The recent Brexit vote reflects a deeper push against globalism and towards local preferences as governments tackle the push and pull between procurement regulations aimed to encourage open, fair and transparent procurement with the desire to stimulate the local economy by buying locally.
AFRICA: An article in NewsdzeZimbabwe reported that the government of Zimbabwe is considering a local procurement index in an effort to cut its trade deficit. It was reported that Buy Zimbabwe chief executive Mr. Munyaradzi Hwengwere was quoted as saying “It is our view that clear legislation on domestic procurement can also help our industry to become more competitive.”
ASIA: In India, the KNNIndia reported a move to make domestic procurement mandatory for domestic power equipment manufacturers. Noting the significant investment that domestic power equipment manufacturers have made in India, the article references a letter from the Central Electrical Authority which deems foreign competition “a matter of concern because of large scale penetration of foreign equipment/material in power sector.”
CANADA: In Canada, in the wake of the Alberta wildfire crisis, the Journal of Commerce reported “The government of Alberta is committed to working with local suppliers for any recovery-related procurement under provincial jurisdiction and will give preference to competitive bids from local firms,” said Oneil Carlier, the minister of agriculture and forestry, in a letter to Charles Iggulden, Fort McMurray Construction Association president, dated May 30.
US: On an alternate note, the Institute for Agriculture and Trade Policy reported that stricter rules against a buy local preference may be on the horizon. A key objective of the Transatlantic Trade and Investment Partnership talks has been to “open U.S. public procurement programs at all levels of government to bids by EU firms, removing policies that support local employment, local content or portions of contracts set aside for small businesses.” Final wording will remain to be seen once negotiations have concluded.
Paul Emanuelli at the Procurement Office recently tackled the issue of local preference and small local suppliers in his report to the Yukon Legislature: Building a Better Framework for Open and Fair Competition. As his report states, “by implementing proactive and strategic measures, public institutions can establish better frameworks for open and fair competition and enable smaller suppliers to compete within the government procurement marketplace.” The report explains that governments do not have to choose between local preference and open competition since the two objectives are not mutually exclusive but can work hand in hand to encourage local business development within the open competition rules.
What remains to be seen is what the recent Brexit vote will mean for public procurement in the UK. An article published in The Guardian looked at some of the implications of an ‘out-vote’ on the adoption of the European Union rules in the UK. Although it is unlikely that we will see any immediate changes in the near future, it will be interesting to see the direction the UK chooses to take and its impact on public procurement practices across Europe and around the world.
