RESTRICTED  
  
GPA/ACC/NZL/5  
 
1 February 2013  
(13-0575)  Page: 1/2  
Committee on Government Procurement  Original: English  
 
ACCESSION OF NEW ZEALAND TO THE  
AGREEMENT ON GOVERNMENT PROCUREMENT 
 
COMMUNICATION FROM CANADA, JAPAN,  KOREA, NORWAY, AND SWITZERLAND 
The following communication, dated 31 January 2013, is being circulated at the request of the 
Delegations of Canada, Japan, Korea, Norway, and Switzerland. 
 
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REQUEST FROM CANADA, JAPAN, KOREA, NORWAY, AND SWITZERLAND FOR 
IMPROVEMENTS IN THE INITIAL APPENDIX I OFFER 
OF NEW ZEALAND 
Canada, Japan, Korea, Norway, and Switzerland would like to thank New Zealand (NZ) for its 
Initial Offer of 1 October 2012 for accession to the Agreement on Government Procurement 
(GPA/ACC/NZL/1). We hereby submit our requests  for improvements to New Zealand's Initial 
Appendix I Offer and look forward to New Zealand’s revised Offer. We reserve the right to submit additional requests for improvements. 
Annex 1 – Central Government Entities 
 1.  To make New Zealand's Offer comparable to commitments made by other GPA Parties, we request that in addition to the entities listed, New Zealand also includes central level government 
entities listed as non-public service departments and the Offices of Parliament. To ensure 
comprehensive coverage at the central level of  government is achieved, we would suggest 
New Zealand consider also indicating its entity coverage by referring, where appropriate, to the 
domestic legislation that establishes these government departments and offices, e.g. all 
departments listed in the first schedule of the State Sector Act . 
Annex 2 – Sub-central Government Entities 
 
2.  We understand it is New Zealand's position that it has no sub-central government entities. However, we also understand that New Zealand government structure includes 16 regional 
authorities and 67 territorial authorities which have their own budget competency (e.g. road 
infrastructure, health care, civil protection and more). 
3.  The New Zealand's position that these types of  entities should not be considered sub-central 
entities for which Annex 2 coverage is appropriate is problematic from our perspective. Such a 
position implies that coverage under Annex 2 applies only to states with federal systems of 
government. In our view, as a matter of principle, the fact that an aspiring country does not have a federal system of government should not automatically relieve that country from Annex 2 
coverage. 
4.  In addition, we also understand that it is New Zealand's position that as its national 
procurement rules do not apply to local government entities, hence coverage of these entities is not appropriate. We note that other GPA parties such as Canada and Switzerland do not have one 
single national procurement legislation that is applicable to sub-central entities. Nonetheless and in 
line with respective constitutional frameworks, bo th countries were able to make commitments on GPA/ACC/NZL/5 
 
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  behalf of such entities. In Switzerland for example, the 26 cantons adopted a law, the 
"intercantonal concordate", committing the covered entities of each canton. Thus, as a matter of principle, the fact that the national government does not exercise legislative authority over the 
procurement activities of sub-central entities, does not justify their exclusion from coverage. 
5.  In order to provide market access comparable to commitments made by other GPA Parties, we 
request that New Zealand extends its coverage to all of its sub-national entities such as its regional councils and territorial authorities that conduct procurement for government purposes or 
that are created, established or otherwise authorized to undertake infrastructure or other 
construction projects for government purposes. We also request the applicable thresholds to be in line with the thresholds of other GPA Parties. 
Annex 3 – Other Entities 
 
6.  Again, we understand it is New Zealand's position that it has no other entities. But in the same vein as the point made on Annex 2, the fact that  national procurement rules do not apply to other 
entities, such as Crown entities or state-owned entities, should not, in and of itself, justify their 
exclusion from coverage. 
7.  In order to provide market access comparable to commitments made by other GPA Parties, we 
request that in Annex 3, New Zealand covers its three different types of Crown entities (Crown 
agents, Autonomous Crown entities and Independent Crown entities) from the Schedule 1 of New Zealand's Crown Entities Act of 2004 (e.g. Pharmac) , its Crown entity companies from Schedule 2 
of New Zealand's Crown Entities Act of 2004, its state-owned enterprises listed in the Schedule 1 
and 2 of the State-Owned Enterprises Act of 1986, its Companies and Trusts from New Zealand's 
Public Finance Act Schedule 4 Organisations, its council-controlled trading organisations and any other state-invested enterprises that conduct procurement for government purposes or that are 
created, established, or otherwise authorized to  undertake infrastructure or other construction 
projects for government purposes. 
Annex 6 – Construction Services 
 
8.  We request that New Zealand explicitly refer to its coverage of Public-Private-Partnerships (PPP) and/or Build-Operate-Transfer (BOT) contracts in Annex 6. 
Annex 7 - General Notes 
 
9.  In reference to General Note (i) "This Agr eement does not cover governmental provision of 
goods and services", could New Zealand explain the kind of procurement to which it is referring to 
and its rational for this exclusion? 
10.  Regarding General Note (iv), we would appreciate an explanation of the scope of coverage of 
this exclusion. Does it concern the procurement of advertising services? 
11.  In reference to General Note (vi) "This Agreement does not cover procurement by an entity 
covered under this Appendix from another entity covered under this Appendix", could New Zealand 
please explain of the kind of procurement to which it is referring and its rationale for this exclusion? 
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