RESTRICTED  
  
GPA/ACC/AUS/22  
 
8 February 2017  
(17-0755) Page: 1/11 
Committee on Government Procurement  Original: English  
 
ACCESSION OF AUSTRALIA  TO THE AGREEMENT ON GOVERNMENT PROCUREME NT 
COMMUNICATION FROM AUSTRALIA  
The following communication, dated 7 February 2017, is being circulated at the request of the 
Delegation of Australia.  
 
_______________  
RESPONSES TO COMMENTS FRO M THE EUROPEAN UNION  ON THE REVISED  
OFFER OF AUSTRALIA (GP A/ACC/AUS/19 ) 
1  GENERAL  
1. The EU notes that a number of changes in the names of entities contained in the 
revised offer have been introduced. These modifications are justified by changes in the 
"machin ery of government" without any negative implications on the offered coverage. 
However, in certain cases doubt remains if this is indeed the case. Further explanations 
from Australia would be therefore welcome in order to confirm.  
All changes to entity name s in annexes 1 and 2 of Australia 's offer of 30 September 2016 were as 
a result of changes to the organisational structure of those entities, machinery -of-government 
changes. There was not any negative impact to the level of coverage. Coverage increased sl ightly 
with the inclusion of several Annex 2 entities. These include Tourism Tasmania and in Western 
Australia, the Department of Transport.  
 
A summary of changes to entities is as follows:  
 
Annex 1  
 
Small number of entity name changes due to machinery of government changes. No change to 
coverage. Changes include:  
 
 the CrimTrac Agency has ceased to exist and its functions have been merged with the 
Australian Crime Commission to form the Australian Criminal Intelligence Commission ; 
 Australian Trade Commissio n name changed to Australian Trade and Investment 
Commission ; 
 Department of Agriculture name changed to Department of Agriculture and Water 
Resources ; 
 Department of Communications name changed to Department of Communications and 
the Arts ; 
 Department of Ind ustry and Science name changed to Department of Industry, 
Innovation and Science ; GPA/ACC/ AUS/22  
 
- 2 - 
 
   Department of the Environment name changed to Department of the Environment and 
Energy ; 
 the Family Court and Federal Circuit Court has been merged with the Federal Court of 
Australia.  
Annex 2  
 
New South Wales  (NSW)  
 
The following changes to the entities listed for NSW are a result of machinery -of-
government changes. There is no change to coverage. The changes include:  
 
 Department of Education and Communities name changed to De partment of Education ; 
 Department of Finance and Services name changed to the Department of Finance, 
Services and Innovation ; 
 Department of Trade and Investment, Regional Infrastructure and Services has been 
split with a new Department of Industry, Skills and Regional development created, as 
well as certain roles such as trade and investment functions moving to the Department 
of Premier and Cabinet;  
 Office of Finance and Services is the Department of Fi nance, Services and Innovation;  
 Motor Accidents Authori ty of NSW and WorkCover NSW have been merged into the State 
Insurance Regulatory Authority;  
 Ministry for Police and Emergency Services is covered by the Department of Justice.  
Northern Territory  
 
Name changes reflect machinery -of-government changes as a r esult of the August 2016 
election. No change to coverage:  
 
OLD NEW  
Aboriginal Areas Protection Authority  Aboriginal Areas Protection Authority  
Auditor General 's Office  Auditor General 's Office  
Department of Health  
Central Australian Hospital Network  
Top End Hospital Network  Department of Health  
Department of Arts and Museums  
Department of Sport and Recreation  
Parks and Wildlife Commission of the Northern 
Territory  
Tourism NT  Department of Tourism and Culture  
Department of Business  Department of Trad e, Business and Innovation  
Department of Children and Families  Territory Families  
Department of the Attorney -General and Justice  
Department of Correctional Services  Department of the Attorney -General and Justice  
Department of Housing  
Department of Loca l Government and 
Community Services  Department of Housing and Community 
Development  
Department of Land Resource Management  
Department of Mines and Energy  
Department of Primary Industry and Fisheries  Department of Primary Industry and Resources  
Departme nt of Lands, Planning and the 
Environment  Department of Environment and Natural 
Resources  
Department of the Chief Minister  Department of the Chief Minister  
Department of the Legislative Assembly  Department of the Legislative Assembly  
Department of Treas ury and Finance  Department of Treasury and Finance  GPA/ACC/ AUS/22  
 
- 3 - 
 
  OLD NEW  
Northern Territory Electoral Commission  Northern Territory Electoral Commission  
Northern Territory Emergency Service  
Northern Territory Fire and Rescue Service  
Police Force of the Northern Territory  Northern Territory Police, Fire and Emergency 
Services  
Northern Territory Employment and Training 
Authority  Northern Territory Training Commission  
Office of the Commissioner for Public 
Employment  Office of the Commissioner for Public 
Employment  
Ombudsman 's Office  Ombudsman 's Office  
Racing Commission  Racing Commission  
Remuneration Tribunal  Remuneration Tribunal  
Strehlow Research Centre Board  Strehlow Research Centre  
Utilities Commission of the Northern Territory  Utilities Commission of the Northern Terri tory 
Work Health Authority  Work Health Authority  
 
Queensland  
 
 Additional entity - Public Safety Business Agency.  
South Australia  
 
 Removal of Legal Services Commission from offer. The Legal Services Commission is a 
separate entity that is jointly funded b y Commonwealth and State Governments, plus 
funding via fees and other revenue streams and cannot be included.  
Tasmania  
 
 Additi onal entity – Tourism Tasmania;  
 Department of Police and Emergency Management name changed to Department of 
Police, Fire and Emer gency Management.  
Western Australia ( WA) 
 
 Additional e ntity – Department of Transport;  
 Minerals and Energy Research Institute of Western Australia name changed to Minerals 
Research  Institute of Western Australia;  
 Department of Housing name changed to Housi ng Authority.  
2. The EU regrets that the limited improvement with respect to coverage of entities. 
Some entities which were offered in TPP, KAFTA and JAEPA are not included in the 
revised offer. The EU requests Australia to explain the reasons for this and to  provide 
information on the economic importance of those entities. The EU also reiterates its 
requests indicated in the observations on the initial offer dated 10 February 2016. In 
particular, we request Australia to enlarge the scope of offered coverage b y including 
entities of lower sub -central levels such as cities and public entities operating in the 
utilities sector.  
Australia 's initial and subsequent offers have been very comprehensive, reflecting our open, non -
discriminatory, and transparent governme nt procurement framework. Our offer meets our entity 
coverage in our bilateral trade agreement with Japan (JAEPA). We are currently considering if it is 
possible to include any additional entities.  
 
Cities  
 
Australia has never made commitments at the local  government level, given the small size and 
nature of local councils in Australia. Local councils only account for approximately 10% of 
government procurement expenditure in Australia.  GPA/ACC/ AUS/22  
 
- 4 - 
 
   
Utilities  
 
Australia has gone through 30 years of divestment and/or pr ivatisation of public assets, including 
most utility assets. Generally, utilities have been privatised (or on long -term leases to the private 
sector) or are government corporations operating on a commercial basis. This means that state 
and territory govern ments do not directly control the procurement decisions of such utilities, with 
their procurement decisions undertaken in accordance with commercial considerations, and outside 
government procurement frameworks.  
 
4. The notes containing reservations, in pa rticular those relating to procurement of 
motor vehicles and to preferences to SMEs are of great concern to the EU. The EU asks 
that those are eliminated.  
 
Motor vehicle procurement continues to remain a sensitive issue for Australian governments.  We 
have moved the note from Annex 7 to Annexes 1,2 and 3 so that it only applies  to the Australian 
Government and to  those states and territories that specifically require the motor vehicle 
exception. In addition to providing clarity, this ensures market access fo r GPA members to the 
procur ement of motor vehicles in the three  states and territories without the note.  
 
The inclusion of the SME note is essential for all Australian governments and covers schemes 
designed to ensure that Australian SMEs have an equal opportunity to participate in government 
procurement processes . 
 
5. Finally the EU reiterates its request that the legislation in States and territories 
providing for "Buy Local" requirements and various preferential treatment programmes 
should be fully align ed with GPA provisions.  
 
State and territory "buy local " schemes are in line with GPA provisions and the commitments 
Australia has offered as part of our accession. These schemes do not stop foreign companies from 
winning contracts in Australia, but seek to ensure that Australian SMEs have an equal opportunity 
to participate in gov ernment procurement processes.  
 
6. The EU also urges Australia to provide detailed explanations on the compatibility of 
the new Commonwealth Procurement Rules (CPRs) with the GPA . In particular, could 
Australia explain how the requirement for compliance with an Australian standard and 
only in the absence of such with international one is compatible with the GPA 
requirements as set out in Article X:2 (b). Could Australia provide cl arification how 
"reasonable enquiries" are done in this context? The EU also requests detailed 
clarification on the way how the "economic benefit to the Australian economy" test 
would be applied in a non -discriminatory manner towards foreign suppliers?  
The new Commonwealth Procurement Rules (CPRs) do not come into force until 1 March 2017. The 
new CPRs will be implemented consistent w ith the requirements set out in the GPA.  
 
2  ANNEX 1  
2.1  Entities  
7. The EU notes that here are only 63 entities compared to 65 in t he first offer. 
CrimTrac Agency and the Family Court and Federal Circuit Court are not any more part of 
the list. The EU understands that those entities were merged with entities which were 
already covered in Australia's initial offer thus there is no subt raction of coverage in the 
revised offer.  
As set out above, all changes to entity names in A nnex 1 of Australia 's offer of 30 September 2016 
were as a result of changes to the organisational structure of those entities, machinery -of-
government changes. Th ere was not any negative impact to the level of coverage.  
 GPA/ACC/ AUS/22  
 
- 5 - 
 
  8. Changes were introduced in the names of 5 entities. The EU reiterates its request 
indicated in the observations on the initial offer aiming at full coverage of entities at 
central level.  
Austra lia's market access offer already provides comprehensive coverage of government entities at 
all levels. Our offer meets our entity coverage in our bilateral FTA with Japan. As set out above, we 
are currently considering if it is possible to include any add itional entities.  
 
2.2  Notes  
9. A new Note on procurement of motor vehicles is introduced. The general note from 
Annex 7 is deleted and i ntroduced under Annexes 1 to 3.  
As set out above, we have moved the note to provide clarity and to limit its application to  those 
Australian governments that require it.  
 
10. Concerning the Notes included in the first offer no change has been introduced. 
Therefore, the EU requests concerning Notes 2, 3.a., 3.b., 3.d. are still valid.  
Australia confirms that no substantive cha nges have been made to Notes 2 ., 3.a., 3.b., 3.d. from 
our first offer and that we are not in a position to make further changes.  
 
Note 2 . (Note 3 . in the offer of 30 September 2016) relates to the Australian Government Solicitor, 
which was absorbed by the  Attorney -General 's Department on 1 July 2015. 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 
agreemen t. 
 
Notes 3.a., 3.b., 3.d. (Notes 4.a., 4.b., 4.d. in the offer of 30 September 2016) relate to the 
Department of Defence and are required by the Australian Government and are included in all of 
Australia 's trade agreements with government procurement obli gations.  
 
3  ANNEX 2  
3.1  Thresholds  
11. The revised offer does not contain a lowering of threshold values and the EU 
therefore notes that the revised offer did not lead to improvement. The EU reiterates its 
request to Australia to align the applicable thresholds to the level of thresholds applied 
by the EU.  
The current thresholds are similar to other GPA members, including the United States and Canada. 
The threshold is consistent with state and territory commitments in Australia 's existing trade 
agreements.  
 
3.2  Entit ies and corresponding notes  
12. The EU reiterates its requests indicated in the observations on the initial offer with 
respect to the coverage of sub -central government entities. The EU notes that the 
Australian revised offer does not meet EU's request in particular with respect to 
important procurement by local procuring entities and the main public entities 
(including public undertakings) operating in the utilities sector for any of the States and 
Territories.  
Australia notes the EU 's previous request tha t Australia expands its coverage of local procuring 
entities and the utilities sector in Annex 2.  
 
Australia cannot offer local procuring entities. Approximately 90 % of procurement in Australia is 
undertaken at the central (i .e. Australian Government) and State and Territory levels. This 
compares very well to GPA members.  
 GPA/ACC/ AUS/22  
 
- 6 - 
 
  Australia is also not in a position to offer utilities for states and territories. As set out above, 
Australia has gone through 30 years of divestment and/or privatisation of public asset s including 
most utility assets. Generally, utilities have been privatised (or on long -term leases to the private 
sector) or are government corporations operating on a commercial basis. This means that state 
and territory governments do not directly contro l the procurement decisions of such utilities, with 
their procurement decisions undertaken in accordance with commercial considerations, and outside 
government procurement frameworks.  
 
13. Following the deletion of the Note on motor vehicles under Annex 7,  a Note is 
introduced for several territories (5 out of 8). It appears that in the remaining 3 
territories there is no motor vehicle production. In conclusion, the EU understands that 
this does not lead to any substantial improvement. Further explanations are therefore 
expected from Australia in order to confirm.  
As set out above, the N ote now only applies to those states and territories that require the motor 
vehicle exception. In addition to providing clarity, this ensures market access for GPA members to  
the procurement of motor vehicles in the three states and territories without the Note. 
 
14. Additional observations are included below.  
3.2.1   Australian Capital Territory  
15. The EU notes that the list of entities has not been expanded in comparison to the 
first offer. The revised offer does not meet EU's request with respect to covering lower 
sub-central entities and others operating in the water supply sector such as Iconwater.  
Icon Water Limited is a 'territory -owned corporation ' under the Territory -owned Corporations Act 
1990 (ACT). It is an unlisted public company run on a commercial basis, and is not subject to the 
application of the ACT 's government procurement framework.  
 
16. The Note is extended - covering in addition to already mentioned utility servic es 
also health and welfare services, education services. We understand that this change 
relates to the fact that in the revised offer Australia provides now for a negative list of 
services. Concerning the exclusion of utilities services, the EU reiterates its comment 
that this Note appears to be very broad and invites Australia to consider the need for 
such exclusion.  
Australia, through a negative list approach, has offered ambitious and comprehensive coverage of 
services. We can confirm that this note is r equired for the ACT to be able to provide this high level 
of coverage.  
 
Concerning the exclusion of utilities services, the ACT 's utilities are provided by ActewAGL which is 
a joint venture between a government owned corporation (that acts on a commercial basis) and a 
privately owned company. The ACT purchases gas and electricity through commercial retail supply 
contracts. The ACT government has no authority to direct the joint venture 's procurement 
decisions.  
 
3.2.2   New South Wales  
17. The EU notes that the numb er of covered entities has been overall reduced: 36 
compared to 39 included in the first offer. The Department of Trade and Investment, 
Regional Infrastructure and Services; Ministry for Police and Emergency Services; Motor 
Accidents Authority of NSW; Offi ce of Finance and Services; WorkCover NSW are 
removed from the list. Department of Industry, Skills and Regional Development and 
State Insurance Regulatory Authority are added.  
As noted above, any entities that have been removed from the initial offer no longer exist because 
of government restructuring, with their functions now carried out by other entities in the NSW list. 
There has been no change in the coverage of the offer.  
 GPA/ACC/ AUS/22  
 
- 7 - 
 
  18. On the basis of clarifications provided by Australia at this stage, the re duction 
results mostly from the machinery -of-government changes and that there is no 
withdrawal of coverage. However, it seems that the transformation of WorkCover NSW 
has resulted in three entities - the State Insurance Regulatory Authority, Safe Work 
NSW  and Care NSW. It is noted that only the former is covered in the revised offer. On 
this basis, Australia's offer should cover also Safe Work NSW and Care NSW.  
There has been no change in coverage because of the reorganisation of entities. Safe Work NSW 
and Icare NSW (referred to in the question above as Care NSW) are now covered by the 
Department of Finance, Services and Innovation.  
 
19. The EU notes that the revised offer does not meet EU's request with respect to 
entities operating in the utilities secto r. 
Australia notes the EU 's request with respect to entities operating in the utilities sector, but is 
unable to offer further coverage. Ports, transport and railways are covered within Transport for 
NSW, unless operated by state -owned corporations or the private sector. State -owned 
corporations operate in water and electricity generation and supply and are not covered by 
Government procurement laws. These corporations are required to act in a commercial manner.  
 
3.2.3   Northern territory  
20. A number of entities have been deleted from the list: 26 included now out of 39. 
However, Australia explained that these changes reflect machinery -of-government 
changes and do not lead to change of coverage.  
21. Australia has not responded positively to the EU request as formu lated in the initial 
comments to cover in particular water and electricity companies such as Power Water 
Corporation and ports such as Darwin Port Corporation. Neither the Department of 
Infrastructure nor the Department of Transport are covered in the revi sed offer. In its 
replies to the EU questions Australia states that it is not in a position to cover these two 
entities. Could Australia state the reasons for that?  
The Power Water Corporation and Darwin Port Corporation are state -owned corporations. They are 
separate legal entities operating on a commercial basis. They are not subject to government 
control over their procurement decisions. The Port of Darwin was recently leased to a foreign 
company for 99 years.  
 
Australia is not in a position to offer the  Northern Territory Department of Infrastructure or 
Department of Transport.  
 
3.2.4   Queensland  
23. The EU positively notes positively that Australia adds the Public Safety Business 
Agency to the list of covered entities. However, the revised offer does not meet the EU 
request to spell out in the offer the list of entities declared to be departments pursuant 
to section 14 of the Public Service Act 2008 and to cover entities operating in water, 
energy and ports which are not privatised.  
Queensland requires that its  entities are listed through the general statement "Entities declared to 
be departments pursuant to Section 14 of the Public Service Act 2008." Queensland maintains 
publically a list of these entities. For clarity, the entities covered by Queensland's mark et access 
offer in Annex 2 are:  
 
 Department of Aboriginal and Torr es Strait Islander Partnerships;  
 Department of Agriculture and Fisheries ; 
 Department of Communities, Child Safety and Disability Services, including:  
 Office for Women . 
 Department of Energy and Water Supply ; 
 Department of Environment and Heritage Protection ; 
 Department of Housing and Public Works ; GPA/ACC/ AUS/22  
 
- 8 - 
 
   Department of Infrastructure, Local Government and Planning ; 
 Department of Justice and Attorney -General, including:  
 Office of Liquor and Gaming Reg ulation ; 
 Office of Fair Trading Queensland ; 
 Queensland Corrective Services . 
 Department of National Parks, Sport and Racing, including:  
 Queensland Parks and Wildlife Service . 
 Department of Natural Resources and Mines ; 
 Public Safety Business Agency*; 
 Queensl and Fire and Emergency Services ; 
 Queensland Police Service ; 
 Queensland Treasury, including:  
 Office of State Revenue ; 
 Queensland Government Statistician's Office . 
 Department of Science, Information Technology and Innovation ; 
 Department of State Development ; 
 Department of Tourism, Major Events, Small Business and the Commonwealth Games ; 
 Department of Transport and Main Roads ; 
 Motor Accident Insurance Commission*; 
 Nominal Defendant*; 
 Public Safety Business Agency*; 
 Public Service Commission*; 
 Public Trust Offi ce*. 
 
Entities covered in part:  
 
All procurement undertaken by the Department of the Premier and Cabinet is covered 
except procurement related to the arts and the Office of the Queensland Parliamentary 
Counsel.  
 
Procurement related to the Queensland Ambula nce Service, which is a part of Queensland 
Health.  
 
* These entities are not departments pursuant to section 14 of the Public Service Act 2008 
(Qld) but have been included in the offer.  
 
The Queensland utilities referred to in earlier EU questions are stat e-owned corporations that act 
on a commercial basis. The Queensland Government does not directly control the procurement 
decisions of these entities and, accordingly, they cannot be included in Queensland's offer.  
 
3.2.5   South Australia  
24. The EU observes that in the revised offer the Legal Services Commission is not 
anymore part of the offered coverage. Australia should provide further clarification on 
the reasons for that and the economic impact of this exclusion.  
The Legal Services Commission sources its fund ing in from the Government of South Australia, the 
Commonwealth Government and through cost recovery from the public using its services. It is only 
authorised to make procurement decisions up to A$220,000, which is below the Annex 2 threshold 
in Australia' s offer.  
 
25. The EU reiterates its requests indicated in the observations on the initial offer 
regarding the inclusion of main entities, including public undertakings in the fields of 
water, energy, railways and ports. The Australian revised offer does no t meet the EU 
request  for coverage of these entities.  
Australia notes the EU's request with respect to entities operating in the utilities sector, but is 
unable to offer further coverage. In South Australia, these types of utilities are privately 
operated/ owned or are government corporations operating on a commercial basis. The South 
Australian Government does not control their procurement decisions and, accordingly, these 
entities are not able to be covered.  GPA/ACC/ AUS/22  
 
- 9 - 
 
  3.2.6   Tasmania  
26. The EU welcomes the addition of Tou rism Tasmania.  
27. However, the EU reiterates its requests indicated in the observations on the initial 
offer regarding the inclusion of main public entities in the fields of water, energy, 
railways and ports. The Australian revised offer does not meet the  EU request for 
coverage of these entities.   
Australia notes the EU 's request with respect to entities operating in the utilities sector, but is 
unable to offer further coverage. In Tasmania, the above utilities are government business 
enterprises or state -owned companies that are not covered by procurement rules applying 
generally to Tasmanian government agencies. The Tasmanian Government does not directly 
control their procurement decisions and, accordingly, these entities are not able to be covered.  
 
3.2.7   Victoria  
28. There is no improvement of the coverage of entities compared to the initial offer. 
Thus the EU reiterates its requests indicated in the observations on the initial offer 
regarding the inclusion of main public entities in the fields of water, ener gy, railways 
and ports. The Australian revised offer does not meet the EU request for coverage of 
these entities.  
Australia notes the EU 's request with respect to entities operating in the utilities sector, but is 
unable to offer further coverage. In Vict oria, these types of utilities are privately operated/owned 
or are public non -financial corporations. The Victorian Government does not control their 
procurement decisions, and accordingly, these entities are not able to be covered.  
 
3.2.8   Western Australia  
30. The EU positively notes the addition of the Department of Transport. The EU 
reiterates its requests indicated in the observations on the initial offer regarding the 
inclusion of main public entities in the fields of water, energy, railways and ports. The 
Australian revised offer does not meet the EU request for coverage of these entities.  
Australia notes the EU 's request with respect to entities operating in the utilities sector, but is 
unable to offer further coverage. In Western Australia, the above util ities are government -owned 
corporations, with independent boards and management. They operate on a commercial basis and 
the government has no direct control over their procurement decisions, and accordingly, these 
entities are not able to be covered.  
 
3.3  Note s to Annex 2  
31. The EU notes that Australia includes two additional notes providing for reciprocity 
at sub -central level.  
Australia is currently considering these notes.  
 
4  ANNEX 3  
32. The EU is concerned with the addition of a new Note on procurement of mo tor 
vehicles. Consequently, the exclusion remains broad even though it has been removed 
from the General Notes.  
As se t out above, we have moved the N ote from Annex 7 to Annexes 1,  2 and 3 so that it only 
applies to the Australian Government and to those st ates and territories that specifically require 
the motor vehicle exception. In addition to providing clarity, this ensures market access for GPA 
members to the procurement of motor vehicles in the three states and territories without the note.  
 GPA/ACC/ AUS/22  
 
- 10 - 
 
  33. The EU reiterates its request to expand Annex 3 by covering GBEs at central level, 
in particular those operating in the utilities sectors.  
As set out above, Australia has gone through 30 years of divestment and/or privatisation of public 
assets including most uti lity assets. GBEs are not covered under Australia 's procurement 
framework. GBEs operate essentially as a company, being required to earn at least a commercial 
rate of return to justify the retention of assets in the business, and to pay commercial dividend s 
from those returns. Australia 's limited number of GBEs operate independently of other government 
entities, but may be subject to strategic control from relevant government ministers. The directors 
of a GBE develop business strategies and handle day -to-day management policies, including 
procurement. The Australian Government does not directly control the procurement decisions of 
GBEs, and accordingly, they are not able to be covered.  
 
6.  ANNEX 7  
35. The EU notes that Notes 1.e., f., g., i. are removed fro m Annex 7 but those are re -
introduced in the other Annexes. Thus, it appears that the outcome does not lead to any 
substantive change/ increase of coverage.  
Note 1.e . has been redrafted to provide greater clarity. This Note does not affect the ability of 
foreign companies to bid for contracts to store government data, it only reflects the government 's 
security and privacy rules which apply equally to domestic as well as foreign suppliers.  
 
Note 1.f. has been split between goods and services annexes for great er clarity. Australia does not 
offer foreign access to the supply of domestic blood products in any trade agreement. Health 
services are not routinely covered by GPA members, including the EU.  
 
Note 1.g . has been moved from Annex 7 to Annexes 1, 2 and 3 so  that it only applies to the 
Australian Government and to those states and territories that specifically require the motor 
vehicle exception. In addition to providing clarity, this ensures market access for GPA members to 
the procurement of motor vehicles in the three states and territories without the note.  
 
36. The EU notes that the exclusion of any form of preference to benefit small and 
medium sized enterprises remains as broad as in the first offer and reiterates its request 
to delete this Note.  
The in clusion of the SME note is essential for all Australian governments and covers schemes 
designed to ensure that Australian SMEs have an equal opportunity to participate in governm ent 
procurement processes. The N ote does not stop foreign companies from winni ng contracts in 
Australia and is not as broad as similar n otes of other GPA members.  
 
37. The EU reiterates its request concerning the Note on procurement funded by 
grants and sponsorship payments.  
This Note is necessary and is similar to the chapter text of Australia 's existing trade agreements 
with government procurement provisions. This Note relates to government purchasing funded by 
grants and sponsorship from the private and non -government s ector. For example, in the 
2013-2014 financial year the Austra lian War Memorial received a A$1,000,000 sponsorship from 
BHP to fund the establishment of a World War One gallery. In the 2013 -2014 financial year, the 
National Museum of Australia received A$302,000 from the Australian Council for Arts to support 
travell ing exhibitions.  
 
38. The Note concerning unsolicited innovative proposals has been changed by 
providing a reference to Article XIII:1 of the GPA. However, the EU concerns about the 
reference to Article XIII:1 being very broad have not been addressed.  
Australia has responded to EU concerns by linking the note to Article XIII:1 of the GPA. The Note 
clarifies that limited tendering may be used for procurements in response to unsolicited innovative 
proposals. The Note is not for the purpose of avoiding competi tion, and does not prevent suppliers 
from the EU and other GPA members from making unsolicited innovative proposals.  
 GPA/ACC/ AUS/22  
 
- 11 - 
 
  Finally the EU considers that Note 2.c. should be deleted as the GPA in its Article II:3 (e) 
provides for a specific provision excluding f rom the scope of the agreement procurement 
relating to international assistance, international agreement relating to the stationing of 
troops, etc . 
Australia is considering the EU 's request.  
 
__________