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How New York State Increased International Procurement Market Access for its Businesses. Kay Alison Wilkie Empire State Development a presentation for the NYSNER Research in Progress Conference 12/5/01. The International Trade Dimension of Procurement Market Access:.
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How New York State Increased International Procurement Market Access for its Businesses Kay Alison Wilkie Empire State Development a presentation for the NYSNER Research in Progress Conference 12/5/01
The International Trade Dimension of Procurement Market Access: • Progression of trade liberalization • Sub-central under greater scrutiny • Evolving area of international law: e.g. Burma; MacBride laws
Why New York State Became Involved: • Opportunities coincide with objectives: Value of NYS government procurement to US negotiations • NYS to gain export access -- esp. in Canadian provinces • International context of NYS Procurement markets
Evolution of Negotiations and Implementation • 1993: At USTR request, NYS includes procurement in the WTO Government Procurement Agreement. (NYS team effort: ESD and OGS) • O Canada!: concerns remain about lack of provincial coverage
Timeline continued... • 1995-1998: NYS-Quebec meetings to address Québec procurement barriers • NYS mentions risk of discriminatory jurisdiction statute • Negotiations reached impasse in 1998
Timeline continued... • 1999: Ontario printer won the bid for the “I Love NY” travel guide, highlighting trade inequities between NYS and key Canadian provinces, Ontario and Quebec • e.g. NYS’ open process versus Ontario’s 10% Canadian content preferences • Momentum for procurement policy change leads to legislation
Recent Milestones: • August 2000: Legislation enacted as Governor Pataki signed amendment to Finance and Public Authorities law, expanding definition of “discriminatory jurisdictions” to include any other country, nation, province, state or political subdivision
Importance of Statute: • Impact: Companies in discriminatory jurisdictions generally precluded from NYS contract bids • Intent: NYS bolsters fair trade, protects our business interests, and provides an incentive for reform and removal of procurement preference barriers
Law in Action: • October 2000: after review of facts, NYS-ESD listed Ontario and Québec as discriminatory jurisdictions. • Canadian federal and provincial officials notified • NYS consulted with USTR and Canadians regarding impact of law and listing process
Impact of Implementation: • April 2001: Premier Harris met with Governor Pataki – topics of procurement and economic summit plans • Ontario’s interest builds in removing preference and regaining access to NYS procurement markets • May 2001: At Quebec’s request, procurement discussions resumed
Very Recent Milestones: • June 2001: Ontario removes its 10% preference on 6/14; is delisted by ESD 6/19; • Successful New York-Ontario Economic Summit held by Governor and Premier 6/25-26 • Negotiations with Quebec intensify from June through September
Even More Recent Milestones: • November 2001: Quebec implemented policies giving NYS firms fair access 11/12; delisted by ESD 11/16. • Governor Pataki and Premier Landry met 11/29 – discussed procurement market access success, border security issues and plans for an economic summit in early 2002
The Road Ahead… • NYS continues to pursue innovative strategies for expanding international market access: • Consultations with USTR on WTO and FTAA negotiations • Pivotal state role ahead as trade liberalization deepens and security concerns intensify
with our Cross Border Partners: • Closer collaboration within the “super region” of New York – Ontario – Quebec: • border security and the “Zone of Confidence” • economic cooperation • and continued information-sharing on procurement processes.