Proposal for a COUNCIL DECISION concerning the conclusion of an Agreement in the form of an exchange of letters between the European Community and the United States of America on government procurement
Date: 1994-06-16
Institutions: European Commission
Subjects: United States, agreement (EU), invitation to tender, public contract, supplies contract, works contract

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

C0M(94) 251 final 
Brussels,  16.06.1994 

94/0150  (ACC) 

Proposal  for a 

COUNCIL DEÇIglQN 

concerning the conclusion of an Agreement in the form of an exchange of letters 
between the European Community and the United States of America on 
government procurement 

(presented  by  the  Commission) 

S*Sk 

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EXPLANATORY  MEMORANDUM 

On 15 December  1993, the negotiations for a new Government Procurement Agreement 
(GPA) were successfully completed in parallel with the Uruguay Round negotiations. 
With minor modifications, the EC and US reconfirmed the coverage of central 
government procurement (Category A) in the GPA to which they had committed 
themselves last year in a Memorandum of  Understanding (MoU)1. The MoU, central 
government procurement apart, also contained a provisional, albeit incomplete, opening 
of the electrical utilities sector. However, in the December negotiations neither side was 
prepared to commit itself to open its state, regional (Category  B)  and utilities' (Category 
C) procurement to each other. Therefore, as had been agreed in the MoU, negotiations 
were to continue beyond the 15 December deadline on the basis of the outcome of a 
study. The study, financed by both sides, was to evaluate the value of the respective offers 
for a government procurement deal. It was completed in March  1994 and bilateral 
negotiations recommenced with a view to expanding coverage in the GPA. 

On 13 April  1994, agreement was reached on the following elements: 

at Category "A", reconfirmation of coverage agreed in the GPA 
negotiations of 15 December 1993. The annual value of procurement 
opportunities is estimated in the study at $50-55 Bio for each side; 

at Category "B", the US is to bind the major part of its procurement for 
37 States for goods, works and services (details in the annex to the 
agreement) in the GPA and offer National Treatment to the EC for two 
more States and 7 of the 24 largest cities. For its part the EC is to bind 
procurement of goods only at sub-central government in the GPA with 
respect to the US. The annual value of procurement opportunities is 
estimated at $21-24 Bio for each side; 

for the Electrical sector, to the goods and construction covered under 
the May 1993 MoU, to expand mutual coverage, services are added. 
Moreover the US is adding for coverage under the GPA, the New York 
Power Authority and the waiving of "Buy America" restrictions when 
financing power generation projects under the Rural Electrification 
Administration. The US is also to reduce its threshold for supplies and 
services to $250,000 . These additional guarantees, beyond the MoU of 
May 1993, give greater security to EC suppliers to the US electrical 
market. The EC would continue to disapply Art 36 of the consolidated 
Utilities Directive (93/38/EEC) for the electrical sector to the US and 
amend its offer in the GPA accordingly. The annual value of 
procurement/ purchasing in this sector is estimated at $ 25-30 Bio for 
each side; 

'OJNoL  125, 20.5.1993, p.I. 

for Category "C", other than the electrical and telecommunications 
sectors, the US is to bind into the GPA procurement of goods, works 
and services for the Port Authorities of New York and New Jersey 
(which includes three major airports) and Baltimore (which also 
includes its airport) and on a bilateral basis to grant National Treatment 
to the EC with respect to the procurement of goods, works and services 
for the Massachusetts Port Authority (which includes Boston's Logan 
airport). It should be noted that, because of the structure of sub-federal 
government in the US, the opening of procurement of Utilities sectors is 
also made possible through  the coverage  of certain entities in States or 
Cities, see above (eg, the National Treatment coverage of Chicago gives 
EC supplier access to O'Hare airport procurement). To match the value 
of US coverage dollar for dollar, the EC is to bind its goods, works and 
services procurement of ports in the GPA with respect to the US. 
However, the EC would exclude dredging services and procurement 
related to shipbuilding from the list of covered services as the US was 
unwilling to open these areas of procurement to the EC. The annual 
value of procurement opportunities in this mixed category is estimated 
at around $ 0.5-1 Bio, for each side; 

both side agreed to co-operate to improve transparency. This was a 
request from the EC with a view to making clear in relevant tender 
notices that the procurement opportunities are open to international 
bidding (currently, this is a particular problem in the US system). 

The agreement neither deals with telecommunications procurement nor "Buy America" 
restrictions beyond the Rural Electrification Agreement (see above). For these, both sides 
agreed to continue the dialogue. However, this is not specified in the agreement, no 
particular arrangements were made and no dates for meeting were  fixed. 

The agreement, itself, made in the form of  an exchange of letters, places commitments, as 
follows: 

for both sides, to amend, in accordance with the points made above, 
their respective Appendix I of the GPA as signed at Marrakesh on 15 
April  1994. The GPA is to enter into force  1  January 1996. The US is 
to waive "Buy America" on the Rural Electrification Administration 
financing before that date; 

for the US, to grant National Treatment to the EC for procurement in 
two States, 7 cities and one Port Authority; 

for both sides, to extend the MoU (see above) to cover the period from 
May 1995 to the date of entry into force of the GPA (1 January 1996); 

for both sides, to co-operate on transparency. 

The Council is invited to approve the agreement and adopt the proposal for a Decision 
concerning the conclusion of an Agreement in the form of an exchange of letters between 
the  EC  and  the  US. 

pi^ocu^^i, 

Proposal for a Council Decision 

concerning the conclusion of an Agreement in the form of an exchange of letters between 
the European Community and the United States of America on 
government  procurement 

THE  COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular 
Article 228(3) first sentence, and Article  113 thereof; 

Having regard to the recommendation from the Commission, 

Whereas the Agreement in the form of an exchange of letters negotiated between the 
European Community and the United States of America on government procurement 
should be approved, 

HAS DECIDED AS FOLLOWS: 

Article 1 

The Agreement in the form of an exchange of letters between the European Community 
and the United States of America on government procurement is hereby approved on 
behalf of the Community. 

The text of the Agreement is attached to this Decision, 

Article 2 

The President of the Council is hereby authorized to designate the person empowered to 
sign the Agreement in order to bind the Community. 

Done at Brussels, 

For the Council 

The President 

i  ifiini»»»  uni 

AGREEMENT  IN THE FORM OF AN  EXCHANGE OF  LETTERS 
ON GOVERNMENT  PROCUREMENT 

His Excellency Sir Leon Brittan 
Commissioner 
Commission  of the European Communities 
200  Rue de la Loi 
1049 Brussels,  Belgium 

Dear Mr.  Commissioner, 

With reference to the discussions held between  representatives of the 

Government of the United States of America (hereinafter the US) and the European 
Community (hereinafter the EC) regarding government procurement,  I have the 
honour to confirm  the following. 

1) The US and the EC agree to amend their respective Appendix I  of the 
Government Procurement Agreement signed at Marrakesh on April  15,  1994 as set 
out in the attachments to this letter. 

2) The US shall grant to EC suppliers of goods and services,  including 

construction  services, treatment no less favourable than for out-of-state  suppliers for 
the Massachusetts Port Authority and for the states of West Virginia,  North Dakota, 
and as regards Illinois for procurement not covered by the Government Procurement 
Agreement,  and for out-of-city  suppliers for  the cities of  Boston,  Chicago, Dallas, 
Detroit,  Indianapolis,  Nashville and San Antonio. 

3) The  US and the EC agree to co-operate  and take all  necessary  steps to 
improve substantially  the transparency of the notices of  intended procurement in 
order to ensure that contracts covered under the Government  Procurement 
Agreement can be clearly identified as such. 

4) The US and the EC agree that the Memorandum of  Understanding between 
the US and the EC on Government Procurement of 25  May  1993 will be extended 
until  the date of entry into force of the Government  Procurement Agreement signed 
at Marrakesh on  15 April  1994. 

5) The US agrees that it will  implement  its obligations  with  respect  to the Rural 

Electrification  Administration  contained  in  Annex  3 of  its Appendix  I attached 
hereto as soon as possible alter entry  into force of  this Agreement,  but no later than 
entry  into force  of the Agreement  establishing  the  World  Trade  Organization. 

1 shall  be grateful,  Mr.  Commissioner,  it  you could  kindly  confirm  that  this 
letter and  its attachments correctly  sel oui  the understanding  reached  between  us. 

I propose that,  if the EC so agrees,  this letter and  its attachments  and  your reply 

to that effect  constitute an agreement  between  the EC and  the Government  of the 
US,  which  will enter into force on the date hereof,  with  the exception  of  point 2 
above,  which  will  be effective  upon entry  into force of  the  Government 
Procurement  Agreement  signed at Marrakesh  on  15 April  1994. 

Please accept,  Mr.  Commissioner,  the assurance of  my  highest  consideration. 

Sincerely, 

Michael  Kan tor 

Attachments: Amended Annexes 2 and 3 and General Notes of  Appendix I of the 
United States. 
Amended general notes and derogations from the provisions of  Article III of 
Appendix I of the EC. 

Ambassador  Michael  Kantor 
United States Trade Representative 
Executive Office  of the President 
Washington  DC 20506 
United States 

Dear Mr.  Ambassador, 

I have the honour to acknowledge receipt of your letter of today's date,  which 

reads as follows. 

"Dear Mr.  Commissioner, 

With reference to the discussions held between representatives of the 

Government of the United States of America (hereinafter the US) and the European 
Community  (hereinafter  the EC) regarding government procurement,  I have the 
honour to confirm  the following. 

1) The US and the EC agree to amend their respective Appendix  I of  of the 
Government Procurement Agreement signed at Marrakesh on April  15,  1994 as set 
out in the attachments to this letter. 

2) The US shall grant to EC suppliers of goods and services,  including 

construction  services,  treatment no less favourable than for out-of-state  suppliers for 
the Massachusetts Port Authority and for the states of West Virginia,  North Dakota, 
and as regards Illinois for procurement not covered by the Government  Procurement 
Agreement,  and for out-of-city  suppliers for  the cities of Boston,  Chicago,  Dallas, 
Detroit,  Indianapolis,  Nashville and San  Antonio. 

3) The US and the EC agree to co-operate  and  take all  necessary  steps to 
improve substantially  the transparency of the notices of  intended  procurement  in 
order to ensure that contracts covered under the Government Procurement 
Agreement can be clearly identified as such. 

4) The  US and the EC agree that the Memorandum of  Understanding between 
the US and the EC on Government Procurement of 25 May  1993 will  be extended 
until the date of entry into force of the Government  Procurement  Agreement signed 
at Marrakesh on  15 April  1994. 

5) The  US agrees that it will  implement  its obligations  with  respect  to the 
Rural  Electrification  Administration  contained  in Annex  3 of  its  Appendix  1  attached 
hereto as soon as possible after  entry  into force of  this Agreement,  but  no later than 
çnlry  into  force  of  the Agreement establishing  the  World Trade  Organization. 

1 shall  be grateful,  Mr.  Commissioner,  it  you  could  kindly  confirm  that  this 
letter and  its attachments  correctly  set out  the understanding  reached  between  us. 

I propose that,  if the EC so agrees,  this letter and its attachments and 

your reply to that effect  constitute an agreement  between the EC and the 
Government of the US,  which will enter into force on the date hereof,  with the 
exception of point 2 above,  which will be effective  upon entry into force of the 
Government  Procurement  Agreement signed at Marrakesh on  15 April  1994. 

Please accept,  Mr. Commissioner,  the assurance of  my highest consideration. 

Sincerely, 

M.  Kan tor 

Attachments: Amended Annexes 2 and 3 and General  Notes of  Appendix  I of the 
United States. 
Amended general  notes and derogations from the provisions of  Article III of 
Appendix I of the EC." 

I have the honour to confirm  that the EC agrees to the common understanding 

set out in your letter and its attachments and that your letter, this reply and the 
attachments shall constitute an agreement between the EC and the Government of 
the US. 

Please accept,  Mr.  Ambassador,  the assurance of  my highest consideration. 

Sincerely 

Leon Brittan 

AMENDED  ANNEXES 2 AND 3 AND GENERAL  NOTES OF APPENDIX  I 
OF THE  UNITED  STATES 

Sub-Central Government Entities which Procure in Accordance 
With the Provisions of this Agreement 

ANNEX  2 

Thresholds 

355,000 SDRs for supplies and services 
5 million SDRs for construction 

List of Entities 

Arizona 

Executive branch agencies 

Arkansas 

Executive branch agencies, including universities but excluding 
the Office of Fish and Game and construction services 

California 

Executive branch agencies 

Colorado 

Executive branch agencies 

Connecticut 

Department of Administrative Services 
Connecticut Department of Transportation 
Connecticut Department of Public Works 
Constituent Units of Higher Education 

Delaware* 

Administrative Services  (Central Procurement Agency) 
ftate Universities 
State Colleges 

Florida* 

Executive branch agencies 

6. 

Hawaii 

Department of Accounting and General Services  (with the exception 
of procurements of software developed in the state and 
construction) 

-.*. 

Idaho 

Central Procurement Agency (including all colleges and 
universities subject to central purchasing oversight) 

Illinois* 

Department of Central Management Services 

Iowa* 

Department of General Services 
Department of Transportation 
Board of Regents' Institutions  (universities) 

Kansas 

Executive branch agencies, excluding construction services, 
automobiles and aircraft 

Kentucky 

Division of Purchases, Finance and Administration Cabinet, 
excluding construction projects 

Louisiana 

Executive branch agencies 

Maine* 

Department of Administrative and Financial Services 
Bureau of General Services  (covering state government agencies 

and school construction) 

Maine Department of Transportation 

Maryland* 

Office of the Treasury 
Department of the Environment 
Department of General Services 
Department of Housing and Community Development 
Department of Human Resources 
Department of Licensing and Regulation 
Department of Natural Resources 
Department of Public Safety and Correctional Services 
Department of Personnel 
Department of Transportation 

Massachusetts 

Executive 
Executive 
Executive 
Executive 
Executive 
Executive 
Executive 
Executive 
Executive 
Executive 
Executive 

Office 
Office 
Office 
Office 
Office 
Office 
Office 
Office 
Office 
Office 
Office 

for Administration and Finance 
of Communities and Development 
of Consumer Affairs 
of Economic Affairs 
of Education 
of Elder Affairs 
of Environmental Affairs 
of Health and Human Service 
of Labor 
of Public Safety 
of Transportation and Construction 

Michigan* 

Department of Management and Budget 

Minnesota 

Executive branch agencies 

Mississippi 

Department of Finance and Administration  (does not include 

services) 

Missouri 

Office of Administration 
Division of Purchasing and Materials Management 

Montana 

Executive  branch  agencies  (only  for  services  and  construction) 

New  York* 

State agencies 
State university system 
Public authorities and public benefit corporations, with the 
exception of those entities with multi-state mandates 

In addition to the exceptions noted at the end of this annex, 
transit cars, buses and related equipment are not covered. 

Nebraska 

Central Procurement Agency 

New Hampshire* 

Central Procurement Agency 

Oklahoma* 

Office  of  Public  Affairs  and  a ll  s t a te  agencies  and  departments 
subject  to  the  Oklahoma  Central  Purchasing  Act,  excluding 
construction  s e r v i c e s. 

Oregon 

Department of Administrative Services 

Pennsylvania* 

Executive branch agencies, including: 

Governor's Office 
Department of the Auditor General 
Treasury Department 
Department of Agriculture 
Department of Banking 
Pennsylvania Securities Commission 
Department of Health 
Department of Transportation 
Insurance Department 
Department of Aging 

Department of Correction 
Department of Labor and Industry 
Department of Military Affairs 
Office of Attorney General 
Department of General Services 
Department of Education 
Public Utility Commission 
Department of Revenue 
Department of State 
Pennsylvania State Police 
Department of Public Welfare 
Fish Commission 
Game Commission 
Department of Commerce 
Board of Probation and Parole 
Liquor Control Board 
Milk Marketing Board 
Lieutenant Governor's Office 
Department of Community Affairs 
Pennsylvania Historical and Museum Commission 
Pennsylvania Emergency Management Agency 
State Civil Service Commission 
Pennsylvania Public Television Network 
Department of Environmental Resources 
State Tax Equalization Board 
Department of Public Welfare 
State Employees' Retirement System 
Pennsylvania Municipal Retirement Board 
Public School Employees' Retirement System 
Pennsylvania Crime Commission 
Executive Offices 

Rhode Island 

Executive branch agencies, excluding boats, automobiles, buses 
and related equipment 

South Dakota 

Central Procuring Agency  (including universities and penal 
institutions) 

In addition to the exceptions noted at the end of this annex, 
procurements of beef are not covered. 

Tennessee 

Executive  branch  agencies  (excluding  services  and  construction] 

10 

Texas 

General Services Commission 

Utah 

Executive branch agencies 

Vermont 

Executive branch agencies 

Washington 

Washington State executive branch agencies, including: 

General Administration 
Department of Transportation 
State Universities 

In addition to the exceptions noted at the end of this annex, 
procurements of fuel, paper products, boats, ships and vessels 
are not covered. 

Wisconsin 

Executive branch agencies, including: 

Department of Administration 
State Correctional Institutions 
Department of Development 
Educational Communications Board 
Department of Employment Relations 
State Historical Society 
Department of Health and Social Services 
Insurance Commissioner 
Department of Justice 
Lottery Board 
Department of Natural Resources 
Adminstration for Public Instruction 
Racing Board 
Department of Revenue 
State Fair Park Board 
Department of Transportation 
State University System 

11 

Wyoming* 

Procurement Services Division 
Wyoming Department of Transportation 
University of Wyoming 

Notes to Annex 2 

In addition to the conditions specified in the General Notes, the 
following conditions apply: 

1.  For those states marked by an asterisk with pre-existing 
restrictions, the Agreement does not apply to procurement of 
construction-grade steel  (including requirements on 
subcontracts), motor vehicles and coal. 

2.  The Agreement shall not apply to preferences or restrictions 
associated with programs promoting the development of distressed 
areas and businesses owned by minorities, disabled veterans and 
women are reserved from coverage. 

3.  Nothing in this annex shall be construed to prevent any 
state entity from applying restrictions that promote the general 
environmental quality in that state, as long as such restrictions 
are not disguised barriers to international trade. 

4.  The Agreement shall not apply to any procurement made by a 
covered entity on behalf of non-covered entities at a different 
level of government. 

5.  The Agreement shall not apply to restrictions attached to 
Federal funds for mass transit and highway projects. 

12 

ANNEX 3 

All Other Entities which Procure  in Accordance 
With the Provisions of this Agreement 

Threshold: 

400,000 SDRs. for supplies and  services  (except as 
specified below) 
S mi I I lull H D KN  fui  1'niitfl i m M inn 

U.sç Qf Entities 

The following  entities  at the SDR equivalent  of  $250,000  for 
supplies and services.-

Tennessee Valley  Authority 
Power Marketing Administrations  of the Department of  Energy 

--Bonneville  Power Administration 
--Western Area  Power Administration 
--Southeastern  Power Administration 
--Southwestern  Power Administration 
--Alaska Power Administration 

St. Lawrence Seaway Development  Corporation 

The following entities  at 400,000 SDRs for supplies  and services: 

The Port Authority  of New York and New Jersey with the  following 
exceptions: 

--Maintenance, repair and operating materials and  supplies 
(e.g., hardware, tools, lamps/lighting, plumbing). 

--In exceptional  cases, individual procurements may  require 
certain regional production of goods  if authorized  by the 
Board  of Directors. 

--Procurements pursuant  to multi-jurisdictional  agreement 
(i.e., for contracts which have initially been awarded by 
other jurisdictions). 

The Port of Baltimore  (subject to the conditions  specified  for 

the state of Maryland  in Annex 2) 

The New York Power Authority  (subject to the conditions  specified 

for the state of New York in Annex 2) 

Rural Electrification Administration  Financing: 

(1)  waiver of Buy American restrictions  on financing  for 
all power generation projects  (restrictions  on 

13 

financing for telecommunication projects are excluded 
from the Agreement); 

(2)  application of Code-equivalent procurement procedures 

and national treatment to funded projects exceeding the 
thresholds specified above. 

Notes to Annex 3 

1.  With respect to these entities, the Agreement shall not 
apply to restrictions attached to Federal funds for airport 
projects. 

2.  The conditions specified in the General Notes apply to this 
Annex. 

H 

General Notes 

1.  Notwithstanding the above, this Agreement will not apply to 
set asides on behalf of small and minority businesses. 

2.  Except as specified otherwise in this Appendix, procurement 

in terms of U.S. coverage does not include non-contractual 
agreements or any form of government assistance, including 
cooperative agreements, grants, loans, equity infusions, 
guarantees, fiscal incentives, and governmental provision of 
goods and services to persons or governmental authorities 
not specifically covered under U.S. annexes to this 
agreement. 

3.  Procurement does not include the acquisition of fiscal 

agency or depository services, liquidation and management 
services for regulated financial institutions, and sale and 
distribution services for government debt. 

4.  Where a contract to be awarded by an entity is not covered 

by this Agreement, this Agreement shall not be construed to 
cover any good or service component of that contract. 

5.  For goods and services  (including construction) of the 
following countries and suppliers of such goods and 
services, this Agreement does not apply to procurement by 
the entities listed in Annexes 2 and 3 or the waiver 
described in Annex 3 : 

Canada 
Austria 
Switzerland 
Norway 
Sweden 
Finland 
Japan 

The United States is prepared to amend this note at such 
time as coverage with respect to these annexes can be 
resolved with a Party listed above. 

6.  For construction services of the Republic of Korea and 

suppliers of such services, this Agreement applies only to 
procurement of the entities listed in Annexes 2 and 3 above 
a threshold of 15 million SDRs. 

7.  For goods and services  (including construction) of Japan and 
suppliers of such goods and services, this Agreement does 
not apply to procurement by the National Aeronautics and 
Soace Administration. 

A.service listed in Annex 4 is covered with respect to a 
particular Party only to the extent that such Party has 
included that service in its Annex 4. 

15 

1 6. 

AMENDED  GENERAL  NOTES  AND  DEROGATIONS  FROM  THE  PROVISIONS 
OF ARTICLE  III  OF APPENDIX  I OF  THE  EC 

General  notes and derogations  from  the provisions of Article III 

1. 

The EC will not extend the benefits  of this Agreement: 

as  regards  the award  of contracts  by  entities  listed  in Annex  2 to the  suppliers 
and  service providers of Canada; 

as  regards  the award  of contracts,  other  than  for  supplies,  listed  in  Annex  2  to 
the suppliers and service providers of the USA; 

as regards the award  of contracts by entities  listed  in Annex 3 paragraph 

(a) (water), to the suppliers and service providers of Canada and the USA; 

(b) (electricity), to the suppliers and service providers  of Canada,  Hong  Kong, 
and  Japan; 

(c) (airports), to the suppliers and  service providers  of Canada,  Korea and  the 
USA; 

(d) (ports), to the suppliers and service providers of Canada; 

(e) (urban  transport), to the suppliers and service providers  of Canada.  Israel. 
Japan. Korea and  the USA 

until  such time as  the EC has accepted  that  the Parties  concerned  give comparable 
and effective  access  for  EC undertakings to the relevant markets; 

to  sen-ice  providers  of  Parties  which  do  not  include  service  contracts  for  the 
relevant  entities  in  Annexes  1  to  3  and  the  relevant  service  category  under 
Annexes 4 and  5 in their own coverage . 

2. The provisions of Article XX shall  not apply to suppliers and service  providers  of: 

-Israel.  Japan.  Korea  and  Switzerland  in  contesting  the  award  of  contracts  by 
entities  listed  under  Annex  2  paragraph  2.  until  such  time  as  the  EC  accepts  that 
thjv  have completed  coverage of sub-central entities; 

-Japan.  Korea  and  the  USA  in  contesting  the  award  of  contracts  to  a  supplier  or 
service provider  of Parties  other than  those mentioned,  which  are small or  medium 
sized  enterprises  under  the  relevant  provisions  of  EC  law.  until  such  time  as  the 
EC  accepts  that  they  no  longer  operate  discriminatory  measures  in  favour  of 
certain domestic small  and minority businesses: 

-Israel. Japan, and  Korea  in contesting the award of contracts  by  EC entities, whose 
value  is less than  the threshold  applied  for  the same category  of contracts  awarded 
by these Parties. 

3.  Until  such  time as  the  EC  has  accepted  that  the  Parties  concerned  provide access  for  EC 
suppliers  and  service  providers  to their  own  markets,  the  EC  will  not  extend  the  benefits 
of this Agreement  to suppliers  and service providers  of: 

Canada,  as  regards  procurement  of  FSC  36,  70  and  74  (special  industry 
machiner)-;  general  purpose  automatic  data  processing  equipment,  software, 
supplies  and  support  equipment  (except  7010  ADPE  configurations);  office 
machines,  visible  record equipment and  ADP equipment); 

1 7. 

Canada,  as  regards  procurement  of  FSG  58  (communications,  protection  and 
coherent  radiation  equipment)  and  the  USA  as  regards  air  traffic  control 
equipment; 

Korea  and  Israel  as  regards  procurement  by  entities  listed  in  Annex  3 
paragraph  (b), as  regards procurement  of HS  Nos  8504,  8535, 8537  and  8544 
(electrical  transformers,  plugs,  switches  and  insulated  cables);  and  for  Israel, 
HS Nos  8501, 8536 and 902830; 

the USA, as regards procurement  by entities  listed  in Annex  3 paragraph  (d), 
as regards  procurement  of dredging services and procurement  related to 
shipbuilding; 

Canada  and the USA as regards contracts  for good or service components of 
contracts which, although  awarded by an entity covered  by  this  Agreement,  are 
not themselves subject  to this  Agreement. 

/ 

4. 

The Agreement shall not apply to contracts awarded  under: 

an  international  agreement and intended for  the joint  implementation  or exploitation  of 
a  project by the signatory States; 

an  international  agreement  relating to the stationing of troops; 

the particular  procedure of an international  organisation. 

5.  The  Agreement  shall  not  apply  to  procurement  of  agricultural  products  made  in 

furtherance  of agricultural  support  programmes and  human  feeding  programmes. 

6.  Contracts  awarded  by  entities  in  Annexes  I  and  2  in  connection  with  activities  in  the 
fields  of drinking water, energy, transport or telecommunications, arc not  included. 

7.  This Agreement shall not apply to contracts awarded by entities  in Annex 3: 

-  for  the  purchase  of water  and  for  the  supply  of  energy  or  of  fuels  fox  the  production  of 

energy; 

- for purposes other than the pursuit  of their activities as described  in this  Annex or  for  the 

pursuit of such activities  in a non-member country. 

-  for  purposes  of  re-sale or hire to third  parties,  provided  that  the contracting  entity  enjoys 
no special  or exclusive  right  to sell or hire the subject  of such  contracts  and  other  entities 
are free to sell or hire it under the same conditions as the contracting  entity. 

8. 

This Agreement shall  not be applicable  to contracts: 

- for the acquisition  or rental of land, existing buildings, or other  immovable property 
or concerning  rights thereon; 

-  for  the  acquisition,  development,  production  or  co-production  of  programme 
material  by broadcasters and contracts  for  broadcasting time. 

9. 

This  Agreement  shall  not  be  applicable  to  the  award  of  service  contracts  by  Spanish 
entities  listed  in Annex  3 before  I January  1997 or to the award  of contracts  by Greek or 
Portuguese entities  listed in Annex 3 before  I January  1998. 

ISSN 0254-1475 

COM(94) 251 final 

DOCUMENTS 

EN 

11 08  02 

Catalogue number : CB-CO-94-266-EN-C 

ISBN 92-77-70369-5 

Offîce for Official Publications of the European Communities 

Lr2985 Luxembourg 

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