WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIORESTRICTED 
GPA/O/ISR/2 
13 December 2011 
 (11-6465) 
Committee on Government Procurement Original:   English/ 
 anglais/  inglés 
 
 
NEGOTIATIONS ON EXTENSION OF COVERAGE AND ELIMINATION OF  
DISCRIMINATORY MEASURES AND PRACTICES PURSUANT TO  
ARTICLE XXIV:7(b) AND (c) OF THE AGREEMENT  
ON GOVERNMENT PROCUREMENT 
 
Communication from Israel
1 
 
Final Offer 
 
 The following communication, dated 12 December 2011, is being circulated at the request of 
the Delegation of Israel. 
 
 
Comité des marchés publics  
  
NÉGOCIATIONS SUR L'EXTENSION DE LA PORTÉE DE L'ACCORD ET 
L'ÉLIMINATION DES MESURES ET PRATIQUES DISCRIMINATOIRES  
AU TITRE DE L'ARTICLE XXIV: 7 b) ET c) DE L'ACCORD  
SUR LES MARCHÉS PUBLICS 
 
Communication d'Israël
1 
 
Offre Finale 
 
 La communication ci-après, datée du 12 décembr e 2011, est distribuée à la demande de la 
délégation d'Israël. 
 
 
Comité de Contratación Pública 
 
 
NEGOCIACIONES SOBRE LA AMPLIACIÓN DEL ÁMBITO DE APLICACIÓN  
Y LA ELIMINACIÓN DE LAS MEDIDAS Y PRÁCTICAS DISCRIMINATORIAS  
DE CONFORMIDAD CON LOS APARTADOS b) Y c) DEL PÁRRAFO 7 DEL  
ARTÍCULO XXIV DEL ACUERDO SOBRE CONTRATACIÓN PÚBLICA 
 
Comunicación de Israel1 
 
Oferta Final1 
 
 La siguiente comunicación, de fecha de 12 diciembre de 2011, se distribuye a petición de la delegación de Israel. 
                                                      
1 In English only./En anglais seulement./En inglés solamente.  GPA/O/ISR/2 
Page 3 
 
 
NEGOTIATIONS UNDER ARTICLE XXIV:7 OF THE AGREEMENT ON GOVERNMENT 
PROCUREMENT FOR EXTENSION OF COVERAGE AND ELIMINATION  
OF DISCRIMINATORY MEASURES 
 
ISRAEL'S FINAL OFFER 
 
  To contribute to the conclusion of the nego tiations under Article XXIV:7 of the Agreement 
on Government Procurement, Isr ael submits this Final Offer. 
 
 This Offer builds upon the Initial and the Revi sed Offers and accommodates a substantial 
portion of the specific requests made by GPA Parties.   In its Revised Offer, submitted on 13 Oct ober 2010, Israel has expanded its proposed 
coverage with the following additions: 
 
Annex 1 
 
 Small and Medium Business Agency 
 Geological Survey of Israel 
 The Administration for Rural Resident ial, Education and Youth Aliyah 
 Survey of Israel 
 
Annex 3 
 
 Environmental Services Company ltd. 
 Arim Urban Development Ltd. 
 The Marine Trust Ltd. 
 The Dead Sea Preservation Government Company Ltd. 
 Eilat Foreshore Development Company Ltd. 
 Old Acre Development Company Ltd. 
 The Geophysical Institute Of Israel 
 Association of Better Housing 
 The Marine Education and Training Authority 
 Opening of procurement by entities operating in  the field of urban transport, except 
those operating in the field of bus services, to all GPA Part ies, under the condition of 
reciprocity 
 
 In the current Final Offer, Israel is propos ing the following improvements and modifications: 
 
 A new annex on Goods is presented. 
 The Note regarding Offset is revised , presenting a phase-out schedule of the 
mechanism. 
 Construction threshold for Annex 1 entities is set to decrease to 5,000,000 SDR, 
starting from the 6th year after coming into force for Israel of the revised GPA. 
 
 This final offer is subject to the following conditions: 
 
(a) Appropriate and satisfactory market access offers from GPA Parties representing, in 
the estimation of Israel, an appropriate ba lance of concessions relative to this final 
offer. 
 GPA/O/ISR/2 
Page 4  
 
(b) Israel reserves the right to withdraw, amend, or restrict this final offer at any point, 
until such time that the negotiations have concluded.  
 
 
N.B.:  Modifications from Israel's Revised Offer from 13 October 2010 are noted in bold, 
underlining, and strikeout.  GPA/O/ISR/2 
 Page 5 
 
 
ISRAEL  
 
(Authentic in the English language only) 
  
ANNEX 1 
 
Central Government Entities wh ich Procure in Accordance 
With the Provisions of this Agreement 
  
Supplies  Threshold : 130,000 SDR 
 Services  (specified in Annex 4)  Threshold : 130,000 SDR 
 
Construction  (specified in Annex 5)  Threshold : 8,500,000 SDR 
  Starting from the 6
th year after coming 
into force for Israel of the revised GPA: 
  5,000,000 SDR 
  during the period beginning from 
1 January 2006 until 31 December 2008, the 
threshold shall be set at 5,000,000 SDR 
 
 List of Entities : 
 
House of Representatives (the Knesset) 
Prime Minister's Office Ministry of Agriculture and Rural Development Ministry of Communications Ministry of Construction and Housing Ministry of Education, Culture and Sport 
Ministry of National Infrastruc tures excluding Fuel Authority 
Ministry of the Environment Ministry of Finance Civil Service Commission Ministry of Foreign Affairs 
Ministry of Health (1) 
Ministry of Immigrants Absorption Ministry of Industry, Trade and Labour Ministry of the Interior Ministry of Justice Ministry of Social Affairs 
Ministry of Science and Technology 
Ministry of Tourism Ministry of Transport Office of the State Comptroller and Ombudsman Central Bureau of Statistics 
Small and Medium Business Agency 
Geological Survey of Israel 
The Administration for Rural Resident ial, Education and Youth Aliyah 
Survey of Israel 
 
 GPA/O/ISR/2 
Page 6  
 
Note to Annex 1  
 
(1) Ministry of Health - Excepted Products  
  - Insulin and infusion pumps 
  - Audiometers 
  - Medical dressings (bandages, adhesive  tapes excluding gauze bandages and gauze 
pads) 
 
 - Intravenous solution   - Administration sets for transfusions  
 - Scalp vein sets 
 
 - Hemi-dialysis and blood lines   - Blood packs 
 
 - Syringe needles 
  GPA/O/ISR/2 
 Page 7 
 
 
ANNEX 2 
 
Sub-Central Government Entities which Procure in Accordance 
With the Provisions of this Agreement 
  
Supplies  Threshold : 250,000 SDR 
 Services  (specified in Annex 4)  Threshold : 250,000 SDR 
 
Construction  (specified in Annex 5)  Threshold : 8,500,000 SDR 
during the period beginning from 
1 January 2006 until 31 December 2008, the 
threshold shall be set at 5,000,000 SDR 
 
 
List of Entities : 
 Municipalities of Jerusalem, Tel-Aviv and Haifa  Local Government Economic Services Ltd. GPA/O/ISR/2 
Page 8  
 
ANNEX 3 
 
All Other Entities which Procure in Accordance 
With the Provisions of this Agreement 
  
Supplies  Threshold : 355,000 SDR 
 Services  (specified in Annex 4)  Threshold : 355,000 SDR 
 
Construction  (specified in Annex 5)  Threshold : 8,500,000 SDR 
during the period beginning from 
1 January 2006 until 31 December 2008, the 
threshold shall be set at 5,000,000 SDR 
 
 
List of Entities : 
 Israel Airports Authority Israel Ports Development and Assets Company Ltd. (1) Ashod Port Company Ltd. (1) 
Haifa Port Company Ltd. (1) 
Eilat Port Company Ltd. (1) Israel Railways Limited (1) Israel Broadcasting Authority Israel Educati onal Television 
Israel Postal Authority Company Ltd. 
Bezek (Israel Communication Company) (1) (2) 
The Israel Electric Corp. Ltd. (1) (2 a) 
Mekorot Water Co. Ltd. 
Sports' Gambling Arrangement Board The Standards Institution of Israel 
National Insurance Institute of Israel 
Environmental Services Company ltd. 
Arim Urban Development Ltd. 
The Marine Trust Ltd. 
The Dead Sea Preservation Government Company Ltd. 
Eilat Foreshore Development Company Ltd. 
Old Acre Development Company Ltd. 
The Geophysical Institute Of Israel 
Association of Better Housing 
The Marine Education and Training Authority 
All entities operating in the field of urban transpor t, except those operatin g in the field of bus 
services ( 2b3) 
 
 
Notes to Annex 3  
 
(1) Procurement of cables is excluded. 
 
(2) With regard to procurement by Bezek, this Ag reement shall apply only to  goods and services of 
the US. 
  GPA/O/ISR/2 
 Page 9 
 
 
 Israel is willing to negotiate the opening of its telecommunication sector also to other Code 
members under the condition of reciprocity. 
 
(2a) Excluded products:  cables (H.S. 8544), electr o-mechanic meters (ex. H.S. 9028), transformers 
(H.S. 8504), disconnectors and switchers (H.S. 8535-8537), el ectric motors (H.S. 8501 
85012099, 85015299, 85015199, 85015290, 85014099, 85015390). 
 
(2b3) With regard to procurement by entities operating in the field of urban transport, except those 
operating in the field of bus services, this Ag reement shall apply only to goods and services, 
including construction services, of the European Community. 
 
 Israel is willing ready to negotiate the opening of such procurement by entities operating in the 
field of urban transport, except those operating in the field of bus services, to other all Parties to 
the Agreement under the condition of mutual reciprocity. GPA/O/ISR/2 
Page 10  
 
ANNEX 4 
 
Goods  
 
 
 This Agreement applies to the procurement of all goods procured by th e entities listed in 
Annexes 1 through 3, unless otherwis e specified in this Agreement. 
  GPA/O/ISR/2 
 Page 11 
 
 
ANNEX 4 5 
 
Services  
 
 
 Of the Universal List of Services, as cont ained in document MTN.GNS/W/120, the following 
services are included:   
CPC   Description  
 
6112, 6122, 633, 886 Maintenanc e and repair services 
 641   Hotel and similar accommodation services  
642-3   Food and beverage serving services 
 712   Land transport services   73   Passenger transportation services   
7471   Travel agency and tour operator services 
 7512   Commercial courier servic es (including multi-modal) 
 
752   Telecommunications services 
 
812 and 814  Financial services (insurance services, banking and in vestment services) 
 
821   Real estate services i nvolving own or leased property 
 83106    Leasing or rental services c oncerning machinery and equipment without 
to 83109   operator only 
 83203    Leasing or rental services concerning personal and household goods only 
to 83209  
84   Computer and related services 
 861   Legal services (advisory services  on foreign and international law only) 
 862   Accounting, auditing and bookkeeping services  
863   Taxation services (e xcluding legal services) 
 864   Market research and public opinion  865-6   Management consulting 
 
867  Architectural services;  engineeri ng services and integrated engineering 
services, urban planning and landscape arch itectural services;  related scientific 
and technical consu lting services;  technical testing and analysis services 
 
871   Advertising services GPA/O/ISR/2 
Page 12  
 
 87304   Armoured car services 
 874, 82201-82206 Building-cleaning services and property management services 
 
876   Packaging services 
 8814   Services incidental to forestry and logging, including forest management 
 883   Services incidental to mining , including drilling and field services 
 
88442   Publishing and printing servic es on a fee or contract basis 
 887   Services incidental to energy distribution  
924   Adult education services 
 
929   Other education services 
 94   Sewage and refuse disposal;  sanitation and similar services 
 
9401-5   Environmental services 
 
 
Note to Annex 5  
  The offer regarding services (including construc tion) is subject to the limitation and conditions 
specified in Israel's schedule of the GATS. 
  GPA/O/ISR/2 
 Page 13 
 
 
ANNEX 56 
 
Construction Services  
 
 
Definition : 
  A construction services contract is a contract  which has as its objective the realization by 
whatever means of civil or building works, in the sense of Division 51 of the Central Product 
Classification. 
 
 Threshold :   For entities listed in  ANNEX 1: 8,500,000 SDR;   Starting from the 6
th 
year after coming into force for Israel 
of the revised GPA:  5,000,000 SDR ; 
 
For entities listed in ANN EXES 2 and 3: 8,500,000 SDR; 
 
during the period beginning from 
1 January 2006 until 31 December 2008, 
the threshold shall be set at 
5,000,000 SDR  
 
  
List of constructi on services offered  
 
CPC   Description  
 
511   Pre-erection work at construction sites 
 512   Construction work for buildings 
 
513   Construction work for civil engineering  514   Assembly and erection of prefabricated construction  
515   Special trade construction work 
 516   Installation work  517   Building completion and finishing work  
518   Renting services related to equipment for construction GPA/O/ISR/2 
Page 14  
 
ANNEX  67 
 
GENERAL NOTES 
  
(1) The Agreement shall not apply to contracts aw arded for purposes of re-sale or hire to third 
parties, provided that the c ontracting entity enjoys no special or excl usive right to sell or hire the subject 
of such contracts and other entities are free to sell or  hire it under the same conditions as the contracting 
entity.  
(2) The Agreement shall not apply to contracts fo r the purchase of water and for the supply of 
energy and of fuels for the production of energy.  (3) The agreement shall not apply to the acquisition or rental of land, build ings or other immovable 
property, or concerning rights thereon.  [ subject to the text of the revised GPA ]  GPA/O/ISR/2 
 Page 15 
 
 
NOTE 
 
Offset  
 
 
1. Having regard to Article XV and to general policy considerations regarding development, Israel 
may operate provisions which require the limited incorporation of domes tic content, offs et procurement 
or transfer of technology, in the form of objective  and clearly defined conditi ons for participation in 
procedures for the award of c ontracts, which do not discrimi nate between other Parties. 
 
 This shall be done under the following terms: 
  (a) Israel shall ensure that its entities indicate the existe nce of such conditions in their 
tender notices and specify them cl early in the contract documents. 
 
 (b) Suppliers will not be required to purc hase goods that are not offered on competitive 
terms, including price and quality, or to take  any action which is not justified from a 
commercial standpoint. 
  (c) Upon entry into force for Israel of the revised GPA, for contracts above the 
threshold of 2.5 3 million SDR, offsets in any form may be required up to 
35 28  20 per cent of the contract. going down to 25 per cent after three years, going 
down to 20 per cent after six years, and goi ng down to 17 per cent after nine years, 
30 per cent after five years, 28 per cent  after ten years and 20 per cent after 
13 years, beginning from the date Israel implements the Agreement.  
 
 (d) Starting from the 6th year after coming into force for Israel of the revised GPA, for 
contracts above the threshold of 3 million SDR, offsets sh all no longer be applied 
by entities covered under Annexes 1, 2 and 3, excluding the following entities 
which will continue requiring offset up to 20 per cent of the contract, until the 
beginning of the 9th year, after which they will ap ply offset up to 18 per cent: 
 
 
  A n n e x  1  
 
Ministry of Agriculture and Rural Development 
Ministry of Construction and Housing 
Ministry of National Infrastruc tures excluding Fuel Authority 
Ministry of Finance 
Ministry of Health  
Ministry of the Interior 
Ministry of Transport 
 
  A n n e x  2  
 
  Local Government Economic Services Ltd. 
   A n n e x  3  
   Israel Airports Authority 
Israel Ports Development and Assets Company Ltd. 
Association of Better Housing 
Ashod Port Company Ltd. 
Haifa Port Company Ltd. GPA/O/ISR/2 
Page 16  
 
Eilat Port Company Ltd. 
Arim Urban Development Ltd. 
Eilat Foreshore Development Company Ltd. 
Old Acre Development Company Ltd. 
Israel Railways Limited 
Israel Postal Company Ltd. 
The Israel Electric Corp. Ltd. 
Mekorot Water Co. Ltd. 
All entities operating in the field of urba n transport, except those operating in the 
field of bus services  
 
  (e) Starting from the 11
th year after coming into force for Israel of the revised GPA, 
for contracts above the threshold of 3 million SDR, offsets shall no longer be 
applied by entities covered under Annexes 1, 2 and 3, excluding the following 
entities which will continue requiring o ffsets up to 18 per cent of the contract: 
 
   A n n e x  1  
 
Ministry of National Infrastruc tures excluding Fuel Authority 
Ministry of Finance 
Ministry of Health 
Ministry of Transport 
 
  A n n e x  2  
   Local Government Economic Services Ltd. 
   A n n e x  3  
   Israel Airports Authority 
Israel Ports Development and Assets Company Ltd. 
Ashod Port Company Ltd. 
Haifa Port Company Ltd. 
Eilat Port Company Ltd. 
Israel Railways Limited 
Israel Postal Company Ltd. 
The Israel Electric Corp. Ltd. 
Mekorot Water Co. Ltd. 
 
(f) Starting from the 16th year after coming into force of the revised GPA, the 
requirement for offsets will not be applied with regard to covered procurement. 
 
2. (a) At the end of each period mentioned in paragraph 1(c), Israel will submit a report 
concerning the implemen tation of this Note. 
 
(b) When the level of the offset has reached 20 17 per cent, Israel will consult with the 
Parties to this Agreement on the level of the use of offset by Israel.  The review 
shall take into consideration inter alia  general and economic developments in 
Israel, its trade balance, the actual performance within the framework of this 
Agreement and the views of the other Parties. 
__________