How New York State Increased How New York State Increased International Procurement International Procurement Market Access for its Market Access for its BusinessesBusinesses

Kay Alison Wilkie

Empire State Development

a presentation for the

NYSNER Research in Progress Conference 12/5/01

The International Trade Dimension The International Trade Dimension of Procurement Market Access:of Procurement Market Access:

Progression of trade liberalization Progression of trade liberalization Sub-central under greater scrutiny Sub-central under greater scrutiny Evolving area of international law: e.g. Evolving area of international law: e.g.

Burma; MacBride lawsBurma; MacBride laws

Why New York State Became Why New York State Became Involved:Involved:

Opportunities coincide with objectives: Opportunities coincide with objectives: Value of NYS government procurement Value of NYS government procurement to US negotiationsto US negotiations

NYS to gain export access -- esp. in NYS to gain export access -- esp. in Canadian provincesCanadian provinces

International context of NYS International context of NYS Procurement marketsProcurement markets

Evolution of Negotiations and Evolution of Negotiations and ImplementationImplementation

1993:1993: At USTR request, NYS includes At USTR request, NYS includes procurement in the WTO Government procurement in the WTO Government Procurement Agreement. (NYS team Procurement Agreement. (NYS team effort: ESD and OGS)effort: ESD and OGS)

O Canada!: concerns remain about lack O Canada!: concerns remain about lack of provincial coverageof provincial coverage

Timeline continued...Timeline continued...

1995-19981995-1998: NYS-Quebec meetings to : NYS-Quebec meetings to address Québec procurement barriersaddress Québec procurement barriers

NYS mentions risk of discriminatory NYS mentions risk of discriminatory jurisdiction statutejurisdiction statute

Negotiations reached impasse in 1998Negotiations reached impasse in 1998

Timeline continued...Timeline continued...

• 1999: 1999: Ontario printer won the bid for the “I Ontario printer won the bid for the “I Love NY” travel guide, highlighting trade Love NY” travel guide, highlighting trade inequities between NYS and key Canadian inequities between NYS and key Canadian provinces, Ontario and Quebec provinces, Ontario and Quebec • e.g. NYS’ open process versus Ontario’s 10% e.g. NYS’ open process versus Ontario’s 10%

Canadian content preferencesCanadian content preferences

• Momentum for procurement policy change Momentum for procurement policy change leads to legislationleads to legislation

Recent Milestones:Recent Milestones:

August 2000August 2000: Legislation enacted as : Legislation enacted as Governor Pataki signed amendment to Governor Pataki signed amendment to Finance and Public Authorities law, Finance and Public Authorities law, expanding definition of “discriminatory expanding definition of “discriminatory jurisdictions” to include any other jurisdictions” to include any other country, nation, provincecountry, nation, province, state or , state or political subdivisionpolitical subdivision

Importance of Statute:Importance of Statute:

Impact: Companies in discriminatory Impact: Companies in discriminatory jurisdictions generally precluded from jurisdictions generally precluded from NYS contract bidsNYS contract bids

Intent: NYS bolsters fair trade, protects Intent: NYS bolsters fair trade, protects our business interests, and provides an our business interests, and provides an incentive for reform and removal of incentive for reform and removal of procurement preference barriers procurement preference barriers

Law in Action:Law in Action:

October 2000October 2000: after review of facts, : after review of facts, NYS-ESD listed Ontario and Québec as NYS-ESD listed Ontario and Québec as discriminatory jurisdictions. discriminatory jurisdictions.

Canadian federal and provincial officials Canadian federal and provincial officials notified notified

NYS consulted with USTR and NYS consulted with USTR and Canadians regarding impact of law and Canadians regarding impact of law and listing process listing process

Impact of Implementation:Impact of Implementation:

April 2001April 2001: Premier Harris met with : Premier Harris met with Governor Pataki – topics of procurement Governor Pataki – topics of procurement and economic summit plansand economic summit plans

Ontario’s interest builds in removing Ontario’s interest builds in removing preference and regaining access to NYS preference and regaining access to NYS procurement markets procurement markets

May 2001May 2001: At Quebec’s request, : At Quebec’s request, procurement discussions resumedprocurement discussions resumed

Very Recent Milestones:Very Recent Milestones:

June 2001June 2001: Ontario removes its 10% : Ontario removes its 10% preference on 6/14; is delisted by ESD preference on 6/14; is delisted by ESD 6/19; 6/19;

Successful New York-Ontario Economic Successful New York-Ontario Economic Summit held by Governor and Premier Summit held by Governor and Premier 6/25-26 6/25-26

Negotiations with Quebec intensify from Negotiations with Quebec intensify from June through SeptemberJune through September

Even More Recent Milestones:Even More Recent Milestones:

November 2001November 2001: Quebec implemented : Quebec implemented policies giving NYS firms fair access policies giving NYS firms fair access 11/12; delisted by ESD 11/16.11/12; delisted by ESD 11/16.

Governor Pataki and Premier Landry Governor Pataki and Premier Landry met 11/29 – discussed procurement met 11/29 – discussed procurement market access success, border security market access success, border security issues and plans for an economic issues and plans for an economic summit in early 2002summit in early 2002

The Road Ahead…The Road Ahead…

NYS continues to pursue innovative NYS continues to pursue innovative strategies for expanding international strategies for expanding international market access:market access:– Consultations with USTR on WTO and Consultations with USTR on WTO and

FTAA negotiationsFTAA negotiations– Pivotal state role ahead as trade Pivotal state role ahead as trade

liberalization deepens and security liberalization deepens and security concerns intensifyconcerns intensify

with our Cross Border with our Cross Border Partners:Partners:

Closer collaboration within the “super Closer collaboration within the “super region” of New York – Ontario – region” of New York – Ontario – Quebec:Quebec:

- border security and the “Zone of border security and the “Zone of Confidence”Confidence”

- economic cooperationeconomic cooperation- and continued information-sharing on and continued information-sharing on

procurement processes.procurement processes.