1945

Government procurement

The rules of GATT specifically exempt purchases made by governments and the agencies controlled by them from the national treatment rule. Government agencies importing their requirements are also not obliged to extend MFN treatment to external suppliers of such products but only to give them fair and equitable treatment. These provisions permit purchasing agencies to buy their requirements, if they so wish, from domestic producers, even though products of comparable quality are offered for sale by foreign suppliers at lower prices.

Related Subject(s): International Trade and Finance
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