WORLD TRADE
ORGANIZATIONGPA/58
11 October 2001
(01-4990)
REPORT (2001) OF THE COMMITTEE ON GOVERNMENT PROCUREMENT
I. GENERAL
1. This Report is submitted pursuant to Article XXIV:7(a) of the Agreement on Government
Procurement, which requires the Committee to revi ew annually the implementation and operation of
the Agreement and to inform the General Council of developments during the periods covered bysuch reviews.
2. The Agreement on Government Procurement entered into force on 1 January 1996.  The
period covered in this Report is November 2000-October 2001, but the Report also reflects, where
necessary, the work of the Committee up to November 2000 (GPA/8 and Add.1, GPA/19, GPA/25
GPA/30 and GPA/44).  The Committee on Government Procurement held two meetings in 2001 on3 May and 2 October 2001 (GPA/M/15 and 16
1).
3. The following WTO Members are Parties to the Agreement:  Canada;  the European
Community and its fifteen member States;  Hong Kong, China;  Iceland;  Israel;  Japan;  Korea;
Liechtenstein;  the Kingdom of the Netherlands with respect to Aruba;  Norway;  Singapore;
Switzerland;  and the United States.  Twenty-five WTO Members have observer status:  Albania,Argentina, Australia, Bulgaria, Cameroon, Chile, Colombia, Croatia, the Czech Republic, Estonia,
Georgia, Hungary, Jordan, the Kyrgyz Republic, Latvia, Lithuania, Malta, Moldova, Mongolia,
Oman, Panama, Poland, the Slovak Republic, Slovenia and Turkey.  One non-WTO Member,
Chinese Taipei and three intergovernmental organizations, the IMF, the ITC and the OECD, also have
observer status.
II. IMPLEMENTATION OF THE AGREEMENT
Modifications of Appendices to the Agreement
4. Article XXIV:6 of the Agreement requires Parties to notify rectifications of a purely formal
nature or other modifications relating to Appendices I through IV, which set out the mutually agreed
coverage provided under the Agreement.  Consequential rectifications or modifications become
effective once they are agreed to pursuant to the procedures under this Article.  Since the 2000 Reportof the Committee, modifications relating to their respective Appendices were made by Japan
(GPA/W/123, GPA/W/129, GPA/W/144, GPA/W/145 and GPA/W/146);  Hong Kong, China
(GPA/W/122/Rev.1);  and Kor ea (GPA/W/128 and Corrs. 1 and 2 and GPA/W/140).  The
modifications proposed by Japan in GPA/W/123 and Hong Kong, China in GPA/W/122/Rev.1
entered into force on 29 December 2000 (WT/Let/367) and 6 January 2001 (WT/Let/370),respectively .
5. With respect to the notification by Japan in GPA/W/129, the United States and Canada made
communications objecting to these modifications  (GPA/W/132 and 134) and Hong Kong, China
requesting further information (GPA/W/135 and 143).  Japan's responses were circulated in document
                                                     
1 GPA/M/16 will be circulated shortly.GPA/58
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GPA/W/137.  The United States and Canada subsequently indicated that they had withdrawn their
objection to the proposed modifications (GPA/W/139 and 147) and the modifications proposed by
Japan in GPA/W/129 entered into force on 5 September 2001 (WT/Let/400).
6. With respect to the notification by Korea in GPA/W/128 and Corrs. 1 and 2, Korea's
responses to the clarification of the proposed modi fications sought by the United States (GPA/W/133)
were circulated in document GPA/W/142.  The United States subsequently indicated that it had
withdrawn its objection (GPA/W/150).  The modifications proposed by Korea in GPA/W/128
and Corrs. 1 and 2 and additional modifications proposed by Korea to its Appendix I (GPA/W/140)
entered into force on 14 September 2001 (WT/Let/401).
7. With regard to the proposed modifications notified by Japan on 6 September 1999 in
document GPA/W/91, Canada, the European Community and the United States communicated their
objection to the proposed modifications taking effect pending further consultations with Japanregarding the withdrawal of an entity from its Annex 3, Appendix I.  Since the Committee's previous
report, consultations have been held between Japan and the delegations of the United States, the
European Community and Canada on the basis of the questions put to Japan by these delegations
(GPA/W/97, GPA/W/99, GPA/W/ 100 and GPA/W/100/Add.1) a nd Japan's answers thereto
(GPA/W/104, GPA/W/104/Add.1, GPA/W/104/ Add.2/Rev.1, GPA/W/107, GPA/W/108 and
GPA/W/160).
8. With regard to proposed modifications notified by Japan on 29 August 2001 in documents
GPA/W/144, 145 and 146, the United States, Canada and the European Community communicated
their objection to the proposed modifications taking effect upon expiration of the 30-day review
period (GPA/W/151, 155 and 156).
Loose-leaf system for Appendices
9. Pursuant to the Decision of the Committee of 4 June 1996, the Appendices to the Agreement
have been certified in the form of a loose-leaf system (WT/Let/330).  In accordance with the
procedures for future changes to the loose-leaf system agreed by the Committee on 24 February 1997,
subsequent modifications notified by Parties are certified and issued as replacement pages to beinserted in the loose-leaf system once they beco me effective in accordance with the procedures of
Article XXIV:6.  In addition to being made available in hard copy form, the loose-leaf system is
circulated to Parties and other WTO Members in electronic form through the WTO Documents
On-line database.  An up-to-date copy of the loose-leaf system is also available to the general public
through the government procurement site on the WTO Home Page on the Internet
(http://www.wto.org/english/tratop_e/gproc_e/loose_e.htm).
Thresholds
10. In accordance with the Decision on Modalities for Notifying Threshold Figures in National
Currencies (GPA/1, Annex 3), the United States  (GPA/W/101/Add.5);  Is rael (GPA/W/101/Add.6);
Liechtenstein (GPA/W/101/Add.7);  and the Ki ngdom of Netherlands with respect to Aruba
(GPA/W/101/Add.9) notified threshold figures in their national currency for 2000-2001 and
Switzerland (GPA/W/101 /Add.8) for 2001 and Korea for 2001-2002 (GPA/W/130 and Corr.1).GPA/58
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Notification and review of national implementing legislation
11. Pursuant to the Decision on the Procedures for the Notification of National Implementing
Legislation (GPA/1/Add.1), Canada;  the European Community;  Hong Kong, China;  Israel;  Japan;
Liechtenstein;  Korea;  Norway;  Singapore;  Switzerland;  and the United States have notifiednational implementing legislation including their responses to the Checklist of Issues (GPA/13,
GPA/20, GPA/27, GPA/34, GPA/37,  GPA/46, GPA/12/Rev.1, GPA/ 10, GPA/39, GPA/15 and Add.1
and GPA/23, respectively).  The Committee has completed the reviews of the national implementing
legislation of Canada;  the European Community;  Hong Kong, China;  Korea;  Norway;  Singapore;
Switzerland;  and the United States (GPA/51, GPA/32, GPA/54 , GPA/47, GPA/53, GPA/52, GPA/33
and GPA/50, respectively).  In accordance with the arrangements and the schedule for the review
agreed by the Committee, these reviews were conducted on the basis of responses provided by theParties being reviewed to written questions put by other Parties in advance of the review meeting at
which their respective national legislation was taken up.  At its meeting on 3 May 2001, the
Committee continued the reviews by taking up the im plementing legislation of Israel (GPA/34) on the
basis of questions from Korea, the United States and Canada and Israel's answers thereto;  the
implementing legislation of Japan (GPA/37) on the basis of questions from Switzerland;  the United
States;  Hong Kong, China;  and Canada and Japan's replies thereto;  and the implementing legislation
of Liechtenstein (GPA/46) on the basis of quest ions from the United States and Liechtenstein's
answers thereto.  At its meeting on 2 October 2001, the Committee completed the review of the
national legislation of Israel, Japan and Liechtenstein.  At its next meeting, the Committee will take
up the review of the legislation of the Kingdom of the Netherlands with respect to Aruba and Iceland.
Statistical reporting
12. Article XIX:5 requires Parties to collect and provide, on an annual basis, statistics on their
procurements covered by the Agreement.  During the period under review,  Switzerland has reported
statistics for 1998-1999 (GPA/29/Add.3 and GPA/40/Add.1).  Japan will submit its statistical report
for 1999 and the United States for 1996-2000 in the near future.
Consultations and dispute settlement
13. There were no matters raised under Article XXII of the Agreement during the period under
review.
Procedural matters
14. In accordance with its Decision on Procedures for the Circulation and Derestriction of
Documents (GPA/1/Add.2), Parties are considering a proposal for the derestriction of the documents
listed in document GPA/W/159 as of 15 December 2001.
III. ACCESSIONS
15. Following the Committee Decision of 29 September 2000 providing for the accession of
Iceland (GPA/43), Iceland deposited its instrume nt of accession on 29 March 2001.  The Agreement
entered into force for Iceland on 28 April 2001 (GPA/48 and WT/Let/388).
16. Latvia applied for accession on 16 June 1999.  During the period under review, informal
plurilateral consultations were conducted with Latvia on 31 January 2001 on the basis of Latvia's
written answers to the questions received from the United States, Switzerland, and Canada.  In
parallel, intensive bilateral consultations have been held with interested Parties regarding the
outstanding issues.  In light of those consultations, Latvia will submit a revised offer in the nearfuture.  Moreover, Latvia updated, in document GPA/W/149, the information that it had previouslyGPA/58
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provided on its national legislation and procurem ent practices in GPA/28 and Add.1 by responding to
the checklist of issues in document GPA/35.
17. Estonia applied for accession on 6 September 2000.  Estonia's replies to the Checklist of
Issues in document GPA/35, first circulated on 5 December 2000 (GPA/W/127), were revised on
17 August 2001 (GPA/W/127/Rev.1 and GPA/W/127/ Rev.1/Add.1).  Estonia also provided an
English translation of the Public Procurement Ac t of 1 April 2001 (GPA/55).  Informal plurilateral
consultations were conducted with Estonia on 31 January 2001 on the basis of Estonia's replies to the
questions received from Switzerland, Japan, the United States and Canada.  A follow-up question
received from Japan in April 2001 and Estonia's answers thereto have also been circulated.  In
parallel, bilateral consultations have been held with interested Parties.  Estonia will submit a revised
offer in the near future.
18. Chinese Taipei applied for accession to the Agreement in June 1994 (GPA/IC/5) and
submitted a draft offer which was subsequently revised on 19 March 1997.  Parties have held bilateral
consultations with Chinese Taipei since 1996.  The legislation of Chinese Taipei of 1998 was
circulated in document GPA/36. Chinese Taipei will submit a revised offer in the near future.
19. Panama applied for accession to the Agreement and tabled an initial offer on 24 June 1997
(GPA/W/53).  Panama has had bilateral consultations  with interested Parties since 1999 on the basis
of a revised offer submitted on 10 December 1998.
20. The Kyrgyz Republic applied for accession to the Agreement and tabled an initial offer on
11 May 1999.  Written questions and comments were received from the United States.
21. As for the other acceding countries, namely Jordan, Bulgaria, Oman, Slovenia and Albania,
Jordan applied for accession on 12 July 2000, Bulgaria on 27 September 2000, Slovenia on24 September 2001 and Albania on 28 September 2001.  These countries have not yet tabled an initial
offer.  Jordan's replies to the checklist of issues in document GPA/35 were circulated on
6 December 2000 (GPA/W/124).  Informal plurilateral consultations were conducted between Jordan
and interested Parties on 31 January 2001 on the basis of the replies by Jordan to the written questions
received from Switzerland, the United States and Cana da.  Jordan also replied to a number of follow-
up questions forwarded subsequently by the European  Community.  Bulgaria's replies to the checklist
of issues were circulated on 2 May 2001 (GPA/W/136) .  In addition, Bulgaria submitted an English
translation of the Law on Government Procuremen t enacted on 25 June 1999 (GPA/49) as well as of
two recently issued procurement regulations.  Qu estions received from Switzerland; Hong Kong,
China;  and Canada to Bulgaria in September 2001 were circulated.  Oman, Slovenia and Albania
responded to the checklist of issues (GPA /W/141, GPA/W/158 and GPA/W/161, respectively).
Moreover, the Protocols of Accession to the WTO of five countries, namely Croatia(WT/ACC/HRV/59), Georgia (WT/ACC/GEO/31 ), Lithuania (WT/ACC/LTU/52), Moldova
(WT/ACC/MOL/37) and Mongolia (WT/ACC/MNG/9) include commitments regarding the
Agreement on Government Procurement.
22. By way of streamlining the accession process, the Committee agreed to proceed with the
accessions process in accordance with the Indicative Time-Frame for Accession Negotiations andArrangements for Reporting on the Progress of Work in document GPA/W/109/Rev.2.  The
Committee had previously adopted a checklist of issues for provision of information by applicant
governments (GPA/35).GPA/58
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IV. NEGOTIATIONS UNDER ARTICLE XXIV:7
23. Article XXIV:7(b) and (c) of the Agreement calls on the Parties, not later than the end of the
third year from the date of its entry into force,  to undertake further negotiations, with a view to
improving the Agreement and achieving the greatest possible extension of its coverage among all
Parties and eliminating any remaining discriminatory measures and practices.  As stated in its1996 Report to the General Council (GPA/8), the Committee agreed to undertake an early review
which was initiated in February 1997 in informal consultations, with an examination of modalities.
This review has covered, in particular, the following elements:  simplification and improvement of the
Agreement, including, where appropriate, adaptation to advances in the area of information
technology;  expansion of the coverage of the Agreement;  and elimination of discriminatory
measures and practices which distort open procurement.  An objective of the negotiations under
Article XXIV:7 is the expansion of the membership of the Agreement by making it more accessible tonon-Parties.  In this connection, a communication was sent in April 1997 by the Chairman of the
Committee to the WTO Members, drawing their attention, as well as the attention of governments
which are in the process of acceding to the WTO, to  this work and inviting them to participate as
observers in the meetings of the Committee (WT/L/206).  During the period covered by this report,
Parties pursued their consultations in three informal meetings held in January, May and October 2001on the basis of proposals made by delegations, including new proposals by Switzerland, the European
Community, Japan and the United States.  These have been incorporated in successive versions of an
informal note reflecting the discussions on the draft texts of the modifications to the Articles of the
Agreement proposed by various Parties "Suggested Drafting Changes to the Text of the Agreement",
the latest revision of which was circulated on 2 Augu st 2001.  At each of the informal meetings held
during the period under review, Parties also considered the other aspects of the Article XXIV:7
negotiations, namely the elimination of discriminatory measures and the expansion of coverage.
Canada submitted an informal note on Discriminatory Provisions in the Agreement at the
1 October 2001 meeting.  The group also had before it a list of submissions that had been previously
made by various delegations as well as the notes by the Secretariat relating to these elements.  TheSecretariat also made available a note on the Modalities Used in the Past for Negotiating Schedules to
the Agreement.
24. At the informal meeting held on 1 October 2001, regarding the Article-by-Article review of
the Agreement, delegations had available to them an  explanatory note by the United States relating to
its proposals for the revision of the Agreement and another submission by the United States on
""Build-Operate-Transfer" Contracts and "Concessions for Public Works" under the Agreement on
Government Procurement".  Detailed comments were made seeking clarification of or suggestingfurther drafting changes to the revised texts proposed by the United States in April 2001.  The
delegation of the United States indicated that it woul d further revise the texts of some of the proposed
amendments to take account of the comments that had been made so far.  It also informed the group
that it was reviewing its ideas on exceptions to the Agreement.  A number of other delegations
expected to put forward drafting suggestions on the review of the text of the Agreement:  Hong Kong,
China on several articles;  the European Community on tendering procedures;  Canada on time-
periods regarding contract award notices;  and Japan on Article XXIV:6(b).  With regard to the
possible use of the term "measures" in defining the scope of an agreement, the Secretariat was asked
to prepare a note on the use of this term in the GATT/WTO jurisprudence.  Regarding the status of
work on the revision of the text of the agreement, the view was expressed that the proposals on thetable constituted a good basis for the negotiations on the revision of the text of the Agreement, it
being understood that delegations were free to make proposals at any time.  Finally, delegations had
an exchange of views regarding the development of a plan of action for carrying forward work on all
elements of the review.  Some delegations informed the Group that intensive consultations were being
pursued internally on GPA-related issues and that they needed more time before they could agree to atime-frame for further work on the negotiations under Article XXIV:7.  It was also suggested that the
discussion on the revision of the text at each of the future meetings would focus on a selected
category of issues.  Some delegations suggested that the possibility of early results in some areasGPA/58
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should be considered.  Some delegations stressed that the elements of the review regarding the
elimination of discriminatory provisions and expansion of coverage would be taken up in parallel with
the work on the revision of the text.
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