RESTRICTED  
 
GPA/ACC/AUS/10  
25 January 2016  
(16-0498)  Page: 1/6  
Committee on Government Procurement  Original: English  
 
  ACCESSION OF AUSTRALIA TO THE AGREEMENT ON GOVERNMENT PROCUREMENT 
REPLIES FROM AUSTRALIA TO QUESTIONS FROM CANADA (GPA/ACC/AUS/7)  
REGARDING AUSTRALIA'S INITIA L APPENDIX I OFFER AND  
REPLIES TO THE CHECKLIST OF ISSUES 
The following communication, dated 20 January 2016, is being circulated at the request of the 
Delegation of Australia. 
 
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AUSTRALIA'S RESPONSE TO CANADA'S COMMENTS AND REQUESTS 
FOR IMPROVEMENTS ON AUSTRALIA'S INITIAL OFFER 
Australia thanks Canada for the submission of Canada's initial comments and requests for 
improvements, based on Australia's initial offer (GPA/ACC/AUS/1) and on Australia's replies to the Checklist of Issues (GPA/ACC/AUS/2). Australia pr ovides the following responses to the questions 
circulated by Canada. 
 Annex 1 – Central Government Entities 
 
1.  Canada notes that the list of 65 Annex 1 entities in Australia's initial offer does not match the 67 entities included in Australia 's Trans-Pacific Partnership (TPP) offer. 
Canada encourages Australia to include the fo llowing entities in its next revised offer: 
1. Australian Transportation Safety Bureau; and 
2. Old Parliament House 
Australia will consider Canada's request. 
 
2.  Canada requests clarification from Austra lia regarding the smaller number of entities 
covered in Australia's initial offer, relative to the 69 entities listed in the Australia-Japan 
FTA (JAEPA); the 70 entities covered in the Australia-Korea FTA (KAFTA); and the 
78 entities listed under 17 "portfolios" in the Australia-United States FTA (AUSFTA). 
Canada requests that Australia provide an explanation for the differences in the number 
of entities covered in its GPA offer versus it s bilateral trade agreem ents. Specifically, are 
these differences the result of governmental re organization or a result of differences in 
coverage? If these changes are a result of governmental reorganization, would Australia 
be able to share any relevant information summarizing these changes? If these changes 
are a result of differences in coverage, Cana da requests that Australia identify which 
entities have not been covered in Australia's initial GPA offer that are covered in one or 
more of its other trade agreements. 
The difference in the number of entities offered in Australia's trade agreements is as a result of 
machinery of government changes. However, the ov erall coverage is consistent. The change in the 
number of listed entities is due to entities being abolished or absorbed into other entities. Given the number of machinery of government changes which have occurred between AUSFTA and 
Australia's offer to the WTO GPA it would be difficult and lengthy to provide an accurate 
explanation for each of these entities. Australi a would be happy to provide an explanation for 
changes to specific entities upon request. GPA/ACC/AUS/10 
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3.  Canada notes Australia's response to Hong Kong, China's question regarding the exclusion, under Note 2, of procurement by or on behalf of the Australian Government 
Solicitor. Canada suggests that Australia expl ore alternative language  that more clearly 
states that the Government Solicitor is pa rt of a covered entity (Attorney-General's 
Department). 
Australia is unable to fulfil Canada's request as the functions of the Australian Government 
Solicitor are not covered. On 1 July 2015 the Australian Government Solicitor was absorbed by the 
Attorney General's Department. The functions of the Australian Government Solicitor are not subject to the obligations of Australia's procurement framework and cannot be part of a government procurement offer in an Australian trade agreement. 
 
4.  Canada seeks clarification from Australia on the need for and rationale of Note 3.d. 
on the Australian industry capability program.  If this program falls under the scope of 
GPA Article III, paragraphs 1 and 2 of GPA Ar ticle IV will not apply to procurement that 
is part of the program. 
The Australian industry capability program aims to build capacity for Australian industry to 
participate in Defence procurement within Australia and internationally. The Australian industry 
capability program applies to complex procurements where value for money is still the prime consideration when determining whether defence capability is to be sourced from Australian or overseas suppliers. For further information on the Australian industry capability program please 
refer to the Defence Procurement Policy manual available at: 
"http://www.defence.gov.au/dmo/doi ngbusiness/procuremen tdefence/policies/de fencepolicyprocur
ementmanual/ ". 
 
The Australian Government does not intend for this program to be used at any time to exclude any particular procurement or procurements that would otherwise be covered. Defence procurement 
must demonstrate value for money. 
 This exclusion is required by the Australian Government and is included in all of Australia's existing trade agreements. 
 
Annex 2 – Sub-Central Government Entities  
5.  Canada requests that Australia remove the reciprocity note in relation to Annex 2 
entities coverage found on the cover page of its offer. 
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. In offering its Annex 2 entities to GPA members that do not have Annex 2 entities, Australia would welcome the opportunity to work with 
those members to understand more about their procurement coverage. We will then relay the 
advice received to the states and territories to enable them to better assess the reciprocal coverage on offer and the need for this Note. 
 
6.  Canada notes that under New South Wa les both the Department of Finance and 
Services and the Office of Finance and Serv ices are listed. Can Australia confirm that 
these are two distinct entities? 
On 1 July 2015, the Department of Finance, Services and Innovation was created through 
machinery of government changes in New South Wales. The Department of Finance and Services and the Office of Finance and Services have now become the Department of Finance, Services and 
Innovation. 
 7.  Canada notes that the Integrity Commission  in Tasmania is not included in Annex 2. 
Please explain the rationale behi nd this entity's exclusion. 
The omission of the Integrity Commission was intentional by the Government of Tasmania. The 
Integrity Commission, established in 2010 to improve the standard of conduct, propriety and GPA/ACC/AUS/10 
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  ethics in the Tasmanian public sector, has not been offered by Tasmania in any trade agreements. 
In 2014-15 the Commission had a total operating budget of A$2.4 million.  8.  As per Chinese Taipei's request, Canada suggests that Australia adjust the wording of 
Queensland's coverage so as to make clear th at departments and the four listed entities 
are covered. 
Australia notes the suggestion that the wording of Queensland's coverage be adjusted to make 
clear that departments and the four listed entities are covered, and will consider Canada's request. 
 
9.  Canada requests that Australia share the latest Queensland Government Gazette 
notice that lists the entities considered to be a department of government pursuant to 
Section 14 of the Public Service Act 2008. 
The latest Queensland Government Gazette notice listing the entities considered to be a 
department of government is Gazette No. 34 of 16 February 2015, which can be found at 
"https://publications.qld.gov.au/dataset/gazette s-february-2015/resource/2177a218-497b-4eb0-
b17c-0c15f02a9c99 " (please refer to pages 405-407 for the list of entities considered to be 
departments). 
 
Annex 3 – Other Entities  10.  In order to achieve market access comparable with that of Canada in its Annex 3 
coverage, Canada requests the reduction of Australia's Annex 3 thresholds for goods and 
services to 355,000 SDRs. 
The current threshold for entities in Annex 3 of Australia's offer is similar to other GPA Parties' 
thresholds, including the European Union, Icelan d, Singapore, New Zealand, Hong Kong, China 
and the United States. The threshold is also consistent with commitments in Australia's existing trade agreements. 
 
11.  Canada notes that in previous agreem ents Australia has offered Annex 3 coverage 
that goes beyond the 25 entities listed in its initial GPA offer. For instance, Australia covers 26 entities under JAEPA and 32 entiti es under the AUSFTA. Canada requests that 
Australia provide an explanation for the diff erences in the number of entities listed. 
Specifically, are they the result of govern mental reorganization or of difference in 
coverage? If these differences are a result  of governmental reorganization, would 
Australia be able to share with Canada any relevant information summarizing these 
changes? If they result from a difference in  coverage, Canada requests that Australia 
identify which entities have not been covere d in Australia's initial GPA offer that are 
covered in one or more of its other trade agreements. 
The difference in the number of entities offered in Australia's trade agreements is due to 
machinery of government changes; however the overall coverage is consistent. A number of entities have been abolished, absorbed into other entities or moved to Annex 1. 
 
Annex 3 entities listed in JAEPA but not WTO GPA: 
 
 Corporation and Market Advisory Committee – in the 2014-15 Budget, the Australian 
Government announced that the Corporation and Market Advisory Committee will be abolished. 
Annex 3 entities listed in AUSFTA but not WTO GPA: 
 
 Australian Accounting Standards Boards – currently offered in Annex 1; 
 Aged Care Standards and Accreditation Ag ency Ltd – renamed Australian Aged Care 
Quality Agency and is currently offered in Annex 1; 
 Australian Institute of Criminology – currently offered in Annex 1; GPA/ACC/AUS/10 
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   Australian Law Reform Commission – currently offered in Annex 1; 
 Australian Safety and Compensation Counc il – Australian Safety and Compensation 
Council was replaced by Safe Work Australia. All functions of Australian Safety and Compensation Council were transferred to Safe Work Australia and is currently offered in 
Annex 1; 
 Australian Trade Commission (AusTrade)  – currently offered in Annex 1; 
 Corporation and Market Advisory Committee – in the 2014-15 Budget, the Australian 
Government announced that the Corporation and Market Advisory Committee will be 
abolished; 
 Land and Water Resources Research and Development Corporation - was abolished on 
31 December 2009; 
 Medicare Australia – Medicare Australia services were integrated on 1 July 2011 into the 
Department of Human Services, which is currently offered in Annex 1; 
 The National Institute of Clinical Studies Ltd – the National Institute of Clinical Studies in 
April 2007 became the National Health and Medical Research Council, which is not a 
covered entity. 
12.  In reply to question 7 of the Checklist of  Issues (p. 14), Australia states that there 
"are also other corporate Commonwealth entities that are not subject to the 
Commonwealth Procurement Rules or Australia's  international trade obligations." Could 
Australia please share a list of these "o ther corporate Commonwealth entities"? 
The Commonwealth Government has 46 Corporate Commonwealth entities which are not subject 
to the obligations of the Commonwealth Procurement Rules or Australia's international trade 
obligations.  
These entities cannot be offered and have never been offered in Australia's trade agreements. 
 1. Airservices Australia; 
2. Anindilyakwa Land Council; 
3. Army and Air Force Canteen Service; 
4. Australia Council; 
5. Australian Broadcasting Corporation; 
6. Australian Commission on Safety and Quality in Health Care; 
7. Australian Curriculum, Assessment & Reporting Authority; 
8. Australian Film, Television and Radio School; 
9. Australian Hearing Services; 
10. Australian Institute of Aboriginal and Torres Strait Islanders Studies; 
11. Australian Military Forces Relief Trust Fun; 
12. Australian National University; 
13. Australian Postal Corporation; 
14. Australian Reinsurance Pool Corporation; 
15. Australian Renewable Energy Agency; 
16. Australian Sports Commission; 
17. Central Land Council; 
18. Civil Aviation Safety Authority; 
19. Clean Energy Finance Corporation; 
20. Coal Mining Industry Corporation; 
21. Commonwealth Superannuation Corporation; 
22. Cotton Research and Development Corporation; 
23. Defence Housing Australia; 
24. Fisheries Research and Development Corporation; 
25. Food Standards Australia New Zealand; 
26. Indigenous Business Australia; 
27. Infrastructure Australia; GPA/ACC/AUS/10 
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  28. Indigenous Land Corporation; 
29. National Disability Insurance Scheme Launch Transition; 
30. National Film and Sound Archive Australia; 
31. National Health Performance Authority; 
32. National Library of Australia; 
33. National Offshore Petroleum Safety and Environmental Management Authority; 
34. National Portrait Gallery of Australia; 
35. National Transport Commission; 
36. Northern Land Council; 
37. Royal Australia Air Force Veterans Residences Trust Fund; 
38. Royal Australian Air Force Welfare Trust Fund; 
39. Royal Australian Navy Central Canteens Board; 
40. Royal Australian Navy Relief Trust Fund; 
41. Rural Industries and Development Corporation; 
42. Screen Australia; 
43. Special Broadcasting Service Corporation; 
44. Tiwi Land Council; 
45. Torres Strait Regional Authority; 
46. Wreck Bay Aboriginal Community Council. 
Annex 5 – Services 
 
13.  Canada requests that Australia offer services coverage sim ilar to its services 
coverage in the TPP, i.e. all services except for: 
a. plasma fractionation services; 
b. government advertising services; 
c. health and welfare services; and 
d. research and development services. 
Australia has made a reciprocal offer based on the overall services coverage of other Parties. 
Australia will consider Canada's request for additional services coverage.  14.  Canada requests that Australia remo ve the reciprocity Note under Annex 5. 
Given the level of services coverage by WTO GPA Parties, Australia is unable to remove the 
reciprocity Note at this time. 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  
15.  With regard to General Note 2., can Aust ralia provide an explanation as to why this 
Note is necessary? Please provide examples  as to where this type of action or 
non-disclosure would be necessary in a manner that is not already covered by Article III 
of the GPA. 
Articles III (security exceptions) and II (exceptions in case of international aid/international 
agreements) in the text of WTO-GPA relate to national security only. Australia requires an exception which covers international peace and security. 
 
This Note is required by the Australian Government and is captured in the chapter text of Australia's trade agreements, including GATS. This Note is included as an exemption at paragraph 
2.6 in the Commonwealth Procurement Rules. 
 GPA/ACC/AUS/10 
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  16.  Canada requests that Australia provid e an explanation as to why Note 4. is 
necessary. How does Australia deal with "unsolicited innovative proposals"? Can 
Australia provide a reference to a government  policy, regulation or guidance document 
that sets out how procuring entities shou ld respond to "unsolicited innovative 
proposals"? Furthermore, pl ease provide examples of "unsolicited innovative 
proposals". 
Unsolicited innovative proposals in the Commonwealth Procurement Rules are procurements which 
are made under exceptionally advantageous conditions that arise only in the very short term and 
are not routine procurement from regular suppliers.  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 also required by Australia's sub-central governments. 
 
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