GPA/82
Page 1

World Trade
Organization
GPA/82
26 November 2004
(04-5160)
Committee on Government Procurement

report (JULY2003 – NOVEMBER2004) of the

Committee on Government Procurement

I.GENERAL

  1. This Report covers the period since the Committee's previous Annual Report (GPA/75), that is July2003–November2004. It is issued pursuant to ArticleXXIV:7(a) of the Agreement on Government Procurement.
  2. Since the last Annual Report, the Committee has held four formal meetings – on 22August2003 and on 23April, 16July and 17November2004 (GPA/M/21-24). The first of these meetings was chaired by Mr.Jan-PeterMout (theNetherlands), and the subsequent meetings by Mr.NiklasBergström (Sweden).
  3. The Committee has also held a series of informal meetings, pursuing negotiations under Article XXIV:7 of the Agreement on Government Procurement, inAugust and November2003 and in February, April, June, OctoberandNovember2004.
  4. The following WTO Members are covered by the Agreement: Canada; the European Communities, including its 15 member States as well as, since 1May2004, its 10 new member States; HongKong,China; Iceland; Israel; Japan; Korea; Liechtenstein; the Kingdom of the Netherlands with respect to Aruba; Norway; Singapore; Switzerland; and the UnitedStates.
  5. Twenty WTO Members have observer status in the Committee on Government Procurement: Albania, Argentina, Armenia, Australia, Bulgaria, Cameroon, Chile, China, Colombia, Croatia, Georgia, Jordan, theKyrgyzRepublic, Moldova, Mongolia, Oman, Panama, SriLanka, ChineseTaipei and Turkey. Requests for observer status by Sri Lanka (GPA/W/292, dated 6April2004) and Armenia (GPA/W/293, dated 18June2004) were approved by the Committee at its meetings of 23April (GPA/M/22, para.3) and 16July2004(GPA/M/23, paras.7-10), respectively. Three intergovernmental organizations, IMF, OECD and UNCTAD, also have observer status.

II.Implementation of the Agreement

A.Thresholds

  1. In accordance with the Decision on Modalities for Notifying Threshold Figures in National Currencies (GPA/1, Annex 3), Korea notified its threshold figures expressed in national currencies for 2003-2004 (GPA/W/251), and Switzerland notified its threshold figures expressed in national currencies for 2004 (GPA/W/285/Add.7). Further, the following Parties have provided information on their threshold figures expressed in national currencies for 2004-2005: Canada; the European Communities; Hong Kong, China; Israel; Japan; Korea; the Kingdom of the Netherlands with respect to Aruba; Norway; Singapore; Switzerland; and the United States (GPA/W/285, GPA/W/285/Add.1-6 and GPA/W/285/Add.8-9).

B.Notification and review of national implementing legislation

  1. In accordance with the Decision on Procedures for the Notification of National Implementing Legislation (GPA/1/Add.1), Hong Kong, China (GPA/27/Add.1, dated 20August2003) and Japan(GPA/37/Add.1, dated 7April2004) have notified a change in their respective national implementing legislation. The Committee addressed those notifications at its meetings of 22August2003 (GPA/M/21, para.62) and 23April2004, (GPA/M/22, paras.61-62), respectively.
  2. As regards the Kingdom of the Netherlands with respect to Aruba, at the meeting of 22August2003, the Committee was informed that there were no new developments concerning the eventual submission of implementing legislation (GPA/M/21, para.61). At the meeting of 23April2004, the Kingdom of the Netherlands with respect to Aruba said that the Government of Arubahad originally intended to introduce new implementing legislation and to subsequently answer the questions in GPA/1/Add.1 on the basis of such newly introduced legislation (GPA/M/22, paras.63-64).

C.Statistical Reporting

  1. Article XIX:5 of the Agreement on Government Procurement requires Parties to collect and provide, on an annual basis, statistics on their procurements covered by the Agreement. During the period under review, Hong Kong, China has reported statistics for 2002 (GPA/76, dated 30September2003) and for 2003 (GPA/80, dated 20September2004), and Korea has reported statistics for 2002 (GPA/76/Add.1, dated 7January2004).

D.Consultations and dispute settlement

  1. There were no matters raised under ArticleXXII of the Agreement on Government Procurement during the reporting period.

E.Procedural matters

  1. In accordance with the revised Decision on Procedures for the Circulation and Derestriction of Documents of the Committee on Government Procurement (GPA/72, dated 23October2002), Parties agreed to the derestriction of the documents listed in document GPA/77 (dated 29January2004).

III.Modifications to the Appendices to the Agreement

A.Enlargement of the European Communities

  1. The coverage of the Agreement on Government Procurement has been extended to the ten new member States of the European Communities (Estonia, Cyprus, the Czech Republic, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia) as of 1May2004, the date of their accession to the European Communities. In line with the Decision made by the Committee (GPA/78, dated 4May2004) at its meeting of 23April2004 (GPA/M/22, paras.14-28), the modification to AppendicesI-IV of the European Communities (GPA/MOD/EEC/1 and Add.1) took effect as of 1May2004 (WT/Let/472). As a consequence, four of the ten new member States of the European Communities (Estonia, Latvia, Lithuania and Slovenia) that had submitted applications for accession (GPA/41, GPA/SPEC/5, GPA/66 and GPA/56, respectively) and had ongoing accession processes before 1May2004, have withdrawn their applications for accession (GPA/41/Rev.1, GPA/SPEC/5/Rev.2, GPA/66/Rev.1 and GPA/56/Rev.1, respectively).

B.Other modifications

  1. Since the last annual report, the following additional modifications to Parties' respective Appendices became effective:

(a)modification by Canada (GPA/W/203), effective as of 9December 2003 (WT/Let/454);

(b)modifications by Hong Kong, China:

(i)notification GPA/269, effective as of 6August2003 (WT/Let/453);

(ii)notification GPA/MOD/HKG/1, effective as of 5August2004 (WT/Let/476);

(c)modifications by Japan:

(i)notification GPA/W/255, effective as of 14October2003 (WT/Let/452/Rev.1);

(ii)notification GPA/W/273 as well as, although only with respect to National Consumer Information Center of Japan, notification GPA/W/274, effective as of 29January2004 (WT/Let/469);

(iii)notification GPA/MOD/JPN/1, effective as of 4March2004 (WT/Let/463);

(iv)notification GPA/MOD/JPN/2, effective as of 14April2004 (WT/Let/470);

(v)notification GPA/MOD/JPN/3, effective as of 16April2004 (WT/Let/471);

(vi)notification GPA/MOD/JPN/4, effective as of 7May2004 (WT/Let/473);

(vii)notification GPA/MOD/JPN/5, effective as of 20May2004 (WT/Let/475);

(viii)notifications GPA/MOD/JPN/8 and GPA/MOD/JPN/9, effective as of 17September2004 (WT/Let/478);

(ix)notification GPA/MOD/JPN/11, effective as of 17October2004 (WT/Let/483)[*];

(x)notification GPA/MOD/JPN/15, effective as of 20October2004 (WT/Let/484)*;

(d)modifications by Korea:

(i)notification GPA/W/250, as regards Korea Tobacco & Ginseng Corporation and Daehan Printing and Publishing Co. Ltd, as well as notification GPA/MOD/KOR/1, effective as of 6October2004 (WT/Let/481/Rev.1);

(ii)notification GPA/W/284, effective as of 12December2003 (WT/Let/455);

(e)modifications by the United States:

(i)notification GPA/W/153, as regards all relevant entities, except for the Uranium Enrichment Corporation, effective as of 1October2004 (WT/Let/482/Rev.1); and

(ii)notification GPA/MOD/USA/1, effective as of 14February2004 (WT/Let/457).

  1. The following proposed modifications are outstanding:

(a)proposed modifications by Japan relating to:

(i)NTT(GPA/W/91, dated 6September1999)

No developments in the period under review.

(ii)East Japan Railway Company, Central Japan Railway Company and West Japan Railway Company (GPA/W/144,145and146, dated 29August2001, and GPA/W/152Corr.1, dated 20September and 10October2001)

In October 2003 the European Communities submitted additional questions (GPA/W/271andCorr.1), which Japan responded to in June2004 (GPA/MOD/JPN/6).

(iii)Railway Construction Public Corporation and Corporation for Advanced Transport and Technology (GPA/W/272andRev.1, dated 23September and 8October2003, respectively)

In October 2003 the European Communities placed an objection to the proposed deletion of both entities (GPA/W/279 and Corr.1) and raised questions thereon subsequently (GPA/W/291). The United States did not object to the deletion of Japan Railway Construction Public Corporation but it objected to the deletion of the Corporation for Advanced Transport and Technology and asked questions in that regard (GPA/W/280).

(iv)Japan Consumer Information Center, Water Resources Development Public Corporation, Japan Green Resources Corporation, the Japan Science and Technology Corporation, RIKEN (The Institute of Physical and Chemical Research), National Stadium and School Health Center of Japan, the Association for Welfare of the Mentally and Physically Handicapped, and National Agriculture Research Organization (GPA/W/274, dated 23September2003)

In October2003 the European Communities placed an objection to all proposed modifications (GPA/W/279andCorr.1). After further study, the European Communities did not object to the deletion of the JapanConsumerInformationCenter, but put questions to Japan in respect of the other entities (GPA/W/291). The United States also did not object to the deletion of the Japan Consumer Information Center, it was silent on the proposed modification concerning the National Agriculture Research Organization; however, it objected to the proposed withdrawal of the other entities and posed questions thereon (GPA/W/280). Accordingly, the modification concerning JapanConsumerInformationCenter was certified as of 29January2004 (WT/Let/469, dated 11May2004).

As to the other entities, Japan responded to the questions by the European Communities and the United States in September 2004 (GPA/MOD/JPN/13).

(v)National Aerospace Laboratory (GPA/W/275, dated 23September2003)

In October2003 the European Communities objected to the proposed deletion (GPA/W/279 and Corr.1) and asked questions thereon (GPA/W/291). The United States also placed an objection and posed questions (GPA/W/280).

(vi)Social Welfare and Medical Service Corporation and Japan Institute of Labour (GPA/W/276, dated 8October2003)

In November2003 the European Communities objected to the proposed modification (GPA/W/282) and later posed questions (GPA/W/291), number 9 and 10 of which Japan answered in September2004 (GPA/MOD/JPN/12).

(vii)Annex 3 of Japan's AppendixI (GPA/MOD/JPN/7, dated26July2004)

In August2004 the European Communities objected to this proposed modification and posed questions thereon (GPA/MOD/JPN/10), which Japan responded to in September2004 (GPA/MOD/JPN/14).

(viii)NationalCenter for Industrial Property Information and Training (GPA/MOD/JPN/16, dated 10November2004)

(b)proposed modification by Korea relating to Korea Telecom (GPA/W/207, dated 11September2002):

The European Communities withdrew its objection to this proposed modification (GPA/W/214) in October2003 (GPA/W/278 and Corr.1). In June2004 the United States also withdrew (GPA/MOD/KOR/3) its objection (GPA/W/210). The objection by Canada (GPA/W/217) remains valid.

(c)Notification by the United States concerning proposed modifications to reflect changes in the administrative structure of the Federal Government (GPA/W/153, dated 25September2001), as regards the Uranium Enrichment Corporation:

Canada withdrew its objection (GPA/W/167) to this proposed modification with regard to all entities concerned (GPA/MOD/USA/2). However, at the Committee meeting of 23April2004, the European Communities withdrew its objection (GPA/W/163) only concerning the entities in that notification other than the Uranium Enrichment Corporation (GPA/M/22, para.40), and on 1October 2004 Japan withdrew its objection (GPA/W/162) only concerning the entities in that notification other than the Uranium Enrichment Corporation (GPA/MOD/USA/3). Accordingly, the proposed modifications have been certified only concerning the entities in that notification other than the Uranium Enrichment Corporation (WT/Let/482), while the objections by the European Communities and Japan concerning the Uranium Enrichment Corporation remain valid.

15.With respect to items (a)(i) and (ii) of the preceding paragraph, Japan submitted to the Committee's November2004 meeting a document relating to its pending notifications pursuant toArticleXXIV:6(b) of the Agreement on Government Procurement (GPA/MOD/JPN/17, dated 15November2004). This document was the subject of an exchange of views at that meeting.

16.At the formal meeting of 17November2004, Israel raised the issue of its commitment in relation to offsets. During the discussion, Israel announced its intention to formally notify a proposed modification to the relevant Note to its AppendixI pursuant to ArticleXXIV:6(a) of the Agreement on Government Procurement. The Committee agreed to hold a meeting on 16December2004 to address that notification.

IV.Accessions

17.Nine WTO Members are in the process of acceding to the Agreement on Government Procurement: Albania, Bulgaria, Georgia, Jordan, theKyrgyzRepublic, Moldova, Oman, Panama and ChineseTaipei. A further five WTO Members have provisions in their respective Protocols of Accession to the WTO regarding accession to the Agreement on Government Procurement: Armenia, China, Croatia, the Former Yugoslav Republic of Macedonia, and Mongolia.

18.The following developments have taken place with regard to accessions:

(a)Georgiasubmitted its entity offer in December2003 (GPA/SPEC/34), and in June 2004 it responded (GPA/ACC/GEO/3) to questions from the European Communities (GPA/W/232) and Japan (GPA/ACC/GEO/1) as well as to comments from Hong Kong, China on Georgia's entity offer (GPA/W/290). Hong Kong, China replied to this response in June2004 (GPA/ACC/GEO/4). In April2004 Korea submitted questions and comments regarding Georgia's entity offer (GPA/ACC/GEO/2, dated 21April2004), and the United States also posed questions regarding Georgia's entity offer in September2004 (GPA/ACC/GEO/5). In November2004 Japan submitted responses (GPA/ACC/GEO/6) to Georgia's replies in document GPA/ACC/GEO/3. At the meeting of the Committee on Government Procurement on 17November2004 the Committee agreed that the Chairman would consult with Parties about the possibility of holding plurilateral consultations on Georgia's accession process back to back with the first meeting of the Committee in 2005, scheduled for the week of 14March2005.

(b)Jordan submitted its original entity offer in February2003 (GPA/SPEC/29). The United States submitted a first set of questions thereon (GPA/SPEC/30), to which Jordan responded in August2003 (GPA/SPEC/31). Additional questions on Jordan's original entity offer were received from Canada (GPA/ACC/JOR/2, dated 16April2004), the European Communities (GPA/SPEC/32, dated 27August2003 and GPA/SPEC/32/Corr.1, dated 29October2003) and the United States (GPA/SPEC/33, dated 22October2003). Jordan responded to those additional questions in documents GPA/ACC/JOR/3 (dated 12August2004), GPA/ACC/JOR/1 (dated 3March2004) and GPA/W/289 (dated 8January 2004), respectively.

Two rounds of informal plurilateral consultations between Parties and Jordan took place on 23April and 7October2004. The consultations in October2004 addressed Jordan's revised entity offer (GPA/ACC/JOR/4, dated 30September2004). Jordan informed Parties that its new comprehensive legislation was expected to be finalized by the end of 2004 and would hopefully pass the legislative process by summer2005. It was agreed that Parties should submit their comments on Jordan's revised offer by 15December2004 through the Secretariat. In turn, Jordan agreed to prepare a further revised offer by 15February2005. This would allow holding another round of plurilateral consultations at the first Committee meeting in 2005.

For further details on Jordan's accession process, reference is made to the minutes of the meetings of the Committee on 22August2003 (GPA/M/21, paras.37-45) and on 23April2004 (GPA/M/22, paras.50-56 and AnnexB).

(c)With respect to the accession of Chinese Taipei, all bilateral consultations have been successfully concluded with interested delegations on the substantive issues. However, the issue of nomenclatures remains outstanding. For further details of efforts to resolve that issue, reference is made to the minutes of the meetings of the Committee on 22August2003 (GPA/M/21, paras.46-59) and on 23April2004 (GPA/M/22, paras.57-60); and

(d)Based on the commitment made in its Protocols of Accession to the WTO (WT/ACC/ARM/23, paragraph 153), Armenia submitted a request for observer status in the Committee on Government Procurement (GPA/W/293, dated 18June2004), which the Committee approved at its meeting of 16July2004(GPA/M/23, paras.7-10).

19.No developments have been reported in relation to the respective accessions of Albania, Bulgaria, China, Croatia, the KyrgyzRepublic, the former Yugoslav Republic of Macedonia, Moldova, Mongolia, Oman andPanama.

20.With regard to work pertaining to streamlining the accession process, at its meeting of February 2003 the Committee agreed to take up this issue within the wider context of its work on the revision of the Agreement. Further information on how this issue was addressed in the period under review is available in the minutes of the Committee meeting of 22August2003 (GPA/M/21, paras.31-35) and 23April2004 (GPA/M/22, paras.4-13), as well as in the versions of the revised texts of the Agreement as at the end of the various informal meetings held by the Committee during the period under review in accordance with Article XXIV:7 of the Agreement on Government Procurement.

V.Negotiations

21.Article XXIV:7(b) and (c) of the Agreement calls on the Parties, not later than the end of the third year from the date of its entry into force, to undertake further negotiations, with a view to improving the Agreement and achieving the greatest possible extension of its coverage among all Parties and eliminating any remaining discriminatory measures and practices. During the period under review, Parties pursued their negotiations at informal meetingsinAugustandNovember2003, and in February, April, June, OctoberandNovember2004.

22.This work focused primarily on simplification and improvement of the non-market-access-related provisions in the text of the Agreement, on the basis of proposals made by delegations. Since the meeting of June 2003, proposals have been consolidated after each meeting into a single revised draft text, which formed the basis of the drafting work at the subsequent meeting. The discussions at the meetings usually addressed all provisions of the revised draft text, with special attention to certain issues, such as developing countries, electronic tendering, conditions for participation, notices of intended procurement, dispute settlement and modifications and rectifications to Parties' Appendices to the Agreement.

23.As regards the work pertaining to elements 2 and 3 of the work programme, namely the extension of coverage and the elimination of discriminatory measures and practices, at its formal meeting of 16July 2004 the Committee adopted a Decision on negotiating modalities (GPA/79, dated 19July2004, copy attached), taking into account earlier submissions and discussions on elements 2and 3 of the work programme. In accordance with such modalities, Parties shall table in writing their initial requests by 30November2004, and their initial offers by 1March2005, but not later than 1May2005. Parties also agreed that the Committee as a whole will address the provisions in the draft revised text of the Agreement referred to as "market access issues", as well as issues relating to the presentation and structure of the appendices to the Agreement. One submission has been made in this connection (JobNo.5582, dated 26August2004), which was discussed at the informal sessions of 8October and 17November2004.

ATTACHMENT

World Trade
Organization
GPA/79
19July 2004
(04-3073)
Committee on Government Procurement

Modalities for the negotiations on extension of coverage and elimination of discriminatory measures and practices

Decision of 16 July 2004

The Committee agrees on the following modalities for the negotiations on the extension of coverage and elimination of discriminatory measures and practices:

Objectives

In accordance with Article XXIV:7(b) and (c), the negotiations on these matters shall aim at:

(i)the greatest possible extension of coverage among all Parties on the basis of mutual reciprocity, having regard to the provisions relating to developing countries; and