RESTRICTED  
  
GPA/TN1994/2/Rev.5  
18 April 2000  
(24-2678) Page: 1/96 
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   
 
  
SUGGESTED DRAFTING CHANGES TO THE  1994 AGREEMENT *,** 
NOTE BY THE SECRETARIAT  
Revision  
At the informal meeting of 7 March  2000, it was agreed that the note by the Secretariat, reflecting 
the discussion on the article -by-article examination of the Agreement at the informal meetings held 
from February to October  1999 (Job Nos. 5713 and 5713/Add.1), would be updated . Accordingly, 
the present note reflects the comments made at the 7 March  2000 meeting.  
 
 
 
* English only . 
** Pursuant to the relevant Decision of the Committee on Government Procurement ( GPA/CD/5  
(16/11/2023)), this document (informal document symbol: negs25 ) was derestricted on 8 November 2023.  GPA/TN1994/2/Rev.5  
- 2 - 
  Article I:1  
 
Scope a nd Coverage  
 
AGREEMENT ON GOVERNMENT  
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
1. This Agreement applies to any law, 
regulation, procedure or practice regarding any 
procurement by entities covered by this 
Agreement, as specified in Appendix I.1 
 
1 For each Party, Appendix I is divided into five 
Annexes:  
- Annex 1 contains central government 
entities.  
- Annex 2 contains sub -central 
government entities.  
- Annex 3 contains all other entities that 
procure in accordance with the 
provisions of this Agreement.  
- Annex 4 specifies services, whether 
listed positively or negatively, covered 
by this Agreement.  
- Annex 5 specifies covered construction 
services.  
Relevant thresholds are specified in each Party's 
Annexes.  1. This Agreement applies to any law, 
regulation, procedure or practice regarding 
any procurement falling within the scope of 
Article III, paragraph  8 of the GATT and 
Article  XIII, paragraph  1 of GATS by 
entities covered by this Agreement, as 
specified in Appendix  I. 
[EC – GPA/W/87 ] 
 
1. This Agreemen t applies to any law, 
regulation, procedure or practice regarding 
any procurement by entities covered by this 
Agreement, as specified in Appendix I, 
except procurements with a view to 
commercial resale or with a view to use in 
the production of goods or su pply of 
services for commercial sale.  
[Chinese Taipei – Job No.  3193]  
 
 
Comments  
 
• A reference to the current definitions in GATT and GATS is necessary to ensure that the 
inclusion of a definition of "government procurement" in the GPA does not lead to a s ituation 
in which government procurement is not covered by any WTO rules . The intention underlying 
the proposal is to avoid any gaps between what is covered by GATT and GATS and what is 
covered under the GPA.  [EC] 
• Consideration should be given to whether the current definitions in the GATT and the GATS 
are adequate or whether a further definition of "government procurement" should be 
developed.  [US] 
• The proposed modification is intended to avoid misunderstandings with regard to the meaning 
of publi c procurement without actually defining the term . This modification is not intended to 
have the effect of precluding existing derogations, for instance, reciprocity -based derogations, 
under the current Agreement.  [EC in response to clarification sought fro m Japan and Hong 
Kong, China]  
• Would the elimination of the footnote listing the Annexes in Appendix I and its replacement 
by the words "as specified in Appendix I", imply a different structure for Appendix I ? [Canada]  
• In the case of GATS, the "scope" is de fined in terms of an exclusion . It might be more 
appropriate to substitute the proposed wording "procurement falling within the scope" with 
"as described in …".  [Hong Kong, China ; EC] 
• This Article should contain a definition of the term "government procurement" which focuses 
on the status of the end -users rather than the purchasing agent.  [Hong Kong, China ] Some 
specific suggestions with respect to this comment should be provided . [US; Canada]  GPA/TN1994/2/Rev.5  
- 3 - 
  Article I:2  
 
Scope and Coverage  
 
AGREEMENT O N GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
2. This Agreement applies to procurement by 
any contractual means, including through such 
methods as purchase or as lease, rental or hire 
purchase, with or without an option to buy, 
including any comb ination of products and 
services.   
 
Comments  
 
• A reference to forms of procurement under new phenomena (partnerships between private 
and public sectors, multiplication of "Build Operate Transfer" (BOT) operations, joint ventures) 
should be included in this paragraph with an exact definitions of these terms given in the text 
of the Agreement or in footnotes.  [Korea]  GPA/TN1994/2/Rev.5  
- 4 - 
  Article I:3, 4  
 
Scope and Coverage  
 
AGREEMENT ON GOVERNMENT  
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
3. Where entities, in the context of 
procurement covered under this Agreement, 
require enterprises not included in Appendix I to 
award contracts in accordance with particular 
requirements, Article  III shall apply mutatis 
mutandis  to such requirements.  
  
4. This Agreement applies to any 
procurement contract of a value of not less than 
the relevant threshold specified in Appendix I.  
 4. Without prejudice to Article  XXIII, 
this Agreement applies to any procurement 
contract:  
(a) of central government entities of 
a value of not less than  
- 130,000 SDR for contracts 
for supply of and services  
- 5,000,000 SDR for 
contracts for public works  
(b) of sub -central government 
entities of a value of not less 
than 
- 200,000 SDR for contracts 
for supply of and serv ices 
- 5,000,000 SDR for 
contracts for public works  
(c) of entities according to 
Appendix  I, Annex 3 of a value of 
not less than  
- 400,000 SDR for contracts 
for supply of product s and 
services  
- 5,000,000 SDR  for 
contracts for public works  
[EC – GPA/ W/87 ] 
 
 
Comments  
 
With regard to the harmonized thresholds:  
 
• It would be premature to amend the approach in the existing text without consideration of the 
broader range of issues that are involved with respect to coverag e and elimination of 
discriminatory provisions.  [Canada]  
• Harmonization of thresholds should not be stipulated in the Agreement . It would be 
inappropriate to include harmonized thresholds in the main body of the Agreement in view of 
the balance of commitmen ts in Appendix I between Parties in relation to the coverage of 
entities, goods and services as well as thresholds.  [Japan ; Korea] Nevertheless, the 
introduction of common thresholds in the text of the Agreement may be acceptable at a later 
stage in the li ght of the outcome of the work regarding the elimination of discriminatory 
measures.  [Korea]  
• While harmonization of thresholds furthers the Committee's aim to streamline the Agreement 
and may enhance the clarity of the Agreement, it does affect the balance  of concessions 
contained in the Appendices and cannot be dealt with simply through amendments to the text.  
[US] GPA/TN1994/2/Rev.5  
- 5 - 
  • The adoption of common thresholds should not inhibit Members' ability to tailor their offers to 
maintain a balance of interests.  [Canada]  
• Although there may be a link between thresholds and coverage, there is not necessarily a 
clear effect on the balance of offers that have been negotiated because offers relate more to 
the entities that are covered and not necessarily to the thresho lds. [EC] 
• The adoption of common thresholds is consistent with attempts to expand coverage of the 
Agreement in the future and to make the Agreement more user -friendly.  [EC] 
• "Public works" is merely another way of naming "construction services" . There is no 
substantive difference between the terms used in the proposal.  [EC in response to clarification 
sought by Japan and Canada]  
 
 
  GPA/TN1994/2/Rev.5  
- 6 - 
  Article II:1, 2, 3  
 
Valuation of Contracts  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
1. The followi ng provisions shall apply in 
determining the value of contracts2 for purposes 
of implementing this Agreement.  
 
2 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 
publication of the notice in accordance with Article IX.   
 
 
 
2 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 accorda nce with 
Article  IX or at the time of first contact with the 
supplier in the case of limited tendering.  [Japan]  
 
 
Comments  
 
• The language of footnote 2 should be aligned with that of Article I:4 on threshold values.  
• What is meant by the term "first contact" and what is the rationale for the approach proposed 
by Japan in the case of limited tendering ? [Canada]  
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
2. Valuation shall take into account all forms 
of remuneration, including any premiums, fees, 
commissions and interest receivable.  
  
3. The selection of the valuation method by 
the entity shall not be used, nor shall any 
procurement requirement be divided, with the 
intention of avoiding the application of this 
Agreeme nt. 
  
 GPA/TN1994/2/Rev.5  
- 7 - 
  Article II:4  
 
Valuation of Contracts  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
4. If an individual requirement for a 
procurement results in the award of more than 
one contract, or in contracts being awarded in 
separate parts, the basis for valuation shall be 
either:  
  
(a) the actual value of similar recurring 
contracts concluded over the 
previous fiscal year or 12 months 
adjusted, where possible, for 
anticipated changes in quantity and 
value over the subsequent  
12 months ; or 
  
(b) the estimated value of recurring 
contracts in the fiscal year or 
12 months subsequent to the initial 
contract.   
 
Comments:  
 
• What is meant by the reference to a 12 months period ? If the final value of a contract which 
runs for more than one year, for example, a road maintenance contract, is unknown until the 
works have been completed, should the basis of coverage be the estimated value for one year 
or the value for the full period of the contract ? Should the contract be broken d own into 
one-year periods because of the reference to 12 months in subparagraphs (a) and (b) ? 
[Hong Kong, China]  
 GPA/TN1994/2/Rev.5  
- 8 - 
  Article II  
 
Valuation of Contracts  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 new paragraph  
 
For contracts of an indefinite value, or for 
contracts involving the award of a contract 
to multiple suppliers or service providers, 
the basis for valuation shall be either:  
 
(a) the maximum total estimated 
value of the procurement that 
could be awarded under the 
contract ; or 
 
(b) [where the total estimated value 
is not stated, [Singapore – 
Job No. 5271]]  the estimated 
value of the contract shall 
automatically be considered to 
be above the threshold values 
provided for in the national 
annexes to the GPA for the 
purposes of cov erage under the 
Agreement.  
[US – Job No. 2795]  
 
 
Comments  
 
• How would the proposed provision apply to low -value contracts, for example those entered 
into by small local authorities ? Under such contracts, even over a period of several years, the 
threshold values stipulated in the Agreement may not be exceeded.  [Norway, Canada]  
• In order to provide certainty on the application of the Agreement in cases of low -value 
contracts, the concept of maximum total estimated value in subparagraph  (a) could be 
elaborated . It might be possible to make a determination that the maximum total estimated 
value of small -value contracts would not exceed the GPA thresholds.  [US] 
• The total estimated value of a contract is not necessarily published.  [Canada]  
• In order to en sure consistency with the current wording of the Agreement and in light of the 
fact that a contract will not actually exist at the time when the valuation takes place, except 
in the case of limited tendering, the term "procurements" rather than "contracts"  should be 
used.  [Canada]  
• The timing of the conclusion of a contract may vary during the procurement process according 
to different national legal systems . Accordingly, the terminology adopted with regard to 
formulation of rules on the valuation of framewo rk contracts and similar arrangements should 
avoid prescribing whether a contract should be concluded at the first or the second stage of 
the procurement process.  [EC] 
• How would the existing paragraphs 4, 5 and 6 and the proposal for a new paragraph fit 
together and would there be a need for further amendments in light of the discussion on 
framework agreements.  [Canada ; Hong Kong, China]  
• If the proposal is intended to be an addition to the existing text, all of the qualifications 
contained in the chapeau to the proposed paragraph might not be necessary.  [Canada]  GPA/TN1994/2/Rev.5  
- 9 - 
  Article II:5, 6  
 
Valuation of Contracts  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
5. In cases of contracts for the lease, rental 
or hire purchase of products or services, or in the 
case of contracts which do not specify a total 
price, the basis for valuation shall be:  
  
(a) in the case of fixed -term contracts, 
where their term is 12  months or 
less, the total contract value for 
their duration, or, wher e their term 
exceeds 12 months, their total value 
including the estimated residual 
value;  
  
(b) in the case of contracts for an 
indefinite period, the monthly 
instalment multiplied by 48.  
  
If there is any doubt, the second basis for 
valuation, namely (b), is to be used.  
  
6. In cases where an intended procurement 
specifies the need for option clauses, the basis 
for valuation shall be the total value of the 
maximum permissible procurement, inclusive of 
optional purchases.  
  
 
 GPA/TN1994/2/Rev.5  
- 10 - 
  Article III  
 
National Treatment and Non -discrimination  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
Article III  
 
National Treatment and Non -discrimination  
 Article III  
 
Principal Obligations  
 
 new paragraph  
 
Each Party shall ensure that the 
procurement of its covered entities takes 
place in a transparent, reasonable and 
non-discriminatory manner, treating any 
supplier of any Party equally, and ensuring 
the principle of open and effective 
competition.  
[EC – GPA/W/87 ] 
 
 
Comments  
 
• The thrust of the proposed obligations appear to be inconsistent with the contents of Appendix 
I. Would the proposed provision still allow for the reciprocity provisions in Annex  1? The 
existing provisions of Article III should be fully imple mented before introducing new 
obligations.  [Hong Kong, China]  
• It is important to include a reference to the principle of "open and effective competition" in 
the Agreement even though this principle is not reflected in all the Annexes to the Agreement . 
The fact that there are many such exceptions contained in the Annexes makes it necessary to 
spell out the basic objectives of the Agreement . The proposal makes it clear that, unless there 
is an explicit exception, the general principles of transparency and ope n competition should 
be applied.  [EC] 
• The reciprocity provisions would not be affected as implied by the wording "treating any 
supplier of any Party equally".  [EC] 
• The rationale behind the reference to the general principles of "open and effective competit ion" 
is that market forces are working and that suppliers can openly compete.  [EC in response to 
clarification sought by Japan ; the US ; Canada ; and Hong Kong, China]  
• The terms "reasonable", "non -discriminatory" and "open competition" are not intended to be  
precise rules . Rather, they are general principles that should influence the application of the 
provisions of the GPA . The meaning of these terms will vary depending upon the procedures 
to which they are applied.  [EC in response to a question from Canada requesting clarification 
of the term "reasonable"]  
• It may be useful to clearly state the principles that underlie the Agreement . This would, for 
instance, help address issues such as non -discrimination in the context of framework 
contracts . The proposal me rely increases the visibility of the core principles of the Agreement.  
[EC in response to a question from Canada]  
• The consistency of term "open and effective competition" with the use of selective and limited 
tendering procedures should also be clarified.  [US] GPA/TN1994/2/Rev.5  
- 11 - 
  Article III:1, 2  
 
National Treatment and Non -discrimination  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
1. With respect to all laws, regulations, 
procedures and practices regarding government 
procurement covered by this Agreement, each 
Party shall provide immediately and 
unconditionally to the products, services and 
suppliers of other Parties offering products or 
services of the Parties, treatment no less 
favourable than:  
  
(a) that accorded to domestic products, 
services and suppliers ; and 
  
(b) that accorded to products, services 
and suppliers of any other Party.  
  
2. With respect to all laws, regulations, 
procedures and practices regarding government 
procurement covered by this Agreement, ea ch 
Party shall ensure:  
  
(a) that its entities shall not treat a 
locally -established supplier less 
favourably than another 
locally -established supplier on the 
basis of degree of foreign affiliation 
or ownership ; and 
  
(b) that its entities shall not 
discriminate against 
locally -established suppliers on the 
basis of the country of production of 
the good or service being supplied, 
provided that the country of 
production is a Party to the 
Agreement in accordance with the 
provisions of Article  IV. 
  
 
Comments  
 
• Further clarification is needed in relation to the meaning of the term "foreign affiliation or 
ownership" in paragraph 2(a).  [Hong Kong, China ; US] 
• The term "foreign affiliation or ownership" seems to apply both to Parties and non -Parties to 
the Agreement . The consistency of the scope of this provision with that of paragraph 1 should 
be reviewed.  [Hong Kong, China]  
 GPA/TN1994/2/Rev.5  
- 12 - 
  Article III:3  
 
National Treatment and Non -discrimination  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
3. The provisions of paragraphs 1 and 2 shall 
not apply to customs duties and charges of any 
kind imposed on or in connection with 
importation, the method of levying such duties 
and charges, other import regulations and 
formalities, and measures affecting trade i n 
services other than laws, regulations, procedures 
and practices regarding government 
procurement covered by this Agreement.  3. This Article shall not apply to customs 
duties and charges of any kind imposed on 
or in connection with importation, the 
method  of levying such duties and charges, 
other import regulations and formalities, 
and measures affecting trade in services 
other than laws, regulations, procedures 
and practices regarding government 
procurement covered by this Agreement.  
[EC – GPA/W/87 ] 
 
 new paragraph 4  
 
[For procurements awarded to more than 
one supplier][Where contracts are awarded 
to more than one supplier under the same 
procurement [Hong Kong, China]], Parties 
shall ensure that each awardee [winning 
tenderer [Hong Kong, China]] is provided a 
fair opportunity to be considered for each 
transaction under the procurement on a 
non-discriminatory basis.  
[US - Job No. 2795]  
 
 
Comments  
 
• The term "transaction" in the proposed new paragraph (4) should be clarified.  [Hong Kong, 
China] 
• The US proposal appears to create a separate non -discrimination obligation for one type of 
procurement or contract and for certain steps in the procurement process . The existing 
paragraphs  1 and 2 may be sufficient to ensure non -discrimination for all procurement covered 
by the GPA.  [Canada]  
 GPA/TN1994/2/Rev.5  
- 13 - 
  Article IV:1, 2  
 
Rules of Origin  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
1. A Party shall not apply rules of origin to 
products or services imported or supplied for 
purposes of government procurement covered 
by this Agreement from other Parties, which are 
different from the rules of origin applied in the 
normal course of trade and at the time of the 
transaction in question to imports or supplies of 
the same products or services f rom the same 
Parties.  
  
2. Following the conclusion of the work 
programme for the harmonization of rules of 
origin for goods to be undertaken under the 
Agreement on Rules of Origin in Annex 1A of the 
Agreement Establishing the World Trade 
Organization (hereinafter referred to as "WTO 
Agreement") and negotiations regarding trade in 
services, Parties shall take the results of that 
work programme and those negotiations into 
account in amending paragraph  1 as 
appropriate.  
  
 
Comments  
 
• The issu e of rules of origin of services should be taken up in the discussion concerning the 
extension of the Agreement to services.  
 GPA/TN1994/2/Rev.5  
- 14 - 
  Article V  
 
Special and Differential Treatment for Developing Countries  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
Article V  
 
Special and Differential Treatment for  
Developing Countries  
 Article V  
 
Developing Countries  
 new paragraph  
 
Upon accession to the Agreement, a 
developing country shall enjoy all the 
benefits of the Agreement.  
It shall be obliged to comply with the 
obligations under this Agreement:  
- at central government level X 
years after accession  
- at sub -central government 
level  Y years after accession  
- as far as entities under 
Appendix  I, Annex 3 are 
concerned Z years after  
accession.  
[EC – GPA/W/87 ] 
 
 
Comments  
 
• The EC proposal represents a new approach , which attempts to facilitate the entry of 
developing countries into the GPA by simplifying and making less technical what is currently 
a complicated set of provisions.  [EC] 
• The proposed amendment may go beyond the aim of simplification of the existing provisions.  
[Japan]  
• A possible effect of the proposed amendment in particular, the reference to transitional 
periods, could be that developing countries are deterred from joining th e Agreement.  [Korea ; 
Hong Kong, China]  
• The provisions of the existing Article are complicated and the Article hasn't served its intended 
purpose . The current text of Article V is more likely to deter developing countries from joining 
the Agreement.  
• The ref erence to compliance with "the obligations under this Agreement" might mean that an 
acceding country would be required to cover all sub -central entities at a certain point in time.  
[US] It should mean that only the negotiated coverage would come into effec t at that point in 
time. [US; EC] 
• Providing a generic transitional period for central or sub -central government coverage for 
every acceding member might not be appropriate.  [US] 
 GPA/TN1994/2/Rev.5  
- 15 - 
  Article V:1, 2  
 
Special and Differential Treatment for Developing Countries  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
Objectives  
  
1. Parties shall, in the implementation and 
administration of this Agreement, through the 
provisions set out in this Article, duly take into 
account the development, financial and trade 
needs of developing countries, in particular 
least-developed countries, in their need to:  
  
(a) safeguard their 
balance -of-payments position and 
ensure a level of reserves adequate 
for the implementation of 
programmes of e conomic 
development;  
  
(b) promote the establishment or 
development of domestic industries 
including the development of 
small-scale and cottage industries in 
rural or backward areas ; and 
economic development of other 
sectors of the economy;  
  
(c) support industrial units so long as 
they are wholly or substantially 
dependent on government 
procurement ; and 
  
(d) encourage their economic 
development through regional or 
global arrangements among 
developing countries presented to 
the Ministerial Conference of the 
World Trade Organization 
(hereinafter referred to as the 
"WTO") and not disapproved by it.  
  
2. Consistently with the provisions of this 
Agreement, each Party shall, in the preparation 
and application of laws, regulations and  
procedures affecting government procurement, 
facilitate increased imports from developing 
countries, bearing in mind the special problems 
of least -developed countries and of those 
countries at low stages of economic 
development.  
  
 
 
 
 
 
 
 
 GPA/TN1994/2/Rev.5  
- 16 - 
  Article  V:3 
 
Special and Differential Treatment for Developing Countries  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
Coverage  
  
3. With a view to ensuring that developing 
countries are able to adhere to this Agreement 
on terms consistent with their development, 
financial and trade needs, the objectives listed in 
paragraph  1 shall be duly taken into account in 
the course of negotiations with respect to the 
procurement of developing countries to be 
covered by the provisions of thi s Agreement . 
Developed countries, in the preparation of their 
coverage lists under the provisions of this 
Agreement, shall endeavour to include entities 
procuring products and services of export 
interest to developing countries.  
  
 
Comments  
 
• With regard to the issue of granting developing countries non -reciprocal access to 
procurement markets of Parties, should there be flexibility in offers of coverage by prospective 
Members or should there be special provisions associated with the evaluation of o ffers under 
individual procurements by Members ? [Canada]  GPA/TN1994/2/Rev.5  
- 17 - 
  Article V:4  
 
Special and Differential Treatment for Developing Countries  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
Agreed Exclusions  
  
4. A developing country may negotiate with 
other participants in negotiations under this 
Agreement mutually acceptable exclusions from 
the rules on national treatment with respect to 
certain entities, products or services that are 
included in its coverage lists, having regard to 
the particular circumstances of each case . In 
such negotiations, the considerations mentioned 
in subparagraphs  1(a) through 1(c) shall be duly 
taken into account . A developing country 
participating in regional or global arrangements 
among developing countries referred to in 
subparagraph  1(d) may also negotiate 
exclusions to its lists, having regard to the 
particular circumstances of each case, taking 
into account, inter alia, the provisions on 
government procurement provided for in the 
regional or global arrang ements concerned and, 
in particular, products or services which may be 
subject to common industrial development 
programmes.  
  
 
Comments  
 
• Further flexibility should be provided in the evaluation of offers from developing countries with 
respect to non -discriminatory treatment and in the application of the procedural provisions.  
[Job No. 5074]  GPA/TN1994/2/Rev.5  
- 18 - 
  Article V:5, 6, 7, 8  
 
Special and Differential Treatment for Developing Countries  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
5. After entry into force of this Agreement, a 
developing country Party may modify its 
coverage lists in accordance with the provisions 
for modification of such lists contained in 
paragraph  6 of Article  XXIV, having regard to its 
development, financial and trade needs, or may 
request the Committee on Government 
Procurement (hereinafter referred to as "the 
Committee") to gran t exclusions from the rules 
on national treatment for certain entities, 
products or services that are included in its 
coverage lists, having regard to the particular 
circumstances of each case and taking duly into 
account the provisions of subparagraphs  1(a) 
through 1(c) . After entry into force of this 
Agreement, a developing country Party may also 
request the Committee to grant exclusions for 
certain entities, products or services that are 
included in its coverage lists in the light of its 
participation in  regional or global arrangements 
among developing countries, having regard to 
the particular circumstances of each case and 
taking duly into account the provisions of 
subparagraph  1(d). Each request to the 
Committee by a developing country Party 
relating t o modification of a list shall be 
accompanied by documentation relevant to the 
request or by such information as may be 
necessary for consideration of the matter.  
  
6 Paragraphs 4 and 5 shall apply mutatis 
mutandis  to developing countries acceding to 
this Agreement after its entry into force.  
  
7. Such agreed exclusions as mentioned in 
paragraphs 4, 5 and 6 shall be subject to review 
in accordance with the provisions of 
paragraph  14 below.  
  
 
 
 
Technical Assistance for Developing Country 
Parties  
  
8. Each developed country Party shall, upon 
request, provide all technical assistance which it 
may deem appropriate to developing country 
Parties in resolving their problems in the field of 
government procurement.  
  GPA/TN1994/2/Rev.5  
- 19 - 
  Article V:9, 10, 11  
 
Special and Differential Treatment for Developing Countries  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
9. This assistance, which shall be provided on 
the basis of non -discrimination among 
developing country Parties, shall relate, 
inter alia, to: 
  
- the solution of particular technical 
problems relating to the award of a 
specific contract ; and 
  
- any other problem which the Party 
making the request and another 
Party agree to deal with in the 
context of this assistance.  
  
10. Technical assistance referred to in 
paragraphs  8 and 9 would include translation of 
qualification documentation and tenders made 
by suppliers of developing country Parties into an 
official language of the WTO designated by the 
entity, unless developed country Parties deem 
translation to be burdensome, and in that case 
explanation shall be given to developing country 
Parties upon their request addressed either to 
the developed country Parties  or to their entities.  
  
 
Comments  
 
• The provisions on technical cooperation should be extended to take account of the needs of 
developing countries to adjust to new developments in the application of information 
technology to government procurement.  
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
Information Centres  
  
11. Developed country Parties shall establish, 
individually or jointly, information centres to 
respond to reasonable requests from developing 
country Parties for information relating to, 
inter alia, laws, regulations, procedures and 
practices regarding governm ent procurement, 
notices about intended procurements which have 
been published, addresses of the entities 
covered by this Agreement, and the nature and 
volume of products or services procured or to be 
procured, including available information about 
future tenders . The Committee may also set up 
an information centre.  
  GPA/TN1994/2/Rev.5  
- 20 - 
  Article V:12, 13, 14  
 
Special and Differential Treatment for Developing Countries  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
Special Treatment for Least -Developed 
Countries  
  
12. Having regard to paragraph  6 of the 
Decision of the CONTRACTING PARTIES to 
GATT  1947 of 28  November  1979 on Differential 
and More Favourable Treatment, Reciprocity and 
Fuller Participation of Developing Countries 
(BISD 26S/203 -205), special treatment shall be 
granted to least -developed country Parties and 
to the suppliers in those Parties with respect to 
products or services originating in those Parties, 
in the context of any general or specific 
measures in favour of developing co untry 
Parties . A Party may also grant the benefits of 
this Agreement to suppliers in least -developed 
countries which are not Parties, with respect to 
products or services originating in those 
countries.  
  
13. Each developed country Party shall, upon 
reque st, provide assistance which it may deem 
appropriate to potential tenderers in 
least-developed countries in submitting their 
tenders and selecting the products or services 
which are likely to be of interest to its entities as 
well as to suppliers in least -developed countries, 
and likewise assist them to comply with technical 
regulations and standards relating to products or 
services which are the subject of the intended 
procurement.  
  
Review  
  
14. The Committee shall review annually the 
operation and effectiveness of this Article and, 
after each three years of its operation on the 
basis of reports to be submitted by Parties, shall 
carry out a major review in order to evaluate its 
effects . As part of the three -yearly reviews and 
with a view to achieving the maximum 
implementation of the provisions of this 
Agreement, including in particular Article  III, and 
having regard to the development, financial and 
trade situation of the developing countries 
concerned, the Committee shall examine 
whether ex clusions provided for in accordance 
with the provisions of paragraphs  4 through 6 of 
this Article shall be modified or extended.  
  GPA/TN1994/2/Rev.5  
- 21 - 
  Article V:15  
 
Special and Differential Treatment for Developing Countries  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
15. In the course of further rounds of 
negotiations in accordance with the provisions of 
paragraph  7 of Article  XXIV, each developing 
country Party shall give consideration to the 
possibility of enlarging its coverage lists, having 
regard to its economic, financial and trade 
situation.  
  
 GPA/TN1994/2/Rev.5  
- 22 - 
  Article VI:1, 2  
 
Technical Specifications  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
1. Technical specifications laying down the 
characteristics of the products or services to be 
procured, such as quality, performance, safety 
and dimensions, symbols, terminology, 
packaging, marking and labelling, or the 
processes and methods for their production and 
requirements relating to conformity assessment 
procedure s prescribed by procuring entities, 
shall not be prepared, adopted or applied with a 
view to, or with the effect of, creating 
unnecessary obstacles to international trade.  
 1. Technical specifications laying down 
the characteristics of the products or 
services to be procured, such as quality, 
performance, safety and dimensions, 
symbols, terminology, packaging, marking 
and labelling, or the processes and methods 
for their production and requirements 
relating to conformity assessment 
procedures prescribed by procuring 
entities, shall comply with the principles 
laid down in Article III, paragraph  0 and in 
particular ensure the principle of open and 
effective competition and shall not be 
prepared, adopted or applied with a view to, 
or with the effect of, creatin g unnecessary 
obstacles to international trade.  
[EC – GPA/W/87 ; Hong Kong, China]  
 
2. Technical specifications prescribed by 
procuring entities shall, where appropriate:  
 
 (a) be in terms of performance 
rather than design or descriptive 
characteristics ; and 
 
 (b) be based on international 
standards, where such exist ; 
otherwise, on national technical 
regulations3, recognized national 
standards4, or building codes.  
 
3 For the purpose of this Agreement, a technical 
regulation is a document which lays down 
characteristics of a product or a service or their related 
processes and production methods, including the 
applicable administrative provisions, with which 
compliance is mandatory . It may also include or deal 
exclusively with termi nology, symbols, packaging, 
marking or labeling requirements as they apply to a 
product, service, process or production method.  
 
4 For the purpose of this Agreement, a standard is a 
document approved by a recognized body, that 
provides, for common and repe ated use, rules, 
guidelines or characteristics for products or services or 
related processes and production methods, with which 
compliance is not mandatory . It may also include or 
deal exclusively with terminology, symbols, packaging, 
marking or labeling r equirements as they apply to a 
product, service, process or production method.  This means that at least the following will 
apply:  
(a) technical specifications shall be 
formulated, where possible in 
terms of performance 
requirements rather than design 
or de scriptive characteristics;  
[EC – GPA/W/87 ; Singapore – Job 
No. 5271]  
 
(b) in all cases procuring entities 
shall not be able to exclude bids 
which include products, services 
or works which comply with 
appropriate international 
standards for reasons relating 
to th e non -compliance with 
technical requirements covered 
by those standards;  
[EC – GPA/W/87 ; Singapore – Job 
No. 5271]  
 
(c) procuring entities shall not 
reject bids which [do not comply 
with the standard, regulation or 
code to which the technical 
specifications refe r, but do[EC – 
GPA/W/87 ]] meet the essential 
requirements thereof and are fit 
for the purpose intended.  
[EC – GPA/W/87 ; Singapore – Job 
No. 5271]  
 
 GPA/TN1994/2/Rev.5  
- 23 - 
  Comments  
 
• The second sentence with subparagraphs ("This means …") should be deleted.  [Hong Kong, 
China ; Korea].  
• The meaning of the term "unnecessary obstacles to international trade" should be clarified.  
[Job No. 5074]  
• Subparagraphs (b) and (c) of the EC proposal are directly contradictory.  [Singapore ; Canada]  
• The combined effect of subparagraphs (b) and (c) nullifies the requirement to use international 
standards because bids whether they meet internation al standards or not, cannot be rejected . 
Subparagraph (c) should refer to essential requirements.  [Singapore – Job No. 5271]  
• The EC proposal attempts to use as far as possible standards that are currently available at 
the international level . Subparagraph (c) reflects the idea that the use of international 
standards should not be absolute given that international standards may have the effect of 
obstructing the development of new solutions . Accordingly, it should be possible for suppliers 
to propose the use  of standards that are not fully compatible with the international standards 
but which fulfill the "essential requirements" of the procuring entity.  [EC] 
• The implications of the use of the term "where possible" with regard to the use of performance 
require ments instead of the term "where appropriate" in the current text should be clarified.  
[US] 
• It is important that technical specifications are developed in a way that ensures, to the extent 
possible, that they focus on the end -needs of the procuring entity rather than use 
designed -based specifications which would limit competition.  [US] 
• Reference to international standards may place excessive restrictions on procuring entities' 
exercise of discretion in formulating specifications to suit their needs.  [US] There is still 
considerable ambiguity associated with what constitutes an "international standard" and the 
procedures according to which those standards are set.  [Korea ; US] The objections that have 
been raised regarding the definition of "international standards" also apply in relation to the 
current provisions.  [EC] 
• Subparagraph 2(b) of the current text should be deleted because the majority of international 
standards are based on design or description rather than on performance . Internat ional 
standards should be taken into account to the extent that they allow the achievement of the 
objective and performance sought . The EC approach provides that technical specifications 
must be prescribed with their end -use in mind . Accordingly, the use o f international standards 
would become much less important.  [EC] 
• Subparagraph (b) should make reference to voluntary compliance with market -based 
standards instead of international standards.  [US] 
• The proposal should be clarified whether an implication of a requirement on procuring entities 
to accept specifications that comply with international standards would be the delegation of 
the certification process to an independent expert.  [Japan]  
• How can it be ensured that procuring authorities have available to them the possibility of 
defining requirements in terms of solutions when it is appropriate ? [Canada]  
• The issue of international standards is currently being discussed in the context of the triennial 
review of the TBT Agreement.  [Canada]  GPA/TN1994/2/Rev.5  
- 24 - 
  Article VI  
 
Techni cal Specifications  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 1. Each Party shall ensure that its 
entities do not prepare, adopt or apply any 
technical specification with the purpose or 
the effect of creating unnecessary 
obstacles to trade.  
[US – Job No. 1462]  
 
 2. (a) In establishing the technical 
specifications for each product 
or service being procured, each 
Party shall ensure that its 
entities specify, whenever 
available and applicable to that 
Party, an existing domestic or 
international consensus 
standardfootnote, except where 
the use of a consensus standard 
would fail to meet the entity's 
programme requirements or 
would impose more burdens 
than the use of a 
government -unique standard.  
 
footnote  A consensus standard is a standard 
adopted by an independent domestic or 
international standards body, where the decision 
to adopt that standard is characterized by the 
absence of sustained opposition to substantial 
issues by any important part of the concerned 
interests and by a process that involves seeking 
to tak e into account the views of all parties 
concerned and to reconcile any conflicting 
arguments.  
[US – Job No. 1462]  
 
 2. (b) Each Party shall ensure that, 
whenever there is an existing 
consensus standard for a 
product or service being 
procured and an entity  specifies 
a government -unique standard, 
such entity shall maintain an 
official record explaining why 
the existing consensus standard 
would fail to meet the entity's 
programme requirements or 
would impost more burdens 
than the use of a 
government -unique st andard.  
[US – Job No. 1462]  
 
 
Comments  
 
• The US proposal reflects an attempt to ensure that a standard is not used or given a special 
status under the Agreement if it has not been adopted through a process that is transparent 
and that takes into account the views of all parties . The proposal addresses the process for GPA/TN1994/2/Rev.5  
- 25 - 
  development of such standards rather than specifying the type of body that would be involved 
in developing the standards.  [US in response to a request for further clarification from t he EC]  
• It is important to refer to use technical specifications that have been agreed by the largest 
possible number of potential users and buyers . The use of traditional techniques for 
standardization may not be sufficient or optimal in some cases . Accord ingly, some flexibility 
has to be provided.  [EC] 
• National standards may directly conflict with those in another country . The existing 
formulation of this Article allows the procuring entity to choose between conflicting national 
standards.  [Singapore]  
• The proposed paragraph 2(a) allows an entity to use an existing consensus standard 
regardless of whether or not it conflicts with another consensus standard . Paragraph 2(b) 
would only apply when an entity has available to it one or more consensus standards and , 
nevertheless, chooses to use a government -unique standard.  [US] 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 3. (a) Each Party shall ensure that, 
wherever appropriate, any 
technical specification 
prescribed by its entities is 
specified in terms of 
performance requirements for 
the product or service being 
procured rather than design or 
descriptive characteristics.  
[US – Job No. 1462]  
 
 GPA/TN1994/2/Rev.5  
- 26 - 
  Article VI  
 
Technical Specifications  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 2. Where tender documents lay down 
technical specifications by way of 
reference, the following provisions shall 
apply:  
 
 (a) the procuring entity shall 
base the technical 
specifications or part of those 
on international standards, 
where they exist ; otherwise 
on national technical 
regulations, recognized 
national standards or building 
codes and the tender 
documents must include 
information on where and 
how the regulations, 
standards or codes can be 
obtained w ithout prejudice to 
legally binding national 
technical regulations in so far 
as these are compatible with 
WTO requirements;  
[EC – GPA/W/87 ] 
 
 (b) where the procuring entity 
has a choice between various 
non-international standards, 
the technical specifications 
shall be based on standards 
which ensure open and 
effective competition.  
[EC – GPA/W/87 ] 
 
 
Comments  
 
• What is meant by "without prejudice to legally binding national technical regulations" ? [Japan]  
 GPA/TN1994/2/Rev.5  
- 27 - 
  Article VI:3, 4  
 
Technical Specifications  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
3. There shall be no requirement or reference 
to a particular trademark or trade name, patent, 
design or type, specific origin, producer or 
supplier, unless there is no sufficiently precise or 
intelligi ble way of describing the procurement 
requirements and provided that words such as 
"or equivalent" are included in the tender 
documentation.  
 3. (b) Each Party shall ensure that the 
technical specifications 
prescribed by its entities do not 
require or refer to a particular 
trademark or tradename, patent, 
design or type, specific origin or 
producer or supplier unless 
there is no sufficiently precise or 
intelligible way of otherwise 
describing the procurement 
requirements and provided that, 
in such cases,  words such as "or 
equivalent" are included in the 
tender documentation.  
[US – Job No. 1462]  
 
 
Comments  
 
• Paragraphs  1 and 2, which relate more to non -discrimination, should be separated from 
paragraph  3 describing the types of procurement procedures and b e placed in Article  III. 
[Job No. 5074]  
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
4. Entities shall not seek or accept, in a 
manner which would have the effect of 
precluding competition, advice which may be 
used in the preparation of specifications for a 
specific procurement from a firm that may have 
a commercial interest in the procurement.  
 4. Each Party shall ensure that its 
entities do not seek or accept, in a manner 
that would have the effect of precluding 
competiti on, advice that may be used in the 
preparation or adoption of any technical 
specification for a specific procurement 
from a person that may have a commercial 
interest in that procurement.  
[US – Job No. 1462]  
 
 
• The location of Article VI should be changed in order to reflect the close association of the 
provisions on technical specifications with those on tender documentation.  [Job No. 5074]  
• Paragraphs 3 and 4 of the current text could be maintained subject to certain conditions.  [EC] 
 GPA/TN1994/2/Rev.5  
- 28 - 
  Article VII:1, 2  
 
Tendering Procedures  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
Article VII  
 
Tendering Procedures  
 Article VII  
 
Methods of Procurement  
1. Each Party shall ensure that the tendering 
procedures of its entities are applied in a 
non-discriminatory manner and are consistent 
with the provisions contained in Articles  VII 
through XVI.  
 1. Each Party shall ensure that the 
tendering procedures of its entities are 
applied in a non -discriminatory manner and 
are consistent with the provisi ons 
contained in Articles VII through XVI.  
2. Entities shall not provide to any supplier 
information with regard to a specific 
procurement in a manner which would have the 
effect of precluding competition.  
 2. Entities shall not provide to any 
supplier in formation with regard to a 
specific procurement in a manner which 
would have the effect of negatively 
affecting competition.  
[Singapore – Job No. 3772]  
 
 
Comments  
 
• The provisions on tendering procedures should be reviewed to accommodate the use of 
two-stage tendering and electronic catalogues.  [Job No. 5074]  
• These two paragraphs relate more to non -discrimination and could be shifted to Article III.  
• The reference to "negatively affecting competition" in paragraph 2 of the Singaporean proposal 
is a useful  concept.  [EC] 
 GPA/TN1994/2/Rev.5  
- 29 - 
  Article VII:3  
 
Tendering Procedures  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
3. For the purposes of this Agreement:  
 3. For the purposes of this Agreement:  
(a) Open tendering procedures are 
those procedures under which all 
interested suppliers may submit a 
tender.  
 (a) Open tenders are those which 
are posted in a medium which is 
[in the public domain] [readily 
available to both local and 
foreign suppliers], and which all 
interested suppliers may su bmit 
a tender.  
 
(b) Selective tendering procedures are 
those procedures under which, 
consistent with paragraph 3 of 
Article  X and other relevant 
provisions of this Agreement, those 
suppliers invited to do so by the 
entity may submit a tender.  
 (b) Selective tenders are those 
which, consistent with 
paragraph  3 of Article X and 
other relevant provisions of this 
Agreement, selected suppliers 
are invited to do so by the 
entity, and the information on 
the tender is not posted in a 
medium which is [in the  public 
domain] [readily available to 
both local and foreign 
suppliers].  
 
(c) Limited tendering procedures are 
those procedures where the entity 
contacts suppliers individually, only 
under the conditions specified in 
Article  XV. 
 (c) Limited tenders are t hose where 
the entity contacts suppliers 
individually, only under the 
conditions specified in 
Article  XV. 
[Singapore – Job No. 3772]  
 
 
Comments  
 
• With regard to the proposed subparagraph (b), it may not be appropriate to define the 
procedure in terms of the medium through which information on selective tendering 
opportunities is provided as in most cases of selective tendering notifications are published in 
the same way as for open tendering procedures . The Agreement should not imply that 
selective tender ing procedures do not involve publication of tender notices.  [US] 
 GPA/TN1994/2/Rev.5  
- 30 - 
  Article VIII  
 
Qualification of Suppliers  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
Article VIII  
 
Qualification of Suppliers  
 Article VIII  
 
Qualification and Pre -qualification of 
Suppliers  
 In the process of qualifying suppliers, 
entities shall not discriminate among suppliers of 
other Parties or between domestic suppliers and 
suppliers of other Parties . Q ualification 
procedures shall be cons istent with the 
following:  
 1. Entities maintaining permanent lists 
of qualified suppliers shall not discriminate 
among suppliers of other Parties or 
between domestic suppliers and suppliers 
of other Parties . Qualification procedures 
shall be consistent with the following:  
(a) any conditions for participation in 
tendering procedures shall be 
published in adequate time to 
enable interested suppliers to 
initiate and, to the extent that it is 
compatible with efficient operation 
of the procurement  process, 
complete the qualification 
procedures;  
 (a) any supplier may apply for 
qualification at any time ; and all 
qualified suppliers so 
requesting are included in the 
lists within a reasonably short 
time;  
[Singapore – Job No. 3772]  
 
 
Comments  
 
• Clarification of the phrase "reasonably short time" is required.  [Hong Kong, China]  
 GPA/TN1994/2/Rev.5  
- 31 - 
  Article VIII  
 
Qualification of Suppliers  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
(b) any conditions for participation in 
tendering procedures  shall be 
limited to those which are essential 
to ensure the firm's capability to 
fulfil the contract in question . Any 
conditions for participation required 
from suppliers, including financial 
guarantees, technical qualifications 
and information necessary for 
establishing the financial, 
commercial and technical capacity 
of suppliers, as well as the 
verification of qualifications, shall be 
no less favourable to suppliers of 
other Parties than to domestic 
suppliers and shall not discriminate 
among suppliers o f other Parties . 
The financial, commercial and 
technical capacity of a supplier shall 
be judged on the basis both of that 
supplier's global business activity as 
well as of its activity in the territory 
of the procuring entity, taking due 
account of the leg al relationship 
between the supply organizations;  
 (b) if registration as a permanent 
qualified supplier is a 
pre-requisite for participation in 
an intended procurement, and a 
supplier not yet qualified 
requests to participate in the 
intended procurement, the 
[entity shall promptly start 
procedures for qualification] 
[supplier shall not be denied the 
opportunity to participate 
simply on the basis that the 
supplier is not on the entity's 
permanent list of qualified 
suppliers];  
[Singapore – Job No. 3772]  
 
(c) the process of, and the time 
required for, qualifying suppliers 
shall not be used in order to keep 
suppliers of other Parties off a 
suppliers' list or from being 
considered for a particular intended 
procurement . E ntities sh all 
recognize as qualified suppliers such 
domestic suppliers or suppliers of 
other Parties who meet the 
conditions for participation in a 
particular intended procurement . 
Suppliers requesting to participate 
in a particular intended 
procurement who may not yet be 
qualified shall also be considered, 
provided there is sufficient time to 
complete the qualification 
procedure;  
 (c) any supplier having requested 
to become a qualified supplier 
shall be advised by the entities 
concerned of the decision in this 
regar d. Q ualified suppliers 
included on permanent lists by 
entities shall also be notified of 
the termination of any such lists 
or of their removal from them;  
[Singapore – Job No. 3772]  
 
 
Comments  
 
• With respect to Article VIII:(b) of the Agreement, 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.  
• It is preferable to separate the rules regarding permanent lists of qualified su ppliers and those 
regarding qualification for an individual procurement . This approach is reflected in 
paragraphs  1 to 3 of the Singaporean proposal.  [Hong Kong, China]  GPA/TN1994/2/Rev.5  
- 32 - 
  • Do Parties have the same understanding of what is meant by a "permanent list" ? [Singapo re] 
• Who is expected to take the initiative to respond to a tender ? Is the tender an open invitation 
and interested suppliers take the initiative as to whether or not to respond to a tender ? 
Alternatively, does the procuring entity make the decision to invite particular suppliers and 
not others ? [Singapore]  
 GPA/TN1994/2/Rev.5  
- 33 - 
  Article VIII  
 
Qualification of Suppliers  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
(d) entities maintaining permanent lists 
of qualified suppliers shall ensure 
that suppli ers may apply for 
qualification at any time ; and that 
all qualified suppliers so requesting 
are included in the lists within a 
reasonably short time;  
 (d) each Party shall ensure that:  
 
(i) each entity and its 
constituent parts follow a 
single qualification 
procedure, except in cases 
of duly substantiated need 
for a different procedure, 
and 
 
(ii) efforts be made to 
minimize differences in 
qualification procedures 
between entities;  
[Singapore – Job No. 3772]  
 
(e) if, after publication of the not ice 
under paragraph 1 of Article  IX, a 
supplier not yet qualified requests to 
participate in an intended 
procurement, the entity shall 
promptly start procedures for 
qualification;  
  
(f) any supplier having requested to 
become a qualified supplier shall be 
advised by the entities concerned of 
the decision in this regard . Qualified 
suppliers included on permanent 
lists by entities shall also be notified 
of the termination of any such lists 
or of their removal from them;  
  
(g) each Party shall ensure  that: 
  
(i) each entity and its constituent 
parts follow a single 
qualification procedure, 
except in cases of duly 
substantiated need for a 
different procedure ; and 
  
(ii) efforts be made to minimize 
differences in qualification 
procedures between entities.  
  
 
Comments  
 
• It would be difficult to comply with subparagraph (d)(ii) of the proposal given the differences 
in scope and nature of procurement undertaken by different entities.  [Hong Kong, China]  GPA/TN1994/2/Rev.5  
- 34 - 
  Article VIII  
 
Qualification of Suppliers  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
(h) nothing in subparagraphs (a) 
through (g) shall preclude the 
exclusion of any supplier on grounds 
such as bankruptcy or false 
declarations, provided that suc h an 
action is consistent with the national 
treatment and non -discrimination 
provisions of this Agreement.  
 (e) nothing in subparagraphs (a) 
through (d) shall preclude the 
exclusion of any supplier on 
grounds such as bankruptcy or 
false declarations, provided that 
such an action is consistent with 
the national treatment and 
non-discrimination provisions of 
this Agreement.  
[Singapore – Job No. 3772]  
 
 2. The process of, and the time required 
for, qualifying suppliers to permanent lists 
maintained by the entity shall not be used 
in order to keep suppliers of other Parties 
off a suppliers' list or from being considered 
for a particular intended procurement . 
Entities shall recognize as qualified 
suppliers such domestic suppliers or 
suppliers of other Parties who meet the 
conditions for participation in a particular 
intended procurement.  [Suppliers 
requesting to participate in a particular 
intended procurement who may not yet be 
qualified shall also be considered, provided 
there is suff icient time to complete the 
qualification procedure.]  
[Singapore – Job No. 3772]  
 
 
Comments  
 
• Alternatively, paragraph 1(b) above can be expanded to cover the point in paragraph 2 of the 
Singapore proposal.  [Singapore – Job No. 3772]  
 GPA/TN1994/2/Rev.5  
- 35 - 
  Article VIII  
 
Qualification of Suppliers  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 3. Entities wishing to pre -qualify suppliers for 
participation in an individual intended 
procurement shall in addition to the other 
provisions in this Agreeme nt, ensure that their 
procedures are consistent with the following:  
 (a) the invitation to be considered for 
pre-qualification shall be published in 
adequate time to enable interested 
suppliers to submit proper 
documentation;  
 
 (b) [any conditions] [the criteria] for 
pre-qualification shall be limited to 
those which are essential to ensure 
the firm's capability to fulfil the 
contract in question . Any conditions 
for participation required from 
suppliers, including financial 
guarantees, tec hnical qualifications 
and information necessary for 
establishing the financial, commercial 
and technical capacity of suppliers, as 
well as the verification of 
qualifications, shall be no less 
favourable to suppliers of other 
Parties than to domestic suppli ers and 
shall not discriminate among 
[against] suppliers of other Parties . 
The financial, commercial and 
technical capacity of a supplier shall 
be judged on the basis both of that 
supplier's global business activity as 
well as of its activity in the territ ory of 
the procuring entity, taking due 
account of the legal relationship 
between the [supply organizations] 
[business units of the supplier in 
different territories].  
[Singapore – Job No. 3772]  
 
 Entities maintaining permanent lists of qualified 
suppliers with a duration of more than three 
years shall publish annually in one of the 
publications listed in Appendix III a notice 
containing the information referred to in 
sections  (i) through (iii) of Article IX:3.  
[United States – GPA/W/85 ] 
 
 GPA/TN1994/2/Rev.5  
- 36 - 
  Comments  
 
• The reference to "other provisions in this Agreement" in subparagraph 3 of the Singaporean 
proposal should be made more specific or it should be deleted as it appears to be unnecessary.  
[Hong Kong, China]  
• The existing wording of Article VIII (a) is preferred to the proposed wording in 
subparagraph  3(a). [Hong Kong, China]  
• Subparagraph 3(b) of the proposal is, in principle, desirable, particularly in relation to SMEs, 
since it purports to reduce administrative burdens on suppliers . However, mor e details of the 
proposal are required.  [Hong Kong, China]  
• The last sentence of paragraph 3(b) of the Singaporean proposal should be deleted given that 
it is difficult to assess a suppliers' global business and legal relationship between business 
units tha t are located in different territories.  [Hong Kong, China]  
 GPA/TN1994/2/Rev.5  
- 37 - 
  Article IX:1  
 
Invitation to Participate Regarding Intended Procurement  
 
Comments  
 
• The terms "invitation to participate for all cases of intended procurement", "notice of proposed 
procurement", "notice of planned procurement" and "notice regarding a qualification system" 
should be clarified.  
• A footnote should be added defining "publication" to include either electronic or paper 
publication of notices and to indicate that electronic publication is on the Internet or in one 
location and is accessible worldwide by telephone.  
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
1. In accordance with paragraphs  2 and 3, 
entities shall publish an invitation to participate 
for all cases of intended procurement, except as 
otherwise provided for in Article  XV (limited 
tendering) . The notice shall be published in the 
appropriate publication listed in Appendix  II. 
 1. In accordance with paragraphs 2 and 
3, entities s hall publish an invitation to 
participate for all cases of intended 
procurement, except as otherwise provided 
for in Article XV (limited tendering) . The 
notice shall be published through means 
which offer the widest possible and 
non-discriminatory access t o interested 
suppliers and service providers from all 
Parties to this Agreement ; these means 
shall be accessible [free of charge [ delete 
Singapore – Job No. 5271]] through a 
single point of access.  
Each Party shall notify to the other Parties 
this single point of access.  [Entities shall 
not charge for access to invitations to 
participate [Singapore – Job No. 5271]]  
[EC – GPA/W/87 ; Singapore – Job 
No. 5271]  
 
 
Comments  
 
With regard to the proposed requirement that procurement notices should be provided "fre e of 
charge":  
 
• This proposal raises concerns.  [Hong Kong, China ] Would there be a benefit by shifting the 
costs of publication from suppliers to taxpayers ? [Canada]  
• The intent of the additional wording by Singapore is to explicitly state what is provided f ree of 
charge, as opposed to a blanket free of charge formulation . The telephone line, the computer, 
the Internet Service Provider fees are not free of charge . The current subparagraph 6(g) of 
Article  IX also refers to "the amount and terms of payment of a ny sum payable for the tender 
documentation" . Hence, it would be better to explicitly state what is provided free of charge.  
[Singapore – Job No. 5271]  
• The principle of "reasonableness" might be relevant in this respect to ensure that barriers are 
not crea ted through the imposition of excessive costs . Any charge that is imposed should be 
non-discriminatory and closely linked to actual cost.  [EC] 
 GPA/TN1994/2/Rev.5  
- 38 - 
  With regard to other points:  
 
• The establishment of "a single point of access" is technically feasible . However, it is 
questionable whether the benefits would be worth the significant cost and undue burden 
associated with introducing this system for Parties with decentralized systems and for 
developing countries.  [US] 
• The term "widest possible access" has bee n used to avoid referring to the Internet in 
recognition of the fact that other technological advance may emerge which also promote 
transparency.  [EC] 
• The reference to the term "widest possible access" suggests that the publication of 
procurement notices must be published through the use of information technology . The use 
of information technology should be optional.  [Japan ; Korea]  
• The intention underlying the proposed text is not to make the use of information technology 
mandatory . Traditional means of publication can also be used provided that they are easily 
accessible . The EC proposal is intended to encourage the use of information technology as far 
as is possible and to facilitate its use.  [EC] 
 GPA/TN1994/2/Rev.5  
- 39 - 
  Article IX  
 
Invitation to Participat e Regarding Intended Procurement  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 1. Except as provided for in Article XV 
(provisions for the use of limited tendering 
procedures) and paragraph  3 of this Article 
(provisions for the use of selective 
tendering procedures by Annexes  2 and  3 
entities), entities shall publish a notice of 
intended procurement for each contract to 
be awarded . The notice shall be published 
in the appropriate publication listed in 
Appendix II.  
[United States – GPA/W/85 ] 
 
 
Comments  
 
• The aim of the amendment is to provide more flexibility for Annex 2 and 3 entities . The 
proposed amendment would allow those entities to either provide the "normal" notification as 
provided for in paragraph 2 of the proposal or, in lieu of that, Annex 2 and 3 entities would be 
able to publish an annual notification informing the public and suppliers of their procurement 
plans during that year.  [US] 
• The proposal aims at eliminating several undefined terms that are used in the current 
Agreement to refer to tender notices issued by different types of entities and in different types 
of circumstances . In effect, the proposal combines the requirements for Annex 1, 2 and 3 
entities into one set of requirements for tender notices relating to open tendering 
opportunities . Consequently, the type of information that must be provided by Annex 1 entities 
for open tendering notifications would be simplified . The proposal also attempts to ensure that 
the amount of information provided in notification s is at least equivalent to what is required 
under the current text for selective tendering procedures.  [US] 
• The US proposal is consistent with paragraphs 1 and 2 of the existing Article IX in that it 
requires Annex  1 entities to publish a notice of propos ed procurement for each contract 
including cases when selective tendering is used . However, the US proposal simplifies the 
information required in notices issued by Annex 1 entities by limiting the information required 
to what is necessary in order for sup pliers to assess their interests.  [US] 
• The wording in paragraph 1 raises the question whether selective tendering procedures by 
Annex  2 and 3 entities would still be covered . If selective tendering procedures were to be no 
longer covered by Article IX, the re is a question whether paragraph 3 of the US proposal 
(see below opposite the text of paragraph 9 of Article IX) is consistent.  [EC] 
• How would the proposed provisions deal with notices of invitation to tender under selective 
tendering procedures engaged in by Annex 1 entities ? More specifically, at which stage of the 
procurement Annex 1 entities must publish a notice ? Is the notice referred to in the proposal 
intended to be a notice of application for qualification or a notice to be issued at te stage of 
creation of a procurement opportunity ? [Canada]  
• The proposal does require more information to be published by Annex 2 and 3 entities than 
the requirements under the current Agreement when open tendering or selective tendering 
procedures without a permanent  list of suppliers are used . Specifically, it would require that 
notices published by Annex 1 and 2 entities using these tendering procedures would identify 
the procurement method to be used and the terms of payment for bid documentation, which 
is currentl y not required under Article IX, paragraphs 7 and 8 . These additional information 
requirements are not considered to be overly burdensome.  [US] GPA/TN1994/2/Rev.5  
- 40 - 
  • Except where an entity maintains a permanent list of qualified suppliers, the proposal does 
not specifically req uire a separate notice of opportunity to qualify . Rather, the information on 
the opportunity to apply to qualify could, where entities consider it appropriate, be included 
in the notice of the opportunity to participate in the procurement . This position is  already 
reflected in language contained in Articles VIII and X relating to the possibility of qualifying 
during the procurement process . If there were a series of procurements by a particular entity 
for which qualification was necessary, each notice would  include that information . Accordingly, 
suppliers would have information on the opportunity to qualify through that process.  [US] 
• The proposal is intended to cover entities at all levels of government.  [US] 
• Should the word "procurement" be used instead of "contract" given that no contract exists at 
the date the notice is issued . The current terminology could lead to some confusion with the 
requirement for contract award notices . Is the intention of the US that a single notice would 
serve for both purposes ? The use of the terminology contained in the US proposal could lead 
to that conclusion.  [Canada]  
 GPA/TN1994/2/Rev.5  
- 41 - 
  Article IX:2, 3, 4  
 
Invitation to Participate Regarding Intended Procurement  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
2. The invitation to participate may take the 
form of a notice of proposed procurement, as 
provided for in paragraph  6. 
  
 
Comments  
 
• 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 present use of 
the word "may" might be interpreted to suggest otherwise . [Job No. 5074]  
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
3. Entities in Annexes 2 and 3 may use a 
notice of p lanned procurement, as provided for 
in paragraph  7, or a notice regarding a 
qualification system, as provided for in 
paragraph 9, as an invitation to participate.  
  
 
Comments  
 
• Entities at all levels of government should be able to use all methods of invitation to tender.  
[Job No. 5074]  
• The use of notices regarding qualification systems as invitations to participate should be 
clarified . [Job No. 5074]  
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
4. Entities which use a notice of planned 
procurement as an invitation to participate shall 
subsequently invite all suppliers who have 
expressed an interest to confirm their interest on 
the basis of information which shall include at 
least the information referred to in paragraph  6. 
  
 
 
 
 
 
 GPA/TN1994/2/Rev.5  
- 42 - 
  Article IX:5, 6  
 
Invitation to Participate Regarding Intended Procurement  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
5. Entities which use a notice regarding a 
qualification system as an invitation to 
participate shall provide, subject to the 
considerations referred to in paragraph 4 of 
Article  XVIII and in a timely manner, information 
which allows all those who have expressed an 
interest to have a meaningful opportunity to 
assess their interest in participating in the 
procurement . This information shall include the 
information contained in the notices referred to 
in paragraphs 6 and 8, to the extent such 
information is available . Information provided to 
one interested supplier shall be provided in a 
non-discriminatory ma nner to the other 
interested suppliers.  
  
6. Each notice of proposed procurement, 
referred to in paragraph  2, shall contain the 
following information:  
 2. Each notice of intended procurement 
shall contain the following information:  
(a) the nature and quantity, including 
any options for further procurement 
and, if possible, an estimate of the 
timing when such options may be 
exercised ; in the case of recurring 
contracts the nature and quantity 
and, if possible, an estimate of the 
timing of the subsequent tender 
notices for the products or services 
to be procured;  
 (a) a description of the intended 
procurement, including the 
nature and quantity of the goods 
or services to be procured;  
(b) whether the procedure is open or 
selective or will involv e negotiation;  
 (b) the name and address of the 
procuring entity and other 
information necessary to contact 
the entity and obtain all relevant 
documents relating to the 
contract;  
 
(c) any date for starting delivery or 
completion of delivery of goods or 
services;  (c) the procurement method that 
will be used;  
[United States – GPA/W/85 ] 
 
  
 
Comments  
 
• Article IX.6 should be modified to obligate the procuring entity to include in the notice the 
means by which bids may be submitted/the means of communication to be used (e.g. mail, 
electronic means, telex, telegram or facsimile).  [Canada ; Job No.3481]  GPA/TN1994/2/Rev.5  
- 43 - 
  Article IX  
 
Invitation to Participate Regarding Intended Procurement  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
(d) the a ddress and final date for 
submitting an application to be 
invited to tender or for qualifying for 
the suppliers' lists, or for receiving 
tenders, as well as the language or 
languages in which they must be 
submitted;  
 (d) the time -limits set for the 
submiss ion of tenders and, if 
applicable, the time -limits for 
the submission of applications to 
qualify for participation in the 
intended procurement or for 
inclusion on a permanent list of 
qualified suppliers from which 
the tenders will be accepted;  
 
(e) the address of the entity awarding 
the contract and providing any 
information necessary for obtaining 
specifications and other documents;  
 (e) the amount and terms of 
payment of any sum payable for 
the tender documentation;  
(f) any economic and technical 
requirements, financial guarantees 
and information required from 
suppliers;  
 (f) an indication that the 
procurement is covered by the 
Agreement ; and 
(g) the amount and terms of payment of 
any sum payable for the tender 
documentation ; and 
 (g) a summary of the notice in one 
of the official languages of the 
WTO, containing at least the 
following information:  
 
 (i) the subject -matter of the 
contract;  
 
 (ii) the time -limits set for the 
submission of tenders or 
an application to be 
invited to tender ; and 
 
 (iii) the addresses from which 
documents relating to the 
contracts may be 
requested.  
[United States – GPA/W/85 ] 
 
(h) whether the entity is inviting offers 
for purchase, lease, rental or hire 
purchase, or more than one of these 
methods.  
  
 
Comments  
 
• The provision should be modified to obligate procuring entities to include the means by which 
bids may be submitted.  [Canada – Job No. 3481]  GPA/TN1994/2/Rev.5  
- 44 - 
  Article IX:7, 8  
 
Invitation to Participate Regarding Intended Procurement  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
7. Each notice of planned procurement 
referred to in paragraph 3 shall contain as much 
of the information referred to in paragraph  6 as 
is available . It shall in any case include the 
information referred to in paragraph 8 and:  
  
(a) a statement that interested 
suppliers should express their 
interest in the procurement to the 
entity;  
  
(b) a contact point with the entity from 
which further information may be 
obtained.  
  
8. For each case of intended procurement, 
the entity shall publish a summary notice in one 
of the official languages of the WTO . The notice  
shall contain at least the following information:  
 8. For each case of intended 
procurement, the entity shall publish a 
summary notice in one of the official 
languages of the WTO . The notice shall 
contain at least the following information:  
 
(a) the subject matter of the contract;  
 (a) the subject -matter of the 
contract, including the relevant 
CPV code;  
 
(b) the time -limits set for the 
submission of tenders or an 
application to be invited to tender ; 
and 
 (b) the time -limits set for the 
submission of tenders or an 
application to be invited to 
tender ; and 
 
(c) the addresses from which 
documents relating to the contracts 
may be requested.  
 (c) the addresses from which 
documents relating to the 
contracts may be requested.  
[EC – GPA/W/87 ] 
 
 
Comments  
 
• The provisions of Article IX:8 should follow the provisions of Article XI:1 on publication of an 
invitation to participate.  [Job No.5074]  
With regard to the reference to the relevant CPV code:  
 
• Reference to a national classification code shou ld suffice as long as it is transparent.  [US] 
• The reference to CPV code should be deleted.  [Singapore, US]  Many projects contain a mixture 
of CPV codes . In some projects, CPV code may not be available or applicable . Alignment to 
CPV codes would impose an unnecessary administrative burden and may not make much 
difference to the suppliers/tenderers.  [US; Singapore]  
• Alternatively, the words "if applicable" should be added at the end of subparagraph 8(a).  
[Singapore – Job No. 5271]  
• A variety of classification systems are used by Parties for various purposes . The practicality of 
establishing a common classification system applicable among the GPA Parties for all purposes 
is questionable.  [Canada]  GPA/TN1994/2/Rev.5  
- 45 - 
  • While the establishment of a common classif ication system might be necessary, further 
consideration of the impact on existing systems is required.  [Singapore]  
• The aim underlying the proposal is to come up with a system that is as transparent and 
efficient as possible . This cannot be achieved unless there is a common classification system . 
A common classification system will help suppliers to understand what a procuring entity 
wishes to purchase and will also facilitate the collection of accurate statistical data.  [EC] 
• The CPV code is more comprehensive than the Harmonized System of classification of goods . 
It covers the whole gamut of government purchases of goods and services.  [EC in reply to 
clarification sought by Switzerland]  
 GPA/TN1994/2/Rev.5  
- 46 - 
  Article IX:9  
 
Invitation to Participate Regarding Inte nded Procurement  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
9. In the case of selective tendering 
procedures, entities maintaining permanent lists 
of qualified suppliers shall publish annually in one 
of the publications listed in Appendix  III a notice 
of the following:  
 3. Except as provided for in Article XV, 
Annexes 2 and 3 entities that maintain 
permanent lists of qualified suppliers for 
selective tendering procedures will be 
considered to have met the notice 
requirements of par agraphs 1 and 2 of this 
Article, if they:  
 
(a) the enumeration of the lists 
maintained, including their 
headings, in relation to the products 
or services or categories of products 
or services to be procured through 
the lists;  
 (a) publish annually in one of the 
publications listed in Appendix 
III a notice which contains the 
following information:  
(b) the conditions to be fulfilled by 
suppliers with a view to their 
inscription on those lists and the 
methods according to which each of 
those conditions w ill be verified by 
the entity concerned ; and (i) an enumeration of all 
permanent lists of 
qualified suppliers from 
which such procurements 
are made, including a 
description in as much 
detail as is available, of 
the good or service to be 
procured;  
 
(c) the period of validity of the lists, and 
the formalities for their renewal.  (ii) the conditions to be 
fulfilled by suppliers in 
order to be included on 
those lists;  
 
 (iii) the period of validity of 
those lists ; and 
 
 (iv) a statement that the 
notice constitutes a notice 
of intended procurement ; 
and 
 
 (b) provide additional information in 
a timely manner which allows all 
those who have expressed an 
interest to have a meaningful 
opportunity to assess their 
interest in participating in the 
procurement . This information 
shall include the information 
contained in the notices referred 
to in paragraph 2, to the extent 
available.  
[United States – GPA/W/85 ] 
 
 GPA/TN1994/2/Rev.5  
- 47 - 
  Article IX:10, 11  
 
Invitation to Participate Regarding Intended Procurement  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
When such a notice is used as an invitation to 
participate in accordance with paragraph 3, the 
notice shall, in addition, include the following 
information:  
  
(d) the nature of the products or 
services concerned;  
  
(e) a statement that the notice 
constitutes an invitation to 
participate.  
  
However, when the duration of the qualification 
system is three years or less, and if the duration 
of the system is made clear in the notice and  it 
is also made clear that further notices will not be 
published, it shall be sufficient to publish the 
notice once only, at the beginning of the system . 
Such a system shall not be used in a manner 
which circumvents the provisions of this 
Agreement.  
  
10. If, after publication of an invitation to 
participate in any case of intended procurement, 
but before the time set for opening or receipt of 
tenders as specified in the notices or the tender 
documentation, it becomes necessary to amend 
or re-issue the notice, the amendment or the 
re-issued notice shall be given the same 
circulation as the original documents upon which 
the amendment is based . Any significant 
information given to one supplier with respect to 
a particular intended procurement shall be give n 
simultaneously to all other suppliers concerned 
in adequate time to permit the suppliers to 
consider such information and to respond to it.  
 4. If it becomes necessary to amend or 
re-issue the notice during the procurement 
process, the amendment or the r e-issued 
notice shall be given the same circulation as 
the original notice upon which the 
amendment is based . Any significant 
information given to one supplier with 
respect to a particular intended 
procurement shall be given simultaneously 
to all other sup pliers that have expressed 
interest in that procurement in adequate 
time to permit those suppliers to consider 
such information and to respond to it.  
[United States – GPA/W/85 ] 
11. Entities shall make clear, in the notices 
referred to in this Article or in the publication in 
which the notices appear, that the procurement 
is covered by the Agreement.  
  
 GPA/TN1994/2/Rev.5  
- 48 - 
  Article X:1, 2, 3, 4  
 
Selection Proced ures 
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
1. To ensure optimum effective international 
competition under selective tendering 
procedures, entities shall, for each intended 
procurement, invite tenders from the maximum 
number of domestic suppliers and suppliers of 
other Parties, consistent with the efficient 
operation of the procurement system . They shall 
select the suppliers to participate in the 
procedure in a fair and non -discriminatory 
manner.  
  
2. Entities maintain ing permanent lists of 
qualified suppliers may select suppliers to be 
invited to tender from among those listed . Any 
selection shall allow for equitable opportunities 
for suppliers on the lists.  
  
3. Suppliers requesting to participate in a 
particular intended procurement shall be 
permitted to submit a tender and be considered, 
provided, in the case of those not yet qualified, 
there is sufficient time to complete the 
qualification procedure under Articles  VIII and 
IX. The number of additional  suppliers permitted 
to participate shall be limited only by the efficient 
operation of the procurement system.  
  
4. Requests to participate in selective 
tendering procedures may be submitted by telex, 
telegram or facsimile.  
 4. Requests to participate in  selective 
tendering procedures may be submitted by 
telex, telegram or facsimile, electronic 
means, including email.  [Canada – Job 
No. 3481]  
 
4. Requests to participate in selective 
tendering procedures may be submitted in 
writing including electronic means . The 
term "writing" as used in this Agreement is 
to be understood to include any worded or 
numbered expression which can be read, 
reproduced, and later communicated, and 
includes electronically transmitted and 
stored information . "Electron ic means" 
means using electronic equipment for the 
processing (including digital compression) 
and storage of data, and entirely using 
transmission, conveyance and reception by 
wire, by radio, by optical means or by other 
electromagnetic means.  
[EC – GPA/W/87 ] 
 
 
Comments  
 
• In Article X, a provision stating that the means of communication to be used can be specified 
by the procuring entity (e.g. mail, electronic means, telex, telegram or facsimile) should also 
be added.  [Canada – Job No. 3481]  GPA/TN1994/2/Rev.5  
- 49 - 
  Article XI:1, 2  
 
Time-limits for Tendering and Delivery  
 
Comments  
 
• As one alternative, all of the deadlines identified in this Article could be removed.  [Canada – 
Job No. 3481]  
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
General  
 General  
1. (a) Any prescribed time -limit shall be 
adequate to allow suppliers of other 
Parties as well as domestic suppliers 
to prepare and submit tenders 
before the closing of the tendering 
procedures . In determining any 
such time -limit, entities shall, 
consistent with thei r own 
reasonable needs, take into account 
such factors as the complexity of the 
intended procurement, the extent of 
subcontracting anticipated and the 
normal time for transmitting 
tenders by mail from foreign as well 
as domestic points.  
 1. (a) Any prescri bed time -limit shall 
be adequate to allow suppliers 
of other Parties as well as 
domestic suppliers to prepare 
and submit tenders before the 
closing of the tendering 
procedures . In determining any 
such time -limit, entities shall, 
consistent with their own 
reasonable needs, take into 
account such factors as the 
complexity of the [intended] 
procurement, the extent of 
subcontracting anticipated and 
the normal time for transmitting 
tenders [by mail - delete 
[Canada]] [in writing] from 
foreign as well as domestic  
points.  
[EC – GPA/W/87 ; Singapore Job No. 3772]  
 
(b) Each Party shall ensure that its 
entities shall take due account of 
publication delays when setting the 
final date for receipt of tenders or of 
applications to be invited to tender.  
 (b) Each Party shall ensure that its 
entities shall take due account 
of publication delays when 
setting the final date for receipt 
of tenders or of applications to 
be invited to tender.  
[EC – GPA/W/87 ; Singapore Job No. 3772]  
 
Deadlines  
 Deadlines  
2. Except in so far as provided in 
paragraph  3: 
 2. Except insofar as provided in 
paragraph 3,  
 
(a) in open procedures, the period for 
the receipt of tenders shall not be 
less than 40 days from the date of 
publication referred to in paragraph 
1 of Article  IX; 
 (a) in open proce dures, the period 
for the receipt of tenders shall 
not be less than 40 days from 
the date of publication referred 
to in paragraph 1 of Article IX;  
[Singapore – Job No. 3772]  
 
 GPA/TN1994/2/Rev.5  
- 50 - 
  Article XI  
 
Time-limits for Tendering and Delivery  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 2. Except insofar as provided in 
paragraphs 3 and 4,  
 
(a) in open procedures, the period 
for the receipt of tenders shall 
not be less than 30 days from 
the date of publication;  
[EC – GPA/W/87 ] 
 
(b) in selective procedures not involving 
the use of a permanent list of 
qualified suppliers, the period for 
submitting an application to be 
invited to tender shall not be less 
than 25 days from the date of 
publication referred to in 
paragraph  1 of Arti cle IX; the period 
for receipt of tenders shall in no case 
be less than 40  days from the date 
of issuance of the invitation to 
tender;  
 (b) in selective procedures not 
involving the use of a 
permanent list of qualified 
suppliers, the period for 
submitting an application to be 
invited to tender shall not be 
less than 25  days from the date 
of publication referred to in 
paragraph  1 of Article IX ; the 
period for receipt of tenders 
shall in no case be less than 40 
days from the date of issuance 
of the invitation  to tender;  
[Singapore – Job No. 3772]  
 
 (b) in selective procedures not 
involving the use of a 
permanent list of qualified 
suppliers, the period for 
submitting an application to be 
invited to tender shall not be 
less than 15 days from the date 
of publication ; the period for 
receipt of tenders shall in no 
case be less than 30 days from 
the date of issuance of the 
invitation to tender;  
[EC – GPA/W/87 ] 
 
 GPA/TN1994/2/Rev.5  
- 51 - 
  Article XI:3  
 
Time-limits for Tendering and Delivery  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPO SED MODIFICATIONS  
(c) in selective procedures involving the 
use of a permanent list of qualified 
suppliers, the period for receipt of 
tenders shall not be less than 40 
days from the date of the initial 
issuance of invitations to tender, 
whether or not the date of initial 
issuance of invitations to tender 
coincides with the date of the 
publication referred to in 
paragraph  1 of Article  IX. 
 (c) in selective procedures 
involving the use of a 
permanent list of qualified 
suppliers, the period for receipt 
of tenders shall not be less than 
40 [30] days from the date of 
the initial issuance of invitations 
to tender, whether or not the 
date of initial issuance of 
invitations to tender coincides 
with the date of the publication 
[referred to in paragraph 1 of 
Artic le IX].  
[Singapore – Job No. 3772 ; E C – 
GPA/W/87 ] 
 
3. The periods referred to in paragraph 2 
may be reduced in the circumstances set out 
below:  
 3. The periods referred to in paragraph  2 
may be reduced in the circumstances set 
out below:  
 
(a) if a separate notice has been 
published 40 days and not more 
than 12 months in advance and the 
notice contains at least:  
 (a) if a separate notice has been 
published 40 days and not more 
than 12 months in advance and 
the notice contains at least:  
 
(i) as much of the information 
referred to in paragraph 6 of 
Article  IX as is available;  
 (i) as much of the information 
referred to in paragraph 6 
of Article IX as is 
available;  
 
(ii) the information referred to in 
paragraph 8 of Article  IX; 
 (ii) the information referred to 
in paragraph 8 of 
Article  IX; 
 
(iii) a statement that interested 
suppliers should express their 
interest in the procurement to 
the entity ; and 
 (iii) a statement that 
interested suppliers 
should express their 
interest in the 
procur ement to the entity ; 
and 
 
(iv) a contact point with the entity 
from which further 
information may be obtained,  
 
 the 40 -day limit for receipt of 
tenders may be replaced by a period 
sufficiently long to enable 
responsive tendering, which, as a 
general rule, shall not be less than 
24 days, but in any case not less 
than 10 days;  
 (iv) a contact point with the 
entity from which further 
information may be 
obtained, the 40 -day limit 
for receipt of tenders may 
be replaced by a period 
sufficiently long  to enable 
responsive tendering, 
which, as a general rule, 
shall not be less than 
24 days, but in any case 
not less than 10 days;  
[Singapore – Job No. 3772]  
 
 GPA/TN1994/2/Rev.5  
- 52 - 
  Comments  
 
• Article XI:3 could be modified to provide for a minimum bid period of 10 days for proc urement 
of commodities and commercial, off -the-shelf goods (and possibly other sufficiently 
well-defined categories of goods or services).  [Canada – Job No. 3481]  
• The proposal to specify a minimum bid period for certain kinds of procurement may go against 
the aim to simplify and improve the Agreement.  [Hong Kong, China]  
• Article XI:3 could be modified so that when electronic tendering is used, all periods referred 
to in Article  XI:2 may be reduced to a minimum of 20 days.  [Canada – Job No. 3481]  
• Article XI:3 could be modified 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 12 and 5  days respectively.  [Canada – Job No. 3481]  GPA/TN1994/2/Rev.5  
- 53 - 
  Article XI  
 
Time-limits for Tendering and Delivery  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
(b) in the case of the second or 
subsequent publications dealing 
with contracts of a recurring nature 
within the meaning of paragraph 6 
of Article  IX, the 40 -day limit for 
receipt of tenders may be reduced 
to not less than 24  days;  
 (b) in the case of the second or 
subsequent publications dealing 
with contracts of a recurring 
nature within the meaning of 
paragraph  6 of Article IX, the 
40-day [30 -day [EC]] limit for 
receipt of tenders may be 
reduced to [not less than 
24 days][24 days [EC]];  
[Singapore – Job No. 3772 ; E C – 
GPA/W/87 ] 
 
(c) where a state of urgency duly 
substantiated by the entity renders 
impracticable the periods in 
question, the periods specified in 
paragraph  2 may be reduced but 
shall in no case be less than 10  days 
from the date of the publication 
referred to in pa ragraph  1 of 
Article  IX; or 
 (c) where a state of urgency duly 
substantiated by the entity 
renders impracticable the 
periods in question, the periods 
specified in paragraph 2 may be 
reduced but shall in no case be 
less than 10  days from the date 
of the pub lication referred to in 
paragraph 1 of Article  IX; or 
[Singapore – Job No. 3772]  
 
 
Comments  
 
• Unlike the current provisions in the Agreement, the EC proposal does not provide for the 
reduction of time -periods in urgent cases.  [Japan]  
• The proposal appears to limit the reduction of time limits only to contracts of a recurrent 
nature.  [Hong Kong, China]  
• Further attention must be given to the effect on the ability to reduce time limits in cases where 
a prior notification has been made.  [US] 
 GPA/TN1994/2/Rev.5  
- 54 - 
  Article X I:4 
 
Time-limits for Tendering and Delivery  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
(d) the period referred to in 
paragraph  2(c) may, for 
procurements by entities listed in 
Annexes  2 and 3, be fixed by mutual 
agreement between the entity and 
the selected suppliers . In the 
absence of agreement, the entity 
may fix periods which shall be 
sufficiently long to enable 
responsive tendering and shall in 
any case not be less than 10 days.  
 (d) the period referred to in 
paragraph  2(c) may, for 
procurements by entities listed 
in Annexes 2 and 3, be fixed by 
mutual agreement between the 
entity and the selected 
suppliers . In the absence of 
agreement, the entity may fix 
periods which shall be 
sufficiently long to enable 
respo nsive tendering an d shall 
in any case not be less than 10 
days.  
[Singapore – Job No. 3772]  
 
 (b) in the case where the procuring 
entity procures off -the-shelf 
products or services, the period 
referred to in paragraph 2(c) 
may be reduced to 15  days.  
[EC – GPA/W/87 ] 
 
4. Consistent with the entity's own 
reasonable needs, any delivery date shall take 
into account such factors as the complexity of 
the intended procurement, the extent of 
subcontracting anticipated and the realistic time 
required for production, de -stocking and 
transport of goods from the points of supply or 
for supply of services.  
 4. In cases where the procuring entity 
offers simultaneously free and direct access 
via the single point of access referred to in 
Article IX to the complete call for tenders 
including all annexes both the deadlines of 
30 and 15 days may be further reduced by 
5 days.  
[EC – GPA/W/87 ] 
 
 Possible replacement paragraphs (can have 
more than one option) : 
 
Clause (a)  
 
 Each Party shall make known in a 
medium which  is [in the public domain] 
[readily available to both local and foreign 
suppliers] its overall policy on the 
time-limits for intended procurement to be 
followed by its entities.  
 
 Clause (b)  
 
 Consistent with the provisions in 
Article  XX, entities shall provide for rapid 
and immediate measures to address 
challenges by suppliers on the inadequacy 
of time -limits given for intended 
procurement.  
[Singapore – Job No. 3772]  
 
 GPA/TN1994/2/Rev.5  
- 55 - 
  Article XII:1, 2  
 
Tender Documentation  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT ( 1994)  PROPOSED MODIFICATIONS  
1. If, in tendering procedures, an entity 
allows tenders to be submitted in several 
languages, one of those languages shall be one 
of the official languages of the WTO.  
  
 
Comments  
 
• This Article should contain references to the use of information technology in communications 
between the purchasing authority and tenderers.  
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
2. Tender documentation provided to 
suppliers shall contain all information necessary 
to permit them to submit responsive tenders, 
including information required to be published in 
the notice of intended procurement, except for 
paragraph 6(g) of Article  IX, and the following:  
  
(a) the address of the entity to which 
tenders should be sent;  
  
(b) the address where requests for 
supplementary information should 
be sent;  
  
(c) the language or languages in which 
tenders and tendering documents 
must be submitted;  
  
(d) the closing date and time for receipt 
of tenders and the length of time 
during which any tender should be 
open for acceptance;  
  
(e) the persons authorized to be 
present at the opening of tenders 
and the date, time and place of this 
opening;  
  
 GPA/TN1994/2/Rev.5  
- 56 - 
  Article XII  
 
Tender Documentation  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
(f) any economic and technical 
requirement, financial guarantees 
and information or documents 
required from suppliers;  
  
(g) a complete description of the 
products or services required or of 
any requirements including 
technical specifications, conformity 
certification to be fulfilled, 
necessary plans, drawings and 
instructional materials;  
  
(h) the criteria for awarding the 
contract, including any factors other 
than price that are to be considered 
in the evaluation of tenders and the 
cost elements to be included in 
evaluating tender prices, such as 
transport, insurance and inspection 
costs, and in the case of products or 
services of other Parties, customs 
duties and other i mport charges, 
taxes and currency of payment;  
  
(i) the terms of payment;  
  
(j) any other terms or conditions;  
  
(k) in accordance with Article XVII the 
terms and conditions, if any, under 
which tenders from countries not 
Parties to this Agreement, but which 
apply the procedures of that Article, 
will be entertained.  
  
 GPA/TN1994/2/Rev.5  
- 57 - 
  Article XII:3  
 
Tender Documentation  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
Forwarding of Tender Documentation by the 
Entities  
  
3. (a) In open procedures, entities shall 
forward the tender documentation 
at the request of any supplier 
participating in the procedure, and 
shall reply promptly to any 
reasonable request for explanations 
relating thereto.  
  
(b) In selective procedures, entities 
shall forward the tender 
documentation at the request of any 
supplier requesting to participate, 
and shall reply promptly to any 
reasonable request for explanations 
relating thereto.  
  
(c) Entities shall reply promptly to any 
reasonable request f or relevant 
information submitted by a supplier 
participating in the tendering 
procedure, on condition that such 
information does not give that 
supplier an advantage over its 
competitors in the procedure for the 
award of the contract.  
  
 GPA/TN1994/2/Rev.5  
- 58 - 
  Article XIII:1  
 
Submission,  Receipt  and Opening  of Tenders  and Awarding  of Contracts  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
1. The submission, receipt and opening of 
tenders and awarding of contracts shall be 
consistent with the following:  1. The submission, receipt and opening 
of tenders and awarding of contracts shall 
be consistent with the following:  
 
(a) tenders shall normally be submitted 
in writing directly or by mail . If 
tenders by telex, telegram or 
facsimile are permitted, the tender 
made thereby must include all the 
information necessary for the 
evaluation of the tender, in 
particular the definitive price 
proposed by the tenderer and a 
statement that the tenderer agrees 
to all the terms, conditions and 
provisions of the invitat ion to 
tender . The tender must be 
confirmed promptly by letter or by 
the despatch of a signed copy of the 
telex, telegram or facsimile . 
Tenders presented by telephone 
shall not be permitted . The content 
of the telex, telegram or facsimile 
shall prevail whe re there is a 
difference or conflict between that 
content and any documentation 
received after the time -limit; and (a) tenders shall be submitted in 
writing;  
[EC – GPA/W/87 ] 
 
(a) tenders shall normally be 
submitted in writing . Tenders 
must include all the information 
necessary for the evaluation of 
the tender, however submitted . 
A procuring entity may require 
that the tender b e confirmed 
promptly by letter or by the 
despatch of a signed copy of the 
telex, telegram or facsimile or 
electronic document.  
[Canada - Job No. 3481]  
 
 
Comments  
 
• In order to define the term "writing" to include electronically formatted writings, the following 
definition could be incorporated into the Agr eement : "The term 'writing' as used in this 
Agreement is to be understood to include any worded or numbered expression which can be 
read, reproduced, and later communicated, and include electronically transmitted and stored 
information".  [US – Job No. 3842] 
• A provision should be added to indicate that the means for submitting tenders may be specified 
by the procuring entity, provided the requirement to use such means shall not reduce access 
by foreign and domestic suppliers.  [Canada – Job No. 3481]  
• The prop osals do not make it clear who is responsible and to what extent, for the accuracy of 
data in tender documents and ensuring the protection of confidentiality of tender information . 
There should be limits on the burden imposed upon procuring entities as reg ards the protection 
of the confidentiality of data transmitted electronically.  [Japan]  
Regarding more specific amendments to paragraph 1(a) of Article XIII:1:  
 
• In the first sentence, alternatively, the words "or electronic means" should be added to the 
words "in writing, directly or by mail".  [Canada – Job No. 3481]  
• Alternatively, the 3rd sentence should be deleted.  [Canada – Job No. 3481]  GPA/TN1994/2/Rev.5  
- 59 - 
  Article XIII:2, 3  
 
Submission,  Receipt  and Opening  of Tenders  and Awarding  of Contracts  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 (b) integrity of data and 
confidentiality of tenders must 
be preserved . Tenders shall not 
be opened until after the 
deadline set by the contracting 
entity for receipt of tenders;  
 
 (c) whatever means of 
communication or exchange of 
information chosen they shall 
not cause a discrimination and 
be consistent with the principles 
laid down in Article 3 hereof ; 
and 
 
(b) the opportunities that may be given 
to tenderers to correct unintentional 
errors of form between the opening 
of tenders and the awarding of the 
contract shall not be permitted to 
give rise to any discriminatory 
practice.  
 (d) the opportunities that may be 
given to tenderers to correct 
unintentional errors of form 
between the opening of tenders 
and the awarding of the contract 
shall not be permitted to give 
rise to any discriminatory 
practice.  
[EC – GPA/W/87 ] 
 
Receipt of Tenders  
  
2. A supplier shall not be penalized if a tender 
is received in the office designated in the tender 
documentation after the time specified because 
of delay due solely to mishandling on the part of 
the entity . Tenders may also be considered in 
other exceptional  circumstances if the 
procedures of the entity concerned so provide.  
  
Opening of Tenders  
  
3. All tenders solicited under open or 
selective procedures by entities shall be received 
and opened under procedures and conditions 
guaranteeing the regularity of the openings . The 
receipt and opening of tenders shall also be 
consistent with the national treatment and 
non-discrimination provisions of this Agreement . 
Information on the opening of tenders shall 
remain with the entity concerned at the dis posal 
of the government authorities responsible for the 
entity in order that it may be used if required 
under the procedures of Articles  XVIII, XIX, 
XX and XXII.  
  
 GPA/TN1994/2/Rev.5  
- 60 - 
  Article XIII:4  
 
Submission,  Receipt  and Opening  of Tenders  and Awarding  of Contracts  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
Award of Contracts  
  
4. (a) To be considered for award, a 
tender must, at the time of opening, 
conform to the essential 
requirements of the notices or 
tender documentation and be from 
a supplier which complies with the 
conditions for participation . If an 
entity has received a tender 
abnormally lower than other tenders 
submitted, it may enquire with the 
tenderer to ensure that it can 
comply with the conditions of 
participation and be capab le of 
fulfilling the terms of the contract.  
  
(b) Unless in the public interest an 
entity decides not to issue the 
contract, the entity shall make the 
award to the tenderer who has been 
determined to be fully capable of 
undertaking the contract and whose 
tender, whether for domestic 
products or services, or products or 
services of other Parties, is either 
the lowest tender or the tender 
which in terms of the specific 
evaluation criteria set forth in the 
notices or tender documentation is 
determined t o be the most 
advantageous.  
  
 
Comments  
 
• The reference to "specific evaluation criteria" in this subparagraph should be clarified in the 
light of the relevant terms in Article  VIII(b).  
  GPA/TN1994/2/Rev.5  
- 61 - 
  Article XIII:5  
 
Submission,  Receipt  and Opening  of Tenders  and Award ing of Contracts  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
(c) Awards shall be made in accordance 
with the criteria and essential 
requirements specified in the tender 
documentation.  
  
Option Clauses  
  
5. Option clauses shall not be used in a 
manner which circumvents the provisions of the 
Agreement.  
  GPA/TN1994/2/Rev.5  
- 62 - 
  Article XIV:1, 2, 3, 4  
 
Negotiation  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
1. A Party may provide for entities to conduct 
negotiations:  
  
(a) in the context of procurements in 
which they have indicated such 
intent, namely in the notice referred 
to in paragraph 2 of Article IX (the 
invitation to suppliers to participate 
in the procedure for the proposed 
procurement) ; or 
  
(b) when it appears from evaluation 
that no one tender is obviously the 
most advantageous in terms of the 
specific evaluation criteria set forth 
in the notices or tender 
documentation.  
  
2. Negotiations shall primarily be used to 
identify the strengths an d weaknesses in 
tenders.  
  
3. Entities shall treat tenders in confidence . 
In particular, they shall not provide information 
intended to assist particular participants to bring 
their tenders up to the level of other participants.  
  
4. Entities shall not, in the course of 
negotiations, discriminate between different 
suppliers . In particular, they shall ensure that:  
  
(a) any elimination of participants is 
carried out in accordance with the 
criteria set forth in the notices and 
tender documentation;  
  
(b) all modifications to the criteria and 
to the technical requirements are 
transmitted in writing to all 
remaining participants in the 
negotiations;  
  
  GPA/TN1994/2/Rev.5  
- 63 - 
  Article XIV  
 
Negotiation  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
(c) all remaining participants are 
afforded an opportunity to submit 
new or amended submissions on the 
basis of the revised requirements ; 
and 
  
(d) when negotiations are concluded, all 
participants remaining in the 
negotiations shall be permitted to 
submit final tenders in accordance 
with a common deadline.  
  
 
Comments  
 
• Article XIV should be modified in the light of the practice of post -tender or even post -contract 
award negotiations between the procuring entities a nd tenderers.  
• This Article could be combined with Articles  VII and  X on tendering procedures.  
 GPA/TN1994/2/Rev.5  
- 64 - 
  Article XV:1  
 
Limited Tendering  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
1. The provisions of Articles  VII through XIV 
governing open and selective tendering 
procedures need not apply in the following 
conditions, provided that limited tendering is not 
used with a view to avoiding maximum possible 
competition or in a manner which would 
constitute a means of discrimination a mong 
suppliers of other Parties or protection to 
domestic producers or suppliers:  
  
(a) in the absence of tenders in 
response to an open or selective 
tender, or when the tenders 
submitted have been collusive, or 
not in conformity with the essential 
requirements in the tender, or from 
suppliers who do not comply with 
the conditions for participation 
provided for in accordance with this 
Agreement, on condition, however, 
that the requirements of the initial 
tender are not substantially 
modifie d in the contract as 
awarded;  
  
(b) when, for works of art or for reasons 
connected with protection of 
exclusive rights, such as patents or 
copyrights, or in the absence of 
competition for technical reasons, 
the products or services can be 
supplied only b y a particular 
supplier and no reasonable 
alternative or substitute exists;  
 (b) when, for works of art or for 
reasons connected with 
protection of exclusive rights, 
such as patents or copyrights, or 
in the absence of competition 
for technical reasons, the  
products or services can be 
supplied only by a particular 
supplier or group of suppliers 
and no reasonable alternative or 
substitute exists;  
[Hong Kong, China – Job No. 1333]  
 
 
 GPA/TN1994/2/Rev.5  
- 65 - 
  Article XV  
 
Limited Tendering  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
(c) in so far as is strictly necessary 
when, for reasons of extreme 
urgency brought about by events 
unforeseeable by the entity, the 
products or services could not be 
obtained in time by means of open 
or selective  tendering procedures;  
  
(d) for additional deliveries by the 
original supplier which are intended 
either as parts replacement for 
existing supplies, or installations, or 
as the extension of existing 
supplies, services, or installations 
where a change of supplier would 
compel the entity to procure 
equipment or services not meeting 
requirements of interchangeability 
with already existing equipment or 
services5; 
  
(e) when an entity procures prototypes 
or a first product or service which 
are developed at its request in the 
course of, and for, a particular 
contract for research, experiment, 
study or original development . 
When such contracts have been 
fulfilled, subsequent procurements 
of products or services shall be 
subject to Articles  VII thr ough XIV6; 
 
5 It is the understanding that "existing equipment" 
includes software to the extent that the initial 
procurement of the software was covered by the 
Agreement.  
 
6 Original development of a first product or service may 
include limited production or supply in order to 
incorporate the results of field testing and to 
demonstrate that the product or service is suitable for 
production or supply in quantity to acceptable quality 
standards . It does not extend to quantity production or 
supply to establish  commercial viability or to recover 
research and development costs.  
  
 GPA/TN1994/2/Rev.5  
- 66 - 
  Article  XV 
 
Limited Tendering  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
(f) when additional construction 
services which were not included in 
the initial contract but which were 
within the objectives of the original 
tender documentation have, 
through unforeseeable 
circumstances, become necessary 
to complete the construction 
services described therein, and the 
entity needs to award contracts for 
the additional construction services 
to the contractor carrying out the 
construction services concerned 
since the separation of the 
additional construction services 
from the initial contract would be 
difficult for technical or economic 
reasons and cause signif icant 
inconvenience to the entity . 
However, the total value of 
contracts awarded for the additional 
construction services may not 
exceed 50 % of the amount of the 
main contract;  
  
(g) for new construction services 
consisting of the repetition of similar 
construction services which conform 
to a basic project for which an initial 
contract was awarded in accordance 
with Articles  VII through XIV and for 
which the entity has indicated in the 
notice of intended procurement 
concerning the initial constru ction 
service, that limited tendering 
procedures might be used in 
awarding contracts for such new 
construction services;  
  
 GPA/TN1994/2/Rev.5  
- 67 - 
  Article  XV 
 
Limited Tendering  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
(h) for products purchased on a 
commodity market;  
  
(i) for purchases made under 
exceptionally advantageous 
conditions which only arise in the 
very short term . This provision is 
intended to cover unusual disposals 
by firms which are not normally 
suppliers, or disposal of assets of 
businesses in liquidation or 
receivership . It is not intended to 
cover routine purchases from 
regular suppliers;  
  
 
Comments  
 
• The Agreement's coverage of procurements through commercially run websites should be 
examined in the light of the provisions of paragraphs (h) and (i).  
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
(j) in the case of contracts awarded to 
the winner of a design contest 
provided that the contest has been 
organized in a manner which is 
consistent with the principles of this 
Agreement, notably as regards the 
publication, in the sense of 
Article  IX, of an invitation to suitably 
qualified suppliers, to participate in 
such a contest which shall be judged 
by an independent jury with a view 
to design contracts being awarded 
to the winners.  
  
 GPA/TN1994/2/Rev.5  
- 68 - 
  Article XV:2  
 
Limited Tendering  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 new paragraph (k)  
 
for additional purchases of human 
life-preserving or life -saving products that 
require extensive user training or 
experience or trial for safety reasons.  
[Hong Kong, China – Job No. 1333)  
 
 
Comments  
 
• The new proposed paragraph (k) is aimed at fairly restricted circumstances.  [Hong Kong, 
China]  
• The issues that have been raised in this context as warranting an addition to Article XV relate 
primarily to issues of quality control and the technical appropriateness of products . It is unclear 
why it is considered necessary in these cases to use limited tendering as opposed to selective 
tendering which could involve qualification requirements including performance records and 
technical specifications establishing high quality standards and would be much more 
transparent and competitive.  [US] 
• This proposal must be carefully considered since  the use of limited tendering must be strictly 
limited.  [EC] 
• The proposed paragraph (k) is quite similar to the existing Article XV:1(d) in that both 
provisions refer to "additional purchases".  [Singapore]  
• The existing subparagraph 1(d) may not be wide eno ugh to cover what is proposed to be 
covered by the proposed paragraph (k) . Also, in relation to the former paragraph, it is unclear 
what is meant by "interchangeability" and "compulsion".  [Hong Kong, China]  
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPO SED MODIFICATIONS  
2. Entities shall prepare a report in writing on 
each contract awarded under the provisions of 
paragraph  1. Each report shall contain the name 
of the procuring entity, value and kind of goods 
or services procured, country of origin, and a 
statement of the conditions in this Article which 
prevailed . This report shall remain with the 
entities concerned at the disposal of the 
government authorities responsible for the entity 
in order that it may be used if required under the 
procedures of Articles  XVIII, XIX, XX and XXII.  
  
 GPA/TN1994/2/Rev.5  
- 69 - 
  Article XVI:1, 2  
 
Offsets  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
1. Entities shall not, in the qualification and 
selection of suppliers, products or services, or in 
the evaluation of tenders and award of contracts, 
impose, seek or consider offsets.7 
 
7 Offsets in government procurement are measures 
used to encourage local development or improve the 
balance -of-payments accounts by means of domestic 
content, licensing of technology, investment 
requirements, counter -trade or similar requirements.  
  
2. Nevertheless, having regard to general 
policy considerations, including those relating to 
development, a developing country may at the 
time of accession negotiat e conditions for the use 
of offsets, such as requirements for the 
incorporation of domestic content . Such 
requirements shall be used only for qualification 
to participate in the procurement process and 
not as criteria for awarding contracts . Conditions 
shall be objective, clearly defined and 
non-discriminatory . They shall be set forth in the 
country's Appendix I and may include precise 
limitations on the imposition of offsets in any 
contract subject to this Agreement . The 
existence of such conditions shall be notified to 
the Committee and included in the notice of 
intended procurement and other documentation.  
  
 GPA/TN1994/2/Rev.5  
- 70 - 
  Article XVII:1  
 
Transparency  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
1. Each Party shall encourage entities to 
indicate the terms and conditions, including any 
deviations from competitive tendering 
procedures or access to challenge procedures, 
under which tenders will be entertained from 
suppliers situated in countries not Parties to this 
Agreement but which, with a view to creating 
transparency in their own contract awards, 
nevertheless:  
 1. Each Party shall encourage entities to 
indicate the terms and conditions, including 
any deviations from competitive tendering 
procedures or access to challenge 
procedures, unde r which tenders will be 
entertained from suppliers situated in 
countries not Parties to this Agreement but 
which, with a view to creating transparency 
in their own contract awards, nevertheless:  
 
(a) specify their contracts in accordance 
with Article  VI (technical 
specifications);  
 (a) specify their contracts in 
accordance with Article VI 
(technical specifications);  
 
(b) publish the procurement notices 
referred to in Article  IX, including, in 
the version of the notice referred to 
in paragraph  8 of Article  IX 
(summary of the notice of intended 
procurement) which is published in 
an official language of the WTO, an 
indication of the terms and 
conditions under which tenders shall 
be entertained from suppliers 
situated in countries Parties  to this 
Agreement;  
 (b) publish the procurement notices 
referred to in Article IX, 
including, in the version of the 
notice referred to in 
paragraph  8 of Article IX 
(summary of the notice of 
intended procurement) which is 
published in an official language 
of the WTO, an indication of the 
terms and conditions under 
which tenders shall be 
entertained from suppliers 
situated in countries Parties to 
this Agreement;  
 
(c) are willing to ensure that their 
procurement regulations shall not 
normally change during a  
procurement and, in the event that 
such change proves unavoidable, to 
ensure the availability of a 
satisfactory means of redress.  
 (c) are willing to ensure that their 
procurement regulations shall 
not normally change during a 
procurement and, in the even t 
that such change proves 
unavoidable, to ensure the 
availability of a satisfactory 
means of redress.  
 
 GPA/TN1994/2/Rev.5  
- 71 - 
  Article XVII:2  
 
Transparency  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
2. Governments not Parties to the Agreement 
which comply with the conditions specified in 
paragraphs 1(a) through 1(c), shall be entitled if 
they so inform the Parties to participate in the 
Committee as observers.  
 2. Each Party shall encourage entities to 
publish their technical specifications on t he 
Internet through a single point of access 
accessible free of charge [The amount and 
terms of payment of any sum payable for 
the download of such technical 
specifications shall be reasonable, and shall 
be indicated in the notice of intended 
procurement, as provided for under 
Article  IX, paragraph 6(g) [Sing – Job 
No. 5271]] . W here such publication is 
provided, contracting entities shall be 
encouraged to mention the address of the 
single point of access in the tender notice.  
[EC – GPA/W/87 ] 
  
 
Comments  
 
• Paragraph 2 should be deleted or amended as suggested after deleting the words "accessible 
free of charge" in the first sentence.  [Singapore – Job No. 5271]  
• Given the aim to streamline the Agreement and encouraging broader participation, the 
proposed provision on the use of the Internet may not be appropriate.  [US] 
• A further question is whether technical specifications remain unchanged from procurement to 
procurement . There may be a risk that, in effect, a separate library is created that migh t 
duplicate what is already in the bid documents.  [Canada]  
In relation to the charging of fees:  
 
• This proposal appears to negate the current paragraph 6(g) of Article IX which refers to "the 
amount and terms of payment of any sum payable for the tender doc umentation" . Parties 
should be given the flexibility to impose a reasonable charge, even for technical specifications 
and tender documents which are downloaded from the Internet.  [Job No. 5074]  
• Some form of charges may be necessary to ensure that documents  are not downloaded 
indiscriminately . Taxpayers should not have to subsidise access for the benefit of suppliers.  
[Singapore ; Canada]  
• The costs associated with providing documents and technical specifications via the Internet 
might be far less than the cos ts associated with providing the documents by mail . Providing 
documents free of charge will increase transparency and, in particular, will benefit small and 
medium enterprises seeking opportunities in procurement markets.  [EC] 
• The fee charged should be str ictly linked to actual cost.  [EC] GPA/TN1994/2/Rev.5  
- 72 - 
  Article XVIII:1  
 
Information and Review as Regards Obligations of Entities  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
1. Entities shall publish a notice in the 
appropriate publication listed in Appendix II not 
later than 72 days after the award of each 
contract under Articles  XIII through XV . These 
notices shall contain:  
 1. Entities shall publish a notice in the 
appropriate publication listed in Appendix 
II not later than 72 days after  the award of 
each contract under Articles XIII through 
XV. These notices shall contain at least:  
 
(a) the nature and quantity of products 
or services in the contract award;  
 (a) the nature and quantity of 
products or services in the 
contract award [by referring to 
the relevant CPV code, if 
applicable[Singapore – 
Job No. 5271]];  
[EC – GPA/W/87 ] 
 
(b) the name and address of the entity 
awarding the contract;  
 (b) the name and address of the 
entity awarding the contract;  
 
(c) the date of award;  
  (c) the date of award;  
 
(d) the name and address of winning 
tenderer;  
 (d) the name and address of 
winning tenderer;  
 
(e) the value of the winning award or 
the highest and lowest offer taken 
into account in the award of the 
contract;  
 (e) the value of the winning award 
or the highest and lowest offer 
taken  into account in the award 
of the contract;  
 
(f) where appropriate, means of 
identifying the notice issued under 
paragraph 1 of Article  IX or 
justification according to Article  XV 
for the use of such procedure ; and 
 (f) where appropriate, means of 
identifying the notice issued 
under paragraph 1 of Article IX 
or justification according to 
Article XV for the use of such 
procedure ; and 
 
(g) the type of procedure used.  
  (g) the type of procedure used.  
[EC – GPA/W/87 ] 
 
 GPA/TN1994/2/Rev.5  
- 73 - 
  Article XVIII:2, 3, 4  
 
Information and Review as Regards Obligations of Entities  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
2. Each entity shall, on request from a 
supplier of a Party, promptly provide:  
  
(a) an explanation of its procurement 
practices and procedures;  
  
(b) pertinent information concerning 
the reasons why the supplier's 
application to qualify was rejected, 
why its existing qualification was 
brought to an end and why it was 
not selected ; and 
  
(c) to an unsuccessfu l tenderer, 
pertinent information concerning 
the reasons why its tender was not 
selected and on the characteristics 
and relative advantages of the 
tender selected as well as the name 
of the winning tenderer.  
  
3. Entities shall promptly inform participating 
suppliers of decisions on contract awards and, 
upon request, in writing.  
  
4. However, entities may decide that certain 
information on the contract award, contained in 
paragraphs  1 and 2(c), be withheld where 
release of such information woul d impede law 
enforcement or otherwise be contrary to the 
public interest or would prejudice the legitimate 
commercial interest of particular enterprises, 
public or private, or might prejudice fair 
competition between suppliers.  
  
 
Comments  
 
• A provision sh ould be added requiring procuring entities to meet the same requirements for 
retention of electronic documents as their national legislation, regulations and policies require 
for paper documents, with the proviso that electronic documents may be printed an d the paper 
copies only retained.  [Canada – Job No. 3481]  
• This change may not be necessary . Further, the clause does not specify the form by which 
entities are required to produce and record information.  [Hong Kong, China]  
• Parties should consider setting u p a single "information centre" given that some Parties have 
decentralized procurement systems . Accordingly, it is important to establish an information 
system that provides suppliers with a single point of access.  [Korea ; EC] GPA/TN1994/2/Rev.5  
- 74 - 
  Article XIX:1, 2, 3, 4  
 
Information and Review as Regards Obligations of Parties  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
1. Each Party shall promptly publish any law, 
regulation, judicial decision, administrative 
ruling of general application, and any  procedure 
(including standard contract clauses) regarding 
government procurement covered by this 
Agreement, in the appropriate publications listed 
in Appendix IV and in such a manner as to enable 
other Parties and suppliers to become acquainted 
with them . Each Party shall be prepared, upon 
request, to explain to any other Party its 
government procurement procedures.  
  
2. The government of an unsuccessful 
tenderer which is a Party to this Agreement may 
seek, without prejudice to the provisions under 
Article  XXII, such additional information on the 
contract award as may be necessary to ensure 
that the procurement was made fairly and 
impartially . To this end, the procuring 
government shall provide information on both 
the characteristics and relative adv antages of the 
winning tender and the contract price . Normally 
this latter information may be disclosed by the 
government of the unsuccessful tenderer 
provided it exercises this right with discretion . In 
cases where release of this information would 
prejud ice competition in future tenders, this 
information shall not be disclosed except after 
consultation with and agreement of the Party 
which gave the information to the government of 
the unsuccessful tenderer.  
  
3. Available information concerning 
procureme nt by covered entities and their 
individual contract awards shall be provided, 
upon request, to any other Party.  
  
4. Confidential information provided to any 
Party which would impede law enforcement or 
otherwise be contrary to the public interest or 
would prejudice the legitimate commercial 
interest of particular enterprises, public or 
private, or might prejudice fair competition 
between suppliers shall not be revealed without 
formal authorization from the party providing the 
information.  
  GPA/TN1994/2/Rev.5  
- 75 - 
  Article XIX: 5 
 
Information and Review as Regards Obligations of Parties  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
5. Each Party shall collect and provide to the 
Committee on an annual basis statistics on its 
procurements covered by this Agreement . Such 
reports shall contain the following information 
with respect to contracts awarded by all 
procurement entities covered under this 
Agreement:  
 . 
(a) for entities in Annex  1, statistics on 
the estimated value of contracts 
awarded, both above and below the 
threshold value, on a global basis 
and broken down by entities ; for 
entities in Annexes  2 and 3, 
statistics on the estimated value of 
contracts awarded above the 
threshold value on a global basis 
and broken down by categories of 
entitie s; 
  
(b) for entities in Annex  1, statistics on 
the number and total value of 
contracts awarded above the 
threshold value, broken down by 
entities and categories of products 
and services according to uniform 
classification systems ; for entities in 
Annexes  2 and 3, statistics on the 
estimated value of contracts 
awarded above the threshold value 
broken down by categories of 
entities and categories of products 
and services;  
  
(c) for entities in Annex  1, statistics, 
broken down by entity and by 
categories of  products and services, 
on the number and total value of 
contracts awarded under each of the 
cases of Article  XV; for categories of 
entities in Annexes  2 and 3, 
statistics on the total value of 
contracts awarded above the 
threshold value under each of the 
cases of Article  XV; and 
  GPA/TN1994/2/Rev.5  
- 76 - 
  Article XIX  
 
Information and Review as Regards Obligations of Parties  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
(d) for entities in Annex  1, statistics, 
broken down by entities, on the 
number and total value of contracts 
awarded under derogations to the 
Agreement contained in the relevant 
Annexes ; for categories of entities 
in Annexes  2 and 3, statistics on the 
total value of contracts awarded 
under derogations to the Agreement 
contained in the rel evant Annexes.  
  
To the extent that such information is available, 
each Party shall provide statistics on the country 
of origin of products and services purchased by 
its entities . With a view to ensuring that such 
statistics are comparable, the Committee shall 
provide guidance on methods to be used . With a 
view to ensuring effective monitoring of 
procurement covered by this Agreement, the 
Committee may decide unanimously to modify 
the requirements of subparagraphs (a) through 
(d) as regards the n ature and the extent of 
statistical information to be provided and the 
breakdowns and classifications to be used.  
  
 
Comments  
 
• A note by the Chair presenting a draft revision of the text of Article XIX:5 was circulated in a 
separate document.  GPA/TN1994/2/Rev.5  
- 77 - 
  Article XX: 1 
 
Challenge Procedures  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
Consultations  
  
1. In the event of a complaint by a supplier 
that there has been a breach of this Agreement 
in the context of a procurement, each Party shall 
encourage the supplier to seek resolution of its 
complaint in consultation with the procuring 
entity . In such instances the procuring entity 
shall accord impartial and timely consideration to 
any such complaint, in a manner that is not 
prejudicial to obtai ning corrective measures 
under the challenge system.  
 1. In the event of a complaint by a 
supplier that there has been a breach of this 
Agreement in the context of a procurement, 
each Party shall encourage the supplier to 
seek solution of its complaint in 
consultation with the procuring entity . In 
such instances the procuring entity shall 
accord impartial and timely consideration 
to any such complaint, in a manner that is 
not prejudicial to obtaining corrective 
measures under the challenge syst em. Such 
encouragement may take place in particular 
through the designation of one or more 
bodies which can offer their good advice in 
trying to solve the situation.  
[EC – GPA/W/87 ] 
 
 
Comments  
 
• The last sentence in this paragraph should be clarified . The division of labour between the new 
challenge bodies created under paragraphs 1 and 2 of the EC's proposed amendment and the 
challenge bodies referred to in paragraph 6 of the existi ng agreement should be clarified.  
[Japan ; Hong Kong, China]  
• It was not intended that the proposed amendment would have the result of imposing a new 
authority on procuring entities . Rather, the intent was to have a central point to address any 
problems in a n unbureaucratic fashion, informally and rapidly . It would be left to Parties to 
decide how to organize these bodies.  [EC] 
• The need for such prescriptive provisions is doubtful.  [Hong Kong, China]  
• Rather than create a completely new body, the relevant aspe cts of the approach proposed by 
the EC could be incorporated into the existing procedures.  [Singapore]  
• The proposal is not intended to make it compulsory for Members to create new bodies . Rather, 
the intention is to designate bodies that may already be in place. This proposal was made in 
recognition of the fact that resort to a court is not an ideal solution for government 
procurement disputes.  [EC] Settling of government procurement disputes outside legal judicial 
systems will afford increased flexibility in dispute settlement procedures.  
 GPA/TN1994/2/Rev.5  
- 78 - 
  Article XX:2, 3, 4, 5, 6  
 
Challenge Procedures  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
Challenge  
  
2. Each Party shall provide 
non-discriminatory, timely, transparent and 
effective procedures enabling suppliers to 
challenge alleged breaches of the Agreement 
arising in the context of procurements in which 
they have, or have had, an interest.  
  
3. Each Party shall provide its challenge 
procedures in writing and make them generally 
available.  
  
4. Each Party shall ensure that 
documentation relating to all aspects of the 
process concerning procurements covered by 
this Agreement shall be retained for three years.  
  
5. The interested supplier may be required to 
initiate a challenge procedure and notify the 
procuring entity within specified time -limits from 
the time when the basis of the complaint is 
known or reasonably should have been known, 
but in no case within a period of less than 10 
days.  
  
6. Challenges s hall be heard by a court or by 
an impartial and independent review body with 
no interest in the outcome of the procurement 
and the members of which are secure from 
external influence during the term of 
appointment . A review body which is not a court 
shall either be subject to judicial review or shall 
have procedures which provide that:  
  
(a) participants can be heard before an 
opinion is given or a decision is 
reached;  
  
(b) participants can be represented and 
accompanied;  
  
(c) participants shall have access to all 
proceedings;  
  GPA/TN1994/2/Rev.5  
- 79 - 
  Article XX:7  
 
Challenge Procedures  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
(d) proceedings can take place in 
public;  
  
(e) opinions or decisions are given in 
writing with a statement describing 
the basis for the opinions or 
decisions;  
  
(f) witnesses can be presented;  
  
(g) documents are disclosed to the 
review body.  
  
7. Challenge procedures shall provide for:  
  
(a) rapid interim measures to correct 
breaches of the Agreement and to 
preserve commercial opportunities . 
Such action may result in 
suspension of the procurement 
process . However, procedures may 
provide that overriding adverse 
consequences for the interests 
concerned, including the public 
interest, may be tak en into account 
in deciding whether such measures 
should be applied . In such 
circumstances, just cause for not 
acting shall be provided in writing;  
  
(b) an assessment and a possibility for 
a decision on the justification of the 
challenge;  
  
(c) correction of the breach of the 
Agreement or compensation for the 
loss or damages suffered, which 
may be limited to costs for tender 
preparation or protest.  
  GPA/TN1994/2/Rev.5  
- 80 - 
  Article XX:8  
 
Challenge Procedures  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
8. With a view to the preservation of the 
commercial and other interests involved, the 
challenge procedure shall normally be completed 
in a timely fashion.   
 9. The Parties undertake to designate or 
establish an independent body with a view 
to solve informally problems encountered 
in gaining access to contracts.  
[EC - GPA/W/87 ] 
 
Comments  
 
• Clarification is required in relation to what is meant by the new paragraph 9.  [Japan ; 
Hong Kong, China]  
• An illustrative example of an independent body dealing with complaints about government 
procurement is  contained in a non -paper.  [EC – Job No. 1466]  
 GPA/TN1994/2/Rev.5  
- 81 - 
  Article XXI:1, 2  
 
Institutions  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
1. A Committee on Government Procurement 
composed of representatives from each of the 
Parties shall be established . This Committee shall 
elect its own Chairman and Vice -Chairman and 
shall meet as necessary but not less than once a 
year for the purpose of affording Parties the 
opportunity to consult on any matters relating to 
the operation of this Agreement or the 
furtherance of its objectives, and to carry out 
such other responsibilities as may be assigned to 
it by the Parties.  
  
2. The Committee may establish working 
parties or other subsidiary bodies which shall 
carry out such functions as may be given to them 
by the Committee.  
  
 GPA/TN1994/2/Rev.5  
- 82 - 
  Article XXII:1, 2  
 
Consultations  and Dispute  Settlement  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
1. The provisions of the Understanding on 
Rules and Procedures Governing the Settlement 
of Disputes under the WTO Agreement 
(hereinafter referred to as the "Dispute 
Settlement Understanding") shall be applicable 
except as otherwise specifically provided below.  
  
2. If any Party considers that any benefit 
accruing to it, directly or indirectly, under this 
Agreement is being nullified or impaired, or that 
the attainment of any objective of this 
Agreement is being impeded as the result of the 
failure of another Party or Parties to carry out its 
obligations under this Agreement, or th e 
application by another Party or Parties of any 
measure, whether or not it conflicts with the 
provisions of this Agreement, it may with a view 
to reaching a mutually satisfactory resolution of 
the matter, make written representations or 
proposals to the o ther Party or Parties which it 
considers to be concerned . Such action shall be 
promptly notified to the Dispute Settlement Body 
established under the Dispute Settlement 
Understanding (hereinafter referred to as 
"DSB"), as specified below . Any Party thus 
approached shall give sympathetic consideration 
to the representations or proposals made to it.  
  GPA/TN1994/2/Rev.5  
- 83 - 
  Article XXII:3, 4, 5  
 
Consultations  and Dispute  Settlement  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
3. The DSB  shall have the authority to 
establish panels, adopt panel and Appellate Body 
reports, make recommendations or give rulings 
on the matter, maintain surveillance of 
implementation of rulings and 
recommendations, and authorize suspension of 
concessions and o ther obligations under this 
Agreement or consultations regarding remedies 
when withdrawal of measures found to be in 
contravention of the Agreement is not possible, 
provided that only Members of the WTO Party to 
this Agreement shall participate in decision s or 
actions taken by the DSB with respect to 
disputes under this Agreement.  
  
4. Panels shall have the following terms of 
reference unless the parties to the dispute agree 
otherwise within 20 days of the establishment of 
the panel:  
  
 "To examine, in the light of the relevant 
provisions of this Agreement and of (name 
of any other covered Agreement cited by 
the parties to the dispute), the matter 
referred to the DSB by (name of party) in 
document ... and to make such findings as 
will ass ist the DSB in making the 
recommendations or in giving the rulings 
provided for in this Agreement."  
  
In the case of a dispute in which provisions both 
of this Agreement and of one or more other 
Agreements listed in Appendix  1 of the Dispute 
Settlement Un derstanding are invoked by one of 
the parties to the dispute, paragraph 3 shall 
apply only to those parts of the panel report 
concerning the interpretation and application of 
this Agreement.  
  
5. Panels established by the DSB  to examine 
disputes under this Agreement shall include 
persons qualified in the area of government 
procurement.  
  GPA/TN1994/2/Rev.5  
- 84 - 
  Article XXII:6, 7  
 
Consultations  and Dispute  Settlement  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
6. Every effort shall be made to accelerate 
the proceedings to the greatest extent possible . 
Notwithstanding the provisions of paragraphs 8 
and 9 of Article 12 of the Dispute Settlement 
Understanding, the panel shall attempt to 
provide its final report to the parti es to the 
dispute not later than four months, and in case 
of delay not later than seven months, after the 
date on which the composition and terms of 
reference of the panel are agreed . Consequently, 
every effort shall be made to reduce also the 
periods fore seen in paragraph 1 of Article 20 and 
paragraph 4 of Article  21 of the Dispute 
Settlement Understanding by two months . 
Moreover, notwithstanding the provisions of 
paragraph  5 of Article 21 of the Dispute 
Settlement Understanding, the panel shall 
attempt to  issue its decision, in case of a 
disagreement as to the existence or consistency 
with a covered Agreement of measures taken to 
comply with the recommendations and rulings, 
within 60 days.  
  
7. Notwithstanding paragraph  2 of Article 22 
of the Dispute Sett lement Understanding, any 
dispute arising under any Agreement listed in 
Appendix  1 to the Dispute Settlement 
Understanding other than this Agreement shall 
not result in the suspension of concessions or 
other obligations under this Agreement, and any 
disput e arising under this Agreement shall not 
result in the suspension of concessions or other 
obligations under any other Agreement listed in 
the said Appendix  1. 
  GPA/TN1994/2/Rev.5  
- 85 - 
  Article  XXIII:1, 2  
 
Exceptions to the Agreement  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
1. Nothing in this Agreement shall be 
construed to prevent any Party from taking any 
action or not disclosing any information which it 
considers necessary for the protection of its 
essential security interests rel ating to the 
procurement of arms, ammunition or war 
materials, or to procurement indispensable for 
national security or for national defence 
purposes.  
  
 
Comments  
 
• The provisions of Article  XXIII should be aligned with those in the corresponding provisions of 
GATT  1994. [Job No. 5074]  
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
2. Subject to the requirement that such 
measures are not applied in a manner which 
would constitute a means of arbitrary or 
unjustifia ble discrimination between countries 
where the same conditions prevail or a disguised 
restriction on international trade, nothing in this 
Agreement shall be construed to prevent any 
Party from imposing or enforcing measures : 
necessary to protect public mor als, order or 
safety, human, animal or plant life or health or 
intellectual property ; or relating to the products 
or services of handicapped persons, of 
philanthropic institutions or of prison labour.  
  
 
Comments  
 
• An article containing definitions of the various terms used in the Agreement should be 
considered.  [Job No. 5074]  
 GPA/TN1994/2/Rev.5  
- 86 - 
  Article XXIV:1, 2  
 
Final Provisions  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
1. Acceptance and Entry into Force  
  
 This Agreement shall enter into force on 
1 January  1996 for those governments8 whose 
agreed coverage is contained in Annexes 1 
through 5 of Appendix I of this Agreement and 
which have, by signature, accepted the 
Agreement on 1 5 April 1994 or have, by that 
date, signed the Agreement subject to 
ratification and subsequently ratified the 
Agreement before 1 January  1996. 
 
8 For the purpose of this Agreement, the term 
"government" is deemed to include the competent 
authorities of the European Communities.  
  
2. Accession  
  
 Any government which is a Member of the 
WTO, or prior to the date of entry into force of 
the WTO Agreement which is a contracting party 
to GATT  1947, and which is not a Party to this 
Agreement may accede to this Agreement on 
terms to be ag reed between that government 
and the Parties . Accession shall take place by 
deposit with the Director -General of the WTO of 
an instrument of accession which states the 
terms so agreed . The Agreement shall enter into 
force for an acceding government on the 
30th day following the date of its accession to 
the Agreement.  
  GPA/TN1994/2/Rev.5  
- 87 - 
  Article  XXIV:3  
 
Final Provisions  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
3. Transitional Arrangements  
  
(a) Hong Kong and Korea may delay 
application of the provisions of this 
Agreement, except Articles  XXI 
and XXII, to a date not later than 
1 January  1997. T he 
commencement date of their 
application of the provisions, if prior 
to 1 January  1997, shall be notified 
to the Director -General of t he WTO 
30 days in advance.  
  
(b) During the period between the date 
of entry into force of this Agreement 
and the date of its application by 
Hong Kong, the rights and 
obligations between Hong Kong and 
all other Parties to this Agreement 
which were on 15 April 1994 Parties 
to the Agreement on Government 
Procurement done at Geneva on 
12 April 1979 as amended on 
2 February  1987 (the "1988 
Agreement") shall be governed by 
the substantive9 provisions of the 
1988 Agreement, including its 
Annexes as modified or rectified, 
which provisions are incorporated 
herein by reference for that purpose 
and shall remain in force until 
31 December  1996.  
 
9 All provisions of the 1988 Agreement except the 
Preamble, Article  VII and Article  IX other than 
paragraphs 5(a) and (b) and paragraph 10.  
  
(c) Between Parties to this Agreement 
which are also Parties to the 1988 
Agreement, the rights and 
obligations of this Agreement shall 
supersede those under the 198 8 
Agreement.  
  
 GPA/TN1994/2/Rev.5  
- 88 - 
  Article  XXIV:4, 5  
 
Final Provisions  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
(d) Article  XXII shall not enter into force 
until the date of entry into force of 
the WTO Agreement . Until such 
time, the provisions of Article  VII of 
the 1988 Agreement shall apply to 
consultations and dispute 
settlement under this Agreement, 
which provisions are hereby 
incorporated in the Agreement by 
reference for that purpose . These 
provisions shall be applied under the 
auspices of the Committee under 
this Agreement.  
  
(e) Prior to the date of entry into force 
of the WTO Agreement, references 
to WTO bodies shall be construed as 
referring to the corresponding GATT 
body and references to the 
Director -General of the WTO and to 
the WTO Secretariat shall be 
construed as references to, 
respectively, the Director -General 
to the CONTRACTING PARTIES to 
GATT 1947 and to the GATT 
Secretariat.  
  
4. Reservations  
  
 Reservations may not be entered in 
respect of any of the provisions of this 
Agreement.  
  
5. National  Legislation  
  
(a) Each government accepting or 
acceding to this Agreement shall 
ensure, not later than the date of 
entry into force of this Agreement 
for it, the conformity of its laws, 
regulations and administ rative 
procedures, and the rules, 
procedures and practices applied by 
the entities contained in its lists 
annexed hereto, with the provisions 
of this Agreement.  
  GPA/TN1994/2/Rev.5  
- 89 - 
  Article  XXIV:6  
 
Final Provisions  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
(b) Each Party shall inform the 
Committee of any changes in its 
laws and regulations relevant to this 
Agreement and in the 
administration of such laws and 
regulations.  
  
6. Rectifications or Modifications  
  
(a) Rectifications, transfers of an entity 
from one Annex to another or, in 
exceptional cases, other 
modifications relating 
to Appendices  I through IV shall be 
notified to the Committee, along 
with information as to the likely 
consequences of the change for th e 
mutually agreed coverage provided 
in this Agreement . If the 
rectifications, transfers or other 
modifications are of a purely formal 
or minor nature, they shall become 
effective provided there is no 
objection within 30 days . In other 
cases, the Chairman o f the 
Committee shall promptly convene 
a meeting of the Committee . The 
Committee shall consider the 
proposal and any claim for 
compensatory adjustments, with a 
view to maintaining a balance of 
rights and obligations and a 
comparable level of mutually agreed 
coverage provided in this 
Agreement prior to such 
notification . In the event of 
agreement not being reached, the 
matter may be pursued in 
accordance with the provisions 
contained in Article  XXII. 
  GPA/TN1994/2/Rev.5  
- 90 - 
  Article  XXIV 
 
Final Provisions  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
(b) Where a Party wishes, in exercise of 
its rights, to withdraw an entity from 
Appendix  I on the grounds that 
government control or influence 
over it has been effectively 
eliminated, that Party shall notify 
the Committee . Such modification 
shall become effective the day after 
the end of the following meeting of 
the Committee, provided that the 
meeting is no sooner than 30 days 
from the date of notification and no 
objection has been made . In the 
event of an objection, the matter 
may be pursued in accordance with 
the procedures on consultations and 
dispute settlement contained in 
Article  XXII. In considering the 
proposed modification to Appendix I 
and any consequential 
compensatory adjustment,  
allowance shall be made for the 
market -opening effects of the 
removal of government control or 
influence.  
 Where a Party wishes, in exercise of 
its rights, to withdraw an entity from 
Appendix  I on the grounds that 
government control or influence 
over it h as been effectively 
eliminated, that Party shall notify 
the Committee . Such modification 
shall become effective the day after 
the end of the following meeting of 
the Committee, provided that the 
meeting is no sooner than 30 days 
from the date of notificati on and no 
objection has been made . In the 
event of an objection, the matter 
may be pursued in accordance with 
the procedures on consultations and 
dispute settlement contained in 
Article XXII . In considering the 
proposed modification to 
Appendix  I, it shall  be deemed that 
government control or influence 
over the entity in question has been 
effectively eliminated if all of the 
following conditions are met:  
 
 
Comments  
 
• In order to avoid any legal ambiguity regarding requests for compensation, subparagraph  6(b) 
would need to be modified as suggested above . [Japan]  
• The present provisions are a carefully balanced outcome of the negotiations between Parties 
and reflects the uncertainties in market access opportunities which might be associated with  
the withdrawal of an entity from Appendix I, notwithstanding a claimed removal of government 
control or influence . Its purpose was to ensure that any future changes to an agreed annex 
does not affect the negotiated balance.  [Job No. 5189]  
 GPA/TN1994/2/Rev.5  
- 91 - 
  Article  XXIV 
 
Final Provisions  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 (a) the government does not 
provide the entity with any 
special and exclusive right to 
operate;  
 
(b) the government does not 
appoint more than half of the 
members of the entity's 
managing board which has the 
power to decide on its 
operations ; and 
 
(c) the operation of the entity is 
financed by its business 
revenue, not by government 
subsidies or equity infusion.  
 
Unless these conditions are met, a 
compensatory adjustme nt may be sought 
for any remaining government control or 
influence.  
[Japan – Job No. 860]  
 
 
Comments  
 
• The proposed criteria may not be the only ones for establishing that an entity was no longer 
under government control or influence . There might be other criteria that might be used as 
evidence of market opening effects.  [Job No. 5189]  
• The proposal attempts to define the conditions under which Parties would relinquish their right 
to seek consultation with other Parties about a proposed modification fo r the removal of an 
entity from the Agreement's coverage . Parties should not be denied that right.  [US] 
• The application of the criteria listed in Japan's proposal would facilitate consultations between 
Parties.  [Japan]  
• Regarding the requirement in subparag raph (a) that the government not provide the entity 
with any special or exclusive rights, a wide variety of private companies are granted such 
rights by the government . For instance a corner store might be authorized to sell fishing 
licences or postage sta mps. [Job No. 5189]  
• It is unclear whether a company that is granted a special right to operate, for instance a bus 
company that is no more within the government sphere given a franchise to operate by the 
government on certain routes in competition with oth er forms of transport, would fall within 
the scope of proposed subparagraph (a).  [Hong  Kong, China]  
• An effect of proposed paragraph (b) would be that it would not allow consideration of 
compensatory adjustment if, for example, an entity that was unilateral ly withdrawn from 
Appendix  I still had 48 % government membership on its board.  [US] 
• The requirement that the government in subparagraph (b) might not be sufficient to ensure 
that the government control or influence is effectively removed . What would be an appropriate 
percentage in this respect ? [Job No. 5189]  GPA/TN1994/2/Rev.5  
- 92 - 
  • With regard to the criteria in subparagraph (c), in some circumstances, government subsidies 
to privatized entities may still be necessary if the subsidies are linked to lowering the cost of 
provisi on of basic services and where the beneficiaries are the members of the general public.  
[Korea]  
• The criterion in subparagraph (c) might not be appropriate in all cases . For instance, a number 
of entities in both Annexes 1 and 3 of the United States, while operating on the basis of their 
own business revenues, continue to be considered as government agencies conducting 
government procurement . If the entity was mainly financed by its business revenue, some 
non-voting equity infusions by the government would n ot affect the degree of government 
control or influence.  [Job No. 5189]  
 GPA/TN1994/2/Rev.5  
- 93 - 
  Article  XXIV:7  
 
Final Provisions  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
7. Reviews, Negotiations  and Future Work  
  
(a) The Committee shall review 
annually the implementation and 
operation of this Agreement taking 
into account the objectives thereof . 
The Committee shall annually 
inform the General Council of the 
WTO of developments during the 
periods covered by such reviews.  
 . 
(b) Not later than the end of the third 
year from the date of entry into 
force of this Agreement and 
periodically thereafter, the Parties 
thereto shall undertake further 
negotiations, with a view to 
improving this Agreement and 
achieving the greatest possible 
extension of its coverage among all 
Parties on the basis of mutual 
reciprocity, having regard to the 
provisions of Article  V relating to 
developing countries.  
  
(c) Parties shall seek to avoid 
introducing or prolonging 
discriminatory measures and 
practices which di stort open 
procurement and shall, in the 
context of negotiations under 
subparagraph (b), seek to eliminate 
those which remain on the date of 
entry into force of this Agreement.   
 GPA/TN1994/2/Rev.5  
- 94 - 
  Article  XXIV:8, 9, 10  
 
Final Provisions  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
8. Information Technology  
  
 With a view to ensuring that the 
Agreement does not constitute an unnecessary 
obstacle to technical progress, Parties shall 
consult regularly in the Committee regarding 
developments i n the use of information 
technology in government procurement and 
shall, if necessary, negotiate modifications to the 
Agreement . These consultations shall in 
particular aim to ensure that the use of 
information technology promotes the aims of 
open, non -discriminatory and efficient 
government procurement through transparent 
procedures, that contracts covered under the 
Agreement are clearly identified and that all 
available information relating to a particular 
contract can be identified . When a Party intends 
to innovate, it shall endeavour to take into 
account the views expressed by other Parties 
regarding any potential problems.  
  
9. Amendments  
  
 Parties may amend this Agreement having 
regard, inter alia, to the experience gained in its 
implementation . Such an amendment, once the 
Parties have concurred in accordance with the 
procedures established by the Committee, shall 
not enter into force for any Party until it has been 
accepted by such Party.  
  
10. Withdrawal  
  
(a) Any Party may withdraw from this 
Agreement . The withdrawal shall 
take effect upon the expiration of 60 
days from the date on which written 
notice of withdrawal is received by 
the Director -General of the WTO . 
Any Party may upon such 
notification request an immediate 
meeting of the Committee.  
  
 
Comments  
 
• Article XXIV:8 should be revised in the light of the ongoing work on possible modifications to 
the Agreement in relation to the use of information technology.  [Job No. 5189]  GPA/TN1994/2/Rev.5  
- 95 - 
  Article  XXIV:11, 12, 13, 14  
 
Final Provisions  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
(b) If a Party to this Agreement does 
not become a Member of the WTO 
within one year of the date of entry 
into force of the WTO Agreement or 
ceases to be a Member of the WTO, 
it shall cease to be a Party to this 
Agreement with effect from the 
same date.  
  
11. Non-application of this Agreement 
between Particular Parties  
  
 This Agreement shall not apply as between 
any two Parties if either of the Parties, at the 
time either accepts or accedes to this 
Agreement, does not consent to such 
application.  
  
12. Notes,  Appendices and Annexes  
  
 The Notes, Appendices and Annexes to 
this Agreement constitute an integral part 
thereof.  
  
13. Secretariat  
  
 This Agreement shall be serviced by the 
WTO Secretariat.  
  
14. Deposit  
  
 This Agreement shall be deposited with 
the Director -General of the WTO, who shall 
promptly furnish to each Party a certified true 
copy of this Agreement, of each rectification or 
modification thereto purs uant to paragraph  6 
and of each amendment thereto pursuant to 
paragraph  9, and a notification of each 
acceptance thereof or accession thereto 
pursuant to paragraphs  1 and 2 and of each 
withdrawal therefrom pursuant to paragraph  10 
of this Article.  
  GPA/TN1994/2/Rev.5  
- 96 - 
  Article  XXIV:15  
 
Final Provisions  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
15. Registration  
  
 This Agreement shall be registered in 
accordance with the provisions of Article 102 of 
the Charter of the United Nations.  
  
 Done at Marrakesh this fifteenth day of 
April one  thousand  nine hundred  and ninety -four 
in a single copy, in the English, French and 
Spanish languages, each text being authentic, 
except as otherwise specified with respect to the 
Appendices hereto.  
  
 
NOTES  
 
AGREEMENT ON GOVERNMENT 
PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 The terms "country" or "countries" as used 
in this Agreement, including the Appendices, are 
to be understood to include any separate 
customs territory Party to this Agreement.  
 
 In the case of a separate customs territory 
Party to this Agreement, where an expression in 
this Agreement is qualified by the term 
"national", such expression shall be read as 
pertaining to that customs territory, unless 
otherwise specified.  
 
Article 1, paragraph 1  
 
 Having regard to general policy 
considerations relating to tied aid, including the 
objective of developing countries with respect to 
the untying of such aid, this Agreement does not 
apply to procurement made in furtherance of tied  
aid to developing countries so long as it is 
practised by Parties.  
  
 
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