Public Procurement and Technical Barriers
All governments are major purchasers of goods and services, and all give some preference to domestic firms when placing orders. In the United Kingdom, over one-fifth of the gross domestic product is accounted for by public authorities’ expenditure on goods and services, and in 1968 only 6 per cent of this expenditure was on imports. In other member countries of the European Community, the proportions of government expenditure on goods and services to gross domestic product tend to be lower, though still generally over 10 per cent. The proportions of public contracts for works or supplies awarded to foreign firms are also thought to be lower, usually not more than one per cent. There is an additional indirect import content, however, in respect of imports of domestic firms in the course of fulfilling public contracts.
KeywordsForeign Firm Domestic Firm Public Procurement Aircraft Industry Public Subsidy
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