Taiwan acceded to the World Trade Organization's (WTO) Government Procurement Agreement (GPA) in July 2009. According to Taiwan's GPA Agreement, U.S. firms will now compete on equal terms with domestic firms when government tenders for covered entities under the Agreement meet or exceed the following threshold values:
- Federal government contracts valued at over $194,000 for goods and services and approximately $7.45 million for construction services.
- State-level government contracts valued at over $296,000 for goods and services and approximately $22.2 million for construction services during the first year after the Agreement goes into effect. The construction services threshold will drop to $7.45 million after the third year the Agreement is in effect and will remain at this level.
- Government-controlled entities such as utilities and universities/colleges with contracts for goods and services valued at $593,000 and construction services valued at $22.2 million for the first year. The construction services threshold will drop to $7.45 million after the third year the Agreement is in effect and will remain at this level.
Following are statistics on Taiwan’s government procurement cases in 2009, which was submitted in a report to WTO:
- Taiwan’s GPA-covered entities put out to bid 1,016 contracts with a total worth of $5.3 Billion
- U.S. firms won 92 contracts worth $99 million, 46 of the contracts were with federal government entities, 45 with government-controlled entities, and one was state-level government contract.
- U.S. firms’ performance was comparable to EU firms who won 81 contracts worth $136.9 million, and exceeded Japanese firms who won 27 contracts worth $32.4 million
Federal Government Entities
- The 46 contracts U.S. firms won at the Federal government level were worth $25.8 million.
- Federal government ministries that purchased from U.S. firms include the Office of the President (19 contracts), Ministry of Transport and Communications (7), National Science Council (6), Atomic Energy Council (5), and Department of Health (3).
- The types of goods and services that Central Government entities were purchasing from U.S. firms included: aircraft components, refrigeration and air conditioning equipment, electrical components, lab equipment, chemicals, research and development services.
- The 45 contracts U.S. firms won at Government-controlled entities, such as utilities and universities/colleges, were worth $72.7 million.
- U.S. firms won 24 with Taiwan’s government-controlled hospitals (Nat’l Taiwan University Hospital, National Cheng Kung University Hospital, Veterans General Hospital-Taipei, Veterans General Hospital-Kaohsiung); 8 contracts with the Taiwan Power Company; 7 contracts with Chinese Petroleum Corporation, Taiwan; and 6 contracts with four separate universities covered under the GPA.
In response to foreign companies’ concerns about maintaining fairness in contractual obligations, Taiwan's Public Construction Commission has prepared a model contract template as a reference for government procuring entities. The conditions in this model contract are the same to all bidders - domestic or foreign.