RESTRICTEDWORLD TRADE
ORGANIZATIONS/WPGR/W/44
24 June 2003
(03-3375)
Working Party on GATS Rules
OVERVIEW OF GOVERNMENT PROCUREMENT-RELATED PROVISIONS
IN ECONOMIC INTEGRATION AGREEMENTS
Note by the Secretariat1
I. INTRODUCTION
1. At its meeting on 13-14 May 2003, the Secretariat was asked to prepare a compilation of
provisions relating to government procurement found in the agreements that have been notified to the
WTO under GATS Article V.
2. When starting this work, the initial intention was to provide delegations with a full
reproduction of the pertinent texts.  However, su ch a compilation would have amounted to more than
100 pages and, thus, proven too unwieldy for information.  Therefore, the current Note provides only
an overview of the main provisions relating to  government procurement in economic integration
agreements.  The Secretariat stands ready to provide a deeper analysis based on a specific mandatefrom Members.
3. This Note covers the 25 economic agreements notified so far to the WTO under GATS
Article V (see Annex).  Virtually all agreements (24 out of 25) contain government procurement-
related provisions. However, the level of detail and the obligations incurred vary from mere
commitments to negotiate to highly specified procurement regimes.
4. This Note is without prejudice to delegations' position on the scope of the mandate in GATS
Article XIII.
II. OVERVIEW OF RELEVANT PROVISIONS
(a) Treaty of Rome (EC)
5. The notification under GATS Article V of the Treaty Establishing the European Community
explains that the Treaty "embraces a common market for public-sector procurement and construction
contracts which is based on various Council directives co-ordinating procurement procedures in allpublic-sector procurement subject to the Treaties.  The public procurement directives are based on
three main principles:
- EC-wide advertising of contracts so that firms in all Member States have an
opportunity of bidding for them;
- the banning of technical specifications liable to discriminate against potential foreign
bidders;
- application of objective criteria in tendering and award procedures.
                                                     
1 This document has been prepared under the Secretariat's own responsibility and without prejudice to
the positions of Members and to their rights and obligations under the WTO.S/WPGR/W/44
Page 2
The directives on public works were co-ordinated in Council Directive 93/37/EEC ("the
Works Directive") of 14 June 1993 and the directives on supplies were consolidated in Council
Directive 93/36/EEC ("the Supplies Directive") of 14 June 1993.  The latter also aligned the text on
Supplies with that on Works. The Council directive 92/50 concerning the coordination of publicprocurement on services has been adopted on 18 June 1992. It should be noted that public works,
supplies and services contracts in the water, energy, transport and telecommunications sectors are
covered by a separate Directive 93/38/EEC."
 2
(b) Australia – New Zealand Closer Economic  Relations Trade Agreement (ANZCERTA)
6. Access to government procurement between Australia and New Zealand is governed by the
1991 Government Procurement Agreement, which, in turn, is based on Article 11 ( Government
Purchasing ) of the ANZCERTA.  The latter provision stipulates, inter alia , that "the maintenance of
preferences for domestic suppliers over suppliers from the other Member State is inconsistent with the
objectives of this Agreement, and the Member States shall actively and on a reciprocal basis work
towards the elimination of such preferences".
7. Provisions of the 1991 Agreement relate in particular to:  measures aiming at maximising
competitive opportunities for suppliers of both Parties, including an illustrative list of discriminatory
or biased procurement practices;  exemptions;  preference margins for Australian or New Zealand
made goods and services;  monitoring procedures;  guidelines for the assistance of purchasing officers
and other interested bodies; transitional arrangements;  review of the Agreement;  and definitions.
(c) European Economic Area3 (EEA)
8. The Agreement on the EEA contains procurement provisions applying to goods and services
(Article 65, Other Common Rules ). Annex XVI, entitled Procurement , lists the EC procurement
instruments which shall be applicable to EEA Contracting Parties as well as the sectoral adaptations
needed.  It also contains a list of bodies and entities covered.
(d) Europe Agreements
9. The 10 so-called Europe Agreements4 contain very similar provisions on government
procurement.  Most agreements state that Parties consider "the opening up of the award of public
contracts on the basis of the principle of non-discrimination and reciprocity, in particular in the GATT
and WTO context,5 to be a desirable objective".6  Relevant provisions further stipulate, inter alia , that,
from the entry into force of the agreement, compan ies shall be granted access to award procedures in
the Community pursuant to Community procurement rules under a treatment no less favourable than
that accorded to Community companies.  In tur n, Community companies must be granted treatment
no less favourable than that accorded to local co mpanies;  the date of entry into force of this
requirement may be different depending on whether the EC companies are established in the country
concerned or not.
                                                     
2 WT/REG39/1, page 9.
3 Signatories to the EEA Agreement are:  the European Communities, Iceland, Liechtenstein and
Norway.
4 The Europe Agreements have been concluded between the European Communities and, respectively,
Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovak Republic, andSlovenia.
5 Some agreements refer only to GATT, others only to WTO and a third category to both GATT and
WTO.
6 NB:  this clause does not appear in the agreement with Lithuania.S/WPGR/W/44
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(e) North American Free Trade Agreement7 (NAFTA)
10. Government procurement rules are contained in Part four, Chapter ten ( Government
Procurement ) of the NAFTA.  Section A contains provisions relating to:  the scope and coverage of
the Chapter (entities;  goods, services or construction services;  thresholds; examples of procurement
methods);  valuation of contracts;  national treatment and non-discrimination;  rules of origin;  denialof benefits;  prohibition of offsets;  and technical specification.
11. Section B specifies tendering procedures, including:  qualification of suppliers;  invitation to
participate;  selective tendering procedures;  time limits for tendering and delivery;  tender
documentation;  negotiation disciplines;  submission, receipt and opening of tenders and awarding of
contracts;  and limited tendering procedures.
12. Section C stipulates the bid challenge procedures that Parties have to adopt for government
procurement.  Section D contains general provisions, including exceptions;  provision of information;technical cooperation;  joint programs for small business;  rectifications and modifications;
divestiture of entities;  further negotiations;  and definitions.
(f) Revised Treaty of Chaguaramas Establishing the Caribbean Community Including the
CARICOM Single Market and Economy
8 (CARICOM)
13. In Article 239 ( Undertaking ), CARICOM Member States "undertake to elaborate a Protocol
relating, inter alia, to […] government procurement […]."
(g) Free Trade Agreement Canada – Chile
14. The free trade agreement between Canada and Chile does not contain any government
procurement-related provision.
(h) Free Trade Agreement Chile – Mexico
15. In the free trade agreement between Chile and Mexico, the Parties agree that the Free Trade
Commission established under the treaty shall "begin negotiations on a chapter on government
procurement one year after this Agreement comes into force, at which time it shall appoint negotiators
and establish appropriate procedures" (Art. 20-08, Future Negotiations ).
(i) Agreement Between New Zealand and Singap ore on a Closer Economic Partnership
16. Under Part 8 ( Government Procurement ) of the Agreement, the Parties "agree to establish a
single New Zealand/Singapore government procurem ent market […]".  This shall be achieved by,
inter alia , implementing the APEC Non-Binding Principl es on Government Procurement.  Further,
relevant provisions include:  scope and coverage (thresholds, schedules of commitments);  definitions;
general principles (such as non-discrimination and value for money);  valuation of contracts;  rules of
origin;  procurement procedures;  prohibition of offset s;  procedures to be followed in the event of a
dispute between a supplier and the procuring government body;  exemptions;  and administration andreview.
                                                     
7 Signatories to the NAFTA are Canada, Mexico and the United States.
8 Members of CARICOM are Antigua and Barbuda, Barbados, Belize, Dominica, Grenada, Guyana,
Jamaica, St. Kitts and Nevis, Saint Lucia,, St. Vincent and the Grenadines, Suriname and Trinidad and Tobago.S/WPGR/W/44
Page 4
(j) Free Trade Agreement Between EFTA and Mexico
17. Provisions contained Chapter V ( Government Procurement ), Articles 56 to 68, of the FTA
between EFTA and Mexico include:  coverage (such as covered entities;  goods, services or
construction services;  thresholds, examples of procurement methods);  national treatment and non-
discrimination;  rules of origin;  denial of benefits;  prohibition of offsets;  procurement procedures,including notification, consultation and dispute settlement;  procedures for bid challenge;  provision
of information;  technical cooperation;  exceptions;  privatisation of entities;  further negotiations and
"other provisions".
(k) Free Trade Agreement between the European Communities and Mexico
18. Provisions contained in Title III ( Government Procurement ), Articles 25 to 38, of the FTA
between the EC and Mexico include:  coverage (such as covered entities;  goods, services or
construction services;  thresholds, examples of procurement methods);  national treatment and non-discrimination;  rules of origin;  prohibition of offsets;  procurement procedures, including
notification, consultations and dispute settlement;  procedures for bid challenge;  provision of
information;  technical cooperation;  informa tion technology;  exceptions;  rectifications or
modifications;  privatisation of entities;  further negotiations;  and final provisions.
(l) Free Trade Agreement between Jordan and the United States
19. The Agreement establishing a free trade area between Jordan and the United States stipulates
that "Pursuant to Jordan’s July 12, 2000, application for accession to the WTO Agreement on
Government Procurement, the Parties shall enter into negotiations with regard to Jordan’s accession to
that Agreement" (Art. 9, Government Procurement ).
(m) Convention Establishing the European Free Trade Association (consolidated version)
9
(EFTA)
20. Under the EFTA Convention, Member States "reaffirm their rights and obligations under the
WTO Agreement on Government Procurement (GPA ).  Under this Convention, the Member States
broaden the scope of their commitments under the WTO Government Procurement Agreement with
an aim to pursue liberalisation in public procurement markets in accordance with Annex R" (Art. 37).The same provision further calls on Members to "secure non-discriminative, transparent and
reciprocal access to their respective public procurement markets and shall ensure open and effective
competition based on equal treatment".  Provisions and Appendices contained in Annex R relate, inter
alia, to the scope of the EFTA procurement regime, definitional and competition issues, activities
covered and excluded, establishment of thresholds, national treatment and non-discrimination,
procurement and challenges procedures, information exchange and institutional arrangements.
(n) Free Trade Agreement Between Chile and Costa Rica
21. Part six, Chapter 16 ( Government Procurement ) of the Free Trade Agreement between Chile
and Costa Rica includes provisions relating to:  definitions;  objective (establish a "single market for
government procurement"), scope (ensuring equal conditions, non-discrimination and transparency in
government procurement processes) and coverage (definition of entities, identification of goods and
services concerned);  general rights and obligations (relating, inter alia , to the promotion of
competition, transparency, non-discrimination, the quality-price ratio principle, simplicity and
publicity in the application of measures, etc.);  national treatment and non-discrimination;
transparency and the provision of information; technical specification;  denial of benefits;  appeal
                                                     
9 The EFTA comprises Iceland, Liechtenstein, Norway and Switzerland.S/WPGR/W/44
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procedures for affected suppliers;  modifications to coverage;  privatization;  information technology;
Committee on government procurement;  cooperation and technical assistance;  relation to other
chapters of the FTA.
(o) Agreement Between Japan and Singapore for a New-Age Economic Partnership
22. Article 101 ( Scope of Chapter 11 ), contained in Chapter 11 ( Government Procurement ),
stipulates, inter alia , that "[p]aragraph 2 of Article I, and Article II to Article XXIII of the Agreement
on Government Procurement in Annex 4 to the WTO Agreement […] shall apply mutatis mutandis to
procurement of goods and services specified in Annex VIIA, by entities specified in Annex VIIB".
Article 102 provide for exchange of information on government procurement between the Parties.
(p) Free Trade Agreement Between EFTA and Singapore
23. In Chapter VI ( Government Procurement ) of the FTA between EFTA and Singapore, the
Parties stipulate that their rights and obligations in respect of public procurement "shall be governedby the WTO Agreement on Government Procurement" (Art. 51:1).  They further agree to cooperate
"with the aim of increasing the understanding of their respective procurement systems, and achieving
further liberalisation and mutual opening up of public procurement markets" (Art. 51:2).  Other
provisions relate to the exchange of information through "contact points" (Art. 52);  whenever a Party
"grants additional benefits with regard to the access to its public procurement markets, it shall agree toenter into negotiations with a view to extending these benefits to another Party on a reciprocal basis."
(Art. 53).
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ANNEX
Economic Integration Agreement Notified Under GATS Article V10
Economic Integration
AgreementEntry into force Document reference Relevant Provision(s)
EC Treaty of Rome 1 January 1958 WT/REG39 Directives 93/37/EEC;
93/36/EEC;  and 93/38/EEC.
Australia – New Zealand(ANZCERTA)1 January 1989 WT/REG40 Art. 11 + 1991 Government
Procurement Agreement
EEA 1 January 1994 WT/REG138 Art. 65 + Annex XVI
EC – Hungary 1 Februa ry 1994 WT/REG50 Art. 66
EC – Poland 1 February 1994 WT/REG51 Art. 67
NAFTA 1 April 1994 WT/REG4 Part 4, Chapter 10
EC – Bulgaria 1 February 1995 WT/REG1 Art. 68
EC – Czech Republic 1 February 1995 WT/REG18 Art. 68
EC – Romania 1 February 1995 WT/REG2 Art. 68
EC – Slovak Republic 1 February 1995 WT/REG18 Art. 68
CARICOM 1 July 1997 S/C/N/229 Art. 239
Canada – Chile 5 July 1997 WT/REG38 - -
EC – Estonia 1 February 1998 WT/REG144 Art. 67
EC – Lithuania 1 February 1998 WT/REG145 Art. 68
EC – Latvia 1 February 1999 WT/REG143 Art. 68
EC – Slovenia 1 February 1999 WT/REG146 Art. 69
Chile – Mexico 1 August 1999 WT/REG125 Art. 20-08
New Zealand – Singapore 1 Januar y 2001 WT/REG127 Part 8, Art. 46-58
EFTA – Mexico 1 January 2001 WT /REG126 Chapter III, Art. 56-68
+ Annexes XII-XVII
EC – Mexico 1 March 2001 WT/REG109 Title III, Art. 25-38
US – Jordan 17 December 2001 WT/REG134 Art. 9
EFTA (cons. version) 1 June 2 002 S/C/N/207 Art. 37 + Annex R
Chile – Costa Rica 15 February 2002 WT/REG136 Part six, Chapter 16
Japan – Singapore 30 November 2002 WT/REG140 Chapter 11, Art. 101-102
EFTA – Singapore 1 January 2003 WT/REG148 Part VI, Art. 51-53
__________
                                                     
10 As of June 2003.