Responding to the adoption of the EU Public Procurement Act, William Bain, Head of Trade Policy at the British Chambers of Commerce, said:
“UK firms will breathe a sigh of relief, for now, that they are not targeted by the proposals contained in the EU Public Procurement Act.
“Although the Act extends the concept of preferring EU companies into government procurement, which makes up 15% of the EU’s economy, the UK is exempt from the restrictions imposed.
“However, we are not out of the woods yet, as the EU continues to pursue its ‘Made In Europe’ agenda which aims to protect its industries from unfair international competition.
“As the UK is now a third country supplier there remains a possibility that British firms could be squeezed out of supply chains, as well as facing higher costs and bureaucracy.
“Businesses will be keeping a close eye on what now happens in other EU institutions as these rules are considered further.
“Although, there may yet be a silver lining, as replacing complex national procurement laws across Europe with a single set of rules could be advantageous to UK firms.
“There are still some areas of uncertainty around defence and utilities procurement, which will hopefully be addressed as the legislation proceeds, amid further negotiations following the Leaders’ Summit.
“Getting this right is of vital importance. The EU remains the UK’s biggest export market and thousands of our businesses are fully integrated into supply chains for everything from automotives and aircraft to missiles and medical equipment.”
More detail on the EU Public Procurement Act can be found here.