RESTRICTED  
  
GPA/TN1994/3/Rev.5/Add.1  
28 May 2004 
(24-2697) Page: 1/4 
Committee on Government Procurement  
Negotiations under Article XXIV:7 of the GPA 1994  
Comité des marchés publics  
Négociations au titre de l'article XXIV:7 de l'AMP 1994  
Comité de Contratación Pública  
Negociaciones en el marco del párrafo 7 del artículo XXIV  
del ACP 1994  
  
REVISION OF THE AGREEMENT ON GOVERNMENT PROCUREMENT  
AS AT 23  APRIL  2004*,** 
ARTICLE XIV (DEVELOPING COUNTRIES)  
Addendum  
As a supplement to Job  No. 3204, dated 1 1 May 2004, t his note reflect s the state of the negotiations 
on the revision of Article XIV (Developing Countries) of the Agreement on Government Procurement 
as at the end of the meeting of the Informal Group of the Committee on Government Procurement 
of 21-23 April 2004. 
 
Furthermore,  the following two modifications  were suggested to Job No.  3204, in order to reflect all 
changes suggested during the last meeting : 
 
- the word "and" should be moved from the end of subparagraph II:6(b) into the bracket 
by Canada, the United States and Hong Kong, China  (i.e., the following change s hould 
be made  at the end of that subparagraph : "(b) ... optional purchases[, and any 
estimat ed residual value in the case of leases, rentals and hire purchases ; and]CDA,US,HKC; 
and]CDA,US,HKC,EC); and 
 
- the following text s hould  be inserted as Article XX:9 bis, bracketed as a proposal  by the 
European Communities : "[9bis Not later than the end of the third year from the date of 
entry into force of this Agreement, the Committee shall undertake further work to 
establish a common nomenclature for describing the subject of procurement notices 
and common standardized notices in view of improving the eff ectiveness of cross border 
procurement and simplifying the description and content of such notices. ]EC" 
 
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* In English only . 
** Pursuant to the relevant Decision of the Committee on Government Procurement ( GPA/C D/5 
(16/11/2023)), this document (informal document symbol: negs1 44a1) was derestricted on 8 November 2023.  GPA/TN1994/3/Rev.5/Add.1  
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  Article  XIV Developing Countries  
[NB: The current text is based on a joint proposal made by the EC, US and Switzerland . All 
parties are reviewing this Article.]  
 
1. In negotiations on accession to, and in the implementation and administration of, the 
Agreement, the Parties shall take special consideration of developing and least -developed countries' 
(thereafter developing countries) development, financial and trade needs and circumstances, 
recognizing that these may differ significantly from country to country . In this context, the Parties 
shall give due consideration to requests by a developing country for transitional measures with 
regard to its market access commi tments under paragraph  3, as well as its implementation of the 
procedural obligations of the Agreement under paragraph  5. The Parties shall accord special and 
differential treatment  [to developing and least developed countries]SWI,ISR,KOR, as provided for by this 
Article[.]SWI,ISR,KOR [: 
 
(a) to any least -developed country that accedes to this Agreement ; and 
 
(b) to any other developing country that accedes to this Agreement, [provided that such 
country demonstrates to the Parties ' satisfaction a need for such treatment]SWI,US [to 
the extent that [the Parties determine that]US [this]EC,NOR special and differential 
treatment  meets development needs of the developing country in 
question]EC,US ,NOR]EC,US,SWI ,JPN,CDA,NOR. 
 
[bearing in mi nd the importance attached to the concept of development, in particular as it refers 
to small and medium enterprises from developing countries, the Parties shall give due consideration 
to a request by a developing country to invoke the use of "offsets" as defined in Article I and under 
the conditions stated below.]ISR 
 
2. [Subject to the coverage that a developed country Party has negotiated with an acceding 
developing country, the]SWI,US [Each]EC,NOR developed country Party shall provide immediately to the  
goods, services and suppliers of the acceding developing country the most favourable treatment 
offered by that developed country Party under Appendix  I upon accession of the developing country.  
[However, with respect to a developing country other than a l east-developed country, where the 
Parties have agreed to  [the partial or total exclusion of a specific sector or entit ies]EC,US [transitional 
measures,]SWI provided for in paragraph  3 for such country, in order to maintain appropriate 
reciprocal trade opportunities under the Agreement, any Party may agree with the acceding country 
to limit the scope of coverage that the Party provides to that country during the agreed transition 
period . Any such limitations shall be clearly identified in the Committee's accession decision and in 
each Party's Annexes or Notes to Appendix  I.]SWI,US 
 
3. A developing country Party may, with the agreement of the Parties, [adopt or ]EC retain [, based 
upon development needs]SWI,EC ,KOR transitional measures upon its accession to the Agreement, 
during an agreed -upon transition period with a phase -out schedule that may include:  
 
(a) price preference programmes, provided that the price pr eference programme:  
 
(i) provides a preference only for the part of the tender incorporating goods or 
services originating in the Party applying the preference or goods or services 
originating in other developing countries that have preferential agreements  with 
the Party applying the preference ; and 
 
(ii) is transparent, and its application is clearly stated in notices of intended 
procurement and notices inviting suppliers to apply for participation in 
procurement covered by the Agreement ; [and]EC 
 
(b) offsets, provided that:  
 
(i) any requirement for, or consideration of, the imposition of offsets is clearly stated 
in notices of intended procurement and notices inviting suppliers to apply for 
participation in procurement covered by the Agreement ; and 
 
(ii) the offsets are applied in a non -discriminatory manner ; [or]SWI 
 GPA/TN1994/3/Rev.5/Add.1  
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  [(c) higher thresholds ; and]US,CDA 
 
(d) [limitations on its coverage such as ]SWI [in exceptional cases [and when duly justified 
by the acceding developing country]EC,]EC,US the partial or total exclusion of a specific 
sector or entities.  
 
4. The agreed -upon transition period shall not exceed [10]EC years for developing countries and 
[20]EC years for least -developed countries.  [NB: The US and Israel are questioning the need 
for this paragrap h.] 
 
5. In order for a developing country Party to bring its measures into conformity with [Articles [..] 
of]CDA the Agreement, it may, with the agreement of the Parties, apply a specified implementation 
period, which shall be:  
 
(a) for a least -developed c ountry Party, [three] years from the entry into force of the 
Agreement for that Party ; and 
 
(b) for any other developing country Party, the period necessary to adopt measures relating 
to [specific provisions of]SWI,US the Agreement,  
 
provided that the Part y complies with Article  III [[national treatment and ]EC non-discrimination ]. 
[NB: Canada suggests to delete this last part of the paragraph.]  
 
6. At the end of the transition period, provided for in paragraph  3, and the implementation 
period, provided for in paragraph  5, the developing country Party shall fully comply with the 
Agreement.  
 
7. Any developing country Party that has been permitted to retain a transitional measure under 
paragraph  3, or apply an implementation period under paragraph  5, shall list in an Annex to its 
Appendix  I: 
 
(a) the price preference programme or offset, including the schedule for phase -out of the 
measure;  
 
[(b) the schedule for the expansion of coverage;]SWI,U S and 
 
(c) the implementation period [, and where applicable, specific procedural obligations and 
any interim measures that it will take with regard to those obligations]SWI,US. 
 
8. After the Agreement has entered into force for a developing country Party, the Committee, on 
request of the developing count ry Party [, and with a three -fourths majority vote, ]EC,US,SWI may: 
 
(a) extend the transitional period for measures permitted under paragraphs  3 or 5 where a 
developing country Party demonstrates a need for an extension of the transitional 
measure ; or 
 
(b) approve the application of a new transitional measure in special circumstances 
unforeseen during the accession process, provided that the measure is consistent with 
paragraph  3. [NB: Hong Kong, China  suggests to review this subparagraph in 
the light of the final version of paragraph 3.]  
 
9. A Party benefiting from a transitional measure provided for under paragraphs  3 or 5 shall take 
such steps as may be necessary to ensure the fulfilment of all of it s obligations at the end of the 
transitional period . The Party shall notify the Committee of such steps, including any special technical 
cooperation needs.  
 
10. During a developing country 's accession process or after the entry into force of this Agreement  
for that country, the Parties shall give due consideration to any request by such country for technical 
cooperation in relation to that country 's implementation of this Agreement.  
 
[11. Each [developed]JPN Party shall establish a  contact point to respond to reasonable requests 
from a developing country Party for information related to the Party's efforts to fully benefit from its GPA/TN1994/3/Rev.5/Add.1  
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  participation in the Agreement . Such information may include information relating to procurements 
plans, procedures or requireme nts with respect to procurement covered by the 
Agreement. ]US,SWI ,JPN,KOR 
 
12. The GPA Committee shall review the operation and effectiveness of this Article every 
five years.  
 
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