Similarly, the impact of an exit from the WTO GPA could have a significant impact on American businesses. Although not as large as the U.S. government market, U.S. companies would lose preferential access to supply markets of nearly $900 billion from other WTO GPA members. In addition, many U.S. government contractors rely on global supply chains to support their government contracts, including supplier networks and production sites in WTO GPA countries, based on taA and current rules allowing U.S. government partners to provide products and services from WTO GPA countries. Therefore, the withdrawal of the United States from the WTO could require contractors to restructure their supply chains – including, for example, switching suppliers or offshoring production sites – in order to comply with all the rules and restrictions introduced after the withdrawal of the WTO GPA. Such results would be consistent with the Trump administration`s current efforts to promote the location of the supply chain and bring production back to the United States. The GPA is a multi-lateral agreement within the WTO framework, which means that not all WTO members are parties to the agreement. Currently, the agreement consists of 20 parties, with 48 WTO members. Thirty-six WTO members/observers participate in the GPA committee as observers.
Of these, 12 members are in the process of joining the agreement. When a supplier believes that this agreement is in violation, it is encouraged to consult with the purchasing entity to resolve the issue. If such consultations do not result satisfactory, each undersigned government should provide that it imposes timely, transparent and effective non-discriminatory procedures that would allow suppliers to challenge alleged breaches of the agreement. Suppliers may be required to initiate an appeal procedure within a specified period of time (no less than ten days) from the date the basis of the complaint was known. Disputes must be heard by an impartial independent tribunal or audit body that is not interested in the outcome of the award of the contract.