RESTRICTED  
  
GPA/ACC/AUS/35  
 
17 July 2017  
(17-3873) Page: 1/3 
Committee on Government Procurement  Original: English  
 
ACCESSION OF AUSTRAL IA TO THE AGREEMENT ON GOVERNMENT PROCUR EMENT  
COMMUNICATION FROM T HE EUROPEAN UNION  
The following communication, dated 17 July 2017, is being circulated at the request of the 
Delegation of the European Union.  
 
_______________  
COMMENTS FROM THE EU ROPEAN UNION ON THE SECOND REVISED OFFER  OF 
AUSTRALIA (GPA/ACC/A US/29)  
The European Union (EU) welcomes the efforts of Australia to accede to the Agreement on 
Government Procurement and thanks Australia for submitting a second revised offer on  June 2017 
which contains some improvements (GPA/ACC/AUS/29). The EU encourages Australia to work 
towards the submission of a final offer rapidly.  
 
The EU hereby submits its comments requiring further improvements in Australia's second revised 
offer. In particular, the EU reminds Australia of its comments on Australia's revised offer circulated 
on 22 December 2016. The EU reserves the right to withdraw, amend, reduce or extend its 
comments in the light of negotiations with Australia and the comment s of other GPA Parties.  
 
Should some of the issues expressed by the EU in its comments circulated on 22 December 2016 
and in this note not be addressed by Australia, the EU will consider how to respond to the fact that 
Australia's coverage would not corres pond to the EU commitment in the GPA.  
 
The EU requests some changes in the second revised offer to align with the level of the EU's 
commitments under the GPA. The EU's comments and requests for further improvements are 
indicated below.  
 
General  
 
1.  The EU no tes that a number of changes have been introduced and that the offer has been 
improved in certain respect.  
2.  The EU welcomes the inclusion of two additional central governments entities (Australian 
Transport Safety Bureau in Annex 1 and Old Parliament House  in Annex 3).  
3.  The EU notes that the lower sub -central levels such as cities and public entities operating in the 
utilities sector, which the EU has requested, have still not been included in the offer.  
4.  The EU positively notes the removal of the reciproci ty requirements for access to sub -central 
entities (Annex 2).  
5.  The EU welcomes a phased withdrawal (as of 1 January 2019) of the exception for motor 
vehicles for central government entities (Annex 1) and other entities (Annex 3), as reflected in the 
notes in Annex es 1 and 3. The EU notes however, that the phased withdrawal of the exemption for 
motor vehicles does not concern the sub -central government entities (Annex 2). The reservation 
for the motor vehicles is still contained in the note for Australian Ca pital Territory, New South 
Wales, Queensland, South Australia and Victoria. It appears that in the remaining three territories GPA/ACC/AUS/35  
 
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  there is no motor vehicle production. The EU understands that phasing out of the exception does 
not lead to any substantial impro vement in respect to the sub -central government entities 
(Annex  2). The EU would therefore welcome Australia to give further explanations on the 
exception.  
6.  The EU observes that the reservation relating to the preferences to SMEs has not been 
eliminated. Th e EU reiterates its request to remove this reservation from the General Notes under 
Annex 7.  
7.  The EU positively notes that Australia re moved the security note (under G eneral Notes in 
Annex 7), on the understanding that the intention of this Note is already  covered by Article II.3(e) 
and Article III (Security and General Exceptions) of the Agreem ent of Government Procurement.  
8.  The EU recalls its request that the legislation in States and territories providing for "Buy Local " 
requirements and various preferent ial treatment programmes should be fully aligned and made 
compatible with GPA provisions.  
9.  The EU also requests Australia to provide detailed explanations on the compatibility of the 
proposed new Commonwealth Procurement Rules (CPRs) with the GPA. Australi a is also invited to 
inform the EU of the administrative stage of the legislative process. The EU refers to the more 
detailed submission made on behalf of the EU on 24 March 2017 in response to the "Inquiry into 
the Commonwealth Procurement Framework". In particular, Australia is invited to clarify how the 
provisions on standards and on the examination of economic benefit to the Australian economy 
comply with the GPA provisions. First of all, could Australia explain how the requirement for 
compliance with a n Australian standard, and only in the absence of such a standard with 
international one (CPR Art. 10.10), is compatible with the GPA req uirements as set out in 
Article  X:2(b) of GPA. Could Australia also provide clarification how 'reasonable enquiries' ar e done 
in this context? Secondly, could Australia also provide detailed clarification on the way how the 
"economic be nefit to the Australian economy"  test (Art 10.30) would be applied in a non -
discriminatory manner towards foreign suppliers, taking into ac count Article IV(1) of GPA ?  
Annex 1  – Central Government Entities  
 
Entities  
 
10.  The EU welcomes the addition of Australian Transport Safety  Bureau. There are currently 
64 entities.  
11.  The EU recalls its request indicated in the observations on the initial offer aiming at full 
coverag e of entities at central level.  
Notes  
 
12.  A note on procurement of motor vehicles is maintained but only until 1 January 2019. The EU 
welcomes this improvement.  
13.  The scope of the N ote 4 .a. has been widened by including "Engines, Tu rbines and 
Components" in the table containing the list of goods, where the Agreement does not cover the 
Department of Defence procurement. The EU recalls that this provision had been eliminated 
previously (see comparison between initial and revised offer)  and would request Australia to 
provide clarifications why it had been re -introduced.  
14.  The EU notes that exceptions should be kept limited as they reduce the scope of application of 
the GPA.  
15.  Therefore, the EU recalls its requests concerning Notes 3 ., 4.a., 4.b., 4.d. (in its current 
numbering) on the initial offer from 10 February 2016.  GPA/ACC/AUS/35  
 
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  Annex 2 – Sub-Central Government Entities  
 
16.  The EU reminds that its comments to Australia's revised offer, in particular in respect to 
Annex 2, circulated by the EU on 22 Dec ember 2016 are still pertinent.  
Entities and corresponding notes  
 
17.  The EU refers to its observations on the initial offer with respect to the coverage of sub -
central government entities. The EU notes that the Australian second revised offer has not been 
changed in this respect and therefore does not meet the EU's request.   
Australian Capital Territory  
 
18.  The EU notes that the wording regarding services, in particular the utility services, is not 
precise enough. The EU requests Australia to consider using Prov isional Central Product 
Classification (CPC Prov.), which can be found at:  
http://unstats.un.org/unsd/cr/registry/regcst.as p?Cl=9&Lg=1 . 
Notes to Annex 2  
 
19.  The EU welcomes the remova l by Australia of the reciprocity requirement for access to sub -
central entities.  
Annex 3  – Other Entities  
 
20.  The EU welcomes the addition of the Old Parliament House.  
21.  A note on procurement of motor vehicles by any entity listed in this Annex is maintained but 
only until 1 January 2019. The EU welcomes this change.  
22.  The EU refers to its request to expand Annex 3 by covering GBEs at central level, in particular 
those oper ating in the utilities sectors.  
Annex 5 - Services  
 
23.  The EU notes that Australia defines under 2 . the services that are not covered by the 
Agreement in a broad way. The EU requests Australia to consider using Provisional Central Product 
Classification (CPC Prov.), which can be found at:  
http://unstats.un.org/unsd/c r/registry/regcst.asp?Cl=9&Lg=1 . 
Annex 7  – General Notes  
 
24.  The EU welcomes the rem oval of the security note (ex 2. c.). 
25.  The EU notes that the exclusion of any form of preference to benefit small and medium sized 
enterprises remains as broad as in the initial offer.  
26.  The EU refers to its request concerning the note on procurement funded by grants and 
sponsorship payments.  
27.  With t he first revised offer from 30 September 2016 the note concerning unsolicited 
innovative proposals had been changed by providing a reference to Article XIII:1 of the GPA. The 
EU concerns about the reference to Article XIII:1 being very broad have not been addressed.  
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