WORLD TRADE GPA/8
17October 1996
ORGANIZATION(96-4316)
Committee onGovernment Procurement
REPORT (1996) OFTHE COMMITTEE ONGOVERNMENT
PROCUREMENT (1994 AGREEMENT)1
I. General
1. Thisreport issubmitted pursuant toArticle XXIV:7(a) oftheAgreement onGovernment
Procurement, which requires theCommittee toreview annually theimplementation andoperation of
theAgreement andtoinform annually theGeneral Council ofdevelopments intheimplementation
andoperation oftheAgreement during theperiods covered bysuchreviews.
2. TheAgreement onGovernment Procurement entered intoforceon1January 1996. Theperiod
covered inthisfirstReport isJanuary-September 1996, butthereport alsoreflects, where necessary,
thepreparatory work oftheInterim Committee onGovernment Procurement priortotheAgreement 's
entry intoforce. TheCommittee onGovernment Procurement heldthree meetings in1996: on
27February, 4June and20September (GPA/M/1-3). TheInterim Committee onGovernment
Procurement heldsixmeetings in1994 and1995 (GPA/IC/M/1-6). Itsreport totheCommittee was
circulated indocument GPA/IC/9.
3. ThefollowingWTOMembersarePartiestotheAgreement:Canada,theEuropeanCommunities
andfifteen Member States, Israel, Japan, Korea, Netherlands withrespect toAruba2,Norway,
Switzerland andtheUnited States. Seven WTO Members haveobserver status: Australia, Colombia,
Iceland, Liechtenstein, Singapore andTurkey. Twonon-WTO members haveobserver status: Chinese
Taipei andLatvia.
II. Implementation oftheAgreement
Modifications ofAppendices totheAgreement
4. Article XXIV:6 oftheAgreement requires Parties tonotify rectifications ofapurely formal
nature orother modifications relating toAppendices Ithrough IV,which setoutthemutually agreed
coverage provided under theAgreement. Consequential rectifications ormodifications become effective
oncetheyareagreed topursuant totheprocedures under thisArticle.
5. PriortotheentryintoforceoftheAgreement, theUnited States andNorway made rectifications
ofapurely formal nature pursuant totherelevant Decision oftheInterim Committee (GPA/IC/M/1,
Annex 2).TheUnited States rectification toitsAppendix IIregarding State Publications witheffect
asof23December 1994wasaccompanied byalistofsuchpublications (GPA/IC/W/10) andNorway 's
1Thisreport hasbeen communicated totheGeneral Council under thesymbol WT/L/190.
2Asof25October 1996GPA/8
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rectification witheffect asof15December 1994related tothechange ofnames ofentities inAppendix I,
Annex 1(GPA/IC/W/8).
6. Atthetimeofthesignature oftheAgreement inMarrakesh inApril 1994, theEuropean
Communities andtheUnited States negotiated abilateral agreement extending theirmutual benefits
under theAgreement, therelevant details ofwhich, including theintended modifications, werecirculated
totheInterim Committee on15June1994. Atitsmeeting of7December 1995theInterim Committee
accepted thattheEuropean Communities andtheUnited States hadmettheprocedural requirements,
interms oftherelevant Decision oftheInformal Group onNegotiations (GPA/IC/3), necessary for
theincorporation ofmodifications totherespective Annexes toAppendix I,which weresubsequently
submitted on22December 1995 (GPA/IC/10).
7. After theentry intoforce oftheAgreement, Japan andtheUnited States notified modifications
toAppendix Iwhich followed theirbilateral agreement reached ontheenlargement ofthecoverage
oftheAgreement (GPA/W/1 andGPA/W/2). Consequential modifications toAppendix Ientered into
forceon25February 1996. Following thebilateral agreement reached between Norway andtheUnited
States, further modifications toAppendix Ientered intoforce on17August 1996 (GPA/W/22 and
GPA/W/23). Discussions currently being heldbetween some other Parties mayresult infurther
expansion ofthecoverage oftheAgreement.
8. TheCommittee alsodiscussed thefollow-up toCanada 'soffer, contained initsAppendix I,
Annexes 2and3,tocover sub-central government entities andenterprises inalltenProvinces, onthe
basisofcommitments received fromtheProvinces, withafinallisting tobeprovided within 18months
aftertheconclusion oftheAgreement. Atthelasttwomeetings oftheInterim Committee, Canada
linked thetabling ofitsschedule atthesub-central leveltoachieving increased market access insectors
ofpriority interest toCanadian suppliers andimproving security ofaccess through circumscribing the
useofsmall business andother set-aside exceptions under theAgreement (GPA/IC/M/5-6). Canada
maintained thisposition atthefirstthreemeetings oftheCommittee heldin1996(GPA/M/1-3). Some
other Parties expressed theirdisappointment overthesituation, stressed theneedforCanada tohonour
itscommitments andconsidered thattheproblems raised byCanada withrespect toexpanded coverage
oftheAgreement could onlybeaddressed onceCanada hadcome forward withoffers pursuant toits
commitments initsAnnexes 2and3.Canada hasasserted thatitdidnotundertake obligations regarding
Annexes 2and3,andhasreiterated thatitscoverage wastobebased oncommitments received from
theProvinces. Canada hasalsoasserted that,asnocommitments havebeenreceived, itisunder no
obligation toputforward anoffer under these Annexes.
Accession
9. Atitsfirstmeeting on27February 1996, theCommittee concluded theaccession process of
twoadditional WTO Members totheAgreement, which hadbeeninitiated priortotheentry intoforce
oftheAgreement, byadopting theDecisions ontheaccession ofLiechtenstein andtheKingdom of
theNetherlands withrespect toAruba onthebasisofthereports oftheInterim Committee (GPA/IC/6
andGPA/IC/7), andinviting these Members toaccede totheAgreement ontheterms foraccession
attached totherespective Decisions (GPA/2 andGPA/3). TheKingdom oftheNetherlands forAruba
hasdepositeditsinstrumentofaccessionon25September1996(WT/Let/111andGPA/7).Liechtenstein
hasnotyetdeposited itsinstrument ofaccession.
10. Singapore applied foraccession inNovember 1995. Following bilateral consultations held
between Singapore andParties in1996, theCommittee adopted, atitsmeeting on20September 1996,
aDecision inviting Singapore toaccede ontheterms attached tothatDecision (GPA/6). Singapore
hasnotyetdeposited itsinstrument ofaccession.GPA/8
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11. Chinese Taipei applied foraccession totheAgreement inJune1994 (GPA/IC/5). Atits
February andJune1996 meetings, theCommittee wasinformed ofthebilateral consultations held
between thedelegation ofChinese Taipei andParties totheAgreement onChinese Taipei 'srevised
offerinviewofitswishtoconclude thisprocess inthelatter partof1996. AtitsSeptember meeting,
theCommittee wasinformed offurther improvements thatChinese Taipei hadmade toitsoffer.
Decisions onProcedural Matters
12. Atitsfirstmeeting on27February 1996, theCommittee onGovernment Procurement adopted
thefollowing Decisions onprocedural matters: Participation ofObservers intheCommittee; Accession
totheAgreement; andInterim Procedures ontheCirculation ofandontheDerestriction ofDocuments,
Pending Definitive Procedures (GPA/1). These Decisions, which concern, interalia,possibilities
forMembers oftheWTO notParties totheAgreement toparticipate asobservers intheCommittee,
toreceiveCommitteedocumentsandtoaccedetotheAgreement,weretransmittedtotheGeneralCouncil
fortheinformation ofallMembers oftheWTO (WT/L/146). AtitsSeptember meeting, theCommittee
agreed toalignitsprocedures oncirculation andderestriction ofdocuments withthose adopted bythe
General Council on18July1996 (WT/L/160/Rev.1).
13. Atitsmeeting on27February 1996, theCommittee adopted aDecision onmodalities for
notifying threshold figures innational currencies (GPA/1). AllParties havenotified thresholds intheir
respective national currencies fortheperiods 1996-97 andthemethods employed fordetermining them
(GPA/W/12 andAddenda 1-6).
14. Atitsmeeting on4June1994, theCommittee adopted aDecision onProcedures forthe
Notification ofNational Implementing Legislation, including responses toachecklist ofissues
(GPA/1/Add.1). Thissetsatime-limit of31December 1996 forsuchnotifications.
Establishment ofaPractical Guide totheNewAgreement
15. Pursuant toitsdiscussion onthedesirability, thestructure andpresentation ofapractical guide
totheAgreement directed towards theprivate sector, theInterim Committee considered itappropriate
topostpone active consideration oftheestablishment ofsuchaguide inviewofitslinkages withvarious
other outstanding issues, suchastheprocedures fornotifying national implementing legislation and
theuseofinformation technology inprocurement procedures.
Loose-leaf System forUpdating Appendices
16. TheCommittee agreed, atitsmeeting on4June1996, toestablish aloose-leaf system, with
legal effect, toensure thattheAppendices totheAgreement arekeptuptodate. TheCommittee
requestedtheSecretariattoproduceanddistributeanupdatedsetofAppendices,withaviewtoproviding
astarting point fortheloose-leaf system. TheCommittee agreed tomake thisloose-leaf system, once
established, available tothepublic atlarge through theInternet.
Statistical Reporting
17. Article XIX:5 requires Parties tocollect andprovide onanannual basis statistics ontheir
procurements covered bytheAgreement. Withaviewtoensuring thatsuchstatistics arecomparable,
Article XIX:5 requires theCommittee toprovide guidance onthemethods tobeused. TheInterim
Committee established aWorking Group onStatistical Reporting topropose guidelines formeeting
thestatistical reporting requirements ofArticle XIX:5, inparticular inrespect oftheadoption ofuniform
classification systems andmethods tobeusedforproviding statistics onthecountry oforigin ofproducts
andservices.GPA/8
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18. Based onthereport ofthisWorking Group (GPA/IC/8), theCommittee agreed, atitsfirst
meeting on27February 1996, thattherulesoforigin ofproducts usedforthepurposes ofstatistical
reporting inArticle XIX:5 oftheAgreement should bethesame asthose applied under Article IV,
which were those usedinthenormal course oftrade. Asfortherequirement toreport statistics on
theorigin ofservices, theCommittee postponed application ofthisrequirement untilpracticable rules
fordetermining theorigin ofservices hadbeendefined. Atitsmeeting on4June1996, theCommittee
adopted classification systems forgoods andservices tobeusedinstatistical reporting under the
Agreement (GPA/4). Some Parties asserted thattheobjective ofestablishing statistics, i.e.toprovide
informationandenablereviewasregardsobligationsofParties,mightbemoreappropriatelymetthrough
alternative means.
Other Matters
19. Inaccordance withtheprovisions oftheUnderstanding onRules andProcedures Governing
theSettlement ofDisputes (Annex 2oftheWTO Agreement), theCommittee notified theDispute
SettlementBody(DSB)ofspecialoradditionalrulesorproceduresondisputesettlementintheAgreement
onGovernment Procurement, namely Article XXII, paragraphs 2through 7(GPA/5).
III. Work under theBuilt-In Agenda
Information Technology
20. Article XXIV:8 oftheAgreement callsonParties toconsult regularly intheCommittee on
developments intheuseofinformation technology ingovernment procurement and,ifnecessary, to
negotiate modifications totheAgreement itself. Inpreparation fortheimplementation ofthefuture
responsibilities oftheCommittee inregard tothese provisions, theInterim Committee gathered
information ontheuseofinformation technology ingovernment procurement inthevarious Signatories
inreplytoaquestionnaire (GPA/IC/W/4/Rev.1) aswellasthrough discussion intheInterim Committee
(GPA/IC/M/1-6). Thisinformation raised anumber ofpolicy issues concerning, ontheonehand,
issues bothofaccess toprocurement opportunities onon-line databases andelectronic tendering or
commerce and,ontheother hand, questions bothofcooperation between andcoordination ofnational
systems (GPA/IC/W/18). Thework oninformation technology hasfocused ontheneedtoensure
thataccess toprocurement opportunities through theuseofinformation technology takes place ona
non-discriminatory basisandalsoonconsidering whatmodifications, ifany,maybenecessary tothe
Agreement toenable thebenefits ofinformation technology tobeharnessed. TheUnited States, the
European Communities andNorway submitted communications identifying anumber ofareasthatmight
require examination toaccommodate thedevelopments ininformation technology (GPA/IC/W/36,
GPA/W/13 andGPA/W/14). Inaddition theSecretariat prepared acompilation ofissues relating to
theimplicationsofthedevelopmentsofinformationtechnologywhichalsoidentifiedoptionsforcarrying
forward thework inthisarea(GPA/W/15). TheCommittee 'sdiscussion oftheseoptions atitssecond
meeting on4June1996 hadthefollowing outcome. First, theSecretariat revised thequestionnaire
oninformation technology (GPA/IC/W/4/Rev.1) asproposed indocument GPA/W/15 (GPA/W/24).
Second, theSecretariat prepared afactual noteontheaspects oftheAgreement thatithadbeensuggested
might needtobere-examined inthelightofinformation technology, setting outtherelevant provisions
oftheAgreement anddrawing attention toanypertinent information ontheir negotiating history
(GPA/W/25). Third, thedelegation oftheUnited States provided information onthepilotproject
launched intheAPEC framework onaccess tonational databases (GPA/M/3). Fourth, theEuropean
Community, incoordination withNorway, would prepare apaper identifying, interalia,thetechnical
issues relating toinformation technology thatmight needtobeexamined byexperts. TheCommittee
isdeterminedtopursueitsworkoninformationtechnologyexpeditiously,soastoensurethatthebenefits
ofinformationtechnologyareharnessedwhileatthesametimeprotectingand,wherepossible,enhancing
non-discriminatory access.GPA/8
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Three-year Review
21. Article XXIV:7(b) and(c)oftheAgreement callsontheParties, notlaterthantheendofthe
third yearfrom thedateofitsentry intoforce, toundertake further negotiations, withaview to
improving theAgreement andachieving thegreatest possible extension ofitscoverage among allParties
andeliminating anyremaining discriminatory measures andpractices. AttheCommittee 'smeeting
on4June1996, suggestions weremade that,withaviewtofacilitating accession bythewidest possible
number ofcountries andtoadjusting theAgreement tonewly-emerging technologies, suchnegotiations
should beinitiated in1997andcould include thefollowing mainelements: (i)expansion ofthecoverage
oftheAgreement, notably extending ittosectors notpresently covered; (ii)increased security ofmarket
access under theAgreement; (iii)elimination ofdiscriminatory measures andpractices; and(iv)
simplification andimprovement oftheAgreement. Some Parties expressed theview thatfurther
experience withtheoperation oftheAgreement should begained before initiating negotiations aimed
atincreased coverage.
IV. Issues tobebrought totheattention oftheMinisterial Conference
22. TheCommittee hasagreed toundertake anearlyreview, starting in1997withanexamination
ofmodalities, withaview totheimplementation ofArticle XXIV:7 (b)and(c)oftheAgreement.
Thereview will,inparticular, cover thefollowing elements:
- expansion ofthecoverage oftheAgreement;
- elimination ofdiscriminatory measures andpractices which distort openprocurement;
and
- simplification andimprovement oftheAgreement, including, where appropriate,
adaptation toadvances intheareaofinformation technology.
23. Thisreview shallseektheexpansion ofmembership oftheAgreement bymaking itmore
accessible tonon-Parties.
24. Members oftheCommittee notethework under wayunder theCouncil forTrade inServices
ongovernment procurement andtheproposals fortheSingapore Ministerial foramultilateral work
programme ongovernment procurement. TheParties totheAgreement onGovernment Procurement
intend tosupport andactively contribute toanymultilateral work ongovernment procurement that
maybedecided uponbytheMinisterial Conference, without prejudice totheirownefforts toimprove
andextend theAgreement onGovernment Procurement andtoencourage more WTO Members to
become Parties toit.