RESTRICTED
WORLD TRADE GPA/M/7
1December 1997
ORGANIZATION(97-5268)
Committee onGovernment Procurement
MINUTES OFTHE MEETING HELD ON29SEPTEMBER 1997
Chairperson: Mrs. Helle Klem (Norway)
1. Attheopening ofthemeeting, theCommittee observed aminute ofsilence inmemory of
Mr.Harald Ernst, theChairman oftheCommittee in1996 and1997.
2. Thefollowing agenda wasadopted:
A. Election ofChairperson
B. Applications forobserver status
C. Modifications totheAppendices totheAgreement
D. Loose-leaf system forAppendices totheAgreement
E. Notification ofnational implementing legislation
F. Statistical reporting
G. Modalities forthethree-year review oftheAgreement
H. Accessions:
(i) Liechtenstein
(ii) Singapore
(iii) Chinese Taipei
(iv) Panama
I. Newly acceding WTO Members
(i) Bulgaria
(ii) Mongolia
J. Other Business
(i) United States -Measures affecting government procurement
(ii) Japan -Procurement ofanavigation satellite
(iii) Relationship oftheTokyo Round Agreement onGovernment Procurement to
the1994 Agreement onGovernment Procurement
K. Annual Report (1997) totheGeneral Council
L. DateofthenextmeetingGPA/M/7
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A. Election ofChairperson
3. TheCommittee elected Mrs. Helle Klem (Norway) asitsChairperson fortheremainder of
1997.
B. Applications forobserver status
4. TheCommitteeagreedtograntobserverstatustotheGovernmentsofPoland,ChileandPanama,
pursuant tothedecision ithadtaken onthismatter (GPA/1, Annex 1)andinresponse totherequests
received from those countries (GPA/W/48, 49and53).
C. Modifications totheAppendices totheAgreement
5. TheChairperson saidthattheUnited States (GPA/W/41), Switzerland (GPA/W/42 and45),
Norway (GPA/W/43 and46),theEuropean Community (GPA/W/44 and55)andIsrael (GPA/W/54)
hadnotified proposed modifications totheirrespective Appendices. Since noobjections hadbeenraised
within theprescribed time-period, thesemodifications hadbeencertified respectively on22June1997
(WT/Let/146),22June1997(WT/Let/146),16August1997(WT/Let/164),29June1997(WT/Let/152),
12July1997 (WT/Let/163), 9July1997 (WT/Let/162), 27September 1997 (WT/Let/185) and
26September 1997(WT/Let/184). Modifications relating totheirrespective Appendices hadalsobeen
notified byHong Kong, China (GPA/W/56) andSwitzerland (GPA/W/47/Add.1).1
6. TheChairperson saidthattheEuropean Community hadnotified, on13August 1997,
modifications toitsAppendices I-IV(GPA/W/51). Inacommunication, dated 3September 1997,
theUnited States hadinformed theCommittee thatitrequired more timetoreview theproposed
modifications and,therefore, theUnited States could notagree totheirtaking effect upontheexpiration
ofthe30-day period ofreview (GPA/W/51/Add.1). Therepresentative oftheUnited States saidthat
herauthorities hadsought clarifications from theEuropean Community regarding theproposed
modifications and,onaccount oftheextensive nature ofsuchmodification, theirreview would take
more time. Therepresentative oftheEuropean Community saidthathisdelegation would notify to
allParties anymodifications toAppendix Ithatmight bewarranted asaresult oftheongoing
consultations withtheUnited States.
7. Therepresentative ofHong Kong, China saidthatitwasdifficult toascertain whether the
proposed modifications bytheEuropean Community, which appeared toinvolve amajor reorganization
ofitsAnnex 1toAppendix I,weresubstantive. Joined bytherepresentative ofCanada, hesaidthat
Parties should identify andexplain, intheirnotifications, eachproposed modification soastofacilitate
thereview ofsuchmodifications byother Parties. Therepresentative oftheSecretariat saidthat,
theCommittee hadagreed thatinfuture, under theloose-leaf system ofAppendices, aParty proposing
tomake modifications orrectifications would notify themtotheCommittee byidentifying theproposed
changes ontherelevant replacement pages (c.f.GPA/W/35, paragraph 4andGPA/M/5, paragraph 20).
Theoperation oftheloose-leaf system would thusenable Parties toidentify readily theproposed changes
andtoconsider whether theymodified therights andobligations under theAgreement. Parties could
alsoprovide apresentation ofeachproposed modification intheformusedhitherto tofacilitate their
domestic procedural requirements.
8. TheCommittee tooknoteofthestatements made andagreed torevert tothisagenda itemat
itsnextmeeting.
1Subsequently certified on5October 1997 (WT/Let/183) andon23October 1997 (WT/Let/194).GPA/M/7
Page3
D. Loose-leaf system forAppendices totheAgreement
9. TheChairperson stated thattheSecretariat hadprepared adraftofthefirstissueoftheloose-leaf
system ofAppendices which consolidated therectifications andmodifications totheAppendices effective
on29September 1997. However, theSecretariat would postpone theissue oftheloose-leaf system
untilaftertheentry intoforce oftheextensive modifications thathadbeennotified bytheEuropean
Community indocument GPA/W/51 (cf.paragraphs 6-7).
10. TheCommittee tooknoteofthestatement andagreed torevert tothisagenda itematitsnext
meeting.
E. Notification ofnational implementing legislation
11. TheChairperson saidthat,atitsmeeting of4June1996, theCommittee hadagreed thatParties
would notify national implementing legislation, including responses tothechecklist ofissues, notlater
than31December 1996 (GPA/1/Add.1). Areminder hadbeen senttodelegations inairgram
WTO/AIR/480 of1November 1996. Asof29September, fourdelegations -Canada, Korea,
Norway andSwitzerland -hadnotified theirnational implementing legislation including theirresponses
tothechecklist ofissues (GPA/10, GPA/12/Rev.1, GPA/13 andGPA/15).
12. Therepresentatives ofHong Kong China, theEuropean Community andIsrael saidthatthe
notifications ontheirimplementing legislation would besubmitted inthenearfuture.
13. Therepresentative ofNorway saidthattheCommittee should postpone itsreview untilmore
Parties hadnotified theirimplementing legislation. Therepresentative ofSwitzerland saidthatParties
could, atleast, present information onthemostimportant features oftheirlegislation byresponding
tothechecklist ofquestions. Therepresentative ofCanada saidthattheCommittee should discuss
theprocedures forthereview ofimplementing legislation onthebasis ofthenotebytheSecretariat,
dated 6May1997, describing therelevant procedures which hadbeendeveloped byother WTO bodies.
14. TheCommittee tooknoteofthestatements made andagreed torevert tothisitematitsnext
meeting.
F. Statistical reporting
15. TheChairperson saidthatArticle XIX:5 oftheAgreement called oneachParty tocollect and
provide, annually, statistics onitsprocurement covered bytheAgreement. Asof29September 1997,
Parties hadnotprovided statistics for1996, thefirstyearoftheimplementation oftheAgreement.
16. Therepresentative ofSwitzerland saidthatmore statistical datahadtobeprovided under the
1994Agreement thanunder theearlier Agreement because oftheextension ofthecoverage ofentities.
JoinedbytherepresentativesofCanadaandNorway,hesaidthattheCommitteehadaddressedaproposal
forsimplification oftheprovisions onstatistical requirements under thethree-year review ofthe
Agreement. Notwithstanding thediscussion inthatcontext, Parties should comply withtheexisting
requirements andshould submit, without anyfurther delay, theirstatistical datafor1996 and1997.
17. TheCommittee tooknoteofthestatements made andagreed torevert tothisitematitsnext
meeting.GPA/M/7
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G. Modalities forthethree-year review oftheAgreement
18. TheCommittee pursued itsinformal consultations onthemodalities forthethree-year review
onthebasis ofaninformal checklist oftheissues, dated 27August 1997, andthesubmissions bythe
delegations oftheEuropean Community (GPA/W/50) andNorway (JobNos. 5211 and5212). As
aresult ofthese consultations, theCommittee agreed thatitwould holdfurther informal consultations
onthemodalities forthereview oftheAgreement on5November 1997. Atthatmeeting, itwould
havefocused discussions on:(i)issues ofnon-discrimination inconnection withinformation technology;
(ii)improvements tothestructure andpresentation oftheAgreement; (iii)discriminatory provisions
intheAppendices. Delegations would beurged tosubmit written proposals concerning theseelements.
Delegations could raiseanyother matters relating tothereview, including suggestions concerning the
beststructure forcarrying thework forward. TheSecretariat would prepare aninformal noteontypes
ofdiscriminatory provisions intheAppendices, itbeing understood thatthiswould bewithout prejudice
totheviews ofdelegations andoftheCommittee.
H. Accessions
(i) Liechtenstein
19. TheChairperson saidthatLiechtenstein haddeposited itsinstrument ofaccession on
19August 1997. TheAgreement hadentered intoforce forLiechtenstein on18September 1997
(GPA/17 andWT/Let/166).
(ii) Singapore
20. TheChairperson said thatSingapore haddeposited itsinstrument ofaccession on
20September 1997. TheAgreement would enterintoforceforSingapore on20October 1997(GPA/18
andWT/Let/179).
(iii) Chinese Taipei
21. Therepresentative ofChinese Taipei saidthathisdelegation hadheld, inthepasttwoyears,
intensive bilateral consultations withtheParties totheAgreement. Chinese Taipei would continue,
induecourse, thebilateral consultations onafewsensitive issues thatremained outstanding, witha
viewtoitsaccession totheAgreement.
(iv) Panama
22. TheChairpersonsaidthatPanama'srequestforaccessionhadbeencirculatedon22August1997
(GPA/W/53) anditsinitial offeron24June1997(GPA/SPEC/3). Therepresentative ofPanama said
thathisdelegations would holdbilateral consultations withParties totheAgreement. Meanwhile, his
delegation appreciated thatitcould participate asanobserver intheformal andinformal meetings of
theCommittee.
23. Therepresentative United States andtheEuropean Community, Japan, Korea, Norway and
Switzerland welcomed theoffer byPanama andsaidthattheir delegations would holdbilateral
consultations withPanama inthecoming months.GPA/M/7
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I. Newly acceding WTO Members
(i) Bulgaria
24. TheChairperson recalled that,atitslasttwomeetings, theCommittee hadbeeninformed that
BulgariahadbeenpreparingitsofferwithaviewtoinitiatingnegotiationsforaccessiontotheAgreement,
ifpossible, bytheendof1997.
(ii) Mongolia
25. Attherequest oftherepresentative oftheEuropean Community, theCommittee agreed that
theChairman would write tothedelegation ofMongolia, drawing attention tothecommitments
undertaken byMongolia intheWorking Party ontheAccession ofMongolia totheWTO
(WT/ACC/MNG/9, paragraph 59andProtocol, PartI,paragraph 3)andencouraging Mongolia to
apply forobserver status.
J. Other business
(i) United States -Measures affecting government procurement
26. Therepresentative oftheJapan saidthatthelegislation enacted bytheCommonwealth of
Massachusetts regulating Statecontracts withcompanies doing business withorinMyanmar affected
therights ofmore thanthirty Japanese affiliated companies intheUnited states. Japan considered
thatthemeasures specified inthelegislation wereinconsistent withtheprovisions oftheAgreement
andthatthematter wasrelated totheimplementation oftheAgreement bytheUnited States inrespect
ofAnnex 2entities. Following Japan'srequest forconsultations withtheUnited States inJuly1997,
afirstround ofconsultations hadbeenheldinJuly1997andasecond round wasscheduled intheweek
of29September 1997. Therepresentative oftheUnited States saidthatitwould notbeappropriate
toprovide totheCommittee details onamatter under consultations under theDSU.
(ii) Japan -Procurement ofanavigation satellite
27. Therepresentative oftheUnited States saidthattheEuropean Community hadnotified that
ithadfound amutually agreed solution withJapan regarding aprocurement tender published bythe
Ministry ofTransport ofJapan topurchase aMTSAT Satellite-based System (WT/DS73/4/Rev.1 and
GPA//D1/2/Rev.1). Pursuant toArticle 3.6oftheDSU, herdelegation requested parties tothedispute
toprovide information onthemutually agreed solution reached intheconsultations. Article 3.5of
theDSU provided thatallsolutions tomatters raised shallbeconsistent withtheagreements under
which theconsultations tookplace. Therepresentative ofJapan saidthathisauthorities hadinformed
Parties ofthesolution reached directly totheircapitals. Therepresentative oftheEuropean Community
saidthatthespecific solution wasunder discussion within theEuropean Community.
(iii) Relationship oftheTokyo Round Agreement tothe1994 Agreement onGovernment
Procurement
28. TheCommittee tooknotethat,withtheaccession ofSingapore on20October 1997, all
signatories totheTokyo Round Agreement onGovernment Procurement would haveacceded tothe
1994 Agreement onGovernment Procurement andagreed thattheSecretariat would prepare anote
clarifying thelegal andprocedural aspects ofthesupersession provided under Article XXIV:3(c).
Therepresentative oftheUnited States recalled thathiscountry hadwithdrawn fromtheTokyo Round
Agreement onGovernment Procurement prior totheentry intoforce ofthe1994 Agreement on
Government Procurement.GPA/M/7
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K. Annual report (1997) totheGeneral Council
29. TheCommittee adopted itsannual report for1997 totheGeneral Council onthebasis ofa
draftprepared bytheSecretariat which wasamended inthelightofthediscussion atthemeeting.2
L. Dateofthenextmeeting
30. TheCommittee agreed toholditsnextmeeting on18February 1998.
2Subsequently issued inGPA/19.