RESTRICTEDWORLD TRADE
ORGANIZATIONGPA/M/8
26 May 1998
(98-2152)
Committee on Government Procurement
MINUTES OF THE MEETING HELD ON 18 FEBRUARY 1998
Chairperson:  Mrs. Helle Klem (Norway)
1. The following agenda was adopted:
A. Election of Chairperson
B. Applications for observer status
C. Relationship of the Tokyo Round Agreement on Government Procurement to the
1994 Agreement on Government Procurement
D. Modifications to the Appendices to the Agreement
E. Loose-leaf system for Appendices to the Agreement
F. Notification of threshold figures in national currencies
G. Accessions:
(i) Chinese Taipei(ii) Panama
H. Newly acceding WTO Members
(i) Bulgaria
(ii) Mongolia
I. Notification of national implementing legislationJ. Statistical reporting
K. Modalities for the review of the Agreement
L. Other business
(i) Australia - Current developments regarding the Agreement on Government
Procurement
(ii) Korea - Procurement of International Airport Construction Corporation
(iii) United States - Measures affecting government procurementGPA/M/8
Page 2
(iv) Japan - Procurement of a satellite navigation system
(v) Demonstration on the use of information technology in government
procurement
(vi) Dates of meetings in 1998.
A. Election of Chairperson
2. The Committee re-elected Mrs. Helle Klem (Norway), as its Chairperson for 1998.
B. Applications for observer status
3. The Committee agreed to grant observer status to the Government of Slovenia, pursuant to the
decision it had taken on this matter (GPA/1, Annex 1) and in response to the request received from
that country (GPA/W/67).
4.  In the light of the action taken by the General Council at its meeting of 10 December 1997
(WT/GC/M/25), the Committee agreed that International Trade Centre UNCTAD/WTO would be
invited to attend its meetings.
C. Relationship of the Tokyo Round Agreement on Government Procurement to the 1994
Agreement on Government Procurement
5. The Chairperson said that the Secretariat had prepared a note on the legal and procedural
aspects of the supersession provided under Article XXIV:3(c) in response to the Committee's request
at the last meeting (GPA/W/65 and GPA/M/7, paragraph 28)
6. The representative of the United States said that her delegation had certain concerns with the
approach outlined in the note by the Secretariat.  Her delegation considered that Article XXIV:3(c) of
the Agreement was not itself a denunciation clause but that it merely provided for supersession of the
provisions of the Tokyo Round Agreement by the 1994 Agreement where a party was signatory to
both Agreements.  The Tokyo Round Agreement would need to be formally terminated as had been
the case with the International Dairy Agreemen t and the International Bovine Meat Agreement.
While the United States had withdrawn from the Tokyo Round Agreement in January 1996, it
remained concerned that, in the possible instance where a signatory to the 1994 Agreement might
withdraw from that Agreemen t, it might still have rights remaining under the Tokyo Round
Agreement.
7. The representative of the European Community said that, in the light of the provisions of
Article 59.1(a) of the Vienna Convention on the Law of Treaties (1969), her delegation did
not consider that it was necessary to have a formal termination of the Tokyo Round
Agreement.  Given that the 1994 Agreement had superseded the Tokyo Round Agreement,
there was no need for a formal Committee action.  The Committee could take note of the legalopinion expressed in this respect in the note by the Secretariat circulated in document
GPA/W/65.
8. The representative of Canada said that Canada held the view that it had no remaining rights
and obligations vis-à-vis the Parties to the Tokyo Round Agreement as per supersession provisions in
Article XXIV:3(c) of the 1994 Agreement.  However, his authorities had not yet completed their
domestic review of the legal issues involved in this respect.GPA/M/8
Page 3
9. The representative of Japan said that his delegation had no objection to the formal termination
of the Tokyo Round Agreement even though that Agreement did not have a specific termination
clause.  However, it might have problems with a decision that was made effective retroactively as of
20 October 1997.
10. The Committee took note  of the statements made and agreed  to revert to this item at its next
meeting.
D. Modifications to the Appendices to the Agreement
11. The Chairperson said that Hong Kong, Chin a (GPA/W/57), Switzerl and (GPA/W/58), Korea
(GPA/W/59), Japan (GPA/W/60 and 63), Canada (G PA/W/61) and Norway (GPA/W/62) had notified
proposed modifications to their respective Appendices.  Since no objections had been raised within
the prescribed time-period, these modifications had entered into force respectively on
23 November 1997 (WT/Let/206), 19 Nove mber 1997 (WT/Let/205), 23 November 1997
(WT/Let/207), 23 November 1997 and 31 December 1997 (WT/Let/208 and 211), 5 December 1997(WT/Let/209) and 20 December 1997 (WT/Let/210).  Modifications relating to its Appendices had
also been notified by Israel (GPA/W/68).
1
12. In regard to the proposed modifications relating to its Appendix I on 13 August 1997 notifiedby the European Community in document GPA/W/51, the representative of the United States said that
her delegation had sought clarifications from the European Community in September 1997
(GPA/W/51/Add.1).   The representative of the European Community said that his delegation would
respond to the request for information from the United States so as to settle the matter without delay.The difficulties in completing the procedures for acceptance of the modifications proposed by the
European Community illustrated the disadvantages of using a positive list approach for the coverage
of entities in Appendix I, a matter that was being currently discussed in the context of the review of
the Agreement.   The representative of the United States said that, if the notification of the European
Community had provided a proper explanation of the nature of the proposed modifications, theproblem of review of GPA/W/51 by other Parties would have been avoided.  Her delegation had had
to object to the proposed modifications going into effect because, given the extensive nature of
document GPA/W/51 and the timing of its receipt, her delegation had not been able to determinewhether the proposed modifications would change the coverage of the commitments of the European
Community under the Agreement.
13. The Committee took note of the statements made and, in the event that any further proposed
modifications to the Appendices of the European Community were to result from its consultations
with the United States regarding the proposed modi fications in GPA/W/51, recalled that they should
be notified to the Committee in accordance with the procedures of Article XXIV:6(a).
E. Loose-leaf system for Appendices to the Agreement
14. The Chairperson stated that the Secretariat had prepared itself so as to be able to make
available a revision of the draft loose-leaf sy stem of Appendices in GPA/W/35 which would
consolidate the rectifications and modifications to the Appendices effective on 18 February 1998.  At
its September 1997 meeting, the Committee had noted that the first issue of the loose-leaf system
would be postponed until after the entry into force of the extensive modifications that had beennotified by the European Community in document GPA/W/51 (c.f. item D above and GPA/M/7,
paragraphs 9-10).
                                                     
1Entered into force on 8 March 1998 (WT/Let/214).GPA/M/8
Page 4
15. Following suggestions by the representatives of Canada and the European Community , the
Committee, while noting that the delegations of the European Community and the United States
would seek to reach an agreement on the proposed modifications in GPA/W/51 without delay, agreed
that, in the event that agreement was not reached in the near future, the following steps would be
taken:  (i) the loose-leaf system for Appendices wo uld be issued on the Internet with the proviso that
it was made available in order to provide information on the Appendices including the modificationsthat had been certified since the signature of the Agreement in April 1994;  (ii) the loose-leaf system
circulated on the Internet would include the Appendices of the European Community that were
currently in effect and a reference would be made to the modifications under consideration in
document GPA/W/51 and Add.1;  and (iii) after the procedures for the certification of the proposed
modifications to the Appendices of the European Community had been completed, the procedures
agreed by the Committee concerning certification and circulation would be carried out (GPA/W/35,
paragraph 4 and GPA/M/5, paragraph 20).
F. Notification of threshold figures in national currencies
16. The Chairperson said that Hong Kong, China and the European Community had already
notified their threshold figures in national currencies for 1998-1999 in documents GPA/W/66 and
Add.1 and invited other Parties to submit their notifications in accordance with the relevant decision
of the Committee without delay (GPA/1, Annex 3).2
G. Accessions
(i) Chinese Taipei
17. The representative of Chinese Taipei said that  bilateral consultations with the United States
and Switzerland had been concluded respectively in December 1997 and February 1998.  His
delegation had also continued bilateral consultations with Canada, the European Community, Japanand Korea in February 1998.  Chinese Taipei hoped that the ongoing consultations on its offer would
soon be finalized so as to facilitate the accession of Chinese Taipei to the Agreement after becoming a
WTO Member.  The review of a draft Government Procurement Law by its legislature was in its final
stages.  Work was also being carried out on the drafting of implementing rules and regulations that
would supplement the basic law.  Other developments relating to the reform of the governmentprocurement regime in Chinese Taipei included the publication of a Government Procurement
Gazette, the dissemination of information on tenders through the Internet, the establishment of a
transitional dispute settlement mechanism on public construction and the collection of statistics on
government procurement.
18. The representative of Japan said his delegation had obtained a positive and informative
explanation from the delegation of Chinese Taipei concerning its offer and the expected
changes in the procurement law and regulations.  His delegation hoped that the negotiation
process would be concluded at an early stage.
(ii) Panama
19. The representative of Panama said that bilateral consultations had been held or would be held
with interested Parties in September 1997 and February 1998 regarding Panama's initial offer of
24 June 1997 (GPA/SPEC/3).  His delegation had responded in writing to some of the requests for
                                                     
2Notifications by Japan and Canada have subsequently been circulated in documents GPA/W/66/Add.2
and 3.GPA/M/8
Page 5
information from these Parties and in some other cases the replies were still being prepared.
Interested delegations should get in contact with his delegation if further explanation of Panama's
offer or any follow-up to their questions were required.  His delegation would hold further
consultations with some other Parties and hoped to be able to pursue the procedures for accession of
Panama as expeditiously as possible.
H. Newly acceding WTO Members
(i) Bulgaria
20. The Chairperson said that she had been in contact with the delegation of Bulgaria in
February 1998.  The representative of Bulgaria had reaffirmed his country's intention to present an
offer and to initiate negotiations for accession to the Agreement.  She had been informed that
developments in this respect had, however, been delayed due to overburden of work in the Ministries
concerned.
(ii) Mongolia
21. The Chairperson said that, as agreed at the last meeting, a letter had been sent to the
delegation of Mongolia, drawing attention to th e commitments undertaken by Mongolia in the
Working Party on the Accession of Mongolia to the WTO and encouraging Mongolia to apply for
observer status (c.f. GPA/M/7, paragraph 25).  As  of 18 February 1998, no reply had been received
from Mongolia.
I. Notification of national implementing legislation
22. The Chairperson said that, at its meeting of 4 June 1996, the Committee had agreed that
Parties would notify national implementing legislation, including responses to the checklist of issues,
not later than 31 December 1996 (GPA/1/Add.1).  A reminder had been sent to delegations in airgram
WTO/AIR/480 of 1 November 1996.  As of 18 Febr uary 1998, Canada, Korea, Norway, Switzerland
and the European Community had notified their national implementing legislation and responses tothe checklist of issues (GPA/ 10, GPA/12/Rev.1, GPA/14, GPA/15 and GPA/20).  The representative
of the United States said that her delegation would notify its national legislation in the near future.
23. Following discussion on the basis of an informal note by the Secretariat, dated 6 May 1997,
describing the procedures for review of implementing legislation developed by other WTO bodies
(circulated with footer "gpa28"), the Committee agreed to the following arrangements and schedule
for the review of national implementing legislation:
(i) Parties who had not yet notified their national implementing legislation, including
responses to the checklist of issues in document GPA/1/Add.1, would do so by
1 April 1998;
(ii) Parties would submit written questions to those Parties whose legislation would be
reviewed, with copies to the Secretariat, at least six weeks prior to the review
meeting, the questions being circulated by the Secretariat to all Parties;
(iii) Parties would provide responses to these questions in writing at least one week before
the meeting at which the review would be held;GPA/M/8
Page 6
(iv) the Committee would initiate the review of national legislation at its October 1998
meeting, by taking up the legislation of the European Community and Korea.
J. Statistical reporting
24. The Chairperson said that, as of 18 February, no Parties had provided statistics for 1996 and
1997 in accordance with Article XIX:5 of the Agreement.  The representatives of Canada, Norway3
and Switzerland said that their delegations woul d submit statistics for 1996 in the near future.
K. Modalities for the review of the Agreement
25. The Chairperson reported on the informal consultations on the modalities for the three-year
review that had been held on the basis of a revised informal checklist of issues, the most recent
version of which was dated 27 January 1998, and the non-papers presented by the delegation of the
European Community relating to the simplification and improvement of the Agreement
(Job No. 6435), the simplification and improvement of the structure of the Agreement (Job No. 6437)
and non-discrimination and information technology (Job No. 6438) as well as on the basis of an
informal note by the Secretariat on the types of discriminatory provisions in the Appendices to the
Agreement, dated 31 October 1997 (circulated with footer "gpa33").  As a result of these
consultations it had been agreed to hold a further informal meeting on 25 June 1998.  At that meeting
the work would be carried fo rward in the following way:
(i) the work would proceed with the three elements of the review simultaneously;(ii) as regards the simplification/improvement axis of the mandate for the review,
delegations would have focused discussions on specific items, starting with
information technology and statistical reporting.  Delegations would be invited to
specify, to the extent possible, the specific drafting changes that they would wish to
see made to the relevant provisions of the Agreement in these areas;
(iii) delegations would initiate an Article-by-Article review of the Agreement with a
consideration of Articles I to VI of the Agreement;
(iv) delegations would be invited to identify any other areas where focused discussions
could be taken up and to bring forward proposals, including written proposals on any
other substantive provisions, for example on procurement methods and restructuringof the Agreement including its Annexes;
(v) as regards the other two elements of the review, namely elimination of discriminatory
measures and practices which distort open procurement and expansion of the
coverage of the Agreement, delegations would begin focused discussion on the
expansion of the coverage of the Agreement in the area of services and would beinvited to present written suggestions on any other matters;
                                                     
3Statistics for 1996 have subsequently been provided by Norway (GPA/21).GPA/M/8
Page 7
(vi) in the light of the state of discussion at the next meeting, the Chair would draw up, for
the consideration of delegations, a suggested work programme, including a schedule,
for the further work under the review and negotiations foreseen in Article XXIV:7(b)
and (c).
L. Other business
(i) Australia - Current developments regarding the Agreement on Government
Procurement
26. The representative of  Australia said that the Commonwealth Government was currently
examining all aspects of its possible membership of the Agreement.  A consultative group was
considering the national approach to Australia's part icipation in the activities related to the Agreement
and a number of the key issues which were relevant to the application of the Agreement in Australia
including the interests of small and medium enterprises.  The Australian Procurement and
Construction Council (APCC) was preparing a report on the impact of the accession to the Agreementon the Australian jurisdictions which would be forwar ded to a special meeting at the ministerial level
on 26 March 1998.  Discussion would focus on the approaches to Australia's accession to the
Agreement and the use of electronic commerce in government procurement.  Australia's accession
process would also entail a discussion between the federal and sub-federal entities.  The current trend
in Australia at all levels of government was towards greater decentralization of decision-making in thearea of government procurement.  The government  departments and agencies had adopted their own
procurement systems and practices which were aligned with the systems and practices adopted by
private sector companies.
(ii) Korea - Procurement of International Airport Construction Corporation
27. The representative of the United States asked whether Korea had the intention of notifying the
modifications to its coverage under the Agreement concerning the Korea Airport Construction
Authority in accordance with the procedures of Article XXIV:6(a).  This entity had been established
in 1994 after the conclusion of the negotiations on Korea's accession to the Agreement.  It presently
had the responsibility for airport construction procurement instead of the Ministry of Transportation
which had that responsibility at the time of Korea's negotiations of accession to the Agreement andwhich had been included under Korea's coverage of the Agreement.
28. The representative of Korea said that the International Airport Construction Corporation was
not among the entities included in Appendix I of Korea.  This matter had been fully clarified with the
Parties during the negotiations on Korea's coverage of the Agreement.
(iii) United States - Measures affecting government procurement
29. The representative of Japan said that Japan had held three rounds of consultations with the
United States in 1997 concerning the legislation enacted by the Commonwealth of Massachusetts
regulating state contracts with companies doing business with or in Myanmar (WT/DS95/1 and
GPA/D3/1).  His delegation had been informed that the Federal Government of the United States had
had high-level contacts with the Government of Massachusetts but, because of the confidential nature
of those contacts, no detailed explanation had been provided on such Federal activities or on any
reasonable perspective towards finding a solution to the matter under consultation.  The issue of theinconsistency of the measures enacted with the provisions of the Agreement had remained unresolved.
His delegation requested the United States delegation to provide explanations or information on this
matter.GPA/M/8
Page 8
30. The representative of the United States said that it would be more appropriate to provide
information relating to this matter in the bilateral consultations held under the DSU.
(iv) Japan - Procurement of a satellite navigation system
31. In reply to the request for information made by the delegation of the United States at the
Committee's last meeting regarding a mutually agreed solution reached between the European
Community and Japan pursuant to Article 3.6 of the DSU (WT/DS73/4/Rev.1, GPA/D1/2/Rev.1 andGPA/M/7, paragraph 27), the representative of the European Community, in a statement made jointly
with the representative of Japan, said that the European Commission and the Ministry of Transport of
Japan (MoT) had reached a settlement through the establishment of cooperation between the
European Tripartite Group (consisting of the Eur opean Commission, the European Space Agency and
Eurocontrol) on the one hand and the MoT on the other in the field of interoperability between
MTSAT Satellite-based Augmentation System (MSAS) and the European Geostationary Navigation
Overlay Service (EGNOS).  This cooperation was aimed at jointly contributing to the implementationof a global seamless navigation service for aeronautical end-users through the interoperability among
MSAS, EGNOS and other equivalent systems.  It had also been agreed that the requirements for
interoperability would be mentioned in MSAS and EGNOS documentation for all future procurement
in and after 1998, on condition that both sides reached the conclusion that the interoperability was
feasible.
(v) Demonstration of the use of information technology in government procurement
32. Following a suggestion by the representatives of Canada, the European Community
 and
Norway, the Committee noted  that the Secretariat would organize, in conjunction with interested
delegations, a demonstration session on the application of information technology in the area of
government procurement, to be held on 24 June 1998.  It also agreed that Parties interested in makingpresentations on the operation of the systems in their countries should contact the Secretariat.
(vi) Dates of meetings in 1998
33. The Committee agreed to hold its next meeting on 25 June 1998 and its autumn meeting on
7 October 1998.
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