RESTRICTED  WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO  GPA/O/ISR/1 
23 March 2006 
 (06-1336) 
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 
 
 
 The following communication, dated 22 March 2006, 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 
 
 
 La communication ci-après, datée du 22 mars  2006, 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 
   La siguiente comunicación, de fecha de 22 ma rzo de 2006, se distribuye a petición de la 
delegación de Israel.  
                                                     
 
1 In English only./En anglais seulement./En inglés solamente. GPA/O/ISR/1 
Page 2  
 
 
INITIAL OFFER OF ISRAEL 
 
  Israel submits this initial offer in accord ance with Article XXIV:7 of the Agreement
 on 
Government Procurement (hereinafter:  the Agreement). 
  This offer accommodates a substantial portion of the specific requests made by GPA Parties. 
  The offer proposes a significant inclusion of services referred to in Annex 4.  In fact, all of the 
services requested are included in Annex 4.  Furt hermore, the offer reduces significantly the number 
of excluded products referred to in Annex 1 (procure d by the Ministry of Health).  The offer also 
narrows the scope of exclusions referred to in Annex 3.   The offer contains a revised schedule regarding th e use of offsets, as this tool is imperative for 
Israel in striking a balance of rights and obligations. 
  From a technical point of view, the attached offer is edited in "track changes" mode (i.e. strikeout and underline).  This allows for conve nient comparison of the current market access 
commitments with the initial offer.  
 The offer also reflects two modifications.  These modifications will be notified separately to 
the Committee, in accordance with th e provisions of the Agreement. 
  Israel reserves the right to withdraw, amend, restrict, restructure or extend this offer, in light of the progress made in the negotiations. 
  GPA/O/ISR/1 
 Page 3 
 
 
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;  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
 
  
Note to Annex 1  
 
(1) Ministry of Health - Excepted Products  
  
- Insul in and infusion pumps  
 
 - Audiometers  GPA/O/ISR/1 
Page 4  
 
  
- 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/1 
 Page 5 
 
 
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 Jerusale m, Tel-Aviv and Haifa 
 Local Government Economic Services Ltd. 
 GPA/O/ISR/1 
Page 6  
 
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) (2a) Mekorot Water Co. Ltd. Sports' Gambling Arrangement Board The Standards Institution of Israel National Insurance Institute of Israel 
All entities operating in the field of urban transpor t, except those operatin g in the field of bus 
services (2b)  
Notes to Annex 3  
 (1) Procurement of cables is excluded. 
 (2)
 With regard to procurement by Bezek, this Agr eement shall apply only to goods and services of 
the US.  
  
Israel is willing to negotiate the opening of its  telecommunication sector also to other Code 
members un der the condition of reciprocity.  
 (2a) Excluded products:  cables (H.S. 8544), electro
-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 ). 
  GPA/O/ISR/1 
 Page 7 
 
 
(2b) With regard to procurement by entities operati ng 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 to negotiate the opening of pr ocurement by entities operating in the field of 
urban transport, except those operating in the fi eld of bus services, to other Parties to the 
Agreement under the c ondition of reciprocity. GPA/O/ISR/1 
Page 8  
 
ANNEX 4 
 
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 bevera ge serving services 
 712   Land transport services   73   Passenger transportation services   
7471   Travel agency and tour operator services 
 7512   Commercial courier serv ices (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 (excluding legal services) 
 864   Market research and public opinion  865-6   Management consulting 
 
867  Architectural services; engineering services and integrated engineering 
services, urban planning and landscape arch itectural services; related scientific 
and technical consu lting services; technical tes ting and analysis services 
 
871   Advertising services  GPA/O/ISR/1 
 Page 9 
 
 
 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 4  
 The offer regarding services (inclu ding construction) is subject to th e limitation and conditions specified 
in Israel's schedule of the GATS.  GPA/O/ISR/1 
Page 10  
 
ANNEX 5 
 
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 : 8,500,00 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/1 
 Page 11 
 
 
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 contract ing entity enjoys no special or excl usive right to sell or hire the 
subject of such contracts and othe r 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, buildings or other immovable 
property, or concerning rights thereon. 
 GPA/O/ISR/1 
Page 12  
 
NOTE 
 
Offset  
 
 
1. Having regard to Article XV and to general policy considerations regarding development, Israel 
may operate provisions wh ich require the limited incorporati on of domestic content, offset 
procurement or transfer of technology, in the form of objective and clearly defined conditions 
for participation in procedures for the award of  contracts, which do not  discrimina te 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) Offsets in any form may be required up to 35
 28 per cent of the contract going down to 
25 per cent after three years, going down to 20 per cent after six years, and going 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 Is rael implements the 
Agreement. 
 
2. (a) At the end of each period mentioned in paragraph 1(c), Isra el 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 economi c developments in Israel, its trade 
balance, the actual performance within the framework of this Agreement and the views 
of the other Parties. 
 
__________