ANNEX 5 - Analysis of public services according to COFOG

|| Rest of the world

(Classification of the Functions of Government) || || || || ||

|| Government || PP || Major industries affected || Potentially captive industries || Remarks

01 - General public services || || || || ||

01.1 - Executive and legislative organs, financial and fiscal affairs, external affairs || YES || YES || IT & Business services || - || General administration

01.2 - Foreign economic aid || YES || YES BUT || Construction, medical equipment || Development consulting || Mostly through grants

01.3 - General services || YES || YES || IT & Business services || - || General administration

01.4 - Basic research || YES || YES || IT & Business services || - || General administration

01.5 - R&D General public services || YES || YES || IT, precision equipment || Universities, research centres & precision equipment, supercomputers || EU univeristies may be bidding for projects abroad

01.6 - General public services n.e.c. || YES || YES || IT & Business services || - || General administration

01.7 - Public debt transactions || YES || YES BUT || Financial services || || Not an offensive interest in trade agreements - financial flexibility of central banks

01.8 - Transfers of a general character between different levels of government || YES || NO || || ||

02 - Defence || || || || ||

02.1 - Military defence || YES || YES || Defence industry || Defence industry || Not an offensive interest in trade agreements - security exemptions

02.2 - Civil defence || YES || YES || Defence industry || Defence industry || Not an offensive interest in trade agreements - security exemptions

02.3 - Foreign military aid || YES || YES || Defence industry || Defence industry || Not an offensive interest in trade agreements - security exemptions

02.4 - R&D Defence || YES || YES || Defence industry || Defence industry || Aerospace industry also affected

02.5 - Defence n.e.c. || YES || YES || Defence industry || Defence industry || Not an offensive interest in trade agreements - security exemptions

03 - Public order and safety || || || || ||

03.1 - Police services || YES || YES || Defence industry, vehicles || Defence industry || Not an offensive interest in trade agreements - security exemptions

03.2 - Fire-protection services || YES || YES || Firefighting industry || Firefighting industry ||

03.3 - Law courts || YES || YES || IT & Business services || - || General administration

03.4 - Prisons || YES BUT || YES || Defence & security services || Defence industry || WORKS CONCESSIONS

03.5 - R&D Public order and safety || YES || YES || Defence & security services || Defence industry ||

03.6 - Public order and safety n.e.c. || YES || YES || Defence & security services || Defence industry ||

04 - Economic affairs || || || || ||

04.1 - General economic, commercial and labour affairs || YES || YES || IT & Business services || || General administration

04.2 - Agriculture, forestry, fishing and hunting || YES || NO || || || Mostly through grants

04.3 - Fuel and energy || YES BUT || YES BUT || - || - || Whether purchases are PP depends on the country

04.3.1 - Coal and other solid mineral fuels (CS) || YES BUT || YES BUT || Mining equipment || Mining equipment || Whether purchases are PP depends on the country

04.3.2 - Petroleum and natural gas (CS) || YES BUT || YES BUT || Oil & Gas equipment || Oil & Gas equipment || Whether purchases are PP depends on the country

04.3.3 - Nuclear fuel (CS) || YES BUT || YES BUT || Nuclear energy industry || Nuclear energy industry || Whether purchases are PP depends on the country

04.3.4 - Other fuels (CS) || YES BUT || YES BUT || - || - || Whether purchases are PP depends on the country

04.3.5 - Electricity (CS) || YES BUT || YES BUT || Electricity production equip || Electricity production equip || Whether purchases are PP depends on the country

Production: nuclear || YES BUT || YES BUT || Nuclear energy industry || Nuclear energy industry || Whether purchases are PP depends on the country

Production: hydro-electric || YES BUT || YES BUT || Power generation equipment || Power generation equipment || Whether purchases are PP depends on the country

Production: construction of dams || YES BUT || YES BUT || Construction || ||

Production: solar, wind & geothermal || YES BUT || YES BUT || Solar & wind power equipment || Solar & wind power equipment || Whether purchases are PP depends on the country

Transmission || YES BUT || YES BUT || Electricity equipment || Electricity equipment || Whether purchases are PP depends on the country

Distribution || YES BUT || YES BUT || Electricity equipment || Electricity equipment || Whether purchases are PP depends on the country

04.3.6 - Non-electric energy (CS) || YES BUT || YES BUT || Gas distribution equipment || Gas distribution equipment || Whether purchases are PP depends on the country

04.4 - Mining, manufacturing and construction || YES BUT || YES BUT || Construction || Public Infrastructure construction ||

04.5 - Transport || YES BUT || YES BUT || Transport equipment || - || Not Airlines; other sectors in process of liberalisation

04.5.1 - Road transport (CS) || YES BUT || YES BUT || Buses, Road traffic equipment || Buses, Road traffic equipment || Whether purchases are PP depends on the country

Construction of roads || YES BUT || YES BUT || Construction || Public Infrastructure construction || WORKS CONCESSIONS

04.5.2 - Water transport (CS) || YES BUT || YES BUT || Port equipment || Port equipment || Whether purchases are PP depends on the country

Construction of ports & waterways || YES BUT || YES BUT || Construction || Dredging, port operation || WORKS CONCESSIONS

04.5.3 - Railway transport (CS) || YES BUT || YES BUT || High-speed trains, Rolling stock, signalling equipment, metro & trams || High-speed trains, Rolling stock, signalling equipment, metro & trams || Whether purchases are PP depends on the country

Construction of railways || YES BUT || YES BUT || Construction || Public Infrastructure construction, railway operation || WORKS CONCESSIONS

04.5.4 - Air transport (CS) || YES BUT || YES BUT || Construction, airport operation, ATC equipment || ATC equipment, airport operation || Whether purchases are PP depends on the country - AIRLINES EXCLUDED

Construction of airports || YES BUT || YES BUT || Construction || Public Infrastructure construction || WORKS CONCESSIONS

04.5.5 - Pipeline and other transport (CS) || YES BUT || YES BUT || Oil & Gas equipment || Oil & Gas equipment || Whether purchases are PP depends on the country

Construction of pipelines & other transport || YES BUT || YES BUT || Construction || Public Infrastructure construction || WORKS CONCESSIONS

04.6 - Communication || YES BUT || YES BUT || || || Whether purchases are PP depends on the country

Postal || YES BUT || YES BUT || Postal equipment || Postal equipment || Whether purchases are PP depends on the country

Telecommunication || YES BUT || YES BUT || Telecom equipment || Telecom equipment || Whether purchases are PP depends on the country

04.7 - Other industries (e.g. hotels, retail & tourism) || NO || NO || || ||

04.8 - R&D Economic affairs || YES || YES BUT || || Universities, research centres, specialised economic consulting || EU univeristies may be bidding for projects abroad

04.9 - Economic affairs n.e.c. || NO || NO || || ||

05 - Environmental protection || || || || ||

05.1 - Waste management || YES BUT || YES || Waste & water industry & mgmt || Waste & water industry & mgmt || Whether purchases are PP depends on the country

05.2 - Waste water management || YES BUT || YES || Waste & water industry & mgmt || Waste & water industry & mgmt || Whether purchases are PP depends on the country

05.3 - Pollution abatement || YES || YES || Specialised env. services industry || Specialised env. services industry ||

05.4 - Protection of biodiversity and landscape || YES || YES || Specialised env. services industry || Specialised env. services industry ||

05.5 - R&D Environmental protection || YES || YES || - || - || -

05.6 - Environmental protection n.e.c. || YES || YES || - || - || -

06 - Housing and community amenities || || || || ||

06.1 - Housing development || YES BUT || YES BUT || Construction || - ||

06.2 - Community development || YES BUT || YES BUT || Construction || - ||

06.3 - Water supply || YES BUT || YES || Waste & water industry || Waste & water industry || Whether purchases are PP depends on the country

06.4 - Street lighting || YES || YES || Street lighting || Street lighting ||

06.5 - R&D Housing and community amenities || YES || YES || - || - || -

06.6 - Housing and community amenities n.e.c. || YES BUT || YES || - || - || -

07 - Health || || || || ||

07.1 - Medical products, appliances and equipment || NO || NO || - || - || By COFOG definition - obtained by prescriptions - outside of scope

07.2 - Outpatient services || YES BUT || YES BUT || Pharma & Medical equipment || Pharma & Medical equipment || Public hospitals / depends from MS

07.3 - Hospital services || YES BUT || YES BUT || Pharma & Medical equipment || Pharma & Medical equipment || Public hospitals / depends from MS

07.4 - Public health services || YES BUT || YES BUT || Pharma & Medical equipment || Pharma & Medical equipment || Public hospitals / depends from MS

07.5 - R&D Health || YES BUT || YES BUT || Pharma & Medical equipment || Universities, research centres & precision equipment || EU univeristies may be bidding for projects abroad

07.6 - Health n.e.c. || YES BUT || YES BUT || - || - || Public hospitals / depends from MS

08 - Recreation, culture and religion || || || || ||

08.1 - Recreational and sporting services || YES BUT || YES BUT || Sport equipment || - || If public yes / depends from MS

Construction of sport facilities || YES BUT || YES BUT || Construction || - ||

08.2 - Cultural services || YES BUT || YES BUT || - || - || If public yes / depends from MS

08.3 - Broadcasting and publishing services || YES BUT || YES BUT || Radio & TV equipment || Radio & TV equipment || If public yes / depends from MS

08.4 - Religious and other community services || YES BUT || YES BUT || - || - || If public yes / depends from MS

08.5 - R&D Recreation, culture and religion || YES BUT || YES BUT || - || - || If public yes / depends from MS

08.6 - Recreation, culture and religion n.e.c. || YES BUT || YES BUT || - || - || If public yes / depends from MS

09 - Education || || || || ||

09.1 - Pre-primary and primary education || YES BUT || YES BUT || IT equipment || - || If public yes / depends from MS

09.2 - Secondary education || YES BUT || YES BUT || IT equipment || - || If public yes / depends from MS

09.3 - Post-secondary non-tertiary education || YES BUT || YES BUT || IT equipment || - || If public yes / depends from MS

09.4 - Tertiary education || YES BUT || YES BUT || IT, precision equipment || - || If public yes / depends from MS

09.5 - Education not definable by level || YES BUT || YES BUT || - || - || If public yes / depends from MS

09.6 - Subsidiary services to education || YES BUT || YES BUT || - || - || If public yes / depends from MS

09.7 - R&D Education || YES BUT || YES BUT || - || - || If public yes / depends from MS

09.8 - Education n.e.c. || YES BUT || YES BUT || - || - || If public yes / depends from MS

10 - Social protection || || || || ||

10.1 - Sickness and disability || YES || NO || - || - || Grants not PP; Grants authorities PP is covered

10.2 - Old age || YES || NO || - || - || Grants not PP; Grants authorities PP is covered

10.3 - Survivors || YES || NO || - || - || Grants not PP; Grants authorities PP is covered

10.4 - Family and children || YES || NO || - || - || Grants not PP; Grants authorities PP is covered

10.5 - Unemployment || YES || NO || - || - || Grants not PP; Grants authorities PP is covered

10.6 - Housing || YES || NO || - || - || Grants not PP; Grants authorities PP is covered

10.7 - Social exclusion n.e.c. || YES || NO || - || - || Grants not PP; Grants authorities PP is covered

10.8 - R&D Social protection || YES || NO || - || - || Grants not PP; Grants authorities PP is covered

10.9 - Social protection n.e.c. || YES || NO || - || - || Grants not PP; Grants authorities PP is covered

ANNEX 8

ANALYSIS OF THE OPENING OF

DOMESTIC PROCUREMENT MARKETS

Preliminary remarks:

As none of the countries in question has a monopoly of public television, we have considered useless to add any detail on broadcasting equipment, whose dependency is always PARTIAL and whose openness verdict is limited to the discriminatory rules applied on to goods (market)

The degree of openness is assessed by using the "openness test" as detailed in the report and its annexes. The assessment that follows and the determination of whether a specific market in a specific country is open or closed (de jure and de facto) is based on the examination of international commitments in the area of procurement, domestic (central and sub-central) legislation where available, feedback from the Commission Delegations in the respective third countries, feedback from EU industry on their practical experiences in this market, etc. For some markets and countries the Commission services acknowledge that the full range of data and information is not available.

In order to ensure a comprehensive reading of this assessment, the following categories have been used to evaluate the degree of domestic openness of each sector:

1: Open

0.5. Partially open (a priori open)

0: Unclear/difficult to provide a clear assessment

-0.5: Harmed by trade barriers (a priori closed)

-1: Closed

Also, it is important to underline that in spite of the possible full closure of certain markets through domestic measures, some EU exports succeed to bypass the latter for two reasons:

1- Specialisation: good and services only available from EU suppliers or service providers

2- Lack of uniform compliance: protectionist domestic measures are not necessarily applied on a systematic basis

As a result, in spite of the assessment hereunder, some corrections have been taken into account in the calculations of the openness of sectors:

1-Specialisation: based on the industrial analysis in Appendix 5, we have identified those sectors where protectionist domestic measures are most likely not to have any affect because of the degree of specialisation.

2-Evene if a market has been considered as fully closed, a 10% default degree of openness has been included, as explained in the methodological box 6 of the Problem analysis.

Tables of content by countries:

1. United States pp 4-110

2. Japan pp 12-19

3. Canada pp 20-25 4. Korea pp 26-32 5. Israel pp 33-39 6. Mexico pp 40-47

7. Turkey pp 48-54

8. China pp 55-62

9. India pp 63-70

10. Russia pp 71-77

11. Brazil pp 78-85

12. Ukraine pp 86-93

13. Australia pp 94-101

1. United States 1.1 Defence Relevant market: defence goods for army, navy and air force

Dependency from public procurement: Full dependency

Degree of openness

Except for the coverage of the Department of Defence under the GPA US obligations (with security exemptions), this market is not opened de jure. A range of domestic protectionist measures are applied such as local content requirements (up to 50%) or local establishment requirements (ie. setting up of manufacturing capacities, requirements for substantial investments). The UK is also targeted by special measures limiting its access to considered sensitive areas.

Conclusion for the purposes of the IA: Fully closed (-1)

1.2 Aerospace

Relevant market: production of satellites, ATC equipment, and navigation systems

Dependency from public procurement: Highly dependent

Degree of openness

Except for the coverage of the NY Port Authority and New Jersey related procurement under the GPA, the ATC equipment/airport market is not opened de jure. A range of domestic protectionist measures are applied such as price preferences (25% > above added value of the sector in the EU), local content requirements (up to 60%) or local establishment requirements (ie. setting up of manufacturing capacities, requirements for substantial investments).

Conclusion for the purposes of the IA: Fully closed – for ATC equipment

1.3 Postal machinery/Airport sorting systems

Relevant market: production of postal machinery and airport sorting systems

Dependency from public procurement: Full dependency

Degree of openness

This market is not open de jure. In addition, a number of domestic protectionist measures are applied such as price preferences (ie. of 15% in Rhode Island or South Dakota), local content requirements (ie. US steel in Illinois, New York, Pennsylvania, Maryland, Louisiana )or local establishment requirements

Conclusion for the purposes of the IA: Fully closed (-1)

1.4 Fire-fighting and sea rescue equipment and transport

Relevant market: fire-fighting vehicles/aircraft and rescue helicopters purchased by fire-fighting authorities; sea rescue vessels for coast guards

Dependency from public procurement: Full dependency

Degree of openness

This market is not open de jure. In addition, a number of domestic protectionist measures are applied such as price preferences (ie. of 15% in Rhode Island or South Dakota), local preferences or local establishment requirements.

Conclusion for the purposes of the IA: Fully closed (-1)

1.5 - Construction services

Relevant market: infrastructure construction (highways, mass transit, power, water and dredging) and general public works (general public buildings) - this also includes architectural and engineering services.

Dependency from public procurement: Partial

· 100% for infrastructure construction (highways, mass transit, power, water and dredging)

· Marginal for general public works (general public buildings) -

Degree of openness

The market is opened de jure in the segment of general building for federal administrations and some States (ie. California, Texas, Florida, NY, etc) and partially in the segment for power (only for Federal utilities, which represent the smaller portion of that procurement segment). Other segments such as highways and mass transit, airports, water supply and waste or dredging are not opened de jure. A number of domestic protectionist measures are applied such as price preferences (ie. normally of 6%), preferences for local labour (ie. Florida, Illinois, Ohio) or the so-called "bid preferences" in Ohio, Texas and Florida whereby when two bidders propose the same price for the same contract, the in-state bidder will be favoured[1].

This openness assessment has also taken into consideration GATS commitments. There are no restrictions on commercial presence (Mode 3), except for dredging. For some States (DC, ID, IO, KS, ME, MS, NV, OK, SC, SD, TN, TX and WV), engineers and architects must be residents of the State in question. This can be considered as a trade barrier.

Conclusion for the purposes of the IA: Unclear / Difficult to provide clear assessment (0)

1.6 - Construction materials

Relevant markets: cement, concrete, steel, glass, and stones for public works projects.

Dependency from public procurement: Partial[2]

Degree of openness

The market is opened de jure in the segment of general building for federal administrations and some States (ie. California, Texas, Florida, NY, etc) and partially in the segment for power (only for Federal utilities, which represent the smaller portion of that procurement segment). Other segments such as highways and mass transit, airports, water supply and waste or dredging are not opened de jure. A number of domestic protectionist measures are applied such as price preferences, local content requirements (up to 50%), local manufacture requirements (up to 100%), US/State steel preferences in some States (Texas, Illinois) or the so-called "bid preferences" in Ohio, Texas and Florida.

Conclusion for the purposes of the IA: Fully closed (-1)

1.7 - Railway equipment (rolling stock, including trams)

Relevant market: rolling stock for trains, urban railways, metros and tramways

Dependency from public procurement: Highly dependent

Degree of openness

This market is not open de jure. A number of domestic protectionist measures are applied such as price preferences, local content requirements (up to 60%) or local establishment requirements (ie. setting up of manufacturing capacities, requirements for substantial investments).

Conclusion for the purposes of the IA: Fully closed (-1)

1.8 Urban buses

Relevant market: public buses and coaches purchased by mass transit authorities

Dependency from public procurement: Highly dependent[3]

Degree of openness

Except for the coverage of the NY Port Authority and New Jersey related procurement under the GPA, this market is not open de jure. In addition, a number of domestic protectionist measures are applied such as price preferences (ie. of 15% in Rhode Island or South Dakota), local content requirements (ie. US steel in Illinois, New York, Pennsylvania, Maryland, Louisiana )or local establishment requirements

Conclusion for the purposes of the IA: Fully closed (-1)

1.9 Power generation equipment

Relevant market: All forms of energy power generation equipment (solar panels, nuclear reactors, windmills, hydroelectric power turbines,...) purchased by utilities.

Dependency from public procurement: high

· While it is difficult to provide with a percentage, a substantial share of the US utilities is local or State-owned, at least partially.

· Federal utilities like the Tennessee Valley Authority follow public procurement rules and have been opened under GPA

Degree of openness

While federal utilities are opened de jure, this is not the case for state and below State-level utilities, which represent around 81% of local level procurement. In those cases where procurement is not open de jure, there are applicable domestic protectionist measures such as preferences for labour (Florida, Illinois, Ohio), local content requirements (ie. US steel), etc.

Conclusion for the purposes of the IA: Unclear / Difficult to provide clear assessment (0)

We would suggest a -0.5 category taking into account the importance of States not open de jure and of the existence of domestic preferences

1.10 Water management/sewage

Relevant market: Goods and services relevant to all the aspects of water management, canalisation, desalination, sewage and distribution purchased by federal and local authorities.

Dependency from public procurement: Full (as most of the water management and sewage activities are within the remit of local authorities, the dependency rate is assumed to be 100%)

Degree of openness

This market is not opened de jure. Any entry into this market is subject to applicable domestic protectionist measures such as preferences for labour (florida, Illinois, Ohio), local content requirements (ie. US steel), preferences for NY businesses (in NY) etc.

There are no restrictions identified on commercial presence (GATS Mode 3).

Conclusion for the purposes of the IA: Fully closed (-1)

1.11 Waste management and other environmental services

Relevant market: Urban cleaning services, noise abatement, waste collection, etc... purchased by cities and urban agglomerations.

Dependency from public procurement: High

· As most of the environmental services are within the remit of local authorities, the dependency rate is assumed to be 100%

· Contracting authorities may either purchase this type of goods or services, or actually outsource them (through concessions)

Degree of openness

This market is not opened de jure. Any entry into this market is subject to applicable domestic protectionist measures such as preferences for labour (florida, Illinois, Ohio), local content requirements (ie. US steel), preferences for NY businesses (in NY) etc.

There are no restrictions identified on commercial presence (GATS Mode 3).

Conclusion for the purposes of the IA: Fully closed (-1)

1.12 Pharmaceutical products

Relevant market: pharmaceutical products purchased by public hospitals

Dependency from public procurement: Partial - low[4]

Degree of openness

At federal level this procurement is open de jure. For procurement at State level there are domestic measures such as preferences for products (California, Florida, Ohio, Texas), preference for US and State contractors and products (Ohio), special treatment for NY businesses (in NY), etc

Conclusion for the purposes of the IA: "Partially open (0.5)" rather than "fully open (1)" given the State level measures.

1.13 Medical equipment

Relevant market: medical equipment products purchased by US public hospitals or health authorities. Includes laboratory research equipment and precision instruments (like cyclotrons, scanners).

Dependency from public procurement: Partial - low[5]

Degree of openness

At federal level this procurement is open de jure. For procurement at State level there are domestic measures such as preferences for products (California, Florida, Ohio, Texas), preference for US and State contractors and products (Ohio), special treatment for NY businesses (in NY), etc

Conclusion for the purposes of the IA: "Partially open (0.5)" rather than "fully open (1)" given the State level measures.

1.14 Specialised textiles

Relevant market: Specialised textiles for defence, fire-fighting and health

Dependency from public procurement: Partial

· 100% Military uniforms for defence

· 100% Uniforms for fire-fighting

· Uniforms for utilities (e.g. non-radio-active textiles,...) - applies for PUBLIC utilities

· Bio-textiles and other health-related uniforms - Department of Health

· Overall uniforms

Degree of openness

Some segments are open de jure (ie. purchases by Department of Health) while others no (ie. purchases by Department of Defence). In addition, domestic preferences are applicable such as local preferences for fire-fighting textiles and the "Berry amendment" which imposes a 100% local establishment requirement and 100% local content requirement for purchses by DoD of non-US textiles, food and clothing.

Conclusion for the purposes of the IA: "Harmed by trade barriers - a priori closed (-0.5)"

1.15 Business services (consulting, "auditing/accounting", advertising, building-cleaning and legal services)

Relevant market: Consulting services, auditing services, advertising and legal services sold government-wide.

Dependency from public procurement: Partial (depends on degree of specialisation of service delivered)

Degree of openness

Several segments are opened de jure (would depend of the contracting authority). In addition application of domestic preferences. Taking into account GATS commitments, there are no restrictions for building, consulting and advertising services while several residency restrictions are possible for auditing and accounting services (although it is not possible to assess the degree of their implementation).

Conclusion for the purposes of the IA: Unclear / Difficult to provide clear assessment (0)

1.16 Financial services

Relevant market: Banking and insurance services sold government-wide. These can entail very general financial services sold government-wide to very specialised services (clearing, investment banking, portfolio management)

Dependency from public procurement: Partial (both specialised and generic services are sold to both private and public sectors)

Degree of openness

Several segments are opened de jure (would depend of the contracting authority). In addition, domestic preferences are applied. Existence of a wide range of GATS possible restrictions (although it is not possible to assess the degree of their implementation).

Conclusion for the purposes of the IA: Fully closed (-1)

1.17 Oil, gas and mining exploration equipment

Relevant market: Equipment for oil, mining and gas extraction and transport.

Dependency from public procurement: None (private sector)

Degree of openness

Not applicable

Conclusion for the purposes of the IA: Not relevant

1.18 Fixed telecom equipment

Relevant market: Telecom equipment for fixed telecom operators providing universal service-like public services.

Dependency from public procurement: Low (only possible exception for Rural Utilities Services)

Degree of openness

This market is not opened de jure. Restrictions on foreign bids on entities that have more than 20% of government capital.

Conclusion for the purposes of the IA: not relevant

1.19 Computer equipment and IT services

Relevant market: Computer equipment and software services sold government-wide; supercomputers for hospitals, universities, research centres, infrastructure, aerospace and power generation.

Dependency from public procurement: Partial for low margin products and high for specific added-value products and services

Degree of openness

Several segments are opened de jure (would depend of the contracting authority). In addition, domestic preferences are applied. No applicable GATS restrictions

Conclusion for the purposes of the IA: Unclear / Difficult to provide clear assessment (0)

1.20 Street lighting

Relevant market: Lighting for streets and highways

Dependency from public procurement: full dependency

Degree of openness

Limited opening de jure given existence of the "federal highways and mass transit" derogation in the GPA. Existence in addition of domestic protectionist measures such as local content requirements (up to 50%), local manufacture equipment (up to 100%), preferences for US/State made steel (Texas, Illinois) or bid preference.

Conclusion for the purposes of the IA: Fully closed (-1)

1.21 Port Equipment

Relevant market: port equipment like cranes (container, general and general cranes)

Dependency from public procurement: High

Degree of openness

Several segments are opened de jure (ie. Port Authority of NY and New Jersey) but not for local authorities or State authorities not covered by the GPA. Existence in addition of domestic protectionist measures such as local content requirements (up to 50%), local manufacture equipment (up to 100%), preferences for US/State made steel (Texas, Illinois) or bid preference.

Conclusion for the purposes of the IA: Unclear / Difficult to provide clear assessment (0)

2. JAPAN

2.1 Defence

Relevant market: defence goods for army, navy and air force

Dependency from public procurement: Full dependency

Degree of openness

Although the Ministry of Defense is covered there are security exemptions. The market for the rest is not open de jure.

Conclusion for the purposes of the IA: Closed (-1)

2.2 Aerospace

Relevant market: production of satellites, ATC equipment, and navigation systems

Dependency from public procurement: High

100% for ATC equipment ("airport basic infrastructures" / MLIT) 100% for astronomical and space-related satellites (JAXA) Unknown for communication satellites 100% for meteorological satellites (JAXA and JMA) Unknown for navigation satellites

Degree of openness

For ATC equipment/airports the market is open de jure. As regards satellites, this market is not open de jure. In this area while the eligibility is systematically taken into consideration by Ministries, there are also local establishment requirements and general administrative issues related to FDI in Japan

Conclusion for the purposes of the IA: Unclear / Difficult to provide clear assessment (0)

2.3 Postal machinery/airport sorting systems

Relevant market: production of postal machinery and airport sorting systems

Dependency from public procurement: high

100% for postal machinery (Japan Post) Partial for airport sorting systems (Narita, Haneda-Int'l) Degree of openness

This market is open de jure for public airports and Japan Post.

Conclusion for the purposes of the IA: Open (1)

2.4 Fire-fighting and sea rescue equipment and transport

Relevant market: fire-fighting vehicles/aircraft and rescue helicopters purchased by fire-fighting authorities

Dependency from public procurement: full dependency

Degree of openness

Open de jure for MLIT and the Tokyo Metropolitan Government but the market is no open de jure for the lower administrative levels, responsible for fire-fighting. There are also local preferences and local establishment requirements and general administrative issues related to FDI in Japan

Conclusion for the purposes of the IA: Unclear / Difficult to provide clear assessment (0

2.5 Construction services

Relevant market: infrastructure construction (highways, mass transit, power, water and dredging) and general public works (general public buildings) - this also includes architectural and engineering services.

Dependency from public procurement: Partial

· 100% for infrastructure construction (highways, mass transit, water and dredging)

· Airport terminals and power are private in Japan

· Marginal for general public works (general public buildings)

Degree of openness

While some segments of the market are open de jure (ie. general water infrastructure, national highways, general building construction for GPA covered entities), other segments are not open de jure (ie. mass transit due to the application of the operational safety clause). The latter segments will be affected also by local preferences and local establishment requirements together with complicated FDI rules.

Also, those segments open de jure are affected by registration and qualification procedures (keishin) and widespread existence of cartels in the construction market that make it very difficult to have a de facto access even in these de jure opened segments. The existence of the GPA threshold of 15 million SDR would also render very difficult for SMEs to win contracts in this area.

As regards GATS assessment, there are no restrictions on commercial presence but restrictions for architects and engineers.

Conclusion for the purposes of the IA: Closed (-1)

2.6 Construction materials

Relevant market: cement, concrete, steel, glass, and stones for public works projects.

Dependency from public procurement: Partial (same materials used for private construction)

Degree of openness

While some segments of the market are open de jure (ie. general water infrastructure, national highways, general building construction for GPA covered entities), other segments are not open de jure (ie. mass transit due to the application of the operational safety clause). The latter segments will be affected also by local preferences and local establishment requirements together with complicated FDI rules.

Also, those segments open de jure are affected by registration and qualification procedures (keishin) and widespread existence of cartels in the construction market that make it very difficult to have a de facto access even in these de jure opened segments. The existence of the GPA threshold of 15 million SDR would also render very difficult for SMEs to win contracts in this area.

Conclusion for the purposes of the IA: Closed (-1)

2.7 Railway equipment (rolling stock, including trams)

Relevant market: rolling stock for trains, urban railways, metros and tramways

Dependency from public procurement: High

· JR East/West/Central - private operators with special or exclusive rights

· 100% for Metro networks - they are all committed in GPA

· None for Private operators

Degree of openness

This market is not open de jure. In addition the operational safety clause is widely used in this sector and there is proof of no publication of calls for tender for entities that have been committed internationally.

Conclusion for the purposes of the IA: Fully closed (-1)

2.8 Urban buses

Relevant market: public buses and coaches purchased by mass transit authorities

Dependency from public procurement: Partial

· 100% for public buses purchased by city transportation bureaus

· Private operators of buses purchase their buses in the market

Degree of openness

This market is not open de jure. In addition the operational safety clause is widely used in this sector. In addition to the existence of local preferences, there is proof of no publication of calls for tender for entities that have been committed internationally.

Conclusion for the purposes of the IA: Fully closed (-1)

2.9 Power generation equipment

Relevant market: All forms of energy power generation equipment (solar panels, nuclear reactors, windmills, hydroelectric power turbines,...) purchased by utilities.

Dependency from public procurement: None (fully private sector)

Degree of openness

Not applicable

Conclusion for the purposes of the IA: Not relevant

2.10 Water management/sewage

Relevant market: Goods and services relevant to all the aspects of water management, canalisation, desalination, sewage and distribution purchased by federal and local authorities.

Dependency from public procurement: high

· Main infrastructure (canals, dams, artificial lakes) is in the responsibility of the Japan Water Agency (covered by GPA)

· Most sewage utilities ("Bulk water supply services") - Prefectures

· Water supply services are managed by municipalities (cities)

· There are also sometimes private operators, notably for the final delivery

Degree of openness

Some segments of the market are open de jure (ie. Japan Water Agency, sewage utilities, some municipal water supply services) but others not. Even if there are cases of EU companies wining conracts in areas not open de jure, there is also proof of local preferences

Conclusion for the purposes of the IA: Unclear / Difficult to provide clear assessment (0)

2.11 Waste management and other environmental services

Relevant market: Urban cleaning services, noise abatement, waste collection, etc... purchased by cities and urban agglomerations.

Dependency from public procurement: High (within remit of municipalities)

Degree of openness

This market is open de jure for the main cities but not for Tokyo for example. There are cases of local preferences. No restrictions on commercial presence (GATS Mode 3) have been identified.

Conclusion for the purposes of the IA: Unclear / Difficult to provide clear assessment (0)

2.12 Pharmaceutical products

Relevant market: pharmaceutical products purchased by Japanese public hospitals or health authorities

Dependency from public procurement: Partial

· Ministry of Health

· National Hospital Organisation covers purchases of main public hospitals

· Municipalities cover municipal hospitals

· University hospitals are affiliated to universities; for public universities, purchases fall within the remit of National University Corporation

· There are several private hospitals

Degree of openness

This market is open de jure for Ministry of Health and other national entities (ie. National Hospital Organisation) the main cities but not for other cities. There are cases of local preferences

Conclusion for the purposes of the IA: Unclear / Difficult to provide clear assessment (0)

2.13 Medical equipment

Relevant market: medical equipment products purchased by US public hospitals or health authorities. Includes laboratory research equipment and precision instruments (like cyclotrons, scanners).

Dependency from public procurement: Partial

· Ministry of Health

· National Hospital Organisation covers purchases of main public hospitals

· Municipalities cover municipal hospitals

· University hospitals are affiliated to universities; for public universities, purchases fall within the remit of National University Corporation

· There are several private hospitals

Degree of openness

This market is open de jure for Ministry of Health and other national entities (ie. Hospital Organisation) and GPA covered cities. There are cases of local preferences

Conclusion for the purposes of the IA: Unclear / Difficult to provide clear assessment (0)

2.14 Specialised textiles

Relevant market: Specialised textiles for defence, fire-fighting and health

Dependency from public procurement: Partial

· 100% Military uniforms for defence

· 100% Uniforms for fire-fighting (municipalities)

· Uniforms for utilities (e.g. non-radio-active textiles,...) - private sector in Japan

· Bio-textiles and other health-related uniforms - Ministry of Health, National Hospital Organisation, National University Corporation, municipalities,...

· Overall uniforms

Degree of openness

This market is open de jure for Ministry of Health and other national entities (ie. Hospital Organisation) and GPA covered cities. There are cases of local preferences

Conclusion for the purposes of the IA: Unclear / Difficult to provide clear assessment (0)

2.15 Business services (consulting, "auditing/accounting", advertising, building-cleaning and legal services)

Relevant market: Consulting services, auditing services, advertising and legal services sold government-wide.

Dependency from public procurement: Depends on the degree of specialisation of the service delivered (consulting and legal services sold to aerospace or power generation are considered highly dependent while building clearing and auditing are considered generic services sold to private and public)

Degree of openness

It depends on the type of service and of the contracting authorities as advertising and building cleaning, for example, are open de jure but not legal services or consulting. There are also local preferences.

Conclusion for the purposes of the IA: Unclear / Difficult to provide clear assessment (0)

2.16 Financial services

Relevant market: Banking and insurance services sold government-wide. These can entail very general financial services sold government-wide to very specialised services (clearing, investment banking, portfolio management)

Dependency from public procurement: Partial (both specialised and generic services are sold to both private and public sectors)

Degree of openness

This market is not open de jure. There are local preferences

Conclusion for the purposes of the IA: Closed (-1)

2.17 Oil, gas and mining exploration equipment

Relevant market: Equipment for oil, gas and mining extraction and transport. Technical surveying services.

Dependency from public procurement: No oil or gas in Japan (or transport privatised)

Degree of openness

Not applicable

Conclusion for the purposes of the IA: not appropriate

2.18 Fixed telecom equipment

Relevant market: Telecom equipment for fixed telecom operators providing universal service-like public services.

Dependency from public procurement: almost full dependency ("Last mile" systematically owned by NTT)

Degree of openness

This market is no open de jure. While the operational safety clause could be applied to date there is no proof of systematically discrimination on its basis.

Conclusion for the purposes of the IA: Open (1)

2.19 Computer equipment and IT services

Relevant market: Computer equipment and software services sold government-wide; supercomputers for hospitals, universities, research centres, infrastructure, aerospace and power generation.

Dependency from public procurement: Partial for low-margin products, High for specific added value products and services

Degree of openness

This market is open de jure.

Conclusion for the purposes of the IA: Partially open (+0.5)

2.20 Street lighting

Relevant market: Lighting for streets and highways

Dependency from public procurement: full dependency

Degree of openness

While some segments of the market are open de jure (ie. Expressway Corporations, large cities), other segments are not open de jure (ie. non GPA covered municipalities). The latter segments will be affected also by local preferences and local establishment requirements together with complicated FDI rules.

Conclusion for the purposes of the IA: Partially open (+0.5)

2.21 Port Equipment

Relevant market: port equipment like cranes (container, general and general cranes)

Dependency from public procurement: full dependency

Degree of openness

This market is open de jure (ie. GPA covers main ports)

Conclusion for the purposes of the IA: Open (1)

3. CANADA

3.1 Defence

Relevant market: defence goods for army, navy and air force

Dependency from public procurement: Full dependency

Degree of openness

Although the Ministry of Defense is covered de jure there are security exemptions. In addition there are also protectionist measures as the IRB policy of offsets.

Conclusion for the purposes of the IA: Fully closed (-1)

3.2 Aerospace

Relevant market: production of satellites, ATC equipment, and navigation systems

Dependency from public procurement: High (100% for satellites while ATC equipment is fully private)

Degree of openness

The satellites related market is not opened de jure. The Federal contracting Authority gives the right to prefer Canadian contractors in services and it is unclear whether IRB policy can apply with offsets (due to defense and security).

Conclusion for the purposes of the IA: Fully closed (-1)

3.3 Postal machinery/airport sorting systems

Relevant market: production of postal machinery and airport sorting systems

Dependency from public procurement: Full dependency

Degree of openness

The postal machinery segment is opened de jure. Although the airport sorting systems market is not opened de jure, no discriminatory measures or practices have been identified.

Conclusion for the purposes of the IA: Open (1)

3.4 Fire-fighting and sea rescue equipment and transport

Relevant market: fire-fighting vehicles/aircraft and rescue helicopters purchased by fire-fighting authorities

Dependency from public procurement: Full dependency

Degree of openness

This market is not opened de jure[6]. In addition, local preferences and the IRB policy of offsets apply.

Conclusion for the purposes of the IA: Fully closed (-1)

3.5 Construction services

Relevant market: infrastructure construction (highways, mass transit, power, water and dredging) and general public works (general public buildings) - this also includes architectural and engineering services.

Dependency from public procurement: Partial

· 100% for infrastructure construction (highways, mass transit, power, water and dredging)

· Marginal for general public works (general public buildings)

Degree of openness

The segment of general building construction is open de jure. Transport related contracts (at federal, Crown corporations or sub-provincial level), water supply, dredging and power are not opened de jure. There are local establishment requirements (ie. For federal projects) and preferences to Canadian or locally-established companies. As regards assessment of GATS, in most Provinces engineers and architects must be residents.

Conclusion for the purposes of the IA: Fully closed (-1)

3.6 Construction materials

Relevant market: cement, concrete, steel, glass, and stones for public works projects.

Dependency from public procurement: Partial (same materials used for private construction)

Degree of openness

The segment of general building construction is open de jure. Transport related contracts (at federal, Crown corporations or sub-provincial level), water supply, dredging and power are not opened de jure. There are local preferences possible.

Conclusion for the purposes of the IA: Unclear / difficult to provide clear assessment (0)

3.7 Railway equipment (rolling stock, including trams)

Relevant market: rolling stock for trains, urban railways, metros and tramways

Dependency from public procurement: Full dependency

Degree of openness

This market is not opened de jure. While there is no proof of discriminatory measures/practices in the majority of Provinces, there are domestic preferences in important markets such as Quebec or Ontario (Local content requirement - 25% minimum (local authorities can set up higher thresholds), except for locomotives)

Conclusion for the purposes of the IA: Harmed by trade barriers (-0.5)

3.8 Urban buses

Relevant market: public buses and coaches purchased by mass transit authorities

Dependency from public procurement: Partial

100% for public buses (100% for main mass transit networks (Toronto, Montreal) None for coaches Degree of openness

This market is not opened de jure. Existence of local content requirements and price preference mechanism (5%) in Ontario.

Conclusion for the purposes of the IA: Unclear / difficult to provide clear assessment (0)

3.9 Power generation equipment

Relevant market: All forms of energy power generation equipment (solar panels, nuclear reactors, windmills, hydroelectric power turbines,...) purchased by utilities.

Dependency from public procurement: High (Main utilities are either Crown Corporations such as Hydro Quebéc, Toronto Hydro or municipalities)

Degree of openness

This market is not opened de jure. Applicable of domestic preferences in key Provinces such as Ontario (local content requirements for renewable energy producers of up to 60%)

Conclusion for the purposes of the IA: Harmed by trade barriers (-0.5)

3.10 Water management/sewage

Relevant market: Goods and services relevant to all the aspects of water management, canalisation, desalination, sewage and distribution purchased by federal and local authorities.

Dependency from public procurement: High (most contracts awared at the level of Provinces/municipalities)

Degree of openness

This market is not opened de jure. Local preferences are applied widely.

Conclusion for the purposes of the IA: Fully closed (-1)

3.11 Waste management and other environmental services

Relevant market: Urban cleaning services, noise abatement, waste collection, etc... purchased by cities and urban agglomerations.

Dependency from public procurement: High (most contracts awared at the level of Provinces/municipalities)

Degree of openness

This market is not opened de jure. Local preferences are applied widely.

Conclusion for the purposes of the IA: Fully closed (-1)

3.12 Pharmaceutical products

Relevant market: pharmaceutical products purchased by health authorities

Dependency from public procurement: Partial

· Hospitals are part of the MASH sector, which falls under procurement rules

· There are private hospitals in Canada also

· 70% of health expenditure appears to be public-funded

· Hospitals are local and health authorities are in the Provinces

Degree of openness

This market is not opened de jure. Local preferences are applied widely.

Conclusion for the purposes of the IA: Fully closed (-1)

3.13 Medical equipment

Relevant market: medical equipment products purchased by health authorities

Dependency from public procurement: Partial

· Hospitals are part of the MASH sector, which falls under procurement rules

· There are private hospitals in Canada also

· 70% of health expenditure appears to be public-funded

· Hospitals are local and health authorities are in the Provinces

Degree of openness

This market is not opened de jure. Local preferences are applied widely.

Conclusion for the purposes of the IA: Fully closed (-1)

3.14 Specialised textiles

Relevant market: Specialised textiles for defence, fire-fighting and health

Dependency from public procurement: Partial

· 100% Military uniforms for defence - federal

· 100% Uniforms for fire-fighting - municipalities

· Uniforms for utilities (e.g. non-radio-active textiles,...) - applies for PUBLIC utilities- hospitals (MASH)

· Overall uniforms

Degree of openness

The defense-related purchases are opened de jure while the fire-fighting/hospital related are not. Local preferences affect fire-fighting and overall uniforms purchases

Conclusion for the purposes of the IA: Unclear / difficult to provide clear assessment (0)

3.15 Business services (consulting, "auditing/accounting", advertising, building-cleaning and legal services)

Relevant market: Consulting services, auditing services, advertising and legal services sold government-wide.

Dependency from public procurement: Partial/low (depends on degree of specialisation of the service delivered)

Degree of openness

Difficult to asses as it would depend on the type of contracting authority for building, cleaning, auditing, legal and consulting services. Advertising services are not opened de jure.. Existence of domestic preferences measures.

Several residency GATS restrictions applied for consulting, legal, engineering and auditing/accounting services

Conclusion for the purposes of the IA: Unclear / difficult to provide clear assessment (0)

3.16 Financial services

Relevant market: Banking and insurance services sold government-wide. These can entail very general financial services sold government-wide to very specialised services (clearing, investment banking, portfolio management)

Dependency from public procurement: Partial-low

Degree of openness

This market is not opened de jure. Domestic preferences apply

Conclusion for the purposes of the IA: Unclear / difficult to provide clear assessment (0)

3.17 Oil, gas and mining exploration equipment

Relevant market: Equipment for oil extraction and transport.

Dependency from public procurement: none (private sector)

Degree of openness

Not applicable

Conclusion for the purposes of the IA: not relevant

3.18 Fixed telecom equipment

Relevant market: Telecom equipment for fixed telecom operators providing universal service-like public services.

Dependency from public procurement: Low (private sector except in Saskatchewan)

Degree of openness

Not applicable

Conclusion for the purposes of the IA: Not relevant

3.19 Computer equipment and IT services

Relevant market: Computer equipment and software services sold government-wide; supercomputers for hospitals, universities, research centres, infrastructure, aerospace and power generation.

Dependency from public procurement: Partial for low-margin products and High for specific added-value products and services (ie supercomputers and IT applications for hospitals, universities, etc)

Degree of openness

Some segments are opened de jure depending on the type of contracting authorities. Domestic protectionist measures are applied.

Conclusion for the purposes of the IA: Unclear / difficult to provide clear assessment (0)

3.20 Street lighting

Relevant market: Lighting for streets and highways

Dependency from public procurement: full dependency

Degree of openness

This market is not opened de jure. Local preferences applied

Conclusion for the purposes of the IA: Closed (-1)

3.21 Port Equipment

Relevant market: port equipment like cranes (container, general and general cranes)

Dependency from public procurement: Full dependency[7]

Degree of openness

This market is not opened de jure. Local preferences applied

Conclusion for the purposes of the IA: Closed (-1)

4. KOREA

Korea applies the principle of "reciprocity" in "international bidding" (i.e. open under the GPA). - > we interpret this as a de facto application of the general notes of the GPA. The legislation appears unclear in the area not covered by GPA, except for defence procurement and SME set asides. Foreign bidders appear to include companies that are controlled by more than 50% by a foreign shareholder.

The EU Delegation in Seoul notes that there is no systematic policy of discrimination against EU companies and that the latter have won contracts in some sectors not opened de jure to them.

4.1 Defence

Relevant market: defence goods for army, navy and air force

Dependency from public procurement: Full dependency

Degree of openness

While the Ministry of Defense is covered by GPA commitments, there are security exemptions. There are also national protectionist measures such as local content, pre-authorisations needed to participate in a particular bid or offset

Conclusion for the purposes of the IA: Fully closed (-1)

4.2 Aerospace

Relevant market: production of satellites, ATC equipment, and navigation systems

Dependency from public procurement: Partial

ATC equipment (Korea Airports Corporation and Inchon – closed to EU and to be privatised) 100% for astronomical and space-related satellites (Korea Aerospace Research Institute - KARI) 0% for communication satellites (Korea Telecom) 100% for meteorological satellites (Ministry of Science and Technology, KARI, Korea Meteorological Administration) Unknown for navigation satellites

Degree of openness

This market is not opened de jure. While their application seems rare, there are SMEs set aside applicable to this procurement market

Conclusion for the purposes of the IA: Fully closed (-1)

4.3 Postal machinery/airport sorting systems

Relevant market: production of postal machinery and airport sorting systems

Dependency from public procurement: High (100% for postal machinery, partial for airport sorting systems)

Degree of openness

This market is partially opened de jure (only as regards Korea Post). While their application seems rare, there are SMEs set aside applicable to this procurement market

Conclusion for the purposes of the IA: Unclear / difficult to provide clear assessment (0)

4.4 Fire-fighting and sea rescue equipment and transport

Relevant market: fire-fighting vehicles/aircraft and rescue helicopters purchased by fire-fighting authorities

Dependency from public procurement: Full dependency

Degree of openness

This market is open de jure to a larger extent (ie. Korean Coast Guard and larger cities)

Conclusion for the purposes of the IA: Partially open (0.5)

4.5 Construction services

Relevant market: infrastructure construction (highways, mass transit, power, water and dredging) and general public works (general public buildings) - this also includes architectural and engineering services.

Dependency from public procurement: Partial

· 100% for infrastructure construction (highways/Korea Expressway Corporation, mass transit, water and dredging)

· Airport terminals – closed to EU and private in Korea

· Marginal for general public works (general public buildings)

Degree of openness

Some segments of this market are open de jure (ie. power, highways, general building construction, concession contracts) while others, such as mass transit related services are not. When opened de jure, the thresholds applied (ie. 15.000.000 SDRs) render very difficult the access of foreign SMEs to these contracts. In addition, local establishment requirements (ie. complex FDI rules) and local preferences are applied when not open de jure.

Conclusion for the purposes of the IA: Partially open (+0.5)

4.6 Construction materials

Relevant market: cement, concrete, steel, glass, and stones for public works projects.

Dependency from public procurement: Partial

· 100% for infrastructure construction (highways/Korea Expressway Corporation, mass transit, water and dredging)

· Airport terminals – closed to EU and private in Korea

· Marginal for general public works (general public buildings)

Degree of openness

Some segments of this market are open de jure (ie. power, highways, general building construction, concession contracts) while others, such as mass transit related services are not. When opened de jure, the thresholds applied (ie. 15.000.000 SDRs) render very difficult the access of foreign SMEs to these contracts. In addition, local establishment requirements (ie. complex FDI rules) and local preferences are applied when not open de jure.

Conclusion for the purposes of the IA: Partially open (+0.5)

4.7 Railway equipment (rolling stock, including trams)

Relevant market: rolling stock for trains, urban railways, metros and tramways

Dependency from public procurement: Full dependency

Degree of openness

This market is not opened de jure. No discriminatory measures have been identified

Conclusion for the purposes of the IA: Partially open (0.5)

4.8 Urban buses

Relevant market: public buses and coaches purchased by mass transit authorities

Dependency from public procurement: Partial

· 100% for public buses purchased by city transportation bureaus

· Private operators of buses purchase their buses in the market

Degree of openness

Only procurement of major cities is opened de jure.

Conclusion for the purposes of the IA: Partially open (0.5)

4.9 Power generation equipment

Relevant market: All forms of energy power generation equipment (solar panels, nuclear reactors, windmills, hydroelectric power turbines,...) purchased by utilities.

Dependency from public procurement: full dependency

Degree of openness

This market is opened de jure except for some equipment such as transformers, switches, panels or insulated wire.

Conclusion for the purposes of the IA: Partially closed (-0.5)

4.10 Water management/sewage

Relevant market: Goods and services relevant to all the aspects of water management, canalisation, desalination, sewage and distribution purchased by federal and local authorities.

Dependency from public procurement: High

Degree of openness

Some segments of the market are open de jure (ie. Korean Water Resources Corporation or water supply services by some cities). SMEs set-asides apply to this sector.

Conclusion for the purposes of the IA: Open (1)

4.11 Waste management and other environmental services

Relevant market: Urban cleaning services, noise abatement, waste collection, etc... purchased by cities and urban agglomerations.

Dependency from public procurement: High (at municipal level)

Degree of openness

While procurement by some cities is opened de jure, not for other key areas. SMEs set-asides apply to this sector.

Conclusion for the purposes of the IA: Unclear / difficult to provide clear assessment (0)

4.12 Pharmaceutical products

Relevant market: pharmaceutical products purchased by public hospitals

Dependency from public procurement: Partial

· Ministry of Health – underlying organisations

· Municipalities cover municipal hospitals

· University hospitals are affiliated to universities (probably covered through Ministry of Science, Education and Research)

· There are several private hospitals

Degree of openness

While procurement by central Ministries and main cities is opened de jure, not for other key areas. SMEs set-asides apply to this sector.

Conclusion for the purposes of the IA: Unclear / difficult to provide clear assessment (0)

4.13 Medical equipment

Relevant market: medical equipment products purchased by US public hospitals or health authorities. Includes laboratory research equipment and precision instruments (like cyclotrons, scanners).

Dependency from public procurement: Partial

· Ministry of Health – underlying organisations

· Municipalities cover municipal hospitals

· University hospitals are affiliated to universities (probably covered through Ministry of Science, Education and Research)

· There are several private hospitals

Degree of openness

While procurement by central Ministries and main cities is opened de jure, not for other key areas. SMEs set-asides apply to this sector.

Conclusion for the purposes of the IA: Unclear / difficult to provide clear assessment (0)

4.14 Specialised textiles

Relevant market: Specialised textiles for defence, fire-fighting and health

Dependency from public procurement:

· 100% Military uniforms for defence

· 100% Uniforms for fire-fighting (municipalities)

· Uniforms for utilities (e.g. non-radio-active textiles,...) - KEPCO

· Bio-textiles and other health-related uniforms - Ministry of Health, Ministry of Science, Education and Research and main cities

· Overall uniforms

Degree of openness

This market is partially opened de jure (ie. Ministry of Health and GPA covered cities). The SMEs set asides apply.

Conclusion for the purposes of the IA: Unclear / difficult to provide clear assessment (0)

4.15 Business services (consulting, "auditing/accounting", advertising, building-cleaning and legal services)

Relevant market: Consulting services, auditing services, advertising and legal services sold government-wide.

Dependency from public procurement: partial/low (depends on degree of specialisation of service delivered).

Degree of openness

Some segments are opened de jure (depends on the type of contracting authority and type of service). The SMEs set asides apply.

Conclusion for the purposes of the IA: Unclear / difficult to provide clear assessment (0)

4.16 Financial services

Relevant market: Banking and insurance services sold government-wide. These can entail very general financial services sold government-wide to very specialised services (clearing, investment banking, portfolio management)

Dependency from public procurement: Partial-low (both specialised and generic services are sold to both private and public sectors).

Degree of openness

This market is not opened de jure. The SMEs set asides apply.

Conclusion for the purposes of the IA: Closed (-1)

4.17 Oil, gas and mining exploration equipment

Relevant market: Equipment for oil, gas and mining extraction and transport.

Dependency from public procurement: No oil exploration. Other sectors are private

Degree of openness: not applicable

Conclusion for the purposes of the IA: not relevant

4.18 Fixed telecom equipment

Relevant market: Telecom equipment for fixed telecom operators providing universal service-like public services.

Dependency from public procurement: none

Degree of openness: not applicable

Conclusion for the purposes of the IA: not relevant

4.19 Computer equipment and IT services

Relevant market: Computer equipment and software services sold government-wide; supercomputers for hospitals, universities, research centres, infrastructure, aerospace and power generation.

Dependency from public procurement: partial for low-margin products, high for specific added-value products and services

Degree of openness

This market is open de jure. The SMEs set aside apply.

Conclusion for the purposes of the IA: Open (1)

4.20 Street lighting

Relevant market: Lighting for streets and highways

Dependency from public procurement: Partial

Degree of openness

Opened de jure for highways and general building construction, including concession contracts.

Conclusion for the purposes of the IA: Open (1)

4.21 Port Equipment

Relevant market: port equipment like cranes (container, general and general cranes)

Dependency from public procurement: High

Degree of openness

Main ports are covered through the cities.

Conclusion for the purposes of the IA: Open (1)

5. Israel

GPA apparently supersedes national procurement law and can be considered as directly applicable. In this context, what is CLOSED DE JURE internationally is CLOSED DE FACTO

However, Israel applies an offset policy of 20% on all procurement by foreign firms. This makes any procurement OPEN DE JURE as being actually CLOSED DE FACTO. In these circumstances, we considered CLOSED DE JURE resulted in CLOSED DE FACTO. Offsets have been agreed in the GPA, yet to ensure consistency with other countries, it is considered as a measure in practice for the DE FACTO assessment

5.1 Defence Relevant market: defence goods for army, navy and air force

Dependency from public procurement: Full dependency

Degree of openness

The defence public procurement market of Israel is not open de jure. The Ministry of Defence is covered, but subject to security exceptions. Where the market is not open de jure, national protectionist measures apply – offsets.

Conclusion for the purposes of the IA: Fully closed (-1)

5.2 Aerospace

Relevant market: production of satellites, ATC equipment, and navigation systems

Dependency from public procurement: Partial

ATC equipment (Israel Airports Authority) 100% for all satellites (Israel Space Agency) Degree of openness

While the Israel aerospace market is open de jure for Airports Authority and not for the space agency. Offsets are applicable.

Conclusion for the purposes of the IA: Fully closed (-1)

5.3 Postal machinery/Airport sorting systems

Relevant market: production of postal machinery and airport sorting systems

Dependency from public procurement: Full

100% for postal machinery (Israel Post) 100% for airports (Israel Airports Authority) Degree of openness

The market is open de jure but offsets are applicable.

Conclusion for the purposes of the IA: Fully closed (-1)

5.4 Fire-fighting and sea rescue equipment and transport

Relevant market: fire-fighting vehicles/aircraft and rescue helicopters purchased by fire-fighting authorities; coast guard vessels (non-military)

Dependency from public procurement: Full

100% for fire-fighting (Israel Fire and Rescue Services, municipalities)

Degree of openness

This market is not open de jure. Offsets are applicable.

Conclusion for the purposes of the IA: Fully closed (-1)

5.5 Construction services

Relevant market: infrastructure construction (highways, mass transit, power, water and dredging) and general public works (general public buildings) - this also includes architectural and engineering services.

Dependency from public procurement: Partial

· 100% for infrastructure construction (highways/, mass transit, water and dredging

· Airport terminals – Israel Airports Authority

· Marginal for general public works (general public buildings)

Degree of openness

The market is open de jure for transport (with the exemptions of mass transit and airport terminals), for Mekhorot Water, for power (Israel Electric Corp) and highways (Ministry of Transport-National Highways Authority). For other segments the market is not open de jure (ie dredging) for transport, water supply, dredging and power. Offsets apply

Conclusion for the purposes of the IA: Fully closed (-1)

5.6 Construction materials

Relevant markets: cement, concrete, steel, glass, and stones for public works projects.

Dependency from public procurement: Partial

· 100% for infrastructure construction (highways/, mass transit, water and dredging

· Airport terminals – Israel Airports Authority

· Marginal for general public works (general public buildings)

Degree of openness

The market is open de jure for transport (with the exemptions of mass transit and airport terminals), for Mekhorot Water, for power (Israel Electric Corp) and highways (Ministry of Transport-National Highways Authority). For other segments the market is not open de jure (ie dredging) for transport, water supply, dredging and power. Offsets apply

Conclusion for the purposes of the IA: Fully closed (-1)

5.7 Railway equipment (rolling stock, including trams)

Relevant market: rolling stock for trains, urban railways, metros and tramways

Dependency from public procurement: Full

· National Metropolitan Authority (NMA)

· Israel Railways

Degree of openness

The market is open de jure for Israel Railways and not for NMA. Offsets apply.

Conclusion for the purposes of the IA: Fully closed (-1)

5.8 Urban buses

Relevant market: public buses and coaches purchased by mass transit authorities

Dependency from public procurement: Partial

· 100% for public buses purchased by city transportation bureaus

· Private operators of buses purchase their buses in the market

Degree of openness

The market is open de jure but offsets apply

Conclusion for the purposes of the IA: Fully closed (-1)

5.9 Power generation equipment

Relevant market: All forms of energy power generation equipment (solar panels, nuclear reactors, windmills, hydroelectric power turbines,...) purchased by utilities.

Dependency from public procurement: Full

Degree of openness:

The market is open de jure ( but with explicit exclusions for HS 8504 (transformers), HS 8535 (switches), HS 8537 (panels), HS 8544 (cables) and electric motors (cf. several 8501 sub-codes). Offsets are also applicable.

Conclusion for the purposes of the IA: Fully closed (-1)

5.10 Water management/sewage

Relevant market: Goods and services relevant to all the aspects of water management, canalisation, desalination, sewage and distribution purchased by federal and local authorities.

Dependency from public procurement: Full

Degree of openness:

The market is open de jure but offsets apply.

Conclusion for the purposes of the IA: Fully closed (-1).

5.11 Waste management and other environmental services

Relevant market: Urban cleaning services, noise abatement, waste collection, etc...purchased by cities and urban agglomerations.

Dependency from public procurement: Full

Degree of openness:

The market is open de jure but offsets apply

Conclusion for the purposes of the IA: Fully closed (-1).

5.12 Pharmaceutical products

Relevant market: pharmaceutical products purchased by Israel public hospitals or health authorities.

Dependency from public procurement: Partial

· Ministry of Health – underlying organisations

· Municipalities cover municipal hospitals

· University hospitals are affiliated to universities

· There are several private hospitals

Degree of openness:

The market is open de jure for Ministry of Health (except for specific products), Ministry of Education, main cities and not for insulin and hemi-dialysis for Ministry of Health. Offsets are also applicable.

Conclusion for the purposes of the IA: Fully closed (-1).

5.13 Medical equipment

Relevant market: medical equipment products purchased by Japanese public hospitals or health authorities. Includes laboratory research equipment and precision instruments (like cyclotrons, scanners).

Dependency from public procurement: Partial

· Ministry of Health – underlying organisations

· Municipalities cover municipal hospitals

· University hospitals are affiliated to universities

· There are several private hospitals

Degree of openness:

The market is open de jure for Ministry of Health, except for specific products, Ministry of Education, main cities and not for audiometers, intravenous solutions, scalps, blood packs, syringes for Ministry of Health. Offsets are also applicable.

Conclusion for the purposes of the IA: Fully closed (-1).

5.14 Specialised Textiles

Relevant market: Specialised textiles for defence, fire-fighting and health

Dependency from public procurement: Partial

· 100% Military uniforms for defence

· 100% Uniforms for fire-fighting (Israel Fire and Rescue Service, municipalities)

· Uniforms for utilities (e.g. non-radio-active textiles,...)

· Bio-textiles and other health-related uniforms - Ministry of Health, Ministry of Science, Education and Research and main cities

· Overall uniforms

Degree of openness:

The market is open de jure for Min. of Health, GPA covered cities and not for Ministry of Defence, or other cities. Offsets are applicable.

Conclusion for the purposes of the IA: Fully closed (-1)

5.15 Business services (consulting, "auditing/accounting", advertising, building-cleaning and legal services)

Relevant market: Consulting services, auditing services, advertising and legal services sold government-wide.

Dependency from public procurement: Partial; depends on degree of specialisation of service-delivered

Degree of openness:

The market is open de jure (depending on the type of contracting authority) for advertising, consulting, building cleaning, engineering services, auditing/accounting, legal services - depends on the type of contracting authority. Offsets are applicable.

Conclusion for the purposes of the IA: Fully closed (-1)

5.16 Financial services

Relevant market: Banking and insurance services sold government-wide. These can entail very general financial services sold government-wide to very specialised services (clearing, investment banking, portfolio management).

Dependency from public procurement: Partial

Both specialised and generic services are sold to both private and public sectors. However, sums to be managed by governments are generally much higher than in the private sector.

Degree of openness:

The market is not open de jure. Offsets apply.

Conclusion for the purposes of the IA: Fully closed (-1)

5.17 Oil equipment

Relevant market: Equipment for oil extraction and transport. Technical surveying services.

Dependency from public procurement: none

Degree of openness: not applicable

Conclusion for the purposes of the IA: not relevant

5.18 Fixed telecom equipment

Relevant market: Telecom equipment for fixed telecom operators providing universal service-like public services.

Dependency from public procurement: none

Degree of openness: not applicable

Conclusion for the purposes of the IA: not relevant

5.19 Computer and IT services

Relevant market: Computer equipment and software services sold government-wide; supercomputers for hospitals, universities, research centres, infrastructure, aerospace and power generation.

Dependency from public procurement: PARTIAL for low-margin products, HIGH for very specific added-value products and services.

Degree of openness:

The market is open de jure for computer and IT services. Offsets are applicable.

Conclusion for the purposes of the IA: Fully closed (-1)

5.20 Street lightning, traffic signalling

Relevant market: lighting for streets and highways

Dependency from public procurement: Full

Degree of openness:

The market is open de jure for highways (Ministry of Transport-National Highways Authority) and for the main cities, but not for the rest. It is not open de jure for: for transport, water supply, dredging and power. Offsets are applicable.

Conclusion for the purposes of the IA: Unclear/difficult to provide clear assessment (0)

5.22 Port equipment

Relevant market: port equipment like cranes (container, general and general cranes)

Dependency from public procurement: High

· 4 port authorities are covered (Haifa, Eilat, Ashod, Israel Ports Development)

· 1 port authority is not covered (Marine Trust Ltd - port of Tel Aviv)

Degree of openness:

The market is not open de jure for: for transport, water supply, dredging and power. Offsets are applicable.

Conclusion for the purposes of the IA: Fully closed (-1)

6. Mexico

Mexico has partly opened the procurement of the federal government and State enterprises through its free trade agreement with the EU. If the FTA does not cover a specific procurement, then the Mexican government can apply a 50% local content requirement (cf. Article 28 of the Federal Law[8]).

The procurement of States has not been opened through the FTA. The laws of the 4 main States (Mexico State, Mexico DF, Jalisco, Nuevo Leon), which cover the 3 largest agglomerations (Mexico, Guadalajara and Monterrey), have been analysed.

- Estado de Mexico, Nuevo Leon and Jalisco: national preference by definition, unless the good is not found in Mexico (article 26 of the law of Jalisco[9], article 62 of the law of Nuevo Leon[10] and article 36 of the law of Estado de Mexico[11]).

- Mexico Federal District: The government decides whether it should undertake a national procedure (where goods need a 50% Mexican content) or an "international procedure" (where goods need a 35% Mexican content requirement[12]).

6.1 Defence Relevant market: defence goods for army, navy and air force

Dependency from public procurement: Full

Degree of openness

The defence public procurement market of Mexico is not open de jure. The Ministry of Defence is covered, but subject to security exceptions. Direct awards are possible in the defence sector.

Conclusion for the purposes of the IA: Fully closed (-1)

6.2 Aerospace

Relevant market: production of satellites, ATC equipment, and navigation systems

Dependency from public procurement: Full

ATC equipment (SENEAM - Servicios a la Navegacion en el Espacio Areo Mexicano a department under the Secretaria Transportes y Comunaciones SENEAM is not listed in the EUMEX FTA differently from overseeing body the SCT) Satellites are purchased either by the SCT under open procedures or by the UAM -Universidad Autonoma de Mexico (not covered) Degree of openness

The ATC equipment/satellites market is open de jure but the situation is unclear on whether it is open for ATC equipment purchased by UAM. Certain national protectionist measures apply such as 50% local content requirement in cases of segments not opened de jure.

Conclusion for the purposes of the IA: Unclear/Difficult to provide clear assessment (0)

6.3 Postal machinery/Airport sorting systems

Relevant market: production of postal machinery and airport sorting systems

Dependency from public procurement: High

100% for postal machinery (Servicio Postal Mexicano) High for airport sorting systems (100% for airports like Mexico that are controlled by ASA, but not for airports like Cancun that are run by concesions) Degree of openness

The market is open de jure and de facto.

Conclusion for the purposes of the IA: Fully open (1)

6.4 Fire-fighting and sea rescue equipment and transport

Relevant market: fire-fighting vehicles/aircraft and rescue helicopters purchased by fire-fighting authorities; sea rescue vessels of coast guard

Dependency from public procurement: Full

Degree of openness

This market is not open de jure. The Ministry of Defence is covered but subject to security exceptions. A number of domestic protectionist measures are applied such as a 35-50% local content requirement.

Conclusion for the purposes of the IA: Fully closed (-1)

6.5 Construction services

Relevant market: infrastructure construction (highways, mass transit, power, water and dredging) and general public works (general public buildings) - this also includes architectural and engineering services.

Dependency from public procurement: High

· 100% for infrastructure construction (highways/CAPUFE, mass transit, water and dredging )

· Airport terminals – ASA or airport concessions

· Marginal for general public works (general public buildings)

Degree of openness

Openness test

A part of the market is open de jure, while another part is not. Transport segments such as airport terminals (ASA) are opened de jure, as well as power, highway and general building construction of the federal government. On the contrary, transport, general water infrastructure and general building construction in States and dredging is not opened de jure. A priori there are no protectionist measures in the area of services. Mexico has not clarified whether concession contracts to the EU are open in the EUMXFTA - a priori they are closed de jure.

Conclusion for the purposes of the IA:

"unclear (0)

6.6 Construction materials

Relevant markets: cement, concrete, steel, glass, and stones for public works projects.

Dependency from public procurement: High

· 100% for infrastructure construction (highways/CAPUFE, mass transit, water and dredging)

· Airport terminals – ASA or airport concessions

· Marginal for general public works (general public buildings)

Degree of openness

A part of the market is open de jure, while another part is not. Transport segments such as airport terminals (ASA) are opened de jure, as well as power, highway and general building construction of the federal government. On the contrary, transport, general water infrastructure and general building construction in States and dredging is not opened de jure. In these cases local content requirements (35-50%) are applied. Also, Mexico has not clarified whether concession contracts to the EU are open in the EUMXFTA - a priori they are closed de jure.

Conclusion for the purposes of the IA:

"unclear (0)

6. 7 Railway equipment (rolling stock, including trams)

Relevant market: rolling stock for trains, urban railways, metros and tramways

Dependency from public procurement: High

· Ferrocariles de Mexico - very small

· Urban transport networks (Metro de Mexico)

Degree of openness

The market is open de jure for railways and not open de jure for urban transport. Where it is not open de jure, certain national protectionist measures apply such as a local content requirement (35%-50%).

Conclusion for the purposes of the IA:

Note: "harmed by trade barriers (-0.5)

6.8 Urban buses

Relevant market: public buses and coaches purchased by mass transit authorities

Dependency from public procurement: Partial

· 100% for public buses (Red de Transportes de Pasajeros Mexico DF)

· Private operators of buses purchase their buses in the market

Degree of openness

The market is not open de jure. Where not open de jure, certain national protectionist measures apply such as 35%-50% local content requirement.

Conclusion for the purposes of the IA: Fully closed (-1)

6.9 Power generation equipment

Relevant market: All forms of energy power generation equipment (solar panels, nuclear reactors, windmills, hydroelectric power turbines,...) purchased by utilities.

Dependency from public procurement: Full

Degree of openness: The market is open de jure and de facto.

Conclusion for the purposes of the IA: Fully open (1)

6.10 Water management/sewage

Relevant market: Goods and services relevant to all the aspects of water management, canalisation, desalination, sewage and distribution purchased by federal and local authorities.

Dependency from public procurement: Full

· 100% CONAGUA

· 100% for water supply services managed by municipalities (cities)

Degree of openness:

The market is open de jure for CONAGUA and not open de jure for cities. Where it is not open de jure, no national protectionist measures apply to services, even at the state level. Mexico has not clarified whether concession contracts to the EU are open in the EUMXFTA – a priori they are closed de jure. The market is considered open de facto.

Conclusion for the purposes of the IA: Fully open (1)

6.11 Waste management and other environmental services

Relevant market: Urban cleaning services, noise abatement, waste collection, etc...purchased by cities and urban agglomerations.

Dependency from public procurement: Full (mostly at municipal level)

· As most of the environmental services are within the remit of municipalities, the dependency rate is assumed to be 100%

Degree of openness:

The market is not open de jure for cities. Where it is not open de jure, no national protectionist measures apply to services, even at the state level. The market is considered open de facto.

Conclusion for the purposes of the IA: Open (1)

6.12 Pharmaceutical products

Relevant market: pharmaceutical products purchased by Mexican Public hospitals or health authorities.

Dependency from public procurement: Partial

· Ministry of Health – underlying organisations

· Social security (IMSS)

· There are several private hospitals

Degree of openness:

The market is open de jure and de facto.

Conclusion for the purposes of the IA: Fully open (1).

6.13 Medical equipment

Relevant market: pharmaceutical products purchased by Mexican Public hospitals or health authorities.

Dependency from public procurement: Partial

· Ministry of Health – underlying organisations

· Social security (IMSS)

· There are several private hospitals

Degree of openness:

The market is open de jure and de facto.

Conclusion for the purposes of the IA: Fully open (1).

6.14 Specialised Textiles

Relevant market: Specialised textiles for defence, fire-fighting and health

Dependency from public procurement: Partial

· 100% Military uniforms for defence

· 100% Uniforms for fire-fighting (municipalities)

· Uniforms for utilities (e.g. non-radio-active textiles,...) - KEPCO

· Bio-textiles and other health-related uniforms - Ministry of Health, Ministry of Science, Education and Research and main cities

· Overall uniforms

Degree of openness:

The market is open de jure for Ministry of health and covered cities and not open de jure for Ministry of Defence and uncovered cities. Where it is not open de jure, certain national protectionist measures can apply such as 35%-50% local content requirement.

Conclusion for the purposes of the IA: Unclear/difficult to provide clear assessment (0)

6.15 Business services (consulting, "auditing/accounting", advertising, building-cleaning and legal services)

Relevant market: Consulting services, auditing services, advertising and legal services sold government-wide.

Dependency from public procurement: Partial-low; depends on degree of specialisation of service-delivered[13]

Degree of openness:

The market is not open de jure. No de facto restrictions apply to services. It is open de facto.

Conclusion for the purposes of the IA: Fully open (1)

6.16 Financial services

Relevant market: Banking and insurance services sold government-wide. These can entail very general financial services sold government-wide to very specialised services (clearing, investment banking, portfolio management).

Dependency from public procurement: Partial-low (Both specialised and generic services are sold to both private and public sectors)

Degree of openness:

The market is not open de jure. No de facto restrictions apply to services. It is closed de facto.

Conclusion for the purposes of the IA:

"open (1)

6.17 Oil equipment

Relevant market: Equipment for oil extraction and transport.

Dependency from public procurement: Full

Degree of openness:

The market is open de jure and de facto. The restrictions under the EUMXFTA are now over.

Conclusion for the purposes of the IA: Fully open (1)

6.18 Fixed telecom equipment

Relevant market: Telecom equipment for fixed telecom operators providing universal service-like public services.

Dependency from public procurement: Full

Degree of openness:

The market is open de jure and de facto. The restrictions under the EUMXFTA are now over.

Conclusion for the purposes of the IA: Fully open (1)

6.19 Computer and IT services

Relevant market: Computer equipment and software services sold government-wide; supercomputers for hospitals, universities, research centres, infrastructure, aerospace and power generation.

Dependency from public procurement: Partial for low-margin products, High for very specific added-value products and services.

Degree of openness: for low-margin products, HIGH for very specific added-value products and services.

· Generic computers and IT services are sold to both private and public sector

· Supercomputers and specific IT applications for hospitals - Ministry of Health and cities

· Supercomputers and specific IT applications for universities – Ministry of Education and Science

· Supercomputers and specific IT applications for aerospace, infrastructure management, power generation - high dependence (e.g. CAPUFE,…)

IF NOT OPEN de jure, list of applicable "national protectionist measures":

· Local content requirement (35%-50%)

Conclusion for the purposes of the IA: Fully open (1) would depend on the assessment above

6.20 Street lightning, traffic signalling

Relevant market: lighting for streets and highways

Dependency from public procurement: Full

Degree of openness:

The market is open de jure for highways and not for cities. It is not open de jure for: transport, water supply, dredging and power. In those cases a list of applicable national protectionist measures apply such as a local content requirement (35%-50%). Mexico's concessions have not been opened to the EU.

Conclusion for the purposes of the IA: Unclear/difficult to provide clear assessment (0)

6.22 Port equipment

Relevant market: port equipment like cranes (container, general and general cranes)

Dependency from public procurement: Full[14]

Degree of openness:

The market is not open de jure. A list of applicable national protectionist measures apply such as a local content requirement (35%-50%).

Conclusion for the purposes of the IA: Fully closed (-1)

7. TURKEY

Overall situation:

Turkey applies a 15% price preference margin for all domestic tenderers offering services and works and for goods of domestic origin. Below threshold values only domestic bidders can participate. According to the EU Delegation in Anakara, these restrictions have only been applied in 23% of procedures.

The Turkish law is modelled on the EU Public Procurement directives, but has fallen short of regulating the procurement of private utilities

Main source for analysis: SIGMA Report 2009 and internal reports from the EU Delegation in Turkey domestic tenderers offering services and works and for goods of domestic origin; below threshold values only domestic bidders can participate

7.1 Defence

Relevant market: defence goods for army, navy and air force

Dependency from public procurement: Full dependency

Degree of openness

Lack of clear defense procurement framework. This market is not opened de jure. European companies have been subjected to sanctions in this area for political reasons

Conclusion for the purposes of the IA: Fully closed (-1)

7.2 Aerospace

Relevant market: production of satellites, ATC equipment, and navigation systems

Dependency from public procurement: Full dependency (although telecommunication satellites are private)

Degree of openness

This market is not opened de jure. Although there are no de jure discriminations against foreign bidders, it is subject to local preferences (up to 15%)

Conclusion for the purposes of the IA: Harmed by trade barriers - a priori closed (-0.5)

7.3 Postal machinery/airport sorting systems

Relevant market: production of postal machinery and airport sorting systems

Dependency from public procurement: Partial (airport sorting system are private)

Degree of openness

This market is not opened de jure. Although there are no de jure discriminations against foreign bidders, it is subject to local preferences (up to 15%)

Conclusion for the purposes of the IA: Harmed by trade barriers - a priori closed (-0.5)

7.4 Fire-fighting and sea rescue equipment and transport

Relevant market: fire-fighting vehicles/aircraft and rescue helicopters purchased by fire-fighting authorities

Dependency from public procurement: Full dependency

Degree of openness

This market is not opened de jure. Although there are no de jure discriminations against foreign bidders, it is subject to local preferences (up to 15%)

Conclusion for the purposes of the IA: Harmed by trade barriers - a priori closed (-0.5)

7.5 Construction services

Relevant market: infrastructure construction (highways, mass transit, power, water and dredging) and general public works (general public buildings) - this also includes architectural and engineering services.

Dependency from public procurement: Partial

· 100% for infrastructure construction (highways, mass transit, power, water and dredging)

· Marginal for general public works (general public buildings)

Degree of openness

This market is not opened de jure. Although there are no de jure discriminations against foreign bidders, it is subject to local preferences (up to 15%)

Conclusion for the purposes of the IA: Harmed by trade barriers - a priori closed (-0.5)

7.6 Construction materials

Relevant market: cement, concrete, steel, glass, and stones for public works projects.

Dependency from public procurement: Partial (same materials used for private construction)

Degree of openness

This market is not opened de jure. Although there are no de jure discriminations against foreign bidders, it is subject to local preferences (up to 15%)

Conclusion for the purposes of the IA: Harmed by trade barriers - a priori closed (-0.5)

7.7 Railway equipment (rolling stock, including trams)

Relevant market: rolling stock for trains, urban railways, metros and tramways

Dependency from public procurement: Full dependency

Degree of openness

This market is not opened de jure. Although there are no de jure discriminations against foreign bidders, it is subject to local preferences (up to 15%)

Conclusion for the purposes of the IA: Harmed by trade barriers - a priori closed (-0.5)

7.8 Urban buses

Relevant market: public buses and coaches purchased by mass transit authorities

Dependency from public procurement: High

100% for municipal buses There are some private bus operators in Turkey Degree of openness

This market is not opened de jure. Although there are no de jure discriminations against foreign bidders, it is subject to local preferences (up to 15%)

Conclusion for the purposes of the IA: Harmed by trade barriers - a priori closed (-0.5)

7.9 Power generation equipment

Relevant market: All forms of energy power generation equipment (solar panels, nuclear reactors, windmills, hydroelectric power turbines,...) purchased by utilities.

Dependency from public procurement: Partial (distribution and production is not covered by procurement rules)

Degree of openness

This market is not opened de jure. Although there are no de jure discriminations against foreign bidders, it is subject to local preferences (up to 15%)

Conclusion for the purposes of the IA: Harmed by trade barriers - a priori closed (-0.5)

7.10 Water management/sewage

Relevant market: Goods and services relevant to all the aspects of water management, canalisation, desalination, sewage and distribution purchased by federal and local authorities.

Dependency from public procurement: Full dependency

Degree of openness

This market is not opened de jure. Although there are no de jure discriminations against foreign bidders, it is subject to local preferences (up to 15%)

Conclusion for the purposes of the IA: Harmed by trade barriers - a priori closed (-0.5)

7.11 Waste management and other environmental services

Relevant market: Urban cleaning services, noise abatement, waste collection, etc... purchased by cities and urban agglomerations.

Dependency from public procurement: Full dependency

Degree of openness

This market is not opened de jure. Although there are no de jure discriminations against foreign bidders, it is subject to local preferences (up to 15%)

Conclusion for the purposes of the IA: Harmed by trade barriers - a priori closed (-0.5)

7.12 Pharmaceutical products

Relevant market: pharmaceutical products purchased by public hospitals

Dependency from public procurement: High[15]

Degree of openness

This market is not opened de jure. Although there are no de jure discriminations against foreign bidders, it is subject to local preferences (up to 15%)

Conclusion for the purposes of the IA: Harmed by trade barriers - a priori closed (-0.5)

7.13 Medical equipment

Relevant market: medical equipment products purchased by US public hospitals or health authorities. Includes laboratory research equipment and precision instruments (like cyclotrons, scanners).

Dependency from public procurement: High[16]

Degree of openness

This market is not opened de jure. Although there are no de jure discriminations against foreign bidders, it is subject to local preferences (up to 15%)

Conclusion for the purposes of the IA: Harmed by trade barriers - a priori closed (-0.5)

7.14 Specialised textiles

Relevant market: Specialised textiles for defence, fire-fighting and health

Dependency from public procurement: Partial

· 100% Military uniforms for defence (Ministry of Defence)

· 100% Uniforms for fire-fighting (Ministry of Forestry, municipalities)

· Uniforms for utilities (e.g. non-radio-active textiles,...) - public utilities

· Bio-textiles and other health-related uniforms - Ministry of Health, local hospitals

· Overall uniforms

Degree of openness

This market is not opened de jure. Although there are no de jure discriminations against foreign bidders, it is subject to local preferences (up to 15%)

Conclusion for the purposes of the IA: Harmed by trade barriers - a priori closed (-0.5)

7.15 Business services (consulting, "auditing/accounting", advertising, building-cleaning and legal services)

Relevant market: Consulting services, auditing services, advertising and legal services sold government-wide.

Dependency from public procurement: Partial (it would depend on the degree of specialisation of the service provided)

· Building-cleaning, auditing and advertising - generic services sold to private and public services; no specific dependency

· Consulting and legal services - generic services to private and public services; no specific dependency

· Consulting and legal services - specialised s