RESTRICTED  
  
GPA/TN1994/1/Rev.8  
19 April 1999  
(24-2673) Page: 1/35 
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   
 
  
CHECKLIST OF ISSUES RAISED IN INFORMAL CONSULTATIONS  
REGARDING MODALITIES FOR THE REVIEW OF THE  
AGREEMENT ON  GOVERNMENT PROCUREMENT*,** 
Revision  
Table of Contents  
A. AREAS TO BE CONSIDERED  ................................ ................................ .......................  3 
1. Simplification and improvement of the Agreement  ................................ ...........................  3 
(a) General  ................................ ................................ ................................ ....................  3 
(b) General principles in the Agreement  ................................ ................................ .............  3 
(c) Enforcement and monitoring mechanisms  ................................ ................................ ..... 4 
(d) Information technology  ................................ ................................ ..............................  5 
(e) Procurement methods  ................................ ................................ ...............................  10 
(f) Statistical reporting  ................................ ................................ ................................ ... 13 
(g) Article -by-Article review of the Agreement  ................................ ................................ ... 17 
(h) Improving the structure of the Agreement  ................................ ................................ ... 25 
(i) Appendices to the Agreement ................................ ................................ ......................  25 
2. Elimination of discriminatory measures and practices which distort open procurement  .........  25 
(a) General  ................................ ................................ ................................ ...................  25 
(b) Mutually agreed coverage of services  ................................ ................................ ..........  27 
3. Expansion of the coverage of the Agreement  ................................ ................................ . 28 
B. INSTITUTIONAL/PROCEDURAL POINTS  ................................ ................................ .. 30 
1. Work on government procu rement in other WTO fora  ................................ ......................  30 
2. Institutional arrangements for the review  ................................ ................................ ...... 30 
3. Participation of WTO Members in the review  ................................ ................................ .. 30 
4. Next steps  ................................ ................................ ................................ ................  31 
ATTACHMENT  1  INFORMATION TECHNOLOGY SUGGESTED MODIFICATIONS TO THE 
AGREEMENT  ................................ ................................ ................................ ...................  32 
 
* English only.  
** Pursuant to the relevant Decision of the Committee on Government Procurement ( GPA/CD/5  
(16/11/2023)), this document (informal document symbol: gpa93) was derestricted on 8 November 2023 . GPA/TN1994/1/Rev.8  
- 2 - 
  ATTACHMENT  2  TIME -FRAME AND THE WORK PROGRAMME FOR THE NEGOTIATIONS 
UNDER ARTICLE XXIV:7  ................................ ................................ ................................ . 34 
 GPA/TN1994/1/Rev.8  
- 3 - 
  The following attempts to set out points made by Parties to the Agreement in the informal 
consultations held since February  1997 pursuant to the decision of the Committee in its 1996  Report 
to the Ministerial Conference that it would "undertake an early re view, starting in 1997 with an 
examination of modalities, with a view to the implementation of Article XXIV:7(b) and  (c)" ( GPA/8 , 
paragraph  22). 
The list may not be exhaustive and will, of course, need to be amended and updated as further 
discussion develops.  
A. AREAS TO BE CONSIDERED  
1.  The point has been made that the key to the review lies with the issue of simplification and 
improvement of the Agreement and that, if this aspect were to be satisfactorily resolved, then the 
other two elements of the review would also lar gely have been addressed . In this connection, it has 
been suggested that an improved and simplified Agreement would be likely to result in a reduction 
in the number of exceptions to the Agreement and would therefore lead to a more uniform 
application . On the other hand, the point has been made that the work on all three elements of the 
review should be advanced simultaneously and in parallel . The concept of reciprocity had been at 
the basis of the rationale for the present coverage of the Agreement . Therefo re, it could not 
reasonably be expected that a mere improvement and simplification of the Agreement would lead 
to the expansion of its coverage.  
2.  It has been stated that the elements of the review on the elimination of discriminatory measures 
and practices which distort open procurement and on the expansion of the coverage of the 
Agreement were linked in many respects . Since it might be difficult to make a distinction between 
these two aspects, future negotiations on the two issues should be held s imultaneously.  
3.  It has also been stated that the discussion of the review item on discriminatory measures should 
not be made dependent on the discussion of the other two elements of the review.  
1. Simplification and improvement of the Agreement  
(a) General  
4.  It has been emphasized that simplifying and providing greater flexibility to the procedures under 
the Agreement should not lead to a weakening of commitments and thus result in less open markets . 
Rather, simplification should aim at obtaining effective but  more easily applicable disciplines and 
should improve the balance between the advantages of certain requirements and the administrative 
burden of complying with them . Compatibility between the concepts of simplification and effective 
disciplines should be  secured . For example, any flexibility on the requirements on deadlines should 
be accompanied by the elaboration of objective criteria for providing sufficient time for bidding by 
domestic and foreign suppliers.  
5.  With regard to the Committee's stated aim th at the review shall seek the expansion of 
membership by making the Agreement more accessible to non -Parties ( GPA/8 ), the point has been 
made that improving and simplifying the procedural provisions of the Agreement would increase its 
appeal to non -Parties . Simplifying the Agreement would also help in promoting the common 
objective sought by the review of the GPA, of the Working Group on Transparency in Government 
Procurement and of the Working Party on GATS Rules which is to establish a set of rules and 
principles that could ultimately be adopted on a multilateral basis.  
6.  The point has been made that Parties should take into account the costs that may have to be 
borne by procuring entities and suppliers in adapting to new changes in the procedures under the 
Agreement whic h has been in force for only three years . Simplification of the provisions should be 
limited to what is absolutely essential for the purposes of the efficiency of procurement regimes.  
(b) General principles in the Agreement  
7.  It has been suggested that consi deration might be given to whether some provisions of the 
Agreement could be expressed in terms of more general principles  that were widely accepted in 
day-to-day procurement practices such as transparency, equality of opportunities, GPA/TN1994/1/Rev.8  
- 4 - 
  non-discrimination, pr oportionality, competition, liberalization and expansion of world trade . While 
such principles were already included in the Preamble or were implicit in some of the main provisions, 
they should be clearly spelled out as operational principles of general ap plication.  
8.  The following points have been made regarding the application of such principles in the 
Agreement:  
- "proportionality" was an underlying principle in a number of provisions, for example in 
the term "unnecessary obstacles" in Article  VI on Techni cal Specifications and the term 
"within a reasonably short time" in Article  VIII(d) on Qualification of Suppliers . 
Moreover, it was essential that any requirements relating to technical, financial or 
professional capacity of suppliers should be strictly limited to what were necessary and 
justified with respect to the objectives of th e procurement in question;  
- the principle of proportionality might be introduced as one of the objectives of the 
Agreement in the Preamble . However, it might be diff icult to set out clear criteria for 
determining the proportionality of a given procedure to the objective sought . Any 
unclear criteria regarding such principles would constitute an element of legal 
uncertainty;  
- the non -discrimination principle was an exp licit requirement in Article III . On the other 
hand, it might be difficult to incorporate obligations based on the abstract notions of 
competition, liberalization and expansion of world trade in the operational articles.  
(c) Enforcement and monitoring mech anisms  
9.  The point has been made that an approach of providing greater flexibility and more general 
principles may result in the need for a re -examination of the mechanisms aimed at ensuring the 
effective enforcement of the Agreement . There was room for the improvement of the functioning of 
the Agreement by increasing the effectiveness of the existing enforcement mechanisms that 
guaranteed the rights of suppliers . On the other hand, it has been said that a case had yet to be 
made that the greater flexibility in the rules that might be envisaged as a result of the process of 
simplification and improvement of the Agreement that was presently under way would give rise to 
the need for improved mechanisms for enforcement and monitoring . The outcome of the discussio ns 
on the simplification and improvement of the Agreement might show that there was no relationship 
between the two processes.  
10.  The suggestion has been made that Parties should consider to what extent Article  XX on bid 
challenge procedures had been effectiv e in achieving this objective . In addition, or as an alternative 
to, enforcement mechanisms based on the bid challenge procedures under Article  XX and dispute 
settlement procedures between governments under Article  XXII, independent enforcement agencies 
could be established in individual Parties to address allegations of violations of the principles of the 
Agreement by aggrieved suppliers or investigate and monitor the application of procurement rules 
and procedures on their own initiative since suppliers m ight often be reluctant to bring cases against 
procuring entities.  
11.  A note addressing the issue  of enforcement and monitoring mechanisms , in particular in the 
light of the EC's own experience on the enforcement and monitoring mechanisms of public 
procuremen t rules, has been circulated in Job  No. 3871.  
12.  Whether the Agreement should prescribe in detail how government authorities should organize 
their interaction with suppliers has been questioned . It has been said that the establishment of 
independent review bo dies in individual Parties provided for under Article  XX:6 w ould reduce the 
need for any additional procedures in this respect.  
13.  With regard to the suggestion relating to the addition of  add new paragraphs  9 to 11 to 
Article  XX concerning the establishment of independent authorities (see section A.1.(f)), a  view has 
been expressed opposing the addition of such paragraphs . More time was needed for the evaluation 
of the operation of the arrangements under Article  XX which was a new feature of the 1994 
Agreemen t. A case had yet to be made that the current procedures in the Agreement on review, 
consultations and monitoring had not been adequate and that there was need for new requirements GPA/TN1994/1/Rev.8  
- 5 - 
  and additional mechanisms . The fact that only a limited number of cases had  been reported under 
formal challenge procedures did not necessarily mean that the aims of Article  XX had not been 
achieved . It had not been established that suppliers had been ignorant of, or had been intimidated 
from using the procedures available to the m under Article  XX. It has also been said that paragraph  1 
of Article  XX required Parties to encourage the complainant supplier to seek resolution of its 
complaint in consultation with the procuring entity before resorting to challenge procedures . 
Supplier s might have used the route of informal consultations for resolving their disputes with 
procuring entities and promoting mutual understanding and good relationships between them . 
Further views on this matter have been included in a non -paper by Hong Kong, China circulated in 
Job No. 5269. The point has also been made that any further procedures relating to enforcement 
might be perceived as an additional burden by those non -Parties that were considering accession to 
the Agreement . Moreover, the use of inform ation technology as a vehicle for monitoring and 
enforcement should not lead to additional reporting requirements.  
14.  The following have been mentioned as among the other mechanisms which could be envisaged 
to guarantee transparency of procurement proceedings  and accountability of procurement agencies 
and to limit the scope for arbitrary dealings and discrimination in procurement practices : publication 
of a schedule of prices offered which would show whether the contract had been awarded to the 
lowest price bi dder; and a declaration that all complaints, including anonymous complaints, would 
be investigated . It has also been said that the Agreement included provisions relating to information 
on contract prices or the highest and lowest offer that had been taken into account in the award of 
the contract (Article XVIII:1(c)).  
15.  It has been said that transparency through public scrutiny and monitoring by other suppliers 
was more effective in promoting compliance than the institution of additional bureaucratic 
procedur es. 
16.  In this connection, another view has been expressed that a review of the operation of Article  XX 
should be without prejudice to whether or not Parties should consider alternative enforcement 
mechanisms . Another view has been that a layer of obligations  relating to enforcement and 
monitoring mechanisms additional to the challenge procedures of Article XX might deter non -Parties 
considering membership of the Agreement . Other views expressed on the matter have questioned 
the way in which independent mechanisms could operate in Parties with federal governments . On 
the other hand, the point has been made that independent enforcement mechanisms offered the 
possibility of arriving at rapid resolution of disputes and also avoiding the inconveni ence of formal 
court proceedings . Provisions requiring the establishment of such mechanisms would provide an 
additional incentive to non -Parties to join the Agreement.  
(d) Information technology  
 (i) General  
17.  It has been suggested that, in accordance with t he terms of Article XXIV:8, the Agreement 
should be adapted to take into account advances in the area of information technology since the 
conclusion of the Agreement.  
18.  In this connection, it has been suggested that the text of the Agreement should be amended to 
provide flexibility and to clarify any ambiguities with respect to the use of information technology.  
19.  With respect to the Canadian proposal on information technology (Job No. 3887), it has been 
stated that the consideration of specific changes t o existing Articles would be premature before the 
Committee had had a full discussion of the role of information technology.  
20.  The need to continue the information -gathering process in response to the revised questionnaire 
on information technology was refer red to.1 
 
1 Responses to the revised questionnaire ( GPA/W/24 ) were submitted by Norway ( GPA/W/24/Add.1 ), 
Canada ( GPA/W/24/Add.2 ), Korea ( GPA/W/24/Add.3 ), Hong Kong, China ( GPA/W/24/Add.4 ), the European 
Community ( GPA/W/24/Add.5 ), the United States ( GPA/W/24/Add.6 ) and Singapore ( GPA/W/24/Add.7 ). GPA/TN1994/1/Rev.8  
- 6 - 
  21.  It has been said that new obligations in the Agreement regarding the use of electronic 
publications and any requests to acceding countries to undertake commitments in this respect would 
cause them to incur considerable costs . It has also been sai d that, in view of the objective of 
expanding the membership of the Agreement, technical cooperation could be provided to those 
countries that did not have the means to use information technology in government procurement.  
 (ii) Non-discrimination  
22.  It has b een stated that information technology should be accommodated in such a way as to 
enhance rather than undermine the basic objectives of transparency and non -discrimination in the 
Agreement and not to put at a disadvantage the suppliers of actual or potenti al Parties less 
well-equipped in information technology or without adequate links to international networks . 
Concern has been expressed that, unless appropriate safeguards are established, the use of 
information technology in government procurement may lea d to de facto discrimination against 
foreign suppliers . It has also been mentioned that the use of information technology may create or 
widen the gap between entities and suppliers which can effectively operate in the information age, 
and those, in particu lar SMEs, which cannot, thus creating a competitive advantage in favour of the 
former group.  
23.  The point has been made that the non -discrimination aspect of the use of information technology 
should be considered against the background of the existing procedu res and practices under the 
Agreement . The paper -based method of publication and other tendering procedures might also have 
some form of unequal impact on different suppliers . The discussion of this matter should focus on 
the relative discriminatory effect s of introducing information technology . Attention has been drawn 
to the arguments put forward in section 1(c)(iii) below as to why electronic dissemination of tender 
information would be more effective in reaching all interested suppliers than paper -based  methods.  
24.  The comment has been made that the Canadian proposal on information technology 
(Job No. 3887) did not treat the issue of non -discrimination satisfactorily . Any provisions on the use 
of information technology which would allow entities to favour o nly those suppliers who had access 
to information technology would be inconsistent with Articles VI:4 and VII:2 of the Agreement.  
25.  The point has also been made that fears that technical and content -related compatibility issues 
in connection with the use of information technology might lead to de facto discrimination against 
foreign suppliers were largely resolved through the use of the Internet . Nevertheless, Parties' 
willingness to accept electronic bids would proceed at different speeds because of consider ations 
related to security of data transmission issues and feasibility for large and complex bids.  
 (iii) Publication requirements  
26.  The view has been held that procuring entities should be allowed to choose between the use of 
electronic publications and/or hard copy means in order to comply with their publication obligations 
under the GPA . Publication of information on tendering opportunities only through the use of 
electronic media should be sufficient to meet the relevant requirements under the Agreement . It has 
also been said that denying easy access to information on procurement opportunities through the 
use of the most up -to-date publication and dissemination systems would go against the objectives 
of the Agreement of opening procurement markets to competition and fostering transparency . 
Another view has been that any modifications to the Agreement should be limited to provisions 
allowing the use of information technology in parallel with the paper system currently in use.  
27.  It has been said that Artic le IX:1 required publication of tender notices in the "appropriate" 
publication listed in Appendix  II. If electronic publication was considered to be an "appropriate 
publication", there would not be a need for any additional provisions specifically stipula ting the use 
of electronic publications . Appendix  II currently contained references to the websites that were being 
used in some Parties to disseminate tender information . Another view has been expressed 
questioning the use of websites as Appendix  II publi cations.  
28.  It has been said that, whatever the means used, publications should be accessible and 
recordable . The question has been asked whether a website would need to have certain features of 
publications that were essential to the users for instance relat ing to record keeping or legal evidence, 
the core elements of transparency and due process . The point has also been made that more GPA/TN1994/1/Rev.8  
- 7 - 
  conventional means, such as facsimile or CD -ROMs or responses to telephone requests could be 
considered as fail -safe alternat ives for safeguarding the accessibility of procurement information to 
those without ready access to electronic networks..  
29.  Another view has been that the provisions on the use of electronic publications should be set 
out as an option rather than as a requir ement in the Agreement . While the Agreement should not 
exclude the possibility of publishing in hard copy version, it should allow Parties to review the need 
for continuing with paper -based publication, for example for advertising tenders in the area of 
advanced technological systems and information technology.  
30.  Suggestions have been made concerning the provisions of the Agreement relating to publication 
requirements (Article IX on invitation to participate regarding intended procurement) ; Article XI on 
time-limits for tendering and delivery ; Article XVII on transparency ; Article XVIII on information and 
review as regards obligations of entities ; and Appendices  II and III to reflect the practice of electronic 
publication of notices (Job Nos. 3887 and 5211) . These are reproduced in Attachment  1 to this note.  
31.  It has been stated that increased transparency of procurement opportunities was one of the 
main benefits of the electronic dissemination of tender notices . The Internet permitted viewing of 
notices anywhere  in the world, regardless of where those notices may have originated . It has been 
suggested that the Agreement should include provisions requiring Parties to provide, in the GPA 
Appendices, the addresses of any Internet sites that gave procurement opportun ity information in 
their country . This would help suppliers from countries Parties to the Agreement to locate and easily 
access information on procurement opportunities that was currently published electronically . Parties 
should also update and supplement this information as necessary . On the other hand, a view has 
been expressed that providing addresses of Internet sites in the GPA Appendices should not be a 
requirement in the Agreement . In most countries, tender notices were authentic only in hard copy 
form published in a government gazette . With the present technology it was not possible to verify 
the date of appearance of the electronic version of tender notices on the Internet whereas there 
could be no problem in proving the date of publication of the h ard copy form . Another suggestion 
on this matter has been that the WTO Home Page could be used to provide the addresses of sites 
with information on procurement opportunities in individual countries . In this connection, it has been 
said that it might not b e necessary to stipulate such practices in the Agreement itself.  
32.  The point has been made that advances in information technology had the greatest potential 
for achieving efficiency gains in public procurement in the area of the publication of procurement 
opportunity information . Electronic publication would have the following benefits:  
- the timeliness of dissemination of tender notices and documents to all suppliers 
irrespective of their location . Transmission of paper copies of voluminous documents by 
mail were subject to delays which varied depending on the distance . Suppliers saved 
time by receiving information of procurement opportunities on a real -time basis and by 
ordering tender documents instantaneously;  
- the extension of the reach of dissemination  of information to suppliers . The experience 
of Parties showed that the number of suppliers using electronic publications was 
substantially higher than those who subscribed to hard copy publications;  
- the cost -effectiveness of obtaining information . The cost of subscription, downloading 
and printing of electronic publications was significantly lower than the cost of publishing 
and mailing documents in the paper format ; in particular, those suppliers who may be 
interested in only a few specific tendering op portunities per year would not need to 
subscribe to numerous paper publications;  
- the increased rapidity of obtaining information . Searching by word, the code number or 
the date of issue of notices for specific products or services in user -friendly versions of 
electronic publications was less time -consuming and costly than the process of scanning 
through and obtaining hard copy publications on procurement opportunity;  
- the widening of the scope of accessible data . The establishment of links  between tender 
notices and tender documents and any other information relevant to a procurement 
would widen the scope of the information available to suppliers . For example, tender GPA/TN1994/1/Rev.8  
- 8 - 
  notices published in the electronic version of the US Commerce Business Da ily had links 
to the US Federal Acquisition Virtual Library which provided policy guidance and 
information on current trends in procurement procedures as well as data on 
procurement legislation.  
33.  It has been suggested that, in order to ensure continued open  access by all suppliers, Parties 
choosing to only utilize electronic publishing methods should use an electronic system that was 
accessible on the Internet . Alternatively, Parties could use other electronic means as long as they 
provided convenient and un iversal access through a single point of entry, for instance by establishing 
a website that would be linked to several websites . In connection with the use of the Internet it has 
been said that, while the Internet was currently the most widely used means o f electronic 
distribution , a generic term should be used in the Agreement for electronic networks in order not to 
prejudge the selection of the actual mechanism used for electronic transmissions and to allow for 
future evolution of information technology . The relevant provisions in the Agreement should be in 
the form of basic obligations requiring Parties to use the means of publications which, at a given 
point in time, maximized the ease of access to the broadest range of suppliers from the GPA member 
countries. 
34.  In this connection, the view has been expressed that, while information on procurement 
opportunities could be stored in a decentralized manner, there should be a provision in th e 
Agreement requiring Parties to guarantee access to the relevant inform ation in their countries 
through a single point of entry and that the use of electronic means of publication would facilitate 
this. 
35.  It has been said that a requirement to publish tender notices on the Internet would discriminate 
against those Parties who d id not have the necessary resources to maintain two parallel systems, 
especially if publications on the Internet were to be in a non -national language . In addition, a country 
that used a non -western alphabet would have the additional cost of maintaining el ectronic data 
systems in the characters of both alphabets.  
36.  It has been suggested that Parties could be invited to provide addresses of any sites on the 
Internet that give information on procurement opportunities in their countries . There was also a 
need to examine how information was structured in national databases . In this respect, it has also 
been mentioned that some national electronic tendering systems may not cover all procurement 
covered by the Agreement.  
37.  With regard to the question of whether  electronic publications should be accessible to suppliers 
in GPA Parties at minimal or no cost,  it has been said that, in the absence of evidence that the cost 
of using electronic publications represented a true barrier to access, the Agreement should not  have 
provisions regulating the charging of fees for electronic or hard -copy publications . In this connection, 
it has been mentioned that governments had been increasingly devolving the activities relating to 
information technology to private sector servic e providers which might imply that access to tender 
information and documentation would not be free of charge to suppliers . It has been suggested that 
Parties should have the flexibility to consider, having regard to overall policies, whether to charge a 
reasonable fee.  
(iv) Electronic submission and receipt of tenders and other communications 
between the tenderer and the procuring entity  
38.  Suggestions have been made concerning the provisions of the Agreement relating to submission 
of tenders (Article  XIII:1 and Article  IX:6) and to communications between tenderers and the 
procuring entity (Article  X:4) to allow entities to require electronic submission of bids and to allow 
electronic means for other communications (Job Nos.  3887 and 5211 (1997) and Job No.  3842 
(1998)) . These are reproduced in Attachment  1 to this note.  
39.  It has been said that entities could be given incentives to use new technologies, for instance 
those entities that made tender documents available through electronic means at the time of 
public ation of tender notices could be allowed the possibility of using reduced time -limits.  
40.  The view has been expressed that it was premature to consider a requirement to provide all 
tender documents, in particular in the case of complicated works contracts, el ectronically on the GPA/TN1994/1/Rev.8  
- 9 - 
  Internet . Another view was that interested parties could be given incentives to offer on -line access 
to electronic versions of tender documents on the Internet, for example by reducing the required 
deadlines.  
41.  It has been mentioned that technical and content -related compatibility issues for the receipt of 
electronic bids could be resolved, particularly for routine transactions, through the use of the 
Internet . Widely available (and free) readers, such as the Adobe Acrobat Reader, would pe rmit the 
sender and the recipient of a bid to be able to read and, if desired, print information in various word 
processing formats . Using the Internet, "fill -in-the-blanks" bids could be completed on -screen or 
downloaded and email ed by return to the procu ring organization.  
42.  Also, a suggestion has been made that the GPA should not require entities to submit paper 
copies of tender confirmations.  
43.  It has also been said that, for suppliers other than of standardized and off -the-shelf products 
and services, electronic tendering could be more costly and time -consuming where tender 
documents were voluminous since the traditional methods of transmission were less costly than 
downloading and printing them.  
44.  Reference has also been made to legal and techn ical difficulties relating to the electronic 
submission of bids and transmission of documents between the tenderer and the procuring entity 
through public networks . In this connection, it has been suggested that the Agreement should 
contain provisions that  address the use of electronic signatures . The UNCITRAL Model Law on 
Electronic Commerce, particularly Articles 5 -7 relating to the legal recognition of data messages, 
writings and signatures, could provide guidance to revising the GPA in these areas . It has been said 
that such issues as the confidentiality and security of data contents of tenders and the legal effects 
of electronic signatures required careful consideration.  
45.  It has been said that the work that was being carried out under the mandate of Arti cle XXIV:8 
to negotiate modifications to the Agreement in the light of developments in information technology 
was different from the work on possible changes in the tendering procedures under the Agreement 
to reflect new procurement methods . The discussion  of the two topics should be kept separate.  
 (v) Ease of access to databases and use of information tools  
46.  It has been suggested that the ease of access to information sources (including establishing 
links between databases and ensuring interoperability) an d use of information tools (including search 
devices and common nomenclatures) were some of the issues that should be addressed in this area.  
47.  With respect to ease of access to databases, it has been stated that databases generally differed 
in terms of thei r contents as well as their structure . The ease of use of information tools should be 
improved by harmonizing the presentation of information . This would also contribute to ensuring 
interoperability between the various systems . The full benefit of informat ion technology could only 
be achieved if agreement on harmonized standards for coded information could be reached . This 
would facilitate the use of search devices to browse through the information contained in different 
databases . In this connection, it ha s also been stated that it would be necessary to develop tools 
that would make it possible to access databases in different languages . It has also been suggested 
that a harmonized multilingual procurement vocabulary system should be used to describe 
purcha ses, as has been done at European Community level with the CPV (Common Procurement 
Vocabulary) . CPV attributed a nine -digit code to some 6,000 terms commonly used in the 
procurement process . The use of standard terms in the CPV made it easier for potential  suppliers of 
goods and services to understand contract notices and to identify the type of procurement contracts 
that were of particular interest to them . The CPV also helped to establish procurement statistical 
databases . Furthermore, the use of multilin gual CPV in the eleven official languages in the European 
Union and of the standard forms provided in it had facilitated the translation of, at least, the most 
important elements of procurement notices.  
48.  With respect to ease of use of information tools, it has been said that access to essential 
procurement information would become more difficult because of the increase in the number of 
databases . A solution should be found whereby interested suppliers could search for information in 
a multitude of databases through a single search engine, for example one that could be developed GPA/TN1994/1/Rev.8  
- 10 - 
  jointly by the GPA Parties on the WTO website . It has also been suggested that Parties should share 
information on their experience relating to the technical aspects of this matter.  
 (vi) Deadlines  
49.  Some delegations have advocated or indicated their readiness to explore reducing the minimum 
time-periods required in the various stages of the procurement process in order to improve the 
efficiency of the procurement process.  
50.  The point has b een made that any reduction in time -periods should be linked to the time saved 
by using electronic means and should not lead to discrimination against distant suppliers.  
51.  It has also been stated that the rationale underlying the specific deadlines in the GP A 1994 
should be carefully considered before attempting any revision of the relevant provisions . Some 
objective criteria would need to be developed in this respect in order to ensure equal opportunity to 
bid to all suppliers, foreign or domestic . It was al so mentioned that the current deadlines had been 
set up to ensure that bidders were informed of the procuring opportunities well in advance of the 
time for submission of bids . The deadlines in the present Agreement had been extended to 40  days 
from the 30  days set out in the Tokyo Round Agreement on Government Procurement of 1979 . Some 
countries voluntarily extended the deadlines to 50 days.  
52.  Suggestions have been made concerning the deadlines set out in the Agreement (Article  XI) to 
take account of electron ic tender and electronic bid receipt (Job No. 3887) . These are reproduced in 
Attachment  1 to this note . On the other hand, the following points have been made to caution against 
any premature reduction in deadlines:  
- while information technology advances certainly helped to shorten the time for 
submission, publication and dissemination of tender notices and tender documents, the 
time needed to prepare tenders was likely to remain the same in most cases . As long 
as submission by normal mail and electronic t ools coexisted, it may be premature to 
allow entities using electronic transmission the advantage of shorter deadlines ; 
however, the GPA Parties might consider accepting shorter deadlines for pilot projects 
or certain sectors which were especially suitable  for electronic tendering;  
- it may be premature to conclude that information technology could shorten tendering 
deadlines because the time gain arising from electronic transmission of documents could 
be relatively small compared to the total time needed f or the preparation of responsive 
bids. 
 (vii) New issues related to electronic commerce  
53.  It has been stated that a wider use of electronic tools could call into question the traditional 
approach of government purchasing as it opened the way to full electronic tendering or electronic 
commerce between purchasers and suppliers . In addition, new electronic tools provided 
opportunities for purchasing entities to cooperate via the exchange of information, ideas and 
experiences . This option would require fu rther consideration of data privacy and security aspects, 
interoperability of systems, and of legal questions such as the acceptance of digital signatures and 
electronic receipts . The traditional behaviour of contracting entities inviting suppliers to tend er could 
be called into question by new technological opportunities which would facilitate, for example, 
electronic qualification procedures, tendering of framework contracts and the selection of 
off-the-shelf products from electronic catalogues.  
(e) Procurement methods  
54.  It has been suggested that provisions on tendering procedures should be reviewed to 
accommodate the increasing and frequent practices of two -stage tendering and framework 
agreements, including those involving use of electronic catalogue s. On the other hand, the question 
has been asked whether those two types of procurement would not appropriately fit in one of the 
tendering procedures defined in the current text of Article VII . A non-paper on the subjects of the 
use of electronic catalog ues and two -stage tendering has been circulated in Job No.  5295.  GPA/TN1994/1/Rev.8  
- 11 - 
   (i) two-stage tendering  
55.  The point has been made that the provisions on open and selective tendering procedures did 
not cover two -stage tendering as provided in Chapter V, Article 46 of the U NCITRAL Model Law on 
Procurement of Goods, Construction and Services . The main elements of two -stage tendering were:  
- in the first stage, initial tender proposals were invited without a tender price . The 
proposal related to the technical and contractual a spects of the project, as well as the 
track records of the tenderers;  
- in the second stage, those tenderers who had not been rejected as a result of technical 
evaluation were invited to submit final tenders with prices and according to a single set 
of spe cifications.  
56.  The UNCITRAL two -stage tender was constructed to deliberately separate technical evaluation 
from price evaluation, and there may not be any negotiations with any suppliers or any modifications 
of tender specifications throughout the entire ten dering process . In the first stage, a purely technical 
evaluation was done . In the second stage, only those which satisfy the technical evaluation were 
invited to quote their price offers . The price evaluation might be done by a totally different committee  
from the technical evaluation, e.g. the entity may decide that the technical evaluation be done by a 
group of engineering experts, but the price evaluation be done by policy -makers . The two -stage 
tendering method was especially useful for complex projects  where the procuring entity wished to 
separate technical evaluation from price evaluation, e.g. in complex engineering projects, for 
example the building of a nuclear plant . Technical experts were called upon to evaluate and shortlist 
technically acceptabl e tenders, but the final decision would be made by policy makers, taking into 
account the affordability and cost -effectiveness of the proposed tender as well as its technical 
feasibility . Many countries' legislation contained provisions on two -stage tender ing based on the 
relevant provisions of the UNCITRAL Model Law.  
57.  The point has further been made that the two -stage appeared to have some similarities to the 
procedures on negotiations described in Article  XIV of the GPA . Article XIV envisaged negotiations 
arising from the evaluation process when it was apparent that no single tender was obviously the 
most advantageous . On the other hand, the two -stage tendering method under the UNCITRAL Model 
Law was constructed to separate technical and price evaluations . The procedures under this method 
might not involve any negotiations with suppliers or any modifications of tender specifications 
throughout the entire tendering process . The scope of the provisions on negotiations in the Tokyo 
Round Agreement had been expa nded to include the concept of two -stage tendering in the 1994 
Agreement . However, Article  XIV envisaged negotiations arising from the process of evaluation of 
tenders, where it became apparent that no one tender was obviously the most advantageous . It has 
also been said that post -tender negotiations might benefit both suppliers and procuring entities , for 
instance in solving non -price issues such as environmental or safety considerations related to a 
procurement . However, the terms of Article  XIV did not specify whether negotiations should be held 
before tendering, after tendering and before the award of contracts or after the award of contracts . 
The present text of Article  XIV:4(d), which seemed to imply that procuring entities could i nitiate new 
negotiations with the remaining participants would need to be clarified . The point has also been 
made that negotiations under Article  XIV with tenderers should be governed by the basic principles 
of non -discrimination and equal treatment.  
58.  It has also been said that any new tendering procedures to be formulated under the Agreement 
should have the purpose of furthering compliance with the principles of transparency and 
non-discrimination.  
 (ii) framework agreements  
59.  It has been said that procuring entities frequently used framework agreements and other 
purchasing methods based on the state -of-the-art technology developed by private companies . A 
framework agreement was concluded between a contracting entity and one or a limited number of 
selected sup pliers, contractors or service providers for a given period . Its purpose was to establish 
the terms that would govern the contracts to be awarded during that period, for instance the price, 
the quantity and conditions of delivery . Initially, a framework ag reement could be awarded to one 
or more suppliers using, as appropriate, the open, selective or limited tendering procedures under GPA/TN1994/1/Rev.8  
- 12 - 
  the Agreement . Subsequent transactions under that framework contract were carried out by the 
contracting entity, as and when its purchasing needs arose . If contracting entities had awarded a 
framework agreement, at an initial stage, on the basis of competitive tendering procedures, a call 
for competition was not compulsory when contracts were awarded on the basis of that agreeme nt 
at a later stage . Individual transactions that occurred under framework contracts should not be 
considered as procurements within the meaning of Article  I:2 of the GPA . However, entities should 
apply the principles of competition and due proces s in hand ling individual procurement contracts . 
The main purpose of using framework agreements had been to accelerate the procurement process 
and to provide flexibility . This type of procurement allowed the reduction of deadlines in day -to-day 
procurement, in parti cular for purchases of off -the-shelf products and certain standardized services.  
60.  The view has been held that the use of framework agreements was consistent with the rules 
and principles in the Agreement concerning non -discriminatory access and no new provi sions would 
be necessary to accommodate their use . Another view has been that framework agreements should 
not be used in a way that defeated the objective of opening procurement markets to competition 
from suppliers in all GPA member countries . The fundame ntal issue in this respect was how to ensure 
non-discriminatory, fair and equitable treatment of all listed suppliers as well as the application of 
conditions of competition to individual procurement opportunities under such contracts.  
61.  It has also been sai d that Article  II:4 might need to be revised in order to provide for the 
valuation of framework contracts . The point has been made that the maximum value specified in 
the framework agreement might be considered as the contract value for the application of 
thresholds.  
62.  It has also been said that purchasing though electronic catalogues under limited period contracts 
could be considered as a type of framework agreement.  
63.  It has been suggested that the conditions of application of framework agreements in individu al 
GPA Parties should be further clarified.  
 (iii) use of electronic catalogues  
64.  It has been said that, based on practice in the private sector, there appeared to be two main 
modes of purchasing through electronic catalogues:  
- a commercially run website se rvice which grouped all suppliers of similar equipment 
together and allowed a procuring entity to search for the best price . The site essentially 
operated like a supermarket whereby similar products and services were grouped 
together and presented to the c ustomer . For example, if a procuring entity wished to 
buy computer modems, the desired capabilities were searched . Products that fitted the 
criteria could be presented in increasing order of price . Alternatively, the entity might 
browse through the entire electronic catalogue . The main critique of this electronic 
catalogue approach was that suppliers who were not listed in the catalogue were 
excluded from the procuring entity's search;  
- the procuring entity or a group of entities might call for period cont racts and operate an 
evaluated shortlist of suppliers . For example, the government central procurement 
office could call open tenders for airline tickets, photocopiers, computer equipment and 
the like . Several suppliers could be shortlisted . But because th e product changed from 
time to time, e.g. air travel, the several shortlisted suppliers were invited to quote the 
price for air travel by the entities each time a procurement was made . The evaluation 
of the shortlisted suppliers was done through open tende r, but the individual quotations 
within the period of the contract were limited to the shortlisted suppliers . At the end of 
the period in question, a fresh open tender was called, and the individual quotations 
within the new period were again limited to th e successful shortlist of suppliers.  
65.  The question has been asked whether procurement through electronic catalogues belonged to 
the category of open tender procedures, in which all interested suppliers may submit a tender ; or 
selective tendering procedures,  in which shortlisted suppliers were invited to do so . It might well 
turn out that the current formulation in the GPA did not sufficiently cover the ground . In this respect, 
it has also been said that the use of electronic tendering, by itself, might not n ecessarily require a GPA/TN1994/1/Rev.8  
- 13 - 
  re-evaluation of the types of tendering procedures broadly described in Article  VII. Some of the 
questions with respect to the use of new technologies related also to traditional ways of procuring . 
The use of electronic catalogues in procurement might fall under open or selective tendering 
methods.  
66.  A question has been asked whether electronic catalogues were used mainly for low -value 
procurement . If this were to be the case, use made of electronic catalogues would fall la rgely outside 
the scope of the Agreement . In this connection, it has been said that, while the value of individual 
items purchased from electronic catalogues might be relatively low, total values would be substantial 
if a series of items was purchased on a  regular and frequent basis from the suppliers listed in 
commercial catalogues . The point has also been made that the issue of recurrent contracts would 
be relevant to the use of electronic catalogues in procurement . Another point has been that 
commerciall y run website services appeared to relate to direct purchasing under Article  XV rather 
than to open competition.  
(f) Statistical reporting  
 (i) General  
67.  It has been said that statistical reporting was an area where simplification and streamlining of 
require ments should be considered . The statistical requirements under the Agreement were unduly 
complex, time -consuming, burdensome on both Parties and individuals and costly, notably because 
of the expansion of the coverage of the new Agreement . They were seen t o be disproportionate to 
information to be derived from the statistics and in terms of the actual benefits to individual 
purchasers and suppliers . On the other hand, the point has been made that statistical reporting was 
an essential tool for enhancing tra nsparency and monitoring compliance by Parties with the 
obligations of the Agreement . Moreover, statistical reporting provided a useful information basis to 
suppliers and purchasers on the functioning and development of public procurement markets . In any 
amendment of the existing requirements, Parties should try to strike a balance between the 
advantages of having less onerous requirements and the disadvantages of de facto providing for 
less transparency.  
68.  Non-papers on this topic have been circulated in Job  Nos. 5212 (in 1997), 3246, 3855, 3869 
and 5269 (in 1998) . A note by the Chair, attempting to present a draft revision of the text of 
Article  XIX:5(a), together with the comments made on that draft at the informal consultations held 
in February  1999, was c irculated in Job  No. 2108, dated 13  April 1999.  
 (ii) Creating greater flexibility in GPA statistical reporting  
69.  It has been suggested that, in order to help reduce the administrative burden on Parties in 
collecting statistical data and producing reports to the Committee on Government Procurement, the 
Agreement should permit greater flexibility in terms of the manner in which statistical data were 
reported . Increased flexibility would allow Parties to submit reports that more closely conformed to 
each Party's domestic procurement reporting practices for collecting and reporting public 
procurement statistics, thereby reducing the administrative burden of preparing reports . Areas in 
which increased reporting flexibility might be considered included:  
- permitting Parties to submit GPA statistical reports on a fiscal rather than a calendar 
year basis ; or 
- allowing Parties to report aggregate annual obligations per contract rather than the total 
value of contracts awarded, considering that the duration o f many contracts was longer 
than one year.  
70.  It has also been suggested that Parties should explore further flexibility in the reporting of 
statistics for Annex  2 entities based on experience during the first years of implementation of the 
GPA. Given the dec entralized nature of these procurement systems for many Parties, consideration 
could be given to not requiring a specific format for these statistics.  GPA/TN1994/1/Rev.8  
- 14 - 
  71.  The point has been made that any measures permitting variation or flexibility in statistical 
reporting, h owever, should ensure a sufficient minimum level of statistical reporting by all Parties . 
Parties must continue to submit statistical data that are comparable in scope and breadth.  
72.  Finally, it has been suggested that Parties wishing to vary the manner in w hich they report 
statistical data to the Committee under the Agreement should be required to provide written 
notification to the Committee, and, in the absence of any objection within 30  days, the variance 
would become effective.  
(iii) Statistics on the es timated value of contracts awarded (Article XIX:5, 
subparagraph  (a)) 
73.  The point has been made that the Committee had so far not devised any method for estimation 
in accordance with the provisions of Article  XIX:5, subparagraph  (a) which required entities li sted in 
Annex  1, i.e. central government, to report on the estimated value of contracts awarded both above 
and below the threshold value . Until a proper method for such estimation was prescribed, both with 
respect to reliability and efficiency, reporting a ccording to this provision would not be consistent 
between Parties . The relevant provisions of Article  XIX:5(a) should be discarded or, alternatively, 
be amended to cover only procurement above the threshold value for Annex  1 entities . On the other 
hand, i t has been said that these types of statistics were necessary for the assessment of Parties' 
compliance with the Agreement . It has also been said that participants might also provide statistics 
on small value procurement, for example regarding procurements  using electronic catalogues or 
purchase cards.  
74.  Another suggestion has been that the Agreement should include an exception for procurements 
of very small value (a de minimis  exception) to the Article XIX:5(a) requirements that statistical 
data for Annex  1 entities must be provided for tenders below GPA thresholds . Such a de minimis  
exception would eliminate Annex  1 reporting requirements for procurements below an agreed -upon 
amount . This would be likely to ease the administrative burden on Parties, as many Parties may not 
ordinarily collect detailed statistical information on small -value procurements . Moreover, data on 
these smaller procurements tended to be less relevant to the underlying purposes of reporting 
statistical information under the Agreement, including the aim to achieve greater transparency and 
also to further GPA compliance monitoring efforts.  
 (iv) Uniform classification systems (Article XIX:5, subparagraph (b))  
75.  It has been suggested that the classification for statistical reporti ng should be done by standard 
customs classification, CPV classification or similar widely used standards . As most contracts covered 
several different products, a uniform and efficient method for dividing contract value according to 
different product categ ories would provide enhanced consistency of reported procurement.  
76.  On the other hand, it has also been said that Parties should be allowed to report statistics in 
other types of nomenclatures than that established under the GPA, for instance in the nomencla tures 
of the reporting countries, if the reporting was done only at the two -digit level (major category 
groups) accompanied by a description of those groups.  
77.  With regard to uniform classification systems, the point has also been made that, for the time 
being, it was very difficult to provide statistical reports based on the classification systems adopted 
for goods and services (the 26 product categories and the UNCPC) because no table of 
correspondence with the Common Procurement Vocabulary (CPV) existed . But this situation should 
soon disappear with the publication of a new CPV in 1998 and the possible establishment of a table 
of correspondence between the CPV and the other two uniform classification systems.  
(v) Contracts awarded under limited tendering pr ocedures (Article  XIX:5, 
subparagraph  (c)) 
78.  With regard to statistics relating to categories of entities in Annexes 1, 2 and 3 falling under 
each of the cases of limited tendering permitted under Article  XV, the point has been made that the 
obligation to re port on procurement by each procedure seemed to be too burdensome . Under 
ordinary circumstances, the share of total procurement accounted for by limited tendering 
procedures would be rather low . In any event, the information provided under this provision w as GPA/TN1994/1/Rev.8  
- 15 - 
  inadequate in that it did not provide elucidation of the legality of the application of the limited 
tendering procedure employed in each case . It has been suggested that this provision should be 
simplified limiting the requirement to the provision of st atistics:  
- on the number and the total value of contracts awarded in all cases where limited 
tendering was used, rather than having a breakdown under each case in which limited 
tendering was permitted under Article XV . This would also enable the protectio n of the 
confidentiality of commercially sensitive information;  
- to two categories in Article  XV relating, respectively, to contracts awarded for reasons 
of extreme urgency in terms of paragraph  (c) and to additional deliveries in terms o f 
paragraph  (d). A third category of statistics would report on contracts awarded under 
all other conditions specified in Article  XV. 
79.  Another suggestion has been to replace this provision by a provision allowing Parties to request 
additional information with respect to spe cific contract awards under limited tendering procedures 
in any other Party . In connection with this suggestion, it has been said that Article  XIX:3 already 
allowed Parties to request such information.  
 (vi) Statistical reporting of derogations (Article XI X:5, subparagraph (d))  
80.  It has been suggested that there should be no requirement to report procurement under the 
derogations to the Agreement referred to in Article  XIX:5(d) . The following have been mentioned as 
reasons for the deletion of subparagraph (d) : the provision was difficult to understand for those who 
were unaware of the context of derogations and was also difficult to comply with and monitor ; the 
requirements to provide statistics on derogations were not cost effective ; and the advantages of 
publication of such information were limited.  
81.  In this connection, it has also been said that, if such reporting requirements were to be 
continued, Parties should reach a common understanding on what was meant by the term 
"derogations" for the purposes of stat istical reporting . It has also been stated that the provision of 
these types of statistics was essential for transparency purposes.  
 (vii) Provision of statistics on the country of origin of products and services  
82.  It has been said that information on the co untry of origin of supplies has been considered to be 
important, for instance in the context of national procurement policy considerations . Nevertheless, 
the requirements in Article XIX:5 should be eliminated because the accuracy of such information, 
mainl y based on entities' declarations, was doubtful . Moreover, such information could be 
misleading, particularly in respect of technologically advanced industries, where components and 
equipment were usually produced and assembled in several different countri es. 
 (viii)  Reporting in national currency  
83.  The point has been made that it had been the practice under the GATT Agreement on 
Government Procurement to report statistics based on Special Drawing Rights (SDRs) . Permitting 
GPA Parties to submit statistical re ports in national currencies rather than SDRs would help ease the 
administrative burden on Parties of converting data into SDRs . In fact, Parties might find statistical 
data prepared in national currencies to be more useful than information provided in SDR s. Parties 
should list a conversion rate into SDRs in their statistical reports . In this connection, the comment 
has been made that statistical reports should be comparable for each Party over time and between 
Parties . Computer programs were now available for the conversion of values expressed in national 
currencies into SDRs.  
 (ix) Additional areas where statistical reporting may be useful  
84.  The point has been made that Parties were not currently required to report to the Committee 
on the total amount of government procurement (both GPA and non -GPA) taking place under each 
of the Annexes . This was an area where statistical reporting would be useful, but would only slightly 
increase administrative demands on Parties.  GPA/TN1994/1/Rev.8  
- 16 - 
   (x) Encouraging timely reporting of sta tistical data  
85.  The point has been made that the Agreement currently only required that each Party submit 
procurement statistics on an annual basis and did not set a deadline for the submission of statistical 
information . Under the GATT Agreement on Governme nt Procurement, which also did not contain a 
deadline for the submission of statistical reports, it often took as long as two years following the end 
of a reporting period for Parties to submit statistical reports . It has been suggested that, with the 
objective of ensuring that statistical data were disseminated in a fashion that preserved their 
usefulness, GPA Parties should be encouraged to submit reports on a timely basis . It has been said 
that 12  months following the end of a Party's reporting cycle  would generally be a reasonable period 
of time for submission of statistical data.  
 (xi) The use of information and communication technology  
86.  The point has been made that more complete statistical data on public procurement could be 
obtained by utilizing t he advantages offered by Information and Communication Technology (ICT) . 
It has been suggested that Parties should be able to obtain, under specified conditions, a general 
waiver from all the statistical reporting requirements, or a more specific waiver wh ich only covered, 
for example, Annex  1 entities . This waiver should only be granted if certain conditions were met by 
the alternative system being used:  
- Parties should be required to operate a system which enabled interested Parties to 
access data on awa rded contracts through one single entry point;  
- the data provided should include information on at least the following : price information 
(provided confidentiality of commercially sensitive information was ensured) ; type of 
contract authorities ; contracto r's country (or subcontractor) ; number of offers received ; 
type of contract or categories of products or services ; award procedure chosen (open 
or limited) ; date of award of contract ; and date of publication of tender notice;  
- the waiver might be extended  only to those levels of government entities that provided 
their statistical data through ICT systems.  
87.  It has been said that providing statistical data through the existing ICT systems, without having 
to go through formal procedures, would greatly improve statistical reporting . It has also been said 
that information posted on individual websites, that could be extracted and collated through the use 
of ICT systems, could be made accessible through one single entry point . Under ICT systems 
statistical data wo uld not need to be collected in a particular format . Rather, any interested party 
would be able to interrogate different databases and develop a statistical report by using the 
parameters that were of particular interest, for example relating to the number  of award of contracts 
during a period, average value of contracts, etc.  
88.  The point has been made that any the data obtained by using ICT systems should have a 
common basis with the data that must be reported under the requirements of the Agreement in 
order  to enable comparisons o f the data supplied by different Parties . In this connection it has been 
said that the use of a standard notice by entities for storing information in databases would facilitate 
comparison of data across countries . It has also been said that the use of ICT systems should not 
lead to further reporting requirements.  
89.  The European Community has been invited to present a more specific proposal on the matter.  
 (xii) Other issues relating to statistical reporting requirements  
90.  In order to en sure the effective implementation of the requirements in Article  XIX:5, the 
following suggestions have also been made:  
- the information content of statistical reporting requirements should be uniform among 
Annexes 1 -3; 
- a commonly accepted format for sta tistical reporting should be developed;  GPA/TN1994/1/Rev.8  
- 17 - 
  - statistics should be submitted in a WTO language;  
- the possibility of using statistics on total public procurement from national accounts 
should be considered;  
- the availability of statistics on government procur ement on the Internet would be useful 
to civil society as well as to governments.  
(g) Article -by-Article review of the Agreement  
(i) General  
91.  The desirability of simplifying some of the substantive rules of the Agreement and providing 
greater flexibility wh ere possible under those rules has been widely stressed . It was suggested that, 
in doing this, Parties should consider to what extent the provisions of the current Agreement actually 
contributed towards achieving its objectives.  
92.  It has been said that in the review of the Articles of the Agreement, consideration should be 
given to the adaptation of the contents of specific provisions to take account of the experience gained 
during the application of the Agreement, as well as practical changes in government  purchasing . 
One element of such adaptation is the simplification and improvement of the procedural rules . This 
comprised the clarification of rules that had shown to be ambiguous . Furthermore where the ways 
and means of purchasing had changed Parties should examine the adaptation of the rules.  
 (ii) Individual Articles  
Preambular paragraphs  
93.  It has been suggested that the relationship between GATT Article  III:8(a), GATS Article  XIII and 
the plurilateral Agreement on Government Procurement should  be spelled out.  
Article  I 
94.  It has been suggested that Article  I might contain a definition of the term "government 
procurement" including what is meant by "government" for this purpose.  
paragraph 1  
95.  It has been suggested that footnote  1, which contained wor ding relevant to the interpretation 
of the obligations under the Agreement, should be made part of the main text of paragraph  1. This 
would specify the coverage of the Agreement in a more direct way . In this connection, the point has 
been made that the ter m "as specified in Appendix  I" reflected the negotiated understanding 
concerning the reciprocity -based coverage of the Annexes to Appendix  I. 
paragraph 2  
96.  It has been suggested that this paragraph should also include a reference to forms of 
procurement unde r new phenomena (partnerships between private and public sectors, multiplication 
of "Build Operate Transfer" (BOT) operations and joint ventures), which were difficult to classify 
under the structure of the current Agreement . On the other hand, a view has been expressed 
cautioning against any extension of the scope of the Agreement involving these types of phenomena.  
paragraph  3 
97.  The point has been made that there was scope for improvement and clarification in the language 
of this paragraph.  
98.  Suggestions have  also been made that the review of Article  I should be taken up with Appendix  I 
and that Appendix  I should be reviewed on the basis of a negative list approach.  GPA/TN1994/1/Rev.8  
- 18 - 
  paragraph 4 and footnote 1  
99.  It has been suggested the relationship between paragraph 4 and footn ote 1 relating to 
thresholds should be examined . The question has been asked whether relevant thresholds should 
continue to be specified in each Party's Appendix  I or whether the applicable thresholds values 
should be specified in paragraph 4.  
Article  II 
100.  It has been said that purchasers in the private sector had the practice of maintaining open 
running contracts with several suppliers instead of awarding a contract to a single supplier . A master 
contract signed initially with several suppliers did not speci fy a value . Purchasers subsequently 
proceeded with the procurement by ordering from electronic catalogues . With the application of 
information technology, government entities might use this method of purchasing more commonly . 
This might present some ambigu ity in the valuation of contracts under the Agreement.  
paragraph 1  
101.  It has been suggested that footnote  2 be amended to read:  
"This Agreement shall apply to any procurement contract for which the contract value 
is estimated to equal or exceed the threshold at the time of the publication of the notice 
in accordance with Article IX and at the time of first contact with the supplier  in the case 
of limited tendering ." 
102.  It has also been suggested that the language of footnote  2 should be aligned with that of 
Article  I:4 on threshold values.  
paragraph  4 
103.  It has been suggested that the provisions of the Agreement on valuation of contracts might 
need to be amended to take account of framework contracts and the use of new technologies in 
procurement which allowed procuring entities to slice up contracts . Individual transactions or 
contracts with values below the relevant threshold values resu lting from such practices should also 
be subjected to the Agreement so as not to limit its coverage.  
Article  III 
paragraph 2, subparagraph (a)  
104.  The point has been made that the term "foreign affiliation or ownership" seemed to apply both 
to Parties and non-Parties to the Agreement . It has been suggested that the consistency of the scope 
of this provision with that of Article  III, paragraph  1, should be reviewed . In this connection, the 
point has also been made that certain Parties treated an established supplier as a domestic supplier 
regardless of its affiliation or ownership.  
Article  IV 
paragraph  1 
105.  The point has been made that the need for any changes should be considered in the light of 
the results of the work programme for the harmonization of rules o f origin for goods and the 
negotiations regarding trade in services . It has been suggested that the issue of rules of origin of 
services should be taken up in the discussion concerning the extension of the Agreement to services.  
Article  V 
106.  It has been sugge sted that Article  V on Special and Differential Treatment for Developing 
Countries should be updated and simplified, for example by providing further flexibility in the 
evaluation of offers from developing countries with respect to non -discriminatory treat ment and in GPA/TN1994/1/Rev.8  
- 19 - 
  the application of the procedural provisions . The issue of granting non -reciprocal access to 
developing countries to procurement markets of Parties might be among the areas that could be 
explored . The provisions should also be improved to take into account the specific interests of 
developing countries and to give developing countries additional incentives to join the Agreement . 
It has been suggested that the provisions on technical cooperation should be extended to take 
account of the need s of developing countries to adjust to new developments in application of 
information technology to government procurement.  
107.  Moreover, observers have been encouraged to contribute on this provision in particular.  
Article VI  
108.  It has been said that the inclusi on of basic principles of non -discrimination or promotion of 
competition in the main provisions of the Agreement would make this Article more clear.  
109.  A comment has been made suggesting a rearrangement of the location of Article  VI in the text 
of the Agreeme nt in order to reflect the close association of the provisions on technical specifications 
with those on tender documentation.  
paragraph  1 
110.  It has been said that the meaning of the term "unnecessary obstacles to international trade" 
should be clarified.  
paragraph  2, subparagraphs (a) and (b)  
111.  It has been suggested that there should be a hierarchy between paragraphs  (a) and  (b) since 
the provisions of subparagraph  (a) should be the rule and those of subparagraph  (b) the exception.  
paragraph  3 
112.  A view has been e xpressed that the prohibition in this paragraph against requiring or referring 
to a particular trademark or trade name did not take into account the realities of procurement 
practice . Another view expressed has been that the underlying principle was import ant and should 
be kept.  
Article VII  
paragraphs 1 and 2  
113.  It has been suggested that paragraphs  1 and  2 should be separated from paragraph  3 
describing the types of procurement procedures and be placed in an article addressing the general 
principles of procur ement.  
paragraph  2 
114.  It has been suggested that the term "precluding competition" should read "negatively affecting 
competition".  
paragraph  3 
115.  It has been suggested that the Agreement needed to be clearer about which of its procedural 
provisions apply to whic h tendering method as defined in Article  VII:3.  
116.  It has also been suggested that the provisions on tendering procedures should be reviewed to 
accommodate the use of two -stage tendering and electronic catalogues . On the other hand, the 
point has been made th at no modifications were required to this Article to accommodate the use of 
new procurement methods.  GPA/TN1994/1/Rev.8  
- 20 - 
  Article VIII  
117.  It has been said that the rules in Article  VIII on qualification of suppliers were either of general 
application (for instance, paragraph (b)) or related to the establishment of permanent lists of 
qualified suppliers . The text should be revised in order to separate these two types of rules.  
paragraph  (b) 
118.  It has been said that ways should be found to reduce administrative burdens on  suppliers, 
particularly SMEs, regarding the procedures for the proof of their technical, financial and commercial 
capacity.  
Article IX 
119.  The point has been made that there was a need for clarification of certain terms in this Article, 
for instance "invitati on to participate for all cases of intended procurement", "notice of proposed 
procurement", "notice of planned procurement" and "notice regarding a qualification system" . The 
Committee has been advised that the delegation of the United States expects to prepare a non -paper 
on this point.  
paragraph  2 
120.  It has been said that this paragraph should specify clearly that Annex  1 entities had an 
obligation to publish a notice containing the types of information as provided for in paragraph  6. The 
presen t use of the word "may" might be interpreted to suggest otherwise.  
paragraphs 3 and 9  
121.  It has been said that the use of notices regarding qualification systems as invitations to 
participate should be clarified . Because the use of permanent lists of qualifie d suppliers might lead, 
in some cases, to the formation of a closed circle of suppliers, those suppliers who had not been 
inscribed on those lists should have the possibility of participation in the intended procurement.  
122.  It has also been said that the prov isions on publication of tender notices made a distinctio n 
between entities in Annex 1 and entities in Annexes 2 and 3 with respect to invitation to tenders . 
The use of a notice of planned procurement as an invitation to tender wa s authorized only for 
Annexes 2 and  3 entities . It has been suggested that entities at all levels of government should be 
able to us e all methods of invitation to tender.  
123.  It has also been suggested that the provisions in this Article should be restructured . For 
instance, the provis ions of Article IX:8 on publication of a summary notice in a WTO language should 
follow the provisions of Article IX:1 on publication of an invitation to participate.  
124.  It has been said that further flexibility should be provided in the procedures on the use  of a 
notice of planned procurement . The use of such notices would allow entities to make use of the 
state-of-the-art purchasing methods . For instance, entities might maintain such notices accessible 
in the electronic databases for the entire period of val idity of the lists.  
Article  XI 
paragraph  2 
125.  It has been said that the Agreement, rather than prescribing fixed deadlines that applied to all 
types of procurement, should allow procuring entities to decide the time -periods for the submission 
of tenders, havi ng regard to the nature of the tender and other considerations, including the urgency 
of the procurement . The time required for the submission of tenders might vary considerably 
according to the complexity of the procurement and it was in the interest of t he procuring entity to 
allow reasonable time -limits for the preparation of responsive bids . It has therefore been suggested 
that, instead of stipulating minimum time -periods that applied to all types of procurement, Article  XI 
should have a provision stati ng the principle that reasonable time must be allowed for the 
preparation and submission of bids by all potential tenderers, including geographically distant GPA/TN1994/1/Rev.8  
- 21 - 
  tenderers . On the other hand, a statement has been made expressing reservations regarding the 
elimination of the requirements on fixed time -limits . The proposed substitution of the existing 
provisions on deadlines would not provide a legally predictable environment to procuring entities . 
Procuring entities might run the risk of being challenged by supp liers based on how they applied the 
subjective notion of "reasonableness" in time -limits . It has been suggested that the requirements in 
paragraph  3 could be made less rigid by including additional circumstances in which a reduction in 
the existing minimum  time-limits may be warranted . For instance, the deadlines in the Agreement 
might be reduced when information technology had been used to provide tender information.  
Article XII  
126.  It has been suggested that this Article should contain references to the use o f information 
technology in the communications between the procuring authority and the tenderers.  
Article XIII 
paragraph  1(a) 
127.  It has been suggested that Article  XIII:1(a) should be amended in the light of the increasing 
use of electronic means of communication.  
128.  A view has been expressed that electronic means of communication should not have to be 
used in parallel with paper -based systems . While, initially, procuring entities might choose to use 
electronic tendering in parallel with paper -based syst ems, provisions should be made allowing all 
tenders for a particular type of product to be submitted electronically in the future . The need for a 
paper -based system would mostly be confined to the purchase of basic commodities and 
low-technology products . For example, suppliers of computer hardware and software or of 
sophisticated medical and telecommunications equipment were already fully capable of submitting 
tenders by electronic means.  
129.  A further view expressed has been that any new provisions, while ena bling entities to use 
electronic means of communication, should not permit them to reject a priori otherwise competitive 
tenders only because they were submitted by suppliers using a paper -based mode of delivery . The 
use of electronic tendering should not lead to discrimination among suppliers with varying degrees 
of technological advance in the use of information technology.  
130.  It has been said that, while electronic modes of communication were tools for increasing 
efficiency and productivity in procurement p rocesses, electronic tendering could not be made 
mandatory in the present state of technology . The experience of the private sector had shown that 
it was impractical to transmit large documents through electronic means . In this connection it has 
been said that a single format document could be used to submit tenders rapidly and efficiently 
through electronic means whereas any substantive information could be transmitted in a 
paper -based format.  
131.  Another concern that has been raised related to the interface between electronically 
transmitted documents and national legal systems for the settlement of disputes . It has been asked 
whether electronically transmitted documents had the same legal value as paper -based documents 
under national judicial syste ms. Safeguards should be devised to ensure that electronically 
transmitted documents that would have evidentiary value in an eventual dispute would not be 
modified.  
132.  Section 1(c)(iv) of the present note is also relevant to the review of Article XIII:1.  
paragraph 4, subparagraph  (b) 
133.  It has been said that the reference to "specific evaluation criteria" in this subparagraph should 
be clarified in the light of the relevant terms in Article  VIII(b) which emphasized that any conditions 
for participation in tenderi ng procedures should be limited to those which were essential to ensure 
the firm's capability to fulfil the contract in question.  GPA/TN1994/1/Rev.8  
- 22 - 
  Article XIV  
134.  It has been said Article  XIV should be modified in the light of the practice of post -tender or 
even post -contract award negotiations between procuring entities and tenderers.  
135.  It has also been said that this Article could be combined with Articles  VII and X on tendering 
procedures.  
Article  XV 
Paragraph 1(b)  
136.  It has been suggested to add the words "or group of suppliers"  after "a particular supplier" in 
order to address the circumstances where the products or services were supplied by a limited number 
of suppliers, for instance by those holding exclusive rights such as patents and copyrights.  
paragraphs  1(h) and 1(i)  
137.  It has been said that the question of the Agreement's coverage of procurements through 
commercially run websites should be examined in the light of the provisions of paragraphs  (h) and  (i) 
of Article  XV relating to direct purchasin g under certain conditions.  
paragraph  1(k) 
138.  It has been said that the present terms of Article XV did not adequately cover the various 
circumstances under which limited tendering might be justified . Public sector purchasers might 
sometimes have to satisfy t heir end -users, on behalf of whom they procured, and who might have 
confidence only in a limited range of brands, in particular, for purchases related to life -preserving 
equipment, essential medical treatment or operation of emergency services . They might also find it 
easier to use a single brand of equipment, for example regarding specialized vehicles, in order to 
simplify their needs related to spare parts, maintenance and training . Also, it might not always be 
easy to determine the required quality throu gh technical specifications . The problem was 
compounded as it was not always possible to determine the reliability of alternative brands by 
objective tests prior to the award of a contract . While end -users should not have an unlimited choice, 
their legitim ate preferences based on their working experience, for example in the case of divers' 
equipment, might need to be respected . Under such circumstances, the use of limited tendering 
might be preferable since more competitive tendering procedures might involv e the application o f 
biased technical specifications or evaluation criteria . It has been suggested, therefore, that the 
following subparagraph should be added to the list of exceptions to open and selective tendering 
procedures:  
"(k) where end -users have s pecified strong technical or professional preferences for 
using particular suppliers, and are able to support their preferences on sound technical 
or professional reasons . These suppliers should demonstrate that they are able to meet 
the requisite quality standards and delivery schedule over the terms of the contract."  
The proposed additional subparagraph would provide the purchasing department with the greater 
flexibility needed to undertake limited tendering when circumstances arose where not all of the 
conditions open tendering had not been met and which were not covered by the present terms of 
Article  XV. A non-paper explaining the concerns that the proposed amendment to ArticleXV:1(k) 
sought to address was circulated with Job No.  4. 
139.  In connection with t he suggestion to add a subparagraph (k) to Article XV, it has been said 
that any such amendment might lead to misuse of limited tendering procedures . A view has been 
expressed cautioning against any additional exceptions to the use of open and selective te ndering 
and also against the use of any subjective criteria, such as the reliability of suppliers, in this 
connection . The purchasers' selection of specific brands or trade names might involve discriminatory 
practices . The point has also been made that a n ew subparagraph, if motivated by the need to allow 
entities to refer to a brand name that were perceived by end -users as having a better quality, would 
be inconsistent with the provisions of Article VI:3 . The present provisions of the Agreement were 
suffic ient to deal with the situations described in the proposal.  GPA/TN1994/1/Rev.8  
- 23 - 
  Article XVII 
140.  It has been said that this Article should be simplified.  
Article XIX  
subparagraph  5 
141.  The discussion of statistical reporting is reflected in section A.1.(e) of the present checklist . A 
note by the Chair attempting to present a draft revision of the text of Article  XIX:5 on that basis  and 
the various comments made on that draft text at the meeting held in February  1999 was circulated 
as Job No. 2108, dated 1 3 April 1999. 
Article  XX 
142.  As a basis for further discussion, a suggestion has been made to add new paragraphs  9 to 11 
to Article  XX concerning the establishment of independent authorities which would read as follows:  
"9. With a view to ensuring effective implementation and operation of this Agreement 
at all levels, Parties undertake to establish an independent authority specialized in public 
procurement . This independent authority shall:  
- serve as a contact point for the rapid, informal solution of problems  encountered 
in gaining access to contracts;  
- provide useful advice to contracting entities;  
- have the power to intervene on its own initiative to check procurement practices 
in order to promote efficiency and to ensure that mandatory reporting 
requirements are complied with;  
- be competent to receive any complaints from natural or legal persons concerning 
the application of this Ag reement and competent also to  lodge formal complaints 
or otherwise take administrative or judicial action against contracting entities in 
case of breach of this Agreement  in the context of a procurement procedure;  
- perform surveillance and monitoring tas ks; 
- promote the use of preventive mechanisms aiming to ensure that the  market 
functions properly;  
- have sufficient  resources to perform its tasks effectively.  
"10. Parties shall notify the Committee of the authorities existing or established in 
their re spective jurisdictions . Parties shall make clear the relationship between the 
independent authority and the review body.  
"11. Parties shall consider the establishment of special direct links between existing 
independent authorities providing for regular co ntacts and regular exchange of 
information with a view to giving rapid and adequate solutions to problems arising in 
the application of the Agreement and to generally improving the functioning of the 
Agreement."  
143.  With respect to the proposed new paragraphs 9 to 11, the following points have been made:  
- the nature of the relationship between such independent authorities and authorities in 
charge of auditing public expenditure needed further clarification;  
- the role of giving advice to the purchasing entities described in the first three indents 
of paragraph 9 and that of the enforcement and monitoring of applicable rules should GPA/TN1994/1/Rev.8  
- 24 - 
  be dissociated because of the possibility of a conflict of interest in assuming b oth these 
roles;  
- individual countries could decide which authority should fulfil the task of enforcement 
and monitoring . This task could be entrusted to an existing body, for example to a court 
of auditors, and would not require the creation of new insti tutions.  
144.  The comments opposing the addition of new paragraphs 9 -11 to Article XX are in 
section  A.1.(b), paragraphs 11 -17 of the present note.  
Article  XXIII  
145.  It has been suggested that the provisions of Article XXIII should be aligned with those in the 
corresponding provisions of G ATT 1994. 
Article XXIV  
paragraph 6, subparagraph (b)  
146.  It has been said that the Agreement required Parties to notify the Committee of the proposed 
withdrawal of entities from Appendix  I over which government control or influence had been 
effectively eliminated . Even if such a modification in the nature of the entity warranted its 
withdrawal, the current text might give rise to some disagreement between trading partners 
regarding the extent to which the removal of governm ent control or influence had actually occurred 
and the privatized entity was being managed on the basis of market economy principle s The removal 
of government control or influence made it impossible to enforce the disciplines of the Agreement 
on the entity  in question . Market forces, rather than the disciplines of the Agreement, would be 
relied on to ensure market access . The Agreement might hinder the effectiveness of the privatization 
process if a privatized entity was compelled to conduct its procurement  in accordance with the 
procedures of the Agreement . A further comment has been that the requirements on compensatory 
adjustment might deter developing countries or economies in transition from acceding to the 
Agreement if they expected to remove certain e ntities from government control or influence at some 
point as part of the process of rationalization of governments . The objective of privatization was to 
apply market economy principles in the daily conduct of business including in the application of 
procurement procedures . Countries that were in the process of acceding to the Agreement might be 
cautious about offering certain entities if they would be expected to pay compensatory adjustment . 
The point has also been made that, the exclusion of an entity fr om the coverage of the Agreement 
should not be based on whether it was a private or public company but rather on a determination 
that th e company was subject to full and effective competition.  
147.  The view has been expressed that the wording of Article  XXIV:6( a) was ambiguous as it did 
not specify what criteria would be used to demonstrate "effective elimination of government control 
or influence" and how the market -opening effects of the removal of government control and influence 
could be measured . The provis ions should be clarified in order to address any concerns of future as 
well as present Parties in this respect . A suggestion has been made that the present provisions 
should be modified to state that there would be no compensatory adjustment, provided that  the 
removal of government control or influence on that entity was expected to have market -opening 
effects . It has also been suggested that certain criteria for the removal of entities should be 
developed in order to make Article  XXIV:6(b) more operational.  
148.  Another view in this connection has been that the present provisions were a carefully balanced 
outcome of the negotiations between Parties and reflected the uncertainties in market access 
opportunities which might be associated with the withdr awal of an entity from Appendix  I, 
notwithstanding a claimed removal of government control or influence . Moreover, a delegation has 
indicated that its experience with privatization had not led to a need to provide compensatory 
adjustment.  GPA/TN1994/1/Rev.8  
- 25 - 
  paragraph 8  
149.  It has been said that the provisions of Article  XXIV:8 on information technology should be 
modified in the light of the ongoing work on possible amendments to the Agreement discussed in 
Section A.1(d) of the present note.  
Possible additional  article  
150.  It has been  suggested that an article containing definitions of the various terms used in the 
Agreement should be considered.  
(h) Improving the structure of the Agreement  
151.  It has been suggested that the structure and the presentation of the Agreement should be 
improve d à droit constant  in order to render it more logical and easy to follow by entities and 
suppliers . This could be achieved by rearranging the order of provisions so that they more closely 
followed the normal sequence of the steps in the process of public p urchasing ; grouping the 
provisions in accordance with their purpose in order to bring the structure of the GPA more into line 
with the practice followed in other WTO agreements ; removing provisions whose applicability had 
expired, for example those relatin g to the entry into force of the WTO and transitional periods in 
Article  XXIV:3(a), (b), (d) and (e) ; and shortening certain Articles by subdividing them into several 
Articles.  (See Attachment to the Revised Note by the Secretariat On Suggested Drafting Ch anges to 
the 1994  Agreement circulated in Job No. 2244, dated 1 9 April 1999.)  
152.  In connection with Article  XXIV:3(a), it has been suggested that it should be retained as a 
historical record in order to avoid any possible misunderstandings in respect of Korea 's transitional 
arrangements and the beginning of its implementation of the decision on notification of threshold 
values in national currencies.  
153.  A new structure for the GPA that has been suggested in the document circulated in 
Job No. 6437 is reproduced in  Attachment  2 to the present note . A comment has been made 
supporting the suggestion that the Articles of the Agreement be organized under different group 
headings.  
(i) Appendices to the Agreement  
154.  It has been suggested that Appendix I to the Agreement migh t benefit from simplification, 
including the possibility of presenting the Annexes in the form of negative lists, starting with 
Annex  1. The Committee could define the general principles that would guide the Parties in 
determining which entities should be excluded from the coverage of the Agreement, for example for 
national security reasons . This would also have the effect of reducing the residual exceptions and 
derogations under the General Notes to Appendix I of individual Parties.  
155.  It has been stated that  it was desirable to maintain the presentation of the Annexes in the 
form of positive lists for the overall consistency of the Annexes . While it might be feasible to present 
Annexes  1 and 2 in the form of negative lists, entities in Annex  3 could only be l isted in the form of 
a positive list . In addition, Annex  4 could be presented as a negative list only after the uniform 
extension of the coverage of the Agreement in the area of services . In this connection, the point has 
also been made that Parties had th e obligation to ensure that all the entities that had been specified 
in Appendix  I complied with the requirements under the Agreement . A negative list approach could 
raise certain difficulties for Parties in this respect.  
2. Elimination of discriminatory m easures and practices which distort open  
procurement  
(a) General  
156.  The point has been made that this element has prime importance for the review and that 
priority should be given to this review item . Discriminatory measures and practices which distorted 
open procurement were incompatible with the objectives of the Agreement and represented a serious 
derogation from the fundamental WTO principles of non -discrimination which were also enshrined in GPA/TN1994/1/Rev.8  
- 26 - 
  Article III of the Agreement . The elimination of d iscriminatory measures would give true effect to 
the principle of non -discrimination in the Agreement and would also be conducive to encouraging 
the accession to the Agreement of non -Parties.  
157.  The Committee has agreed that this matter related to provisions that discriminated between 
Parties, it being understood that there was a close link between this issue and that of coverage under 
which issues relating to extension of the scope of application of the national treatment principle 
would be taken up.  
158.  It has b een suggested that, under this element of the review, consideration could be given to:  
- elimination of current reciprocity -based exceptions and derogations in the coverage of 
the Agreement;  
- establishment of a mutually agreed coverage of services.  
159.  With regard to the types of discriminatory provisions in the Appendices which were identified 
in the Note by the Secretariat circulated on 31  October  1997 (document with footer 'gpa38'), the 
following comment has been made:  
- the purpose of the non -applica tion provisions referred to in the last sentence of the first 
indent of paragraph 13(a) of the Note was to provide clarifications regarding the 
coverage of contracts . These provisions concerned all the obligations under the 
Agreement, including the obligat ion on national treatment and could not be classified 
as discriminatory measures.  
160.  With regard to the types of discriminatory provisions in the Appendices with respect to the 
"MFN" standard, the following comments have been made:  
- these provisions could be  eliminated to the extent that other Parties, who had previously 
been unable to cover certain areas, were prepared to open access to their procurement 
markets . Since the conclusion of the Agreement, negotiations had been held in the 
context of the Agreemen t for the removal of a number of derogations . It was essential 
to aim at the greatest level of coverage rather than to have a uniformity of coverage 
with the least common denominator;  
- while the Agreement did not provide for the maintenance of exceptions to Article  III, it 
was an in -built principle of the Agreement that opening up trade was subject to 
negotiations between Parties and was not granted automatically;  
- negotiations on the elimination of discriminatory measures should be held both 
bilaterally and in the context of the Committee;  
- reciprocity had been an effective tool in the negotiation of the schedules of 
commitments and, since then, in the elimination of the discriminatory provisions 
between a number of Parties . The ability to maintain discr iminatory provisions had 
ensured a much larger coverage than would have been the case if those discriminatory 
measures had not been allowed . Any efforts to move away from the reciprocity approach 
should not undermine the balance that had been achieved in t he negotiations of the 
current coverage of the Agreement;  
- Parties might have to retain the possibility of introducing discriminatory provisions with 
respect to the MFN standard in negotiations with an acceding country as an incentive to 
enhance the cover age of its offer;  
- drawing up Appendix  I in the form of negative lists would also contribute towards 
elimination of discriminatory measures.  
161.  With regard to the note by the Secretariat listing the types of discriminatory provisions in 
Appendix  I of Parties  relating to the "MFN" treatment standard (circulated in Job No.  810, dated 
12 February  1999), the following comments have been made:  GPA/TN1994/1/Rev.8  
- 27 - 
  - most Parties' Schedules contained notes specifying the conditions for removal of 
non-application provisions . All other P arties maintaining discriminatory measures should 
set out the circumstances under which they would be prepared to remove them;  
- non-application provisions in Parties' Schedules were mainly in the form of 
reciprocity -based derogations from the general comm itment of non -discriminatory 
treatment under Article  III.1(b);  
- the note by the Secretariat demonstrated that the matter of elimination of 
discriminatory provisions was inextricably linked with that of coverage in that the need 
for a balance of overall co verage had led Parties to introduce such discriminatory 
provisions in thei r Appendices . The insufficient coverage of entities and areas of 
procurement in the Schedules of some Parties was at the basis of the reciprocity 
provisions in the Agreement . Those P arties that had made comprehensive offers in the 
coverage negotiations had included country -specific non -application provisions in their 
Schedules in order to maintain a balance of commitments with other Parties in certain 
specific areas . The two issues would need to be considered together;  
- the note set out the rationale of some of the discriminatory provisions;  
- since the conclusion of the Agreement in 1994, bilateral agreements between several 
Parties had led to the elimination of certain disc riminatory measures . The note listing 
the remaining discriminatory provisions did not provide a clear picture of the extend to 
which the procurement markets had been opened through such negotiations.  
162.  With regard to the timetable and work programme for the elimination of discriminatory 
provisions, the following points have been raised:  
- while the review work on discriminatory provisions and that on the expansion of the 
coverage of the Agreement were closely linked, the work on the latter element might 
go be yond the target date for the completion of the negotiations set out in the suggested 
timetable;  
- the work on the elimination of discriminatory provisions should be carried out in parallel 
with the work on the simplification and improvement of the Agreemen t; 
- the drawing up of a matrix of discriminatory provisions in the Schedules of individual 
Parties would show clearly any perceived imbalances between the commitments of 
Parties and identify where a new balance might lie as a result of the removal of 
discriminatory measures;  
- Parties should conduct bilateral and/or plurilateral negotiations with a view to removing 
discriminatory provisions.  
(b) Mutually agreed coverage of services  
163.  The point has been made that, while establishment of a mutually agreed cove rage of services 
would have the effect of eliminating reciprocity conditions in various Parties, it was essential that 
Parties conducted negotiations in this area on the basis of the most -favoured -nation principle.  
164.  It has been stated that the current cover age of services in the Agreement was characterized 
by its diversity with respect to both the specific sectors covered by each Party as well as the overall 
level of services covered by each Party . It was the outcome of a perceived need for reciprocity in 
this area because of the divergences in the levels of coverage offered by Parties in the negotiations . 
Future negotiations should aim at a uniform level of coverage among all Parties, at least in terms of 
the quality of the coverage of services.  
165.  The view has  been expressed that reciprocity -based services coverage should be eliminated 
but only on the basis of all Parties covering an approximately uniform level of services on a mutually 
agreed basis . It has been said that it would be possible to move towards an  MFN approach in the 
coverage of some of the specific services sectors, such as business, distribution, education, medical, GPA/TN1994/1/Rev.8  
- 28 - 
  banking and financial services, provided that all Parties were willing to make sufficient offers relating 
to those services in an ov erall package . On this point, another view has been that the discriminatory 
provisions were the result of the pre -existing reciprocal arrangements which had not been 
plurilateralized, or of perceived imbalances in the commitments by Parties . Rather than se eking such 
a linkage, which might not produce the expected outcome, Parties should keep an open mind in 
carrying forward the mandate of improving the coverage of services under the Agreement.  
166.  With regard to the modalities for negotiations in this area, the  following points have been 
made:  
- the element of the review concerning the elimination of discriminatory measures and 
practices was independent of that on the expansion of coverage . On the other hand, 
the view has been expressed that the two elements wou ld overlap and that the review 
should address not only the elimination of discriminatory measures and practices but 
also the expansion of coverage;  
- the review should be initiated by simplification and elimination of derogations in Annex  4 
in Appendix I of individual Parties;  
- differing views have been expressed concerning the extent to which the work on this 
element should take its cue from that in the Working Party on GATS Rules.  
167.  In reviewing the services covered under Annexes 4 and 5 of Par ties based on an informal note 
by the Secretariat, dated 8  December  1998 (Job  No. 6771), comments have been made 
seeking/providing clarification concerning the following aspects of the services schedules:  
- whether rental/leasing services (sector 1.E) were  already covered by Article I:2 on 
lease, rental or hire purchase;  
- whether leasing would be considered the purchase of a good rather than a service;  
- some services covered under the Agreement might not be suitable for cross -border 
delivery . For example competition for legal services (sub -sector A.1.a) was limited in 
most countries;  
- some services in Annex 4 of Parties might not be related to government procurement 
procedures under the Agreement . For example, it was questionable whether 
governments used tendering procedures for procuring legal services;  
- the fact that there was no procurement business in a given service sector should not 
deter Parties from covering that category in their Annex 4;  
- the negative list approach adopted by the United States in its Annex 4, which covered 
all services except those which had been specifically excluded, had made it difficult to 
verify the information contained therein . The problem had been aggravated by the fact 
that some of the exclusions were related to the end -use of the services, for example 
services purchased in support of military forces located overseas;  
- whether the coverage of postal services (sector 2.A) in the United States Schedule 
meant that the government entities purchased such services from  one supplier under 
the limited tendering method in Article XV.  
3. Expansion of the coverage of the Agreement  
168.  It has been suggested that the coverage of the Agreement could be expanded with a view to 
achieving a balance of market access commitments among P arties . For this purpose, the following 
specific areas that might be addressed have been suggested:  
- The review should address the establishment of national self -monitoring mechanisms 
whereby individual Parties would commit themselves to review domestical ly and 
periodically whether national programmes in the form of set -aside programmes and GPA/TN1994/1/Rev.8  
- 29 - 
  other preferential policies contributed towards meeting their vowed objectives and, if 
so, how effective they were in doing so, with a view to examining the scope for t heir 
elimination in the long term . It has also been said that the General Notes of Parties 
contained provisions excluding certain procurement from the coverage of the 
Agreement for domestic legal grounds . On the other hand, the view has been expressed 
that nothing should be done to legitimize set asides and other discriminatory 
programmes which were presently reflected in the Schedules of Parties as exceptions 
or reservations and to which some Parties had responded in their Schedules . Providing 
a national r eview mechanism in the Agreement itself might imply that the underlying 
policy objectives were deemed to be justified and that the programmes could be 
continued as long as they met their specific objectives . The aim of the review of 
derogations should be t o explore ways of phasing them out as prescribed under 
Article  XXIV:7(c) . The ultimate aim should be to remove all discriminatory measures 
and to subject all procurement under the Agreement to the MFN and national treatment 
principles.  
- Identification of potential sectors for extended coverage . Reference was made to the 
inclusion of the telecommunications, transportation and steel sectors . In response to 
this suggestion, the appropriateness of focusing work on the expansion of coverage in 
the telecommunica tions and transportation sectors has been questioned since many 
countries had made significant progress towards privatization in these sectors . It has 
been suggested that the review relating to this element should focus on the elimination 
of the derogation s from coverage in some other sectors existing in Appendix  I of Parties . 
On the other hand, the point has been made that the process of privatization had not 
been significant in all countries and that a large number of public entities operating in 
the tele communications sector remained outside the coverage of the Agreement.  
- In connection with privatization, the point has been made that, rather than adopting a 
sector -based approach, work might focus on the relationship between entities and 
government contr ol. The terms of Article XXIV:6(b) relating to the withdrawal of an 
entity from Appendix  I on the grounds of removal of government control or influence 
did not give adequate guidance in this respect . In order to determine the scope for 
expanding the number  of covered entities, Parties should examine the policies by which 
governments exerted control or influence over entities . Another view has been that the 
present provisions reflected the existence of a multitude of configurations with respect 
to the relati onships between different government entities and the amount of control 
that could be exerted over them . By drawing up a more precise definition of how to 
treat privatization -type situations, Parties might fail to take into account all types of 
government ownership or control and any relevant developments in the future.  
- Further expansion of the coverage of services in the Agreement . The suggestion has 
been made that the review work in this area should be initiated by identifying the sectors 
of common inte rest to Parties based on domestic supplier surveys . On the other hand, 
the point has been made that, while certain sectors were not included in the scope of 
the Agreement, the provisions of the Agreement did not exclude the expansion of its 
scope to any ad ditional sectors . Rather than defining the sectors that could be included 
horizontally within the scope of the Agreement, the extension of coverage should be 
handled, for the time being, through bilateral agreements . Another view was that, while 
negotiatio ns on specific sectors might have to be carried out bilaterally, Parties should 
identify the specific sectors to be negotiated in a plurilateral context . Parties should seek 
a high level of commitment in terms of coverage and not the lowest common 
denomina tor. 
- Lowering of the threshold values applicable to certain Parties . In response to this 
suggestion, the point has been made that, with the present threshold levels, Parties 
with larger procurement markets subjected a greater proportion of their overall 
procurement to the Agreement . The impact of thresholds on the scope of the 
commitments of individual Parties would need to be taken into account in considering 
the overall balance that had been struck under the Agreement between various Parties . 
On the oth er hand, the view has been expressed that such an approach would neither 
be procedurally feasible nor equitable . The suggestion was made that the Agreement 
should include provisions setting out uniform levels of thresholds applicable GPA/TN1994/1/Rev.8  
- 30 - 
  automatically to all P arties and independent of the size of their procurement markets 
and that Parties should no longer have the possibility of applying different threshold 
levels.  
169.  It has been stated that expansion of the coverage of the Agreement would require significant 
preparatory work . It was also stated that any further expansion of the existing coverage of the 
Agreement at the sub -central levels of government would be dependent on progress in the 
simplification and improvement of the provisions of the current Agreement.  
170.  A view has been expressed stating that there was a trade -off between the objective of 
increasing the membership of the Agreement and the burden that wider commitments might incur 
for the acceding countries . Another view has been that an improved coverage might be an incentive 
to those countries that sought increased market access to join the Agreement.  
171.  In addition, the need to obtain adequate experience with the domestic implementation of the 
Agreement before expansion of its coverage has been ref erred to.  
B. INSTITUTIONAL/PROCEDURAL POINTS  
1. Work on government procurement in other WTO fora  
172.  It has been suggested that, in the process of the review of the Agreement, Parties should take 
account of the work on government procurement in the Working Gro up on Transparency in 
Government Procurement and in the Working Party on GATS Rules .2 The point has also been made 
that, while the level of obligations sought under each forum may not necessarily be the same, the 
overall outcome of work in these fora shou ld be coherent and consistent . However, the review of 
the Agreement should not be delayed by the pace of other discussions.  
173.  It has been said that the delegations might need to consider the relationship between 
plurilateral Agreement on Government Procureme nt and a future multilateral agreement on 
transparency in government procurement . The plurilateral agreement migh t exist under the umbrella 
of a multilateral agreement . By way of example, it has been said that, whereas the obligations in 
GATS Part II appli ed to all Members, the obligations in GATS Part III applied only to those Members 
that had undertaken specific commitments . The special rules under the plurilateral agreement, 
including those relating to market -access commitments, might continue to be bind ing only on those 
Parties that would hav e subscribed to them.  
2. Institutional arrangements for the review  
174.  The discussion of the review in 1997 has been carried out mainly in informal consultations . 
One delegation has suggested that an informal group should be established to conduct the work on 
the review of the Agreement and that expert groups might be set up to handle specific topics such 
as information technology, simplification of statistical reporting, etc.  
3. Participation of WTO Members in the r eview  
175.  It was noted that an objective of the review was the expansion of the membership of the 
Agreement . The review should serve the purpose of making the Agreement more attractive to other 
WTO Members as well as making accession of other WTO Members, incl uding developing countries, 
easier . For this purpose, interested WTO Members should be given the opportunity to participate 
actively in the Committee's discussions on the review of the Agreement by becoming observers to 
the Committee in accordance with the  Committee's Decision on Procedures for Participation of 
Observers ( GPA/1 ). 
176.  As agreed by the Committee at its February  1997 meeting, the Chairman sent a 
communication to the WTO Members, through the Chairman of the General Council, drawing the 
attention of WTO Members , as well as governments which are in the process of acceding to the WTO, 
 
2 The most recent reports of the Working Group on Transparency in Government Procurement and the 
Working Party on GATS Rules were circulated respectively in documents WT/WGTGP/M/6  and S/WPGR/M/19 . GPA/TN1994/1/Rev.8  
- 31 - 
  to the review and inviting them to participate as observers in the meetings of the Committee in 
accordance with the Committee's Decision on the Participation of Observers ( WT/L/206 ). 
4. Next steps  
177.  During the informal consultations held on 2 2 February  1999, it was agreed that the Committee 
would hold a further informal meeting on 10 -11 May 1999. At that meeting the work would be carried 
forward in the following way:  
- Delegations would revert once more to the issues of information technology and 
procurement methods on the basis of the note by the Chair attempting to crystallize the 
state reached in the discussions and to identify the key questions that need to be 
pursued (Job  No. 973). Canada had been requested to consider updating its proposals 
on information technology . On procurement methods, Parties had been encouraged to 
submit contributions, in particular on how the various procurement methods under 
discussion were presently handled  in their national procurement regimes . Papers from 
the European Community and the United States on procurement methods had been 
foreshadowed.  
- Delegations would revert to the issue of statistical reporting, on the basis of an updated 
version of the note by the Chair which would record the comments made on the draft 
revision of the text of Article  XIX:5. 3 
- Delegations would continue the Article -by-Article review of the Agreement on the basis 
of an updated version of the two -column table which would refle ct the proposals on 
individual Articles that had been made at the February meeting . Delegations were 
encouraged to submit concrete proposals . In this connection, Hong Kong, China had 
foreshadowed a revised proposal on Article  XV and Japan a proposal on 
Article XXIV:6(b).  
- With regard to the elimination of discriminatory provisions, the points made in the 
discussion would be recorded in a revised version of the Checklist of Issues . 
Furthermore, a revised version of the Secretariat note on the coverage of se rvices would 
be circulated in the light of the comments submitted . Delegations were encouraged to 
continue efforts to remove discriminatory provisions through bilateral and plurilateral 
consultations and to keep the Committee informed of developments . Delegations would 
revert to this matter at the next informal meeting on the Article  XXIV:7 negotiations.  
- In accordance with the agreed time -frame and the work programme which set the third 
WTO Ministerial as the target date for the completion of the negotiat ions on at least the 
simplification and improvement of the Agreement, two more informal consultations 
would be held in the first half of this year, respectively on 10 -11 May and 30  June 1999. 
Delegations were also reminded that it was agreed that suggestio ns and proposals 
should be tabled no later than 30  April 1999, this being without prejudice to the right 
of participants to put forward at a later date modified or additional proposals where 
necessary.  
178.  The time -frame and work programme for the negotiations  under Article XXIV: 7 agreed by the 
Committee at its meeting of 2 5 June 1998 is included in Attachment 2 to the present note.  
 
3 Subsequently circulated as Job No. 2108, dated 13 April 1999.  GPA/TN1994/1/Rev.8  
- 32 - 
  ATTACHM ENT 1 
INFORMATION TECHNOLOGY  
Suggested Modifications to the Agreement  
Publishing methods  
Alternative 1:  
• No wording chang es to Articles IX, XI, XVII and XVIII.  
• Parties agree to accept modifications to Appendices II and III to delete paper publications and 
replace with electronic publications, where the electronic publication is:  
 - on the Internet or in one location ; and 
 - accessible worldwide by telephone.  
Alternative 2:  
• Add a footnote to the Agreement defining "publication" to include either electronic or paper 
publication of notices . The definition would include the requirements in Alternative 1 above, 
where electronic publication is:  
 - on the Internet or in one location ; and 
 - is accessible worldwide by telephone.  
• Parties would agree to accept modifications to Appendices II and III to delete paper 
publications and replace with electronic publication s. 
In commenting on these suggestions, it has been suggested that all GPA Parties should include 
information in their Appendices II (and III) to the GPA on relevant electronic tender databases as 
well as information on access to these bases . This informati on should be in addition to information 
on traditional publishing methods (until the time comes for these to be replaced) . This requirement 
could be made clear by means of footnotes to the relevant Articles of the Agreement defining 
publication as includin g both electronic and paper -based publication of notices.  
 Support has been expressed for Alternative 2.  
Submission of tenders  
• Amend Article XIII:1(a):  
- to add "electronic means" to the list of possible methods of receiving bids (i.e. telex, 
telegram an d facsimile) that are already listed;  
 - to delete the phrase "or by mail" in the first sentence ; and 
- to delete the sentence "The tender must be confirmed promptly by letter or by the 
despatch of a signed copy of the telex, telegram or facsimile".  
• Add a provision to Article XIII to indicate that the means for submitting tenders can be 
specified by the procuring entity, provided such means shall not reduce access by foreign and 
domestic suppliers.  
• Modify Article IX:6 to obligate the procuring entity to  include in the notice the means by which 
bids may be submitted.  GPA/TN1994/1/Rev.8  
- 33 - 
  Another suggestion has been that a definition of the term "writing" should be incorporated in 
Article  XIII:1(a) which would read:  
"The term "writing" as used in this Agreement is to be unders tood to include any worded 
or numbered expression which can be read, reproduced, and later communicated, and 
includes electronically transmitted and stored information."  
In commenting on these suggestions, it has been suggested that the term "electronic me ans" should 
be added to the list of possible methods for receiving bids . Until a satisfa ctory solution has been 
reached regarding electronic signatures, the confirmation requirement by mail, etc. must be 
maintained, bearing in mind the general fundamental principles mentioned above.  
Communications between tenderers and the procuring entity  
• Modify Article X:4 to add "electronic means, including email " to the list of ways (e.g. telex, 
telegram and facsimile) that suppliers may use to request to participate in selective tendering.  
• Add to Article X the provision that the means of communication can be specified by the 
procuring entity.  
• Modify Article IX:6 to obligate the procuring entity to include in the notice of proposed 
procurement the means by which requests to participate will be accepted.  
In commenting on these suggestions, it has been suggested that Article  X:4 should be modified by 
adding : "electronic means, including electronic mail" to the list of methods available to suppliers for 
requests to participate in selective tendering ; and that Article IX:6 should be modified to obligate 
the procuring entity to include in the notice the means by which bids may be submitted in addition 
to paper -based tenders.  
Deadlines  
Alternative 1:  
• Remov e all of the "deadlines" identified in Article  XI. 
• Modify Article XI:1(a) to delete the words "by mail" from the last sentence.  
Alternative 2:  
• Modify Article XI:3 so that when electronic tendering is used, all periods referred to in 
Article  XI:2 may be  reduced to a minimum of 15 days.  
• Modify Article XI:3 so that when electronic tendering and electronic bid receipt are used, 
second -stage periods referred to in Article  XI:2(b) and (c) may be reduced to a minimum of 
one day.  
 In commenting on these sugge stions, support has been expressed for Alternative  2. GPA/TN1994/1/Rev.8  
- 34 - 
  ATTACHM ENT 2 
TIME-FRAME AND THE WORK PROGRAMME FOR THE NEGOTIATIONS UNDER ARTICLE XXIV:7  
The Committee agreed to proceed in accordance with the following proposals by the Chair regarding 
a time -frame f or the negotiations under Article XXIV:7 and the overall work programme that should 
be envisaged within that time -frame, the text of which incorporates suggestions by delegations 
agreed to by the Committee:  
"I sense a widespread view that we should aim to complete the negotiations, at 
least in respect of the simplification and improvement of the Agreement, by the third 
WTO Ministerial to be held at the end of next year with a view to, in particular, increasing 
the attractiveness of the Agreement to new memb ers. 
"If this is to be done, we would need to reserve the whole of the fall of next year 
to an intensive negotiating process . This, in turn, would require that by the summer of 
next year there would be in existence a document, reflecting the outstanding pr oposals, 
that could constitute the basis for these negotiations . The preparation of such a 
document would require that all the proposals and suggestions for improvement of the 
text would have been thoroughly discussed and digested by that time . In order fo r this 
to be done, we might wish to set a target date of the end of April next year for the 
tabling of all such proposals and suggestions – without, of course, prejudice to the right 
of participants to put forward at a later date modified or additional pro posals where 
necessary.  
"To sum up therefore I would suggest the following key elements of a timetable 
and work programme:  
- The tabling of suggestions and proposals no later than the end of 
April 1999. 
- The preparation of a document reflecting all outsta nding proposals and 
suggestions, as a basis for the final negotiating phase, no later than the 
summer of 1999 . I would, of course, hope that in the course of the review 
and discussion of the proposals and suggestions that would already have 
been undertaken  by that time, a considerable measure of agreement would 
already have been reached on many points and that the number of 
outstanding points left for the final negotiating phase would be kept to a 
manageable minimum.  
- A target of the third WTO Ministerial for the completion of the negotiations, 
at least on the simplification and improvement of the Agreement.  
"We would in parallel continue work on the other elements of the negotiations, 
namely on the elimination of discriminatory measures and practices which distort open 
procurement and the expansion of the coverage of the Agreement . We will revert at our 
next meeting to the timetable and work programme for these parts of the negotiations . 
To the extent that the objective of the elimination of discriminatory measures could be 
achieved through modifications to the Agreement itself, this work would also have the 
target date of the third Ministerial Meeting.  
"If this way of proceeding were to be acceptable to you, we would need to give 
some thought  to the sort of meeting schedule that should be envisaged for the 
remainder of this year and for next year . My own suggestion would be that you might 
consider two meetings in the fall of this year (our October meeting already scheduled 
and maybe one in mid -December), and three meetings in the first part of next year (for 
example February, May and July) . In the fall period of 1999, we would need to envisage 
a semi -continuous process of negotiation, i.e.  the Group would need to be on call for 
the whole period.  GPA/TN1994/1/Rev.8  
- 35 - 
  "WTO Members, not parties to the GPA, and other observer governments to the 
GPA would be invited to participate fully in the work, it being understood that the final 
decision on the outcome would remain with Parties to the GPA."  
__________