Mandate approved to work on the proposal for the creation of the International Contracting Instrument (IPI)

Mandate approved to work on the proposal for the creation of the International Contracting Instrument (IPI).

The International Contracting Instrument (IPI) is an European regulation that will help address the lack of a level playing field in global procurement markets. From Mafex we have closely followed its negotiation in the Council, and we have been continuously in contact with the General Directorate of Trade Policy of the Secretary of State for Trade (in charge of the dossier) as well as with the Permanent Representation of Spain before the EU, UNIFE, CEOE, etc. to protect our sector interests.

Finally – after nine years of negotiations –   the Council approved last week a mandate for the European Parliament to work on the proposal already agreed by the Member States and to create such an International Contracting Instrument (IPI).

The European Parliament has yet to define its position on the case, and start interinstitutional negotiations (i.e., trialogues) after the summer.

It should be noted some of the key amendments introduced by the Portuguese Presidency to the legislative texts agreed by the Council which include:

  • Shorter and more flexible deadlines for the investigation and consultation phases
  • The procedure to define origin has been simplified with a focus on tenderers
  • Two types of IPI measures can be implemented: adjustment measures and, in more extreme and therefore exceptional cases, exclusion
  • Adjustment measures may include quality criteria in addition to pricing and may be applied within a certain percentage range
  • IPI measures will only apply to new procurement procedures initiated after the entry into force of the regulation, which will be subject to further review