RESTRICTED  
  
GPA/ACC/AUS/16  
 
12 April 2016  
(16-2066)  Page: 1/3  
Committee on Government Procurement  Original: English  
 
ACCESSION OF AUSTRALIA TO THE AGREEMENT ON GOVERNMENT PROCUREMENT 
REPLIES FROM AUSTRALIA TO COMMENTS FROM SINGAPORE (GPA/ACC/AUS/13)  
REGARDING THE INITIAL OFFER OF AUSTRALIA  
The following communication, dated 12 April 2016, is being circulated at the request of the 
Delegation of Australia.  
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AUSTRALIA'S RESPONSE TO COMMENTS FROM SINGAPORE  
REGARDING THE INITIAL OFFER OF AUSTRALIA 
Annex 2 – Sub-Central Government Entities 
1. Singapore notes that Australia's initial offer is subject to reciprocity in relation to 
Annex 2 entities coverage. Singapore would like to seek clarifications on how will 
Australia apply this reciprocity condition fo r GPA Parties such as Singapore with no 
Annex 2 entities. 
Each Australian state and territory has its own legislation and legislative structures (see page 1 of 
the Checklist (GPA/ACC/AUS/2)). Australian states and territories see GPA as an important 
opportunity to expand international market access. They have asked the Commonwealth 
Government, which is negotiating on their behalf, to ensure that in offering Annex 2 entities, they receive reciprocal access to the government procurement markets of GPA Members.  
2. Singapore requests that Australia lowers its thresholds for procurement of Goods 
and Services by Annex 2 entities to match the generally applicable thresholds of SDR 
200,000. 
The current thresholds for sub-central entities in Australia's offer are similar to other GPA Parties' 
thresholds, including the United States and Canada. The Commonwealth Government consulted widely and at length with the States and Territories, and the mandate from State and Territory 
Premiers and Chief Ministers for GPA Annex 2 thresholds is consistent with State and territory 
commitments in Australia's other trade agreements.   Annex 3 – Other Entities 
3. Singapore would like to clarify on the intent ion and necessity of including Note 1 to 
Annex 3, which states that "This Agreement only covers those entities listed in this 
Annex." 
Note 1 to Annex 3 which refers to the Agreement only covering entities listed in the Annex is 
provided for greater certainty and ensures that wh ere an entity is listed, the functions performed 
by that entity are covered, unless expressly excl uded in our market access offer. This Note is 
included in all of Australia's trade agreements. 
 GPA/ACC/AUS/16 
 
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  Annex 5 – Services  
4. Singapore requests that Australia removes the reciprocity clause found in 
Australia's Note to Annex 5. 
Given the level of services coverage by WTO GPA Parties, Australia is unable to remove the 
reciprocity Note. Australia notes that other Parties including the European Union, Iceland, 
Liechtenstein and Norway include similar services reciprocity Notes in their Annex 5 offers.  
Annex 7 – General Notes 
5. Singapore would appreciate Australia's  elaboration on the application of 
preferences for its small and medium enterprises mentioned in Note 1.a. 
Australian governments recognise the important contribution SMEs make to the economy and 
employment in particular. For this reason, Commonwealth and State and Territory governments 
seek to ensure that Australian SMEs have the same opportunities as international competitors to participate in procurement opportunities. SME participation schemes aim to assist competitive 
Australian SMEs to participate in major projects by encouraging innovation, expansion of capability 
and investment opportunities.   
The Commonwealth Procurement Framework allows Commonwealth entities to procure goods and 
services from an SME with at least 50% Indigenous ownership. 
 The Indigenous Procurement Policy (IPP) is also with in the scope of this exclusion. The policy has 
three key components: a target for purchasing from Indigenous enterprises; a mandatory 
set-aside to direct some Commonwealth contracts to Indigenous enterprises, and; minimum Indigenous participation requirements for certain Commonwealth contracts. Further information on 
the IPP can be found at http://www.dpmc.gov.au/indigenous-a ffairs/publication/commonwealth-
indigenous-procurement-policy . 
 
6. Singapore would like to understand Australi a's rationale behind Note 1.g. on the 
exclusion of procurement of motor vehicles. 
Australia produces motor vehicles and motor vehicle components domestically, and currently the 
Australian Government requires procuring entities to purchase motor vehicles from Australian 
manufacturers (where they are operationally suitable and meet safety requirements). 
 The motor vehicles exclusion note at Appendix A of the Commonwealth Procurement Rules does 
not prevent procuring entities from procurin g motor vehicles from overseas. Commonwealth 
entities can procure motor vehicles not manufactured in Australia if there is a specific requirement. In the 2014-2015 financial year the Commonwealth purchased A$3,000,000 of specialised motor 
vehicles from BMW and in 2013-2014 the Commonwealth purchased A$1,800,000 of specialised 
vehicles from Mercedes Benz.   The Commonwealth framework is available here: http://www.finance.gov.au/vehicle-leasing-and-
fleet-management/ . 
 
The specific policy is located here: http://www.finance.gov.au/veh icle-leasing-and-fleet-
management/fleet-guidance-and-related-material.html . 
 
7. Singapore seeks clarification from Austra lia on the scope of coverage of the 
procuring entities excluded from Note 1. h. and its impact on Australia's covered 
procurements at the GPA. 
This Note excludes all procurements by Australia's covered entities from any other Australian 
government entity. Examples of this type of procurement may include: 
 
 Tied legal services - in relation to constitutional or trade law issues; 
 Maritime services; GPA/ACC/AUS/16 
 
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   Customs / quarantine services; 
 Weather services – from the Bureau of Meteorology; and 
 Insurance premiums – including workers compensation premiums.  
Australia does not have any reliable data on the number or value of procurements conducted by an 
entity from another government entity.  
 This Note is required by the Australian Government and is included in the text of all Australia's 
trade agreements including Article 2.2.a of the Singapore Australia Free Trade Agreement.  
 8. Note 4 provides that the purchase of good s or services by a procuring entity as a 
result of an unsolicited innovative proposal is not considered a covered procurement for 
the purposes of this Agreement. We would lik e to request that Australia provides more 
clarity on the definition of "unsolicited inno vative proposal" and its impact on Australia's 
covered procurements at the GPA. 
Unsolicited innovative proposals are offers to the Government to purchase goods or services made 
under exceptionally advantageous conditions that arise only in the very short term and are not routine procurement from regular suppliers. These products and services are not typically 
commercially available. 
 The procurement of unsolicited innovation proposals is a condition for limited tendering and is included at paragraph 10.3 (c) in the Commonwealth Procurement Rules. 
 
This Note is required by the Australian Government and is included in all of Australia's existing free trade agreements. This Note is required by Australia's sub-central governments. 
 
 
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