Project R-16945

Balancing Protectionism and Free Trade: the limits of restricting third-country access to the EU innovation procurement market (Research)

Innovation plays an increasingly important role in addressing major challenges facing the European Union, including climate change, digitalisation and an ageing population. Public procurement is increasingly used as a strategic tool to stimulate innovation by creating demand for new solutions. However, the openness of EU procurement markets to thirdcountry suppliers raises concerns regarding fair competition and reciprocity. Foreign providers may not be subject to the same State aid, environmental and social standards as EU companies, while European suppliers often face limited access to foreign procurement markets. This research examines the EU's recent restrictive measures against international trade law, particularly the WTO Agreement on Government Procurement (GPA). It also assesses whether these measures effectively promote innovation, competitiveness and resilience within the EU, and explores how a fair balance can be struck between protecting the internal market and maintaining openness to international trade.

01 September 2026 - 15 July 2029