Trump considers withdrawing from #WTO’s $1.7 trillion purchasing pact

The U.S. is mulling a plan to withdraw from a global pact worth $1.7 trillion in government contracts, a person familiar with the matter said, in a move that may anger close allies during a delicate moment for trade.

Officials in President Donald Trump’s administration are circulating a draft executive order that would trigger a U.S. exit from the World Trade Organization’s Government Procurement Agreement, or GPA, if the pact isn’t reformed in line with American views, according to the person, who asked not to be identified because discussions are ongoing.

A spokesman at the office of the U.S. Trade Representative didn’t immediately respond to emails seeking comment.

The purpose of the GPA is to open government procurement markets to foreign competition, and to help make public purchasing more transparent. An American withdrawal would create chaos for foreign companies that bid for access to the U.S.’s $837 billion public procurement market and complicate nascent trade talks Washington is planning with the U.K. and European Union.