GAO Study Finds US and EU Procurement Markets Top $2.5 Trillion

import-export-600GAO has released results of a study on the size of government procurement markets. The United States and European Union, at $1.17 trillion and $1.6 trillion, respectively, have the largest government procurement markets of countries covered by key procurement-related agreements.

GAO also found that the United States is a party to, or is currently negotiating, international agreements covering government procurement with 60 countries. From 2008 through 2012 these countries together spent on average about $4.4 trillion annually to procure goods and services and to fund capital projects. This represented about a quarter of their total general government expenditures, and includes spending at the central, state, and local levels.

For Trans-Pacific Partnership (TPP) and Transatlantic Trade and Investment Partnership (T-TIP) countries, potential trade opportunities for U.S. firms could arise from the United States negotiating for commitments to increase the scope of covered procurements in the 56 countries covered by existing agreements.