Operational Safety Clause (OSC) and public procurement
Japan and the EU are both signatories to the WTO’s Plurilateral Agreement on Government Procurement (GPA). Despite this, Japan exempts railway procurement from the provisions of the GPA. The EBC understands that the EU-Japan EPA will open up railway related procurement to EU manufacturers no more than one year after the agreement enters into force. The EBC welcomes this and is also pleased that more cities will open up their procurement market to EU suppliers.
- Japan should swiftly remove the OSC as agreed in the EU-Japan EPA.
- The Government of Japan should ensure that when planning new railway projects (such as LRT systems), local governments abide by or use the GPA as guidance to set up a proper public procurement scheme, and do not apply the OSC.