge for contracts currently unavailable to them. Currently only 32% of the US procurement market is open to EU business.
Secondly, on access to British markets by American companies, it grants government greater choice and cheaper solutions. This means British tax payers would get the most out of their governments spending, providing for improved efficiency. By allowing US companies to bid on British and European contracts it makes the market more competitive, driving down prices, providing better value for money.
The TTIP negotiations are investigating the potential for market access at every level, be it local or regional, national or European as in order for public procurement to offer real returns this openness needs to be realised at all levels of government. Currently 13 US states are completely closed to UK business, and of the 37 that are ‘open’, this is only at the state level, and this does not cover, city and municipal levels. Add to this the closure of several federal agencies, and it becomes clear that TTIP could offer huge benefits in this area.
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