By reference to the paradigms of -Selective Adaptation- and -Institutional Capacity-, this article attempts to examine the implementation of the Agreement on Government Procurement (GPA) in Japan and to explore the elements that a the e of the GPA in Japan. !e author considers the linkage between the World Trade Organization (WTO), the GPA, and local governance reform and argues that it will be in Japan-s interests to further liberalise its government procurement market by lowering the threshold, especially in terms of the sector of construction services. More open competition and international pressure will serve as a driving force to improve the transparency and fairness in Japan-s government procurement framework and better achieve the goal of 'value for money'.