post-brexit public procurement: challenges and regulatory solutions

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Challenges and Regulatory Solutions: Public Procurement Dr Albert Sanchez-Graells Reader in Economic Law EURO-CEFG, MaCCI and the University of Mannheim Joint Conference “Trade Relations after Brexit: Impetus for the Negotiation Process”. Mannheim, 25-26 January 2018

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Page 1: Post-Brexit public procurement: challenges and regulatory solutions

Challenges and Regulatory

Solutions: Public

ProcurementDr Albert Sanchez-Graells

Reader in Economic Law

EURO-CEFG, MaCCI and the University of Mannheim Joint Conference “Trade Relations after Brexit: Impetus for the Negotiation Process”. Mannheim, 25-26 January 2018

Page 2: Post-Brexit public procurement: challenges and regulatory solutions

An unavoidable caveat

Without knowing the nature of the overall model for

future EU-UK relationships, this is largely guesswork

Discussion of regulatory issues in the transition

period particularly speculative, so focus on ‘post-

disconnection’ (if there is to be one)

Page 3: Post-Brexit public procurement: challenges and regulatory solutions

Agenda

‘External dimension’: WTO GPA-related issues and need for coordinated strategy

‘Internal dimension’: functional approach

• Substantive convergence

• Standards and transparency

• Administrative cooperation

• Cross-border cooperation

• Remedies

• Instrumentalisation of procurement?

Page 4: Post-Brexit public procurement: challenges and regulatory solutions

‘External dimension’

WTO GPA covered procurement

• Not only UK position affected (requires fresh accession)

• EU position affected due to reduced value of covered procurement

• To avoid disruption, EU-UK should establish a joint strategy in

their negotiations with other WTO GPA members—particularly as

to ways in which to renegotiate coverage (splitting may not do)

Page 5: Post-Brexit public procurement: challenges and regulatory solutions

‘Internal dimension’

This will not only be affected by negotiations between the EU and

UK, but also by the outcome of the WTO GPA adjustment

A big unknown concerns whether UK plans significant reform of

their domestic procurement rules

• WTO GPA baseline not significantly different from EU regulatory

baseline (except in qualification, some aspects of negotiations and

some aspects of remedies), so limited scope for reform

Page 6: Post-Brexit public procurement: challenges and regulatory solutions

Substantive convergence

Difficulties derived from the precarious position of future CJEU

case law may be particularly relevant in the area of procurement

• EU (Withdrawal) Bill, clause 6(2) problematic

• Possibility of creating obligation to follow new case law?

Additional difficulties derived from the Commission’s increasing

use of soft law and guidance (eg Commission’s Oct 2017 package)

Page 7: Post-Brexit public procurement: challenges and regulatory solutions

Standards and

transparencyHow to ensure transparency of opportunities

• Access / use of OJEU

(interconnection with Contracts Finder?)

• Use of CPV

Use of common technical standards (largely

as discussed by Prof F Kainer yesterday)

Page 8: Post-Brexit public procurement: challenges and regulatory solutions

Administrative

cooperationESPD

e-Certis

Development of standards for e-procurement

General issues of mutual recognition

• Including of specific certificates (eg environmental

management -> back to standards)

Enforcement and governance

Page 9: Post-Brexit public procurement: challenges and regulatory solutions

Cross-border

cooperationJoint and collaborative procurement

Impact on possibilities for CPBs to engage in cross-border sales

• Incidentally, future issues derived from subjection of CPBs to

competition law

Large infrastructure projects and other initiatives

Page 10: Post-Brexit public procurement: challenges and regulatory solutions

Remedies

Current uncertainty on procurement remedies

• Faulty on EU-end due to non-revision of

remedies directive post-2014 reform

• Current clash between UKSC and EFTA Ct

• On-going discussion of model in UK

Preliminary references to CJEU

Page 11: Post-Brexit public procurement: challenges and regulatory solutions

Instrumentalisation of procurement?

[Under the radar?]

Industrial policy by another name

• Issues around social value / localisation

• State aid implications / interaction

UK’s peculiar position concerning ring-fencing of contracts

Page 12: Post-Brexit public procurement: challenges and regulatory solutions

Further details

P Telles & A Sanchez-Graells,

‘Examining Brexit Through the GPA's

Lens: What Next for UK Public

Procurement Reform?’ (2017) 47(1)

Public Contract Law Journal 1-33.

https://ssrn.com/abstract=3076543

Page 13: Post-Brexit public procurement: challenges and regulatory solutions

Thank you for your

attention & stay in

[email protected]

@asanchezgraells

www.howtocrackanut.com