WORLD TRADE  
ORGANIZATION  GPA/86 
22 December 2005 
 
 (05-6230) 
Committee on Government Procurement  
 
   
DECISION PURSUANT TO ARTICLE XXIV:6(a) OF THE  
AGREEMENT ON GOVERNMENT PROCUREMENT 
 
Decision of 21 December 2005
 
 
 
 
The Committee on Government Procurement, 
  Having regard  to the provisions of paragraph 6(a) of Article XXIV of the Agreement on 
Government Procurement; 
 
 Noting  that, pursuant to the Committee's Decision of 16 December 2004 as set forth in 
document GPA/83, Israel committed in its Note to Appendix I to reduce by 1 January 2006 its offsets 
to 20 per cent of the value of a contract;   Having considered  Israel's submission in document GPA/W/294, dated 18 July 2005, and 
having regard to the statements made by Israel em phasizing the importance of offsets to its economy 
as a development tool
; 
 
 Having considered  Israel's proposal in document GPA/MOD/ISR/5, dated 
12 December 2005, to further modify its Note  to Appendix I, based on Article XXIV:6(a) ; 
 
 Noting that Israel has offered compensatory adjustments in the above-referenced proposal, 
pursuant to Article XXIV:6(a), and that th e Parties have accepted those adjustments ; 
 
 Noting the long-standing views of several Parties th at offsets are only transitional measures 
and that Israel must eliminate its offsets;  and 
 
 Noting  the intention of Israel to engage in consul tations with the Parties, in the framework of 
the negotiations on the revision of the Agreement on Government Procurement under Article XXIV:7, 
with a view to agreeing on a revised Note, including a schedule to reduce its use of offsets, 
 
 Hereby decides  as follows: 
 
Article I 
 
 Paragraph 1(c) of Israel's Note to Appendi x I shall be modified to read as follows: 
 
 "Offsets in any form may be required up to 35  per cent of the contract going down to 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." 
 GPA/86 
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Article II 
 
 Paragraph 2(a) of Israel's Note to Appendi x I shall be modified to read as follows: 
 
 "At the end of each period mentioned in paragr aph 1(c), Israel will subm it a report concerning 
the implementation of this Note." 
 
Article III 
 
 Israel's Annex 4 shall be replaced by the text attached hereto.  Article IV 
 
 Israel's Annexes  1, 2, 3 and 5, referring to the thresholds for construction services, shall be 
modified to read as follows: 
  "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." 
 
Article V 
  Israel's Note to Appendix I, as modified by this Decision, shall remain in force until the entry 
into force in Israel of the revision of the Agre ement on Government Proc urement presently being 
negotiated under Article XXIV:7 of the Government Procurement Agreement. 
  GPA/86 
 Page 3 
 
APPENDIX I ISRAEL  ANNEX 4 Page 1/2
 
 
ATTACHMENT1 
 
ANNEX 4 
 
Services  
  
 
 Of the Universal List of Services, as contained in document MTN.GNS/W/120, the following 
services are included: 
 
 
CPC   Description  
 
6112, 6122, 633, 886 Maintenance 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 
 
752   Telecommuni cations services 
 
821   Real estate services involving own or leased property  
83106   Leasing or rental services concerning 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 (excluding legal services) 
 864   Market research and public opinion 
 
865-6   Management consulting 
 
                                                     
 
1 In English only. GPA/86 
Page 4  
APPENDIX I ISRAEL  ANNEX 4 Page 2/2
 
867  Architectural services; engineeri ng services and integrated engineering 
services, urban planning and landscape arch itectural services; related scientific 
and technical consulting services; tech nical testing and analysis services 
 
871   Advertising 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 services on a fee or contract basis 
 
887   Services incidental to energy distribution 
 9401-5   Environmental services  
 
 
Note to Annex 4  
 
 The offer regarding services (including construction) is subject to the limitation and conditions 
specified in Israel's schedule of the GATS. 
 
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