WORLD TRADE
ORGANIZATIONGPA/73
6 November 2002
(02-6124)
REPORT (2002) OF THE COMMITTEE ON GOVERNMENT PROCUREMENT
I. GENERAL
1. This Report is submitted pursuant to Article XXIV:7(a) of the Agreement on Government
Procurement, which requires the Committee to revi ew annually the implementation and operation of
the Agreement and to inform the General Council of developments during the periods covered by
such reviews.
2. The Agreement on Government Procurement entered into force on 1 January 1996.  The
period covered in this Report is November 2001-October 2002, but the Report also reflects, wherenecessary, the work of the Committee up to November 2001 (GPA/8 and Add.1, GPA/19, GPA/25
GPA/30, GPA/44 and GPA/58).  The Committee on Government Procurement held three meetings
in 2002 on 21 February, 31 May and 8 October 2002 (GPA/M/17, 18 and 19
1).
3. The following WTO Members are Parties to the Agreement:  Canada;  the European
Community and its fifteen member States;  Hong Kong, China;  Iceland;  Israel;  Japan;  Korea;Liechtenstein;  the Kingdom of the Netherlands with respect to Aruba;  Norway;  Singapore;
Switzerland;  and the United States.  Twenty-seven WTO Members have observer status:  Albania,
Argentina, Australia, Bulgaria, Cameroon, Chile, China, Colombia, Croatia, the Czech Republic,
Estonia, Georgia, Hungary, Jordan, the Kyrgyz Republic, Latvia, Lithuania, Malta, Moldova,
Mongolia, Oman, Panama, Poland, the Slovak Republic, Slovenia, Chinese Taipei and Turkey.  Three
intergovernmental organizations, IMF, OECD, and UNCTAD also have observer status;  the ITC also
attends Committee meetings.
II. IMPLEMENTATION OF THE AGREEMENT
Modifications of Appendices to the Agreement
4. Article XXIV:6 of the Agreement requires Parties to notify rectifications of a purely formal
nature or other modifications relating to Appendices I through IV, which set out the mutually agreedcoverage provided under the Agreement.  Consequential rectifications or modifications become
effective once they are agreed to pursuant to the procedures under this Article.  Since the 2001 Report
of the Committee, modifications relating to their respective Appendices were made by Canada
(GPA/W/203);  Hong Kong, Ch ina (GPA/W/198);  Japan (GPA /W/186 and GPA/W/196);  Korea
(GPA/W/207);  Singapore (GPA /W/200);  and the United States (GPA/W/153, GPA/W/154 and
GPA/W/208).  The modifications proposed by  Japan in GPA/W/186 and GPA/W/196 became
effective and entered into force on 14 April 2002 (WT/Let/419) and 27 June 2002
(WT/Let/425/Rev.1) respectively;  by Hong Kong, China in GPA/W/198 on 6 July 2002
(WT/Let/425/Rev.1);  by Singapore in GPA/W/200 on 11 August 2002 (WT/Let/429);  and by the
                                                     
1 To be circulated shortly.GPA/73
Page 2
United States in GPA/W/154 and GPA/W/208 on 25 October 2001 (W/Let/407) and on
16 October 2002 (WT/Let/431), respectively.
5. With regard to the proposed modifications to Annex 1 of Appendix I by Canada in
GPA/W/203, Hong Kong, China made a communicati on seeking further clarification on the proposed
changes (GPA/W/218).
6. With regard to the proposed modifications to Annexes 1 and 3 of Appendix I by the United
States in GPA/W/153, dated 25 September 2001, the delegations of Canada, the European
Community and Japan made communications seeking further information and objecting to the
proposed modifications going into effect (cir culated in GPA/W/167, GPA/W/163 and GPA/W/162,
respectively).  The responses by the United States to the questions raised by the three Parties have
been circulated in GPA/W/183-185, respectively.  Further questions were put to the United States by
Japan and the European Community on 4 October 2002 (GPA/W/195 and GPA/W/216).
7. With regard to the proposed modifications to Annex 3 of Appendix I by Korea in
GPA/W/207, dated 11 September 2002, the United States, the European Community and Canada
made communications objecting to the entry into effect of the proposed modifications and requesting
additional time to study and to seek clarificat ion regarding the proposed changes (GPAW/210, 214
and 217, respectively).
8. With respect to the proposed modification by Japan to Annex 3 of Appendix I notified in
GPA/W/91 relating to NTT, consultations were held between Japan and the delegations of the United
States, the European Community and Canada on the basis of the questions put to Japan by these
delegations (GPA/W/97, GPA/W/99, GPA/W/100, GPA/W/100/Add.1 and
GPA/W/104/Add.2/Rev .1) and Japan's answers thereto (GPA/W/104, GPA/W/104/Add.1,
GPA/W/107, GPA/W/108).  Japan's responses to the additional questions from Canada were
circulated in GPAW/199.  The United States with drew its objection to the modifications proposed by
Japan on 19 October 2001 (GPA/W/166) and Canada on 1 October 2002 (GPAW/211).
9. With respect to the proposed modification by the delegation of Japan to its Appendix I in
GPA/W/144, 145 and 146 relating to three Japanese Railway companies, namely East Japan RailwayCompany, Central Japan Railway Company and West Japan Railway Company, dated
29 August 2001, communications have been received from the delegations of the United States,
Canada and the European Community (GPA/W/151, 15 5 and 156) seeking clarification and objecting
to the proposed withdrawal of the three Japanese Railway companies from the coverage of the
Agreement.  Communications received from Japan providing clarifications regarding the notifications
in GPA/W/144 to 146 have been circulated in GPA/W/152 and Corr.1 and GPA/W/179.  Additional
questions received from the European Community and the United States have been circulated inGPA/W/164 and 165, respectively.  Japan's responses to the latter questions have been circulated in
GPA/W/180 and GPA/W/181, respectively.  Since the May 2002 meeting, the delegations of the
United States and the European Community have submitted further questions, circulated respectively
in GPA/W/204 and GPA/W/205.  An additional question received from Canada relating to Central
Japan Railway Company and West Japan Railway Company has been circulated in GPA/W/212.  In acommunication, dated 1 October 2002, Canada wit hdrew its objection to the modification to
Appendix I of the Agreement related to the East Japan Railway Company (GPA/W/211).GPA/73
Page 3
Loose-leaf system for Appendices
10. Pursuant to the Decision of the Committee of 4 June 1996, the Appendices to the Agreement
have been certified in the form of a loose-leaf system (WT/Let/330).  In accordance with the
procedures for future changes to the loose-leaf system agreed by the Committee on 24 February 1997,
subsequent modifications notified by Parties are certified and issued as replacement pages to beinserted in the loose-leaf system once they beco me effective in accordance with the procedures of
Article XXIV:6.  In addition to being made available in hard copy form, the loose-leaf system is
circulated to Parties and other WTO Members in electronic form through the WTO Documents
On-line database.  An up-to-date copy of the loose-leaf system is also available to the general public
through the government procurement site on the WTO Home Page on the Internet
(http://www.wto.org/english/tratop_e/gproc_e/loose_e.htm).
Thresholds
11. In accordance with the Decision on Modalities for Notifying Threshold Figures in National
Currencies (GPA/1, Annex 3), Hong Kong, Chin a (GPA/W/168);  Sing apore (GPA/W/168/Add.1);
Canada (GPA/W/168/Add.2);  Switzerland (G PA/W/168/Add.3);  Ja pan (GPA/W/168/Add.4);
European Community (GPA/W/168/Add.5);  and the Un ited States (GPA/W/168 /Add.6) notified their
threshold figures for 2002-2003.
Notification and review of national implementing legislation
12. Pursuant to the Decision on the Procedures for the Notification of National Implementing
Legislation (GPA/1/Add.1), Canada;  the European Co mmunity;  Hong Kong, China;  Iceland;  Israel;
Japan;  Liechtenstein;  Korea;  Norway;  Singapore;  Switzerland;  and the United States have notifiednational implementing legislation including their responses to the Checklist of Issues (GPA/13,
GPA/20, GPA/27, GPA/69, GPA/34,  GPA/37, GPA/46, GPA/12/R ev.1, GPA/10, GPA/39, GPA/15
and Add.1 and GPA/23, respectively) .  The Committee has completed the reviews of the national
implementing legislation of Canada;  the European Community;  Hong Kong, China;  Israel;  Japan;
Korea;  Liechtenstein;  Norway;  Singapore;  Sw itzerland;  and the United States (GPA/51, GPA/32,
GPA/54, GPA/59, GPA/61, GPA/47, GPA/60, GPA/53, GPA/52, GPA/33 and GPA/50, respectively).
In accordance with the arrangements and the schedu le for the review agreed by the Committee, these
reviews were conducted on the basis of responses provided by the Parties being reviewed to written
questions put by other Parties in advance of the review meeting at which their respective national
legislation was taken up.  At its first meeting in 2003, the Committee will take up the review of the
implementing legislation of Iceland (GPA/69).
13. During the period under review, Japan has communicated information on modifications to
Japan's regulations concerning government procurement (GPA/67).
Statistical reporting
14. Article XIX:5 requires Parties to collect and provide, on an annual basis, statistics on their
procurements covered by the Agreement.  During the period under review, the United States has
reported statistics for 1998 (GPA/29/Add.4);  Norway;  Japan;  and the United States for 1999(respectively in GPA/40/Add.2, GPA/W/40/Add.3 and GPA/40/Add.4);  Hong Kong, China;
Norway;  and Japan for 2000 (respectively in GP A/62;  GPA/62/Add.1;  and GPA/62/Add.2);  and
Hong Kong, China for 2001 (GPA/70).GPA/73
Page 4
Consultations and dispute settlement
15. There were no matters raised under Article XXII of the Agreement during the period under
review.
Procedural matters
16. In accordance with its Decision on Procedures for the Circulation and Derestriction of
Documents (GPA/1/Add.2), Parties have agreed to the derestriction of the documents listed in
GPA/64 of 14 January 2002 and considered the de restriction of documents in GPA/W/221 as of
20 December 2002.
17. Furthermore, the Committee agreed to the revision of its Decision on Circulation and
Derestriction of Documents (GPA/1/Add.2) in or der to reflect the WTO procedures adopted on
14 May 2002 (WT/L/452).  The revised decision was adopted on 8 October 2002 (GPA/72).
III. ACCESSIONS
18. Latvia applied for accession on 16 June 1999.  During the period under review, bilateral
consultations have been held with interested Parties regarding outstanding issues.  The Committee
was informed by the United States, Switzerland and Canada that they had concluded negotiations with
Latvia on the terms of its accession.  Latvia informed the Committee that bilateral consultations withthe European Community were continuing.  Following the plurilateral consultations conducted with
Latvia on 8 October 2002, the Committee was informed that Latvia would be making certain
adjustments to its legislation and that its consultations with a Party had not yet been completed.
19. Estonia applied for accession on 6 September 2000.  During the period under review, Estonia
submitted a revised offer on 12 February 2002 (GPA/SPEC/9/Rev.1).  Estonia's responses to thefollow-up questions put by the United States have been circulated in GPA/SPEC/24/Rev.1 and
GPA/190/Rev.1.  The United States has put additiona l questions to Estonia in GPA/W/202 regarding
its replies in GPA/W/190/Rev.1.  Estonia's answers thereto have been circulated in GPA/W/215.
Following the plurilateral consultations held with Estonia on 8 October 2002, the Committee was
informed that Estonia would need time to assess the impact of its forthcoming legislative changes onits GPA accession.  Moreover, there were a number of issues that were outstanding in their bilateral
consultations with a Party.
20. Chinese Taipei applied for accession to the Agreement in June 1994 (GPA/IC/5).  During the
period under review, Chinese Taipei submitted a second revised offer in GPA/SPEC/1/Rev.2, dated
1 February 2002.  At the February 2002 meeting a number of delegations informed the Committee
that they required more time to further review the offer tabled by Chinese Taipei and that some
delegations had remaining substantive concerns.  At the October meeting, the Committee wasinformed that consultations between Chinese Taipei and interested Parties had made significant
progress and were continuing on outstanding issues.  At the February meeting the observer from
China made a statement on the issue of nomenclatures in the offer of Chinese Taipei.  Consultations
are being carried out between Chinese Taipei and interested Parties.
21. Panama applied for accession to the Agreement and tabled an initial offer on 24 June 1997
(GPA/W/53).  No developments have been reported with regard to Panama's accession since the 2001
report.GPA/73
Page 5
22. The Kyrgyz Republic applied for accession to the Agreement and tabled an initial offer on
11 May 1999 (GPA/SPEC/4).  During the period unde r review, the Kyrgyz Republic submitted its
replies to the Checklist of Issues (GPA/W/197).  Further questions put by the United States have been
circulated in GPA/W/201.
23. Bulgaria applied for accession on 27 September 2000.  During the period under review,
informal plurilateral consultations were held with Bulgaria on 21 February 2002 on the basis of
Bulgaria's replies to the questions received from H ong Kong, China;  Switzerland;  Canada;  and the
United States (circulated in GPA/SPEC/22/R ev.1, GPA/SPEC/21/Rev.1, GPA/SPEC/23/Rev.1 and
GPA/W/171/Rev.1).  Follow-up que stions and comments from the United States and Bulgaria's
answers thereto have been circulated in GPA/W/189/Rev.1.  Follow-up questions received from
Canada have been circulated in GPA/W/219.
24. Slovenia applied for accession on 24 September 2001.  During the period under review,
Slovenia's answers to the questions received from  the European Community, the United States and
Switzerland have been circulated in GPA/SPEC/28/Rev.1, GP A/W/172/Rev.1 and
GPA/W/175/Rev.1, respectively.  Follow-up questions put by the United States to Slovenia have been
circulated in GPA/W/192.  Informal plurilateral cons ultations have been held between Slovenia and
interested Parties on 21 February 2002.
25. Albania applied for accession on 28 September 2001.  During the period under review, the
European Community;  Hong Kong, China;  the United States;  Switzerland;  and Canada have
submitted questions to Albania in GPA/SPEC/26, GPA/W/169, GPA/W/170,  GPA/W/174 and
GPA/W/178, respectively.  Albania's replies to the questions submitted by the United States have
been circulated in GPA/W/170/Rev.1.  Additional questions put by the United States to Albania havebeen circulated in GPA/W/209.
26. Moldova applied for accession on 8 January 2002 (GPA/63).  Moldova's replies to the
Checklist of Issues have been circulated in GPA/W/177.  The questions forwarded by Hong Kong,
China to Moldova have been circulated in GPA/W/182 and Moldova's replies thereto in GPA/W/193.
Further questions received from the United States and Hong Kong, China have been circulatedrespectively in GPA/W/191 and GPA/W/206.
27. Jordan applied for accession on 12 July 2000.  During the period under review, Jordan
reported on the work carried out at the domestic level regarding Jordan's accession.  At the May 2002
meeting, the Committee was informed that Jordan an ticipated submitting its initial offer before the
end of 2002.
28. Lithuania applied for accession on 8 March 2002 (GPA/66).
29. Georgia applied for accession on 8 October 2002 (GPA/71).  Georgia's replies to the
Checklist of Issues have been circulated in GPA/W/187.  Questions received from the United States
and Canada regarding these replies have been circulated in GPA/W/194 and GPA/W/220,
respectively.  Also, Georgia has transmitted its national legislation in a communication circulated in
GPA/68.
30. The Protocols of Accession to the WTO of four other countries, namely China
(WT/ACC/CHN/49), Croatia (WT/ACC/HRV/59 ), Mongolia (WT/ACC/MNG/9) and Oman
(WT/ACC/OMN/26) include commitments regardin g the Agreement on Government Procurement.
Over the period under review, Oman's replies to the Checklist of Issues have been circulated in
GPA/W/191.  Questions received from the United States, the European Community and Canada
regarding these replies have been circul ated in GPA/SPEC/25, GPA/SPEC/27 and GPA/W/176,GPA/73
Page 6
respectively.  As provided for in its Protocol of Accession to the WTO, China became an observer on
21 February 2002.
31. At an informal meeting held on 8 October, the Committee addressed the question of how
procedures on accessions could be improved.  In 2001, the Committee had agreed to proceed with the
accessions process in accordance with the Indicative Time-Frame for Accession Negotiations andArrangements for Reporting on the Progress of Work in GPA/W/109/Rev.2.  It had also adopted a
checklist of issues for the provision of informa tion by applicant governments (GPA/35).  At the
meeting held on 8 October, the Committee had an  exchange of views on how to improve the
accession procedures including modalities that could accelerate the process in the case of countries
with economies in transition and developing countries.  The Committee agreed to revert to a number
of suggestions made in this connection at its next meeting.
32. A Workshop on Accession to the Agreement on Government Procurement was held in
Geneva on 27-28 May 2002, in which more than 45 capital-based officials from acceding and other
observer counties participated.
IV. NEGOTIATIONS UNDER ARTICLE XXIV:7
33. Article XXIV:7(b) and (c) of the Agreement calls on the Parties, not later than the end of the
third year from the date of its entry into force,  to undertake further negotiations, with a view to
improving the Agreement and achieving the greatest possible extension of its coverage among all
Parties and eliminating any remaining discriminatory measures and practices.  As stated in its
1996 Report to the General Council (GPA/8), the Committee agreed to undertake an early review
which was initiated in February 1997 in informal consultations, with an examination of modalities.
This review has covered, in particular, the following  elements:  simplification and improvement of the
Agreement, including, where appropriate, adaptation to advances in the area of information
technology;  expansion of the coverage of the Agreement;  and elimination of discriminatory
measures and practices which distort open procurement.  During the reported period, Parties focused
primarily on simplification and improvement of the Agreement and also discussed the other two
elements.  An objective of the negotiations under Article XXIV:7 is the expansion of the membershipof the Agreement by making it more accessible to non-Parties.
34. During the period covered by this report, Parties pursued their consultations in informal
meetings held in February, May and October 2002 on the basis of proposals made by delegations,
including new proposals by the European Community, the United States, Japan, Korea, Norway and
Chinese Taipei.  These have been incorporated in successive versions of an informal note reflecting
the discussions on the draft texts of the modifications to the Articles of the Agreement proposed by
various Parties "Suggested Drafting Changes to the Text of the Agreement", the latest revision ofwhich was circulated on 23 September 2002.  At each of the informal meetings held during the period
under review, Parties also considered the other aspects of the Article XXIV:7 negotiations, namely the
elimination of discriminatory measures and the expansion of coverage.
35. At the meeting held 21 February 2002, the Committee considered a suggestion by the
Chairman regarding a timetable and work programme for negotiations under Article XXIV:7 of theAgreement reflecting the outcome of the informal consultations on this matter.  The Committee
agreed to the way of proceeding proposed by the Chairman which is set out in the attachment to this
report.
36. At the informal meeting held on 30 May 2002, the informal group had a detailed discussion of
the proposed drafting changes to the Articles of the Agreement relating to basket 1 items in the workprogramme, namely basic principles, scope and coverage and related definitions, exceptions,
developing countries, and accessions on the basis of the issues raised in the Annotated Agenda.  TheGPA/73
Page 7
group also took up briefly basket 2 items which include tendering procedures and technical
specifications and related definitions.
37. At the informal meeting held on 7 October 2002, the Group had a focused discussion on
basket 2 issues, relating to tendering procedures (Articles VII–XV and Article XVIII, paragraphs 1, 3,
and 4), technical specifications (Article VI) and related definitions, and on basket 3 issues(enforcement, institutions, and statistical reporting) on the basis of annotated agendas circulated
respectively on each of these baskets.  It also reverted to the discussion of developing countries, and
other issues in basket 1.  The next informal meeting on Article XXIV:7 negotiations will be held in
the week of 9 December 2002.  At that meeting, the Group will revert to basket 1 and 2 issues on the
basis of new draft texts.
38. As agreed by the group in the context of its discussion on developing countries and
accessions, the Chairman of the Committee wrote a letter on 21 August 2002 to the countries withobserver status in the Committee inviting them to make written contributions on how the relevant
provisions and decisions could be improved.  A further letter was sent by the Chairman to all WTO
Members, drawing their attention, as well as the attention of governments which are in the process of
acceding to the WTO, to the work carried out under Article XXIV:7 and inviting them to participate
as observers in the meetings of the Committee.
39. With regard to the work on the other two elements of the Article XXIV:7 negotiations,
namely the expansion of coverage and the elimination of discriminatory measures, the Work
Programme agreed to at the February 2002 meeting provided for a preparatory phase in 2002, aimed
at the identification and study of the areas to be negotiated, and agreeing on a detailed programme for
the negotiations by the end of 2002.  Delegations were invited to put forward possible approachesregarding these negotiations, including the request for tabling of offers, by 15 October 2002.  Japan
has put forward a paper on this matter and Canada expects to do so in the near future.
V. OTHER MATTERS
40. In response to a request from the Chairman of the Committee on Trade and Development
requesting that the Committee on Trade and Development be kept informed of any discussionspertaining to special and differential treatment for developing countries, the Chairman, on behalf of
the Committee, replied to the Chairman of CTD on 15 July 2002 reporting on the relevant discussions
in the Committee.GPA/73
Page 8
ATTACHMENT
Timetable and Work Programme for the Negotiations under
Article XXIV:7 of the Agreement
"Article XXIV:7(b) and (c) of the Agreement calls on the Parties, not later than the end of the third
year from the date of its entry into force, to under take further negotiations, with a view to improving
the Agreement and achieving the greatest possible extension of its coverage among all Parties on the
basis of mutual reciprocity, having regard to the provisions relating to developing countries and
eliminating any remaining discriminatory measures and practices which distort open procurement.
Modalities for the negotiations
• The further negotiations under Article XXIV:7 shall be undertaken and completed as a whole on
all elements (i.e. improvement of the text, expansion of coverage and elimination ofdiscriminatory measures and practices), but there may need to be differences in modalities and
timing among the elements.
• The negotiations shall be completed by 1 January 2005.
• The general view has been that the work on the revision of the coverage-related areas in the text
of the Agreement and the negotiations on the other two elements are interdependent.
• Building on the work in the informal consultations  that has been done since the review of the
Agreement was launched in 1997, the aim is to have provisional agreement on the revised text of
the Agreement by the 5
th Ministerial Conference, recognizing that it may not be possible to
conclude some of the elements of the text before the work on the other two aspects of the
negotiations are concluded.  In any event, the revised text will not take effect until all elements of
Article XXIV:7 negotiations have been completed.
• The negotiations on the expansion of the coverage and the elimination of discriminatory measures
and practices shall start with an exploratory phase until the end of 2002.  These negotiations are tobe concluded by 1 January 2005.
• The work programme could be modified in light of any new developments.
• A minimum of four informal meetings shall be foreseen for 2002 and for 2003 and, where
possible, two to three days shall be allocated for each session.
Arrangements for the revision of the text
• The discussion at each of the meetings in 2002 shall focus on selected categories of issues,
respectively those in basket 1 (basic principles, scope and coverage and related definitions,
exceptions, developing countries and accessions), basket 2 (tendering procedures, technicalspecifications and related definitions), and basket 3 (enforcement, institutions, statistical
reporting).  All proposals relating to these issues should be tabled no later than 1 September 2002.
• Key substantive issues and drafting options shall be identified with respect to each Article or
group of Articles by the end of the third meeting in 2002.  Starting at the fourth meeting in 2002,
the discussion shall focus on ways of bridging the remaining gaps on the basis of a text by theChairman.GPA/73
Page 9
Arrangements for the other two elements
• Regarding the work on the other two elements, a preparatory phase will take place in 2002 aimed
at the identification and study of the areas to be negotiated and agreeing on a detailed programme
for the negotiations by the end of the year.  De legations who wish to put forward ideas on the
possible approaches regarding the negotiations on the expansion of the coverage and the
elimination of discriminatory measures including the procedures for tabling of offers and requests
should do so by 15 October 2002.2
• The negotiations on these elements shall be initiated in 2003 with the aim of concluding them by
1 January 2005.
Note
• In 1996, the Committee agreed to undertake an early  review, starting in 1997 with an examination
of modalities, with a view to the implementation of Article XXIV:7(b) and (c) of the Agreement.
The review will, in particular, cover the following  elements:  expansion of the coverage of the
Agreement;  elimination of discriminatory measur es and practices which distort open procurement;
and simplification and improvement of the Agreem ent, including, where appropriate, adaptation to
advances in the area of information technology.  It  was also agreed that the review shall seek the
expansion of membership of the Agreement by making it more accessible to non-Parties (GPA/8)."
__________
                                                     
2 Related to these aspects of the negotiations, the Group already has before it, for reference, the
submissions by Canada (Job No. 6604-2001);  Hong Kong, China (Job No. 5270-1998);  and the United States
(Job No. 3843-1998).