With eye on China, EU agrees new rules for public tenders

European Union flags fly outside the European Commission headquarters in Brussels, Belgium, March 6, 2019. REUTERS/Yves HermanRegister now for FREE unlimited access to Reuters.comBRUSSELS, March 14 (Reuters) – The European Union agreed on Monday new rules to limit access to its 2 trillion euros ($2.2 trillion) worth of public tenders in a move designed to pressure countries such as China to open up their markets.European Parliament lawmakers and France, which holds the rotating EU presidency, settled on a text on Monday, paving the way for the launch of the International Procurement Instrument (IPI), which had been blocked for a decade.Franck Riester, trade minister of France, said the agreement on the IPI was part of Europe’s step away from being naive by looking after its own businesses and insisting on reciprocity.Register now for FREE unlimited access to Reuters.comUnder the proposal, the European Commission would determine if third countries allow fair access to their public tenders to EU companies and, if not, seek to encourage remedies.Otherwise, the EU would apply a penalty to companies from that country, such as adding as much as 20% to the price of the bid during the selection process.This would give bids from the EU or non-targeted countries an advantage. In some cases, the EU could even exclude bids from particular countries.The IPI, first proposed in 2012, was blocked, but the Commission urged EU governments and the parliament in 2019 to revive talks on a revised text, stressing the challenge posed by China, which EU members now regard more suspiciously.($1=0.9112 euros)Register now for FREE unlimited access to Reuters.comReporting by Philip Blenkinsop Editing by Nick ZieminskiOur Standards: The Thomson Reuters Trust Principles.