  
  
GPA/TN1994/1/Rev.5  
8 September 1998  
(24-2669) Page: 1/24 
Committee on Government Procurement  
Negotiations under Article XXIV:7 of the GPA 1994  
Comité des marchés publics  
Négociations au titre de l'article XXIV:7 de l'AMP 1994  
Comité de Contratación Pública  
Negociaciones en el marco del párrafo 7 del artículo XXIV  
del ACP 1994   
 
  
CHECKLIST OF ISSUES RAISED IN INFORMAL CONSULTATIONS   
REGARDING MODALITIES FOR THE REVIEW OF THE   
AGREEMENT ON  GOVERNMENT PROCUREMENT*,** 
Revision  
Table of Contents  
A. AREAS TO BE CONSIDERED  ................................ ................................ .......................  3 
1. Simplification and improvement of the Agreement  ................................ ...........................  3 
(a) General  ................................ ................................ ................................ ....................  3 
(b) Enforcement and monitoring mechanisms  ................................ ................................ ..... 3 
(c) Information technology  ................................ ................................ ..............................  5 
(i) General  ................................ ................................ ................................ ....................  5 
(ii) Non-discrimination  ................................ ................................ ................................ ..... 5 
(iii) Publication requirements  ................................ ................................ ............................  6 
(iv) Electronic submission and receipt of tenders and other communications between the 
tenderer and the procuring entity  ................................ ................................ ........................  8 
(v) Ease of access to databases and use of information tools  ................................ ................  8 
(vi) Deadlines  ................................ ................................ ................................ ................  9 
(vii) New issues related to electronic commerce  ................................ ................................ .. 9 
(d) Other substantive provisions of the Agreement  ................................ .............................  10 
(e) Statistical reporting  ................................ ................................ ................................ .. 10 
(i) General  ................................ ................................ ................................ ...................  10 
(ii) Creating greater flexibility in GPA statistical reporting  ................................ ....................  10 
(iii)  Statistics on the estimated value of contracts awarded (Article XIX:5, subpa ragraph  (a)) .. 11 
(iv) Uniform classification systems (Article XIX:5, subparagraph (b))  ................................ .... 11 
(v) Contracts awarded under limited tendering procedures (Article  XIX:5, subparagraph  (c)) .... 12 
(vi) Statistical reporting of derogations (Article XIX:5, subparagraph (d))  ..............................  12 
(vii)  Reporting in national currency  ................................ ................................ .................  12 
 
* English only.  
** Pursuant to the relevant Decision of the Committee on Government Procurement ( GPA/CD/5  
(16/11/2023)), this document (informal document symbol: gpa60 ) was derestricted on 8 November 2023.  GPA/TN1994/1/Rev.5  
- 2 - 
  (viii)  Additional areas where statistical reporting may be useful  ................................ ............  12 
(ix)  Encouraging timely reporting of statistical data  ................................ ...........................  12 
(x) The use of information and communication technology ................................ ...................  13 
(xi)  Other issues relating to statistical reporting requirements  ................................ .............  13 
(f) Article -by-Article review of the Agreement  ................................ ................................ .... 13 
Article I  ................................ ................................ ................................ ..........................  13 
Article II  ................................ ................................ ................................ .........................  14 
Article III  ................................ ................................ ................................ ........................  14 
Article IV  ................................ ................................ ................................ ........................  14 
Article V  ................................ ................................ ................................ .........................  14 
Article VI  ................................ ................................ ................................ ........................  14 
1.1.2  Elimination of discriminator y measures and practices which distort open procurement  ...... 15 
1.1.3  Expansion of the coverage of t he Agreement  ................................ ..............................  17 
1.2  Institutional/Procedural Points  ................................ ................................ .....................  18 
1.2.1  Work on government procurement in other WTO fora  ................................ ...................  18 
1.2.2  Institutional arrangements for the review  ................................ ................................ ... 18 
1.2.3  Participation of WTO Members in the review  ................................ ...............................  18 
1.2.4  Next steps  ................................ ................................ ................................ .............  19 
SUGGESTED MODIFICATIONS TO THE AGREEMENT  ................................ ........................  21 
PUBLISHING METHODS  ................................ ................................ ................................ .. 21 
SUBMISSION OF TENDERS  ................................ ................................ .............................  21 
COMMUNICATIONS BETWEEN TENDERERS AND THE PROCURING ENTITY  .....................  22 
DEADLINES  ................................ ................................ ................................ ....................  22 
 
  GPA/TN1994/1/Rev.5  
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  The following attempts to set out points made by Parties to the Agreement in the informal 
consultations held since February 1997 pursuant to the decision of the Committee in its 1996 Report 
to the Ministerial Conference that it would "undertake an early review, starting in 1997 with an 
examination of modalities, with a view to the impl ementation of Article XXIV:7(b) and  (c)" ( GPA/8 , 
paragraph 22).  
The list may not be exhaustive and will, of course, need to be amended and updated as further 
discussion develops.  
A. AREAS TO BE CONSIDERED  
1.  The point has been made that the key to the review lies with th e issue of simplification and 
improvement of the Agreement and that, if this aspect were to be satisfactorily resolved, then the 
other two elements of the review would also largely have been addressed.  In this connection, it has 
been suggested that an impr oved and simplified Agreement would be likely to result in a reduction 
in the number of exceptions to the Agreement and would therefore lead to a more uniform 
application.  On the other hand, the point has been made that the work on all three elements of th e 
review should be advanced simultaneously and in parallel.  The concept of reciprocity had been at 
the basis of the rationale for the present coverage of the Agreement.  Therefore, it could not 
reasonably be expected that a mere improvement and simplificati on of the Agreement would lead 
to the expansion of its coverage.  
2.  It has been stated that the elements of the review on the elimination of discriminatory measures 
and practices which distort open procurement and on the expansion of the coverage of the 
Agreement were linked in many respects.  Since it might be difficult to make a distinction between 
these two aspects,  future negotiations on the two issues should be held simultaneously.  
3.  It has also been stated that the discussion of the review item on disc riminatory measures should 
not be made dependent on the discussion of the other two elements of the review.  
1. Simplification and improvement of the Agreement  
(a) General  
4.  It has been emphasized that simplifying and providing greater flexibility to the proc edures under 
the Agreement should not lead to a weakening of commitments and thus result in less open markets.  
Rather, simplification should aim at obtaining effective but more easily applicable disciplines and 
should improve the balance between the advant ages of certain requirements and the administrative 
burden of complying with them.  Compatibility between the concepts of simplification and effective 
disciplines should be secured.  For example, any flexibility on the requirements on deadlines should 
be acc ompanied by the elaboration of objective criteria for providing sufficient time for bidding by 
domestic and foreign suppliers.  
5.  With regard to the Committee's stated aim that the review shall seek the expansion of 
membership by making the Agreement more acc essible to non -Parties ( GPA/8 ), the point has been 
made that improving and simplifying the procedural provisions of the Agreement would increase its 
appeal to non -Parties.  Simplifying the Agreement would also help in promoting the common 
objective sought by the review  of the GPA, of the Working Group on Transparency in Government 
Procurement and of the Working Party on GATS Rules which is to establish a set of rules and 
principles that could ultimately be adopted on a multilateral basis.  
6.  The point has been made that Pa rties should take into account the costs that may have to be 
borne by procuring entities and suppliers in adapting to new changes in the procedures under the 
Agreement which has been in force for less than two years.  Simplification of the provisions should 
be limited to what is absolutely essential for the purposes of the efficiency of procurement regimes.  
(b) Enforcement and monitoring mechanisms  
7.  The point has been made that an approach of providing greater flexibility and more general 
principles may result in the need for a re -examination of the mechanisms aimed at ensuring the 
effective enforcement of the Agreement.  There was room for the improvement of the functioning of GPA/TN1994/1/Rev.5  
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  the Agreement by increasing the effectiveness of the existing enfor cement mechanisms that 
guaranteed the rights of suppliers.  The suggestion has been made that Parties should consider to 
what extent Article  XX on bid challenge procedures had been effective in achieving this objective.  In 
addition to the bid challenge mech anism under Article  XX and dispute settlement procedures 
between governments under Article  XXII, independent enforcement agencies could be established 
in individual Parties to address allegations of violations of the principles of the Agreement by 
aggrieve d suppliers or investigate and monitor the application of procurement rules and procedures 
on their own initiative since suppliers might often be reluctant to bring cases against procuring 
entities.  
8.  Regarding enforcement and monitoring mechanisms, a sugges tion has been made to add new 
paragraphs  9 to 11 to Article  XX concerning the establishment of independent authorities which 
would read as follows:  
"9. With a view to ensuring effective implementation and operation of this Agreement 
at all levels, Parties undertake to establish an independent authority specialized in public 
procurement.  This independent authority shall:  
- serve as a contact point for the rapid, informal solution of problems encountered in 
gaining access to contracts;  
 
- provide useful advic e to contracting entities;  
 
- have the power to intervene on its own initiative to check procurement practices in 
order to promote efficiency and to ensure that mandatory reporting requirements are 
complied with;  
 
- be competent to receive any complaints f rom natural or legal persons concerning the 
application of this Agreement and competent also to lodge formal complaints or 
otherwise take administrative or judicial action against contracting entities in case of 
breach of this Agreement in the context of a  procurement procedure;  
 
- perform surveillance and monitoring tasks;  
 
- promote the use of preventive mechanisms aiming to ensure that the market functions 
properly;  
 
- have sufficient resources to perform its tasks effectively.  
 
"10. Parties shall notify the Committee of the authorities existing or established in 
their respective jurisdictions. Parties shall make clear the relationship between the 
independent authority and the review body.  
"11. Parties shall consider the establishment of special dir ect links between existing 
independent authorities providing for regular contacts and regular exchange of 
information with a view to giving rapid and adequate solutions to problems arising in 
the application of the Agreement and to generally improving the functioning of the 
Agreement."  
9.  With respect to the proposed new paragraphs 9 to 11, the following points have been made:  
- the nature of the relationship between such independent authorities and authorities in 
charge of auditing public expenditure needed f urther clarification;  
 
- the role of giving advice to the purchasing entities described in the first three indents 
of paragraph 9 and that of the enforcement and monitoring of applicable rules should 
be dissociated;  
 
- individual countries could decide whi ch authority should fulfil the task of enforcement 
and monitoring.  This task could be entrusted to an existing body, for example to a court 
of auditors, and would not require the creation of new institutions.  
 GPA/TN1994/1/Rev.5  
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  10.  A note addressing this issue, in particular in  the light of the EC's own experience on the 
enforcement and monitoring mechanisms of public procurement rules, has been circulated in 
Job No. 3871.  
11.  The following have been mentioned as among the other mechanisms which could be envisaged 
to guarantee trans parency of procurement proceedings and accountability of procurement agencies 
and to limit the scope for arbitrary dealings and discrimination in procurement practices:  publication 
of a schedule of prices offered which would show whether the contract had been awarded to the 
lowest price bidder;  and a declaration that all complaints, including anonymous complaints, would 
be investigated.  
12.  In this connection, a view has been expressed that a review of the operation of Article  XX should 
be without  prejudice to whether or not Parties should consider alternative enforcement mechanisms.  
Another view has been that a layer of obligations relating to enforcement and monitoring 
mechanisms additional to the challenge procedures of Article XX might deter no n-Parties considering 
membership of the Agreement.  Other views expressed on the matter have questioned the way in 
which independent mechanisms could operate in Parties with federal governments.  On the other 
hand, the point has been made that independent en forcement mechanisms offered the possibility of 
arriving at rapid resolution of disputes and also avoiding the inconvenience of formal court 
proceedings.  Provisions requiring the establishment of such mechanisms would provide an additional 
incentive to non -Parties to join the Agreement.  
(c) Information technology  
(i) General  
13.  It has been suggested that, in accordance with the terms of Article XXIV:8, the Agreement 
should be adapted to take into account advances in the area of information technology since the  
conclusion of the Agreement.  
14.  In this connection, it has been suggested that the text of the Agreement should be amended to 
provide flexibility and to clarify any ambiguities with respect to the use of information technology.  
15.  With respect to the Canadian p roposal on information technology (Job No. 3887), it has been 
stated that the consideration of specific changes to existing Articles would be premature before the 
Committee had had a full discussion of the role of information technology.  
16.  It has also been s aid that any modifications should be limited to allowing the use of information 
technology in parallel with the paper system currently in use.  
17.  The need to continue the information -gathering process in response to the revised questionnaire 
on information technology was referred to.1 
18.  It was also said that, in view of the objective of expanding the membership of the Agreement, 
technical cooperation could be provided to those countries that did not have the means to use 
information technology in government procurement.  
(ii) Non-discrimination  
19.  It has been stated that information technology should be accommodated in such a way as to 
enhance rather than undermine the basic objectives of transparency and non -discrimination in the 
Agreement and not to put at a disadvantage the suppliers of actual or potential Parties less well -
equipped in information technology or without adequate links to international networks.  Concern has 
been expressed that, unless appropriate safeguards are established, the use of information 
technology in government procurement may lead to de facto  discrimination against foreign suppliers.  
It has also been mentioned that the use of information technology may create or widen the gap 
 
1 Responses to the revised questionnaire ( GPA/W/24 ) were submitted by Norway ( GPA/W/24/Add.1 ), 
Canada ( GPA/W/24/Add.2 ), Korea ( GPA/W/24/Add.3 ), Hong Kong, China ( GPA/W/24/Add.4 ), the 
European  Community ( GPA/W/24/Add.5 ) and the United States ( GPA/W/24/Add.6 ). GPA/TN1994/1/Rev.5  
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  between entities and suppliers which can effective ly operate in the information age, and those, in 
particular SMEs, which cannot, thus creating a competitive advantage in favour of the former group.  
20.  The point has been made that the non -discrimination aspect of the use of information technology 
should be c onsidered against the background of the existing procedures and practices under the 
Agreement.  The paper -based method of publication and other tendering procedures might also have 
some form of unequal impact on different suppliers.  The discussion of this m atter should focus on 
the relative discriminatory effects of introducing information technology.  Attention has been drawn 
to the arguments put forward in section 1(c)(iii) below as to why electronic dissemination of tender 
information would be more effecti ve in reaching all interested suppliers than paper -based methods.  
21.  The comment has been made that the Canadian proposal on information technology 
(Job No. 3887) did not treat the issue of non -discrimination satisfactorily.  Any provisions on the use 
of infor mation technology which would allow entities to favour only those suppliers who had access 
to information technology would be inconsistent with Articles VI:4 and VII:2 of the Agreement.  
22.  The point has also been made that fears that technical and content -related compatibility issues 
in connection with the use of information technology might lead to de facto  discrimination against 
foreign suppliers were largely resolved through the use of the Internet.  Nevertheless, Parties' 
willingness to accept electronic bi ds would proceed at different speeds because of considerations 
related to security of data transmission issues and feasibility for large and complex bids.  
(iii) Publication requirements  
23.  Some delegations have advocated or indicated their readiness to explor e providing entities with 
a choice as to whether to use hard copy or information technology in all aspects of procurement 
practices, including tendering procedures and actual purchasing.  
24.  Suggestions have been made concerning the provisions of the Agreement  relating to publication 
requirements (Article IX on invitation to participate regarding intended procurement;  Article  XI on 
time-limits for tendering and delivery;  Article  XVII on transparency;  Article  XVIII on information and 
review as regards obligation s of entities);  and Appendices  II and III to reflect the practice of 
electronic publication of notices (Job Nos. 3887 and 5211).  These are reproduced in Attachment  1 
to this note.  
25.  In this connection, the view has been expressed that the provisions on the use of electronic 
publications should be set out as an option rather than as a requirement in the Agreement. The 
Agreement should not exclude the possibility of publishing in hard copy version.  On the other hand, 
views have been expressed  that the Agreement should allow Parties to review the need for 
continuing with paper -based publication, for example for advertising tenders in the area of advanced 
technological systems and information technology.  Publication of information on tendering 
opportunities only through the use of electronic media should be sufficient to meet the relevant 
requirements under the Agreement.  
26.  It has been stated that increased transparency of procurement opportunities was one of the 
main benefits of the electronic dis semination of tender notices.  The Internet permitted viewing of 
notices anywhere in the world, regardless of where those notices may have originated.  It has been 
suggested that the Agreement should include provisions requiring Parties to provide, in the 
GPA Appendices, the addresses of any Internet sites that gave procurement opportunity information 
in their country.  This would help suppliers from countries Parties to the Agreement to locate and 
easily access information on procurement opportunities that wa s currently published electronically.  
Parties should also update and supplement this information as necessary.  On the other hand, a view 
has been expressed that providing addresses of Internet sites in the GPA Appendices should not be 
a requirement in the Agreement.  In most countries, tender notices were authentic only in hard copy 
form published in a government gazette.  With the present technology it was not possible to verify 
the date of appearance of the electronic version of tender notices on the Intern et whereas there 
could be no problem in proving the date of publication of the hard copy form.  Another suggestion 
on this matter has been that the WTO Home Page could be used to provide the addresses of sites 
with information on procurement opportunities i n individual countries.  GPA/TN1994/1/Rev.5  
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  27.  The point has been made that advances in information technology had the greatest potential 
for achieving efficiency gains in public procurement in the area of the publication of procurement 
opportunity information.  Electronic public ation would have the following benefits:  
- the timeliness of dissemination of tender notices and documents to all suppliers 
irrespective of their location.  Transmission of paper copies of voluminous documents by 
mail were subject to delays which varied dep ending on the distance.  Suppliers saved 
time by receiving information of procurement opportunities on  a real -time basis and by 
ordering tender documents instantaneously;  
 
- the extension of the reach of dissemination of information to suppliers.  The experi ence 
of Parties showed that the number of suppliers using electronic publications was 
substantially higher than those who subscribed to hard copy publications;  
 
- the cost -effectiveness of obtaining information.  The cost of subscription, downloading 
and pr inting of electronic publications was significantly lower than the cost of publishing 
and mailing documents in the paper format;   in particular, those suppliers who may be 
interested in only a few specific tendering opportunities per year would not need to  
subscribe to numerous paper publications;  
 
- the increased rapidity of obtaining information.  Searching by word, the code number or 
the date of issue of notices for specific products or services in user -friendly versions of 
electronic publications was les s time -consuming and costly than the process of scanning 
through and obtaining hard copy publications on procurement opportunity;  
 
- the widening of the scope of accessible data.  The establishment of links between tender 
notices and tender documents and any other information relevant to a procurement 
would widen the scope of the information available to suppliers.  For example tender 
notices published in the electronic version of the US Commerce Business Daily had links 
to the US Federal Acqu isition Virtual Library which provided policy guidance and 
information on current trends in procurement procedures as well as data on 
procurement legislation.  
 
28.  It has been suggested that, in order to  ensure continued open access by all suppliers, Parties 
choosing to only utilize electronic publishing methods should use an electronic system that was 
accessible on the Internet.  Alternatively, Parties could use other electronic means as long as they 
provided convenient and universal access through a single poi nt of entry and were accessible to 
suppliers in GPA Parties at minimal or no cost.  
29.  In this connection, the view has been expressed that, while information on procurement 
opportunities could be stored in a decentralized manner, there should be a provision i n the  
Agreement requiring Parties to guarantee access to the relevant information in their countries 
through a single point of entry.  
30.  It has been said that a requirement to publish tender notices on the Internet would discriminate 
against those Parties who  did not have the necessary resources to maintain two parallel systems, 
especially if publications on the Internet were to be in a non -national language.  In addition, a country 
that used a non -western alphabet would have the additional cost of maintaining electronic data 
systems in the characters of both alphabets.  
31.  In this connection, it has been mentioned that governments had been increasingly devolving 
the activities relating to information technology to private sector service providers which might imply 
that access to tender information and documentation would not be free of charge to suppliers.  It has 
been suggested that Parties should have the flexibility to consider, having regard to overall policies,  
whether to charge a reasonable fee.  
32.  It has been suggested that Parties could be invited to provide addresses of any sites on the 
Internet that give information on procurement opportunities in their countries.  There was also a 
need to examine how information was structured in national databases.  Parties using information 
technology for tender notices were invited to describe their relevant experience.  In this respect, it 
has also been mentioned that some national electronic tendering systems may not cover all 
procurement covered by the Agreement.  GPA/TN1994/1/Rev.5  
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(iv) Electronic submission and receipt of tenders and other communications 
between the tenderer and the procuring entity  
33.  Suggestions have been made concerning the provisions of the Agreement relating to submission 
of tenders (Article  XIII:1 and Article  IX:6) and to communications between tenderers and the 
procuring entity (Article  X:4) to allow entities to require electronic submission of bids and to allow 
electronic means for other communications (Job Nos.  3887 and 5211 (1997) and Job No.  3842 
(1998)).  These are reproduced in Attachment  1 to this note.  
34.  The view has been expressed that it was premature to consider a requirement to provide all 
tender documents, in particular in the case of complicated works contracts, electronically on the 
Internet.  Another view was  that interested parties could be given incentives to offer on -line access 
to electronic versions of tender documents on the Internet, for example by reducing the required 
deadlines.  
35.  It has been mentioned that technical and content -related compatibility is sues for the receipt of 
electronic bids could be resolved, particularly for routine transactions, through the use of the 
Internet.  Widely available (and free) readers, such as the Adobe Acrobat Reader, would permit the 
sender and the recipient of a bid to be able to read and, if desired, print information in various word 
processing formats.  Using the Internet, "fill -in-the-blanks" bids could be completed on -screen or 
downloaded and e -mailed by return to the procuring organization.  
36.  Also, a suggestion has bee n made that the GPA should not require entities to submit paper 
copies of tender confirmations.  
37.  It has also been said that, for suppliers other than of standardized and off -the-shelf products 
and services, electronic tendering could be more costly and time -consuming where tender 
documents were voluminous since the traditional methods of transmission were less costly than 
downloading and printing them.  
38.  Reference has also been made to legal and technical difficulties relating to the electronic 
submission of b ids and transmission of documents between the tenderer and the procuring entity 
through public networks.  In this connection, it has been suggested that the Agreement should 
contain provisions that address the use of electronic signatures.  The UNCITRAL Mode l Law on 
International Commerce, particularly Articles 5 -7 relating to the legal recognition of data messages, 
writings and signatures, could provide guidance to revising the GPA in these areas.  It has been said 
that such issues as the confidentiality and security of data contents of tenders and the legal effects 
of electronic signatures required careful consideration.  
(v) Ease of access to databases and use of information tools  
39.  It has been suggested that the ease of access to information sources (including  establishing 
links between databases and ensuring interoperability) and use of information tools (including search 
devices and common nomenclatures) were some of the issues that should be addressed in this area.  
40.  With respect to ease of access to databases , it has been stated that databases generally differed 
in terms of their contents as well as their structure.  The ease of use of information tools should be 
improved by harmonizing the presentation of information.  This would also contribute to ensuring 
interoperability between the various systems.  The full benefit of information technology could only 
be achieved if agreement on harmonized standards for coded information could be reached.  This 
would facilitate the use of search devices to browse through the information contained in different 
databases.  In this connection, it has also  been stated that it would be necessary to develop tools 
that would make it possible to access databases in different languages.  It has also been suggested 
that a harmonized multi lingual procurement vocabulary system should be used to describe 
purchases, as has been done at European Community level with the CPV (Common Procurement 
Vocabulary).  CPV attributed a nine -digit code to some 6,000 terms commonly used in the 
procurement pro cess. The use of standard terms in the CPV made it easier for potential suppliers of 
goods and services to understand contract notices and to identify the type of procurement contracts 
that were of particular interest to them.  The CPV also helped to establ ish procurement statistical 
databases.  Furthermore, the use of multilingual CPV in the eleven official languages in the European GPA/TN1994/1/Rev.5  
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  Union and of the standard forms provided in it had facilitated the translation of, at least, the most 
important elements of pro curement notices.  
41.  With respect to ease of use of information tools, it has been said that access to essential 
procurement information would become more difficult because of the increase in the number of 
databases.  A solution should be found whereby interes ted suppliers could search for information in 
a multitude of databases through a single search engine, for example one that could be developed 
jointly by the GPA Parties on the WTO website.  
42.  It has also been suggested that Parties should share information o n their experience relating to 
the technical aspects of this matter.  
(vi) Deadlines  
43.  Some delegations have advocated or indicated their readiness to explore reducing the minimum 
time-periods required in the various stages of the procurement process in order  to improve the 
efficiency of the procurement process.  
44.  The point has been made that any reduction in time -periods should be linked to the time saved 
by using electronic means and should not lead to discrimination against distant suppliers.  
45.  It has also been stated that the rationale underlying the specific deadlines in the GPA  1994 
should be carefully considered before attempting any revision of the relevant provisions.  Some 
objective criteria would need to be developed in this respect in order to ensure  equal opportunity to 
bid to all suppliers, foreign or domestic.  It was also mentioned that the current deadlines had been 
set up to ensure that bidders were informed of the procuring opportunities well in advance of the 
time for submission of bids.  The deadlines in the present Agreement had been extended to 40  days 
from the 30  days set out in the Tokyo Round Agreement on Government Procurement of 1979.  Some 
countries voluntarily extended the deadlines to 50 days.  
46.  Suggestions have been made concerning the  deadlines set out in the Agreement (Article  XI) to 
take account of electronic tender and electronic bid receipt (Job Nos. 3887).  These are reproduced 
in Attachment  1 to this note.  On the other hand, the following points have been made to caution 
against a ny premature reduction in deadlines:  
- while information technology advances certainly helped to shorten the time for 
submission, publication and dissemination of tender notices and tender documents, the 
time needed to prepare tenders was likely to remain the same in most cases.  As long 
as submission by normal mail and electronic tools coexisted, it may be premature to 
allow entities using electronic transmission the advantage of shorter deadlines;  
however, the GPA Parties might consider accepting shorter d eadlines for pilot projects 
or certain sectors which were especially suitable for electronic tendering;  
 
- it may be premature to conclude that information technology could shorten tendering 
deadlines because the time gain arising from electronic transmiss ion of documents could 
be relatively small compared to the total time needed for the preparation of responsive 
bids. 
 
 (vii) New issues related to electronic commerce  
47.  It has been stated that a wider use of electronic tools could put into question the tradi tional 
approach of government purchasing as it opened  the way to full electronic tendering or electronic 
commerce between purchasers and suppliers.  In addition, new electronic tools provided 
opportunities for purchasing entities to cooperate via the exchan ge of information, ideas and 
experiences.  This option would require further consideration of data privacy and security aspects, 
interoperability of systems, and of legal questions such as the acceptance of digital signatures and 
electronic receipts.  The tr aditional behaviour of contracting entities inviting suppliers to tender could 
be put into question by new technological opportunities which would facilitate, for example, 
electronic qualification procedures, tendering of framework contracts and the select ion of 
off-the-shelf products from electronic catalogues.  GPA/TN1994/1/Rev.5  
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(d) Other substantive provisions of the Agreement  
48.  The desirability of simplifying some of the substantive rules of the Agreement and providing 
greater flexibility where possible under those rules h as been widely stressed.  It was suggested that, 
in doing this, Parties should consider to what extent the provisions of the current Agreement actually 
contributed towards achieving its objectives.  
49.  It has been suggested that consideration might be given to whether some provisions of the 
Agreement could be expressed in terms of more general principles, which were already implicit in 
the Agreement.  
50.  The following areas where improvements might be considered were mentioned:  
- providing further clarity in the pro visions relating to some areas of tendering 
procedures;  
 
- providing flexibility in the procedures on the use of a notice of planned procurement in 
Article  IX:3;  
 
- providing flexibility in open and selective tendering procedures;  
 
- providing further flexibility in the procedures in Articles  XIV and XV;  
 
- date procurement technologies such as purchasing from electronic catalogues;  
 
- adapting the contents of specific provisions to take account of new phenomena 
(partnerships between private and  public sectors, multiplication of Build Operate 
Transfer (BOT) projects), which were difficult to classify under the structure of the 
current Agreement.  On the other hand, a view has been expressed cautioning against 
any extension of the scope of the Agre ement involving these types of phenomena;  
 
- aligning the provisions of Article  XXIII on Exceptions to the Agreement to the relevant 
provisions under the GATT.  
 
(e) Statistical reporting  
 (i) General  
51.  It has been said that statistical reporting is an area w here simplification and streamlining of 
requirements should be considered.  The statistical requirements under the Agreement were unduly 
complex, time -consuming, burdensome on both Parties and individuals and costly, notably because 
of the expansion of the coverage of the new Agreement.  They were seen to be disproportionate to 
information to be derived from the statistics and in terms of the actual benefits to individual 
purchasers and suppliers.  On the other hand, the point has been made that statistical re porting was 
an essential tool for enhancing transparency and monitoring compliance by Parties with the 
obligations of the Agreement.  Moreover, statistical reporting provided a useful information basis to 
suppliers and purchasers on the functioning and deve lopment of public procurement markets.  In any 
amendment of the existing requirements, Parties should try to strike a balance between the  
advantages of having less onerous requirements and the disadvantages of de facto  providing for 
less transparency.  
52.  Non-papers on this topic have been circulated as Job Nos.  5212 (in 1997), 3246, 3855 and 3869 
(in 1998).  
(ii) Creating greater flexibility in GPA statistical reporting  
53.  It has been suggested that, in order to help reduce the administrative burden on Parties in 
collecting statistical data and producing reports to the Committee on Government Procurement, the 
Agreement should permit greater flexibil ity in terms of the manner in which statistical data were 
reported.  Increased flexibility would allow Parties to submit reports that more closely conformed to GPA/TN1994/1/Rev.5  
- 11 - 
  each Party's domestic procurement reporting practices for collecting and reporting public 
procure ment statistics, thereby reducing the administrative burden of preparing reports.  Areas in 
which increased reporting flexibility might be considered included:  
- permitting Parties to submit GPA statistical reports on a fiscal rather than a calendar 
year ba sis; or 
 
- allowing Parties to report aggregate annual obligations per contract rather than the total 
value of contracts awarded, considering that the duration of many contracts was longer 
than one year.  
 
54.  It has also been suggested that Parties should explore further flexibility in the reporting of 
statistics for Annex  2 entities based on experience during the first years of implementation of the 
GPA. Given the decentralized nature of these procurement systems for many Parties, consideration 
could be given to not requiring a specific format for these statistics.  
55.  The point has been made that any measures permitting variation or flexibility in statistical 
reporting, however, should ensure a sufficient minimum level of statistical reporting by all Pa rties. 
Parties must continue to submit statistical data that are comparable in scope and breadth.  
56.  Finally, it has been suggested that Parties wishing to vary the manner in which they report 
statistical data to the Committee under the Agreement should be re quired to provide written 
notification to the Committee, and, in the absence of any objection within 30  days, the variance 
would become effective.  
(iii)  Statistics on the estimated value of contracts awarded (Article XIX:5, 
subparagraph  (a)) 
57.  The point has  been made that the Committee had so far not devised any method for estimation 
in accordance with the provisions of Article  XIX:5, subparagraph  (a) which required entities listed in 
Annex  1, i.e. central government, to report on the estimated value of cont racts awarded both above 
and below the threshold value.  Until a proper method for such estimation was prescribed, both with 
respect to reliability and efficiency, reporting according to this provision would not be consistent 
between Parties.  The relevant p rovisions of Article  XIX:5(a) should be discarded or, alternatively, 
be amended to cover only procurement above the threshold value for Annex  1 entities.  On the other 
hand, it has been said that this type of statistics was necessary for the assessment of P arties' 
compliance with the Agreement.  
58.  Another suggestion has been that the Agreement should include an exception for procurements 
of very small value (a de minimis  exception) to the Article XIX:5 requirements that statistical data 
for Annex  1 entities mus t be provided for tenders below GPA thresholds.  Such a de minimis  exception 
would eliminate Annex  1 reporting requirements for procurements below an agreed -upon amount.  
This would be likely to ease the administrative burden on Parties, as many Parties may not ordinarily 
collect detailed statistical information on small -value procurements.  Moreover, data on these smaller 
procurements tended to be less relevant to the underlying purposes for reporting statistical 
information under the Agreement, including the  aim to achieve greater transparency and also to 
further GPA compliance monitoring efforts.  
 (iv) Uniform classification systems (Article XIX:5, subparagraph (b))  
59.  It has been suggested that the classification for statistical reporting should be done by sta ndard 
customs classification, CPV classification or similar widely used standards.  As most contracts covered 
several different products, a uniform and efficient method for dividing contract value according to 
different product categories would provide enha nced consistency of reported procurement.  It has 
also been said that Parties should be allowed to report statistics in other types of nomenclatures 
than that established under the GPA if the reporting was done only at the two -digit level (major 
category gr oups) accompanied by a description of those groups.  
60.  With regard to uniform classification systems, the point has also been made that, for the time 
being, it was very difficult to provide statistical reports based on the classification systems adopted 
for g oods and services (the 26 product categories and the UNCPC) because no table of GPA/TN1994/1/Rev.5  
- 12 - 
  correspondence with the Common Procurement Vocabulary (CPV) existed.  But this situation should 
soon disappear with the publication of a new CPV in 1998 and the possible establi shment of a table 
of correspondence between the CPV and the other two uniform classifications systems.  
(v) Contracts awarded under limited tendering procedures (Article  XIX:5, 
subparagraph  (c)) 
61.  With regard to statistics relating to categories of entities i n Annexes 1, 2 and 3 falling under 
each of the cases of limited tendering permitted under Article  XV, the point has been made that the 
obligation to report on procurement by each procedure seemed to be too burdensome.  Under 
ordinary circumstances, the shar e of total procurement accounted for by limited tendering 
procedures would be rather low.  In any event, the information provided under this provision was 
inadequate in that it did not provide elucidation of the legality of the application of the limited 
tendering procedure employed in each case.  It has been suggested that this provision should be 
simplified by limiting the requirement to the provision of statistics on the number and the total value 
of contracts awarded in all cases where limited tendering was used, rather than having a breakdown 
under each case in which limited tendering was permitted under Article XV.  This would also enable 
the protection of the confidentiality of commercially sensitive information.  
62.  Another suggestion has been to  replace this provision by a provision allowing Parties to request 
additional information with respect to specific contract awards under limited tendering procedures 
in any other Party.  
 (vi) Statistical reporting of derogations (Article XIX:5, subparagrap h (d))  
63.  It has been suggested that there should be no requirement to report procurement under the 
derogations to the Agreement referred to in Article  XIX:5(d).  The following have been mentioned as 
reasons for the deletion of subparagraph (d):  the provision was difficult to understand for those who 
were unaware of the context of derogations and was also difficult to comply with and monitor;  and 
the advantages of such publication of such information were limited.  
64.  In this connection, it has also been said that,  if such reporting requirements were to be 
continued, Parties should reach a common understanding on what was meant by the term 
"derogations" for the purposes of statistical reporting.  It has also been stated that the provision of 
this type of statistics w as essential for transparency purposes.  
 (vii)  Reporting in national currency  
65.  The point has been made that it had been the practice under the GATT Agreement on 
Government Procurement to report statistics based on Special Drawing Rights (SDRs).  Permitting 
GPA Parties to submit statistical reports in national currencies rather than SDRs would help ease the 
administrative burden on Parties of converting data into SDRs.  In fact, Parties might find statistical 
data prepared in national currencies to be more use ful than information provided in SDRs.  Parties 
should list a conversion rate into SDRs in their statistical reports.  In this connection, the comment 
has been made that statistical reports should be comparable for each Party over time and between 
Parties.  Computer programs were now available for the conversion of values expressed in national 
currencies into SDRs.  
 (viii)  Additional areas where statistical reporting may be useful  
66.  The point has been made that Parties were not currently required to report to the Committee 
on the total amount of government procurement (both GPA and non -GPA) taking place under each 
of the Annexes.  This was an area where statistical reporting would be useful, but would only slightly 
increase administrative demands on Parties.  
 (ix)  Encouraging timely reporting of statistical data  
67.  The point has been made that the Agreement currently only required that each Party submit 
procurement statistics on an annual basis and did not set a deadline for the submission of statistical 
informatio n. Under the GATT Agreement on Government Procurement, which also did not contain a 
deadline for the submission of statistical reports, it often took as long as two years following the end GPA/TN1994/1/Rev.5  
- 13 - 
  of a reporting period for Parties to submit statistical reports.  It has been suggested that, with the 
objective of ensuring that statistical data were disseminated in a fashion that preserved their 
usefulness, GPA Parties should be encouraged to submit reports on a timely basis.  It has been said 
that twelve months followi ng the end of a Party's reporting cycle would generally be a reasonable 
period of time for submission of statistical data.  
 (x) The use of information and communication technology  
68.  The point has been made that more complete statistical data on public procur ement could be 
obtained by utilizing the advantages offered by Information and Communication Technology (ICT).  
The suggestion has been made that Parties would be able to apply, under the conditions specified 
for, a general waiver from all the statistical r eporting requirements, or a more specific waiver which 
only covered, for example, Annex  1 entities.  This waiver should only be granted if certain conditions 
were met by the alternative system being used.  In particular, Parties should be required to operate  
a system which enabled interested parties to access data on awarded contracts through one single 
entry point.  Furthermore, the data provided should include information on at least the following:  
price information (provided confidentiality of commercially sensitive information was ensured);  type 
of contract authorities;  contractor's country (or subcontractor);  number of offers received;  type of 
contract or categories of products or services;  award procedure chosen (open or limited);  date of 
award of contrac t; and date of publication of tender notice.  
(xi)  Other issues relating to statistical reporting requirements  
69.  In order to ensure the effective implementation of the requirements in Article  XIX:5, the 
following suggestions have also been made:  
- the inform ation content of statistical reporting requirements should be uniform among 
Annexes 1 -3; 
 
- a commonly accepted format for statistical reporting should be developed;  
 
- statistics should be submitted in a WTO language;  
 
- the possibility of using statistics on total public procurement from national accounts 
should be considered.  
 
(f) Article -by-Article review of the Agreement  
 Article I  
paragraph 1  
 
70.  It has been suggested that footnote 1, which contained wording relevant to the interpretation 
of the obligations under the Agreement, should be made part of the main text of paragraph  1. This 
would specify the coverage of the Agreement in a more direct way.  In this connection, the point has 
been made that the term "as specified in Ap pendix  I" reflected the negotiated understanding 
concerning the reciprocity -based coverage of the Annexes to Appendix I.  
paragraph 2  
 
71.  It has been suggested that this paragraph should also include a reference to new forms of 
procurement under "Build Operate  and Transfer" (BOT) operations and  joint ventures.  
paragraph 3  
 
72.  The point has been made that there was scope for improvement and clarification in the language 
of this paragraph.  
paragraph 4  
 GPA/TN1994/1/Rev.5  
- 14 - 
  73.  It has been suggested that the provisions of the Agreement on va luation of contracts should 
take account of the use of new technologies in procurement which allowed procuring entities to slice 
up contracts.  Individual contracts with values below the relevant threshold values resulting from 
such practices should also be  subjected to the Agreement so as not to limit its coverage.  
74.  Suggestions have also been made that the review of Article  I should be taken up with Appendix  I 
and that Appendix  I should be reviewed on the basis of a negative list approach.  
Article II  
75.  It has been said that purchasers in the private sector had the practice of maintaining open 
running contracts with several suppliers instead of awarding a contract to a single supplier.  A master 
contract signed initially with several suppliers did not specify a v alue. Purchasers subsequently 
proceeded with the procurement by ordering from electronic catalogues.  With the application of 
information technology, government entities might use this method of purchasing more commonly.  
This might present some ambiguity in  the valuation of contracts under the Agreement.  
paragraph 1  
 
76.  It has been suggested that footnote 2 be amended to read:  
"This Agreement shall apply to any procurement contract for which the contract value 
is estimated to equal or exceed the threshold at th e time of the publication of the notice 
in accordance with Article IX and at the time of first contact with supplier in the case of 
limited tendering ." 
77.  It has also been suggested that the language of footnote  2 should be aligned with that of 
Article  I:4 on  threshold values.  
 Article III  
paragraph 2, subparagraph (a)  
 
78.  The point has been made the term "foreign affiliation or ownership" seemed to apply both to 
Parties and non -Parties to the Agreement.  It has been suggested that the consistency of the scope 
of this provision with that of Article  III, paragraph  1, should be reviewed.  In this connection, the 
point has also been made that certain Parties treated an established supplier as a domestic supplier 
regardless of its affiliation or ownership.  
 Article IV  
79.  It has been suggested that the issue of rules of origin of services should be taken up in the 
discussion concerning the extension of the Agreement to services.  
Article V  
80.  It has been suggested that Article  V on Special and Differential Treatment for  Developing 
Countries should be updated, for example by providing further flexibility in the evaluation of offers 
from developing countries with respect to non -discriminatory treatment and in the application of the 
procedural provisions.  The issue of grant ing non -reciprocal access to developing countries to 
procurement markets of Parties might be among the areas that could be explored.  The provisions 
should also be improved to take into account the specific interests of developing countries and to 
give deve loping countries additional incentives to join the Agreement.  
 Article VI  
paragraph 1, subparagraphs (a)  and (b)  
 
81.  It has been suggested that there should be a hierarchy between paragraphs  (a) and (b) since 
the provisions of subparagraph  (a) should be the r ule and those of subparagraph  (b) the exception.  GPA/TN1994/1/Rev.5  
- 15 - 
   
 paragraph 3  
 
82.  A view has been expressed that the prohibition in this paragraph to require or refer to a 
particular trademark or trade name did not take into account the realities of procurement practice.  
Another view expressed has been that the underlying principle was important and should be kept.  
(g) Improving the structure of the Agreement  
83.  It has been suggested that the structure and the presentation of the Agreement should be 
improved à droit constant  in order to render it more logical and easy to follow by entities and 
suppliers.  This could be achieved by rearranging the provisions so that they more closely followed 
the normal process of public purchasing;  grouping the provisions in accordance with the ir purposes 
in order to bring the structure of the GPA more into line with the practice followed in other WTO 
agreements;  removing provisions whose applicability had expired, for example those relating to the 
entry into force of the WTO and transitional pe riods in Article XXIV:3(a), (b), (d) and (e);  and 
shortening certain Articles by subdividing them into several Articles.  In connection with 
Article  XXIV:3(a), it has been suggested that it should be retained as a historical record in order to 
avoid any pos sible misunderstandings in respect of Korea's transitional arrangements and the 
beginning of its implementation of the decision on notification of threshold values in national 
currencies.  
84.  A new structure for the GPA that has been suggested in the document circulated as Job No.  6437 
is reproduced in Attachment  2 to the present note.  
(h) Appendices to the Agreement  
85.  It has been suggested that Appendix I to the Agreement might benefit from simplification, 
including the possibility of presenting Annexes in the f orm of negative lists, starting with Annex  1. 
The Committee could define the general principles that would guide the Parties in determining which 
entities should be excluded from the coverage of the Agreement, for example for national security 
reasons.  This would also have the effect of reducing the residual exceptions and derogations under 
the General Notes to Appendix I of individual Parties.  
86.  It has been stated that it was desirable to maintain the presentation of the Annexes in the form 
of positive lists  for the overall consistency of Annexes.  While it might be feasible to present 
Annexes  1 and 2 in the form of negative lists, entities in Annex  3 could only be listed in the form of 
a positive list.  In addition, Annex  4 could be presented as a negative lis t only after the uniform 
extension of the coverage of the Agreement in the area of services.  In this connection, the point has 
also been made that Parties had the obligation to ensure that all the entities that had been specified 
in Appendix  I complied wit h the requirements under the Agreement.  A negative list approach could 
raise certain difficulties for Parties in this respect.  
2. Elimination of discriminatory measures and practices which distort open 
procurement  
(a) General  
87.  The point has been made that t his element has prime importance for the review and that priority 
should be given to this review item.  Discriminatory measures and practices which distorted open 
procurement were incompatible with the objectives of the Agreement and represented a serious 
derogation from the WTO principles of non -discrimination which were also enshrined in Article III of 
the Agreement.  
88.  It has been suggested that, under this element of the review, consideration could be given to:  
- circumscription of derogations for small business and other set -aside programmes to 
provide an acceptable level of security of access to suppliers from all Parties;  
 
- elimination of current reciprocity -based exceptions and derogations in the coverage of 
the Agreement;  GPA/TN1994/1/Rev.5  
- 16 - 
   
- establishment of a  mutually -agreed coverage of services.  
 
89.  With respect to set -aside programmes and other preferential policies, the suggestion has been 
made that the review should address the establishment of national self -monitoring mechanisms 
whereby individual Parties wo uld commit themselves to review domestically and periodically whether 
the national programmes of this nature contributed towards meeting their vowed objectives and, if 
so, how effective they were in doing so, with a view to examining the scope for their el imination in 
the long term.  On the other hand, the view has been expressed that nothing should be done to 
legitimize set -asides and other discriminatory programmes which were presently reflected in the 
schedules of Parties as exceptions or reservations and  to which some Parties had responded in their 
schedules.  Providing a national review mechanism in the Agreement itself might imply that the 
underlying policy objectives were deemed to be justified and that the programmes could be 
continued as long as they met their specific objectives.  The aim of the review of derogations should 
be to explore ways of phasing them out as prescribed under Article  XXIV:7(c).  The ultimate aim 
should be to remove all discriminatory measures and to subject all procurement under t he 
Agreement to the MFN and national treatment principles.  
90.  It has been stated that the balance of coverage that Parties had sought with other Parties in the 
negotiation of the Agreement had led to discriminatory provisions in their respective Appendices.  
The General Notes of Parties contained provisions excluding certain procurement from the coverage 
of the Agreement for domestic legal grounds.  The view has been expressed that the Agreement did 
not provide for the maintenance of exceptions to Article  III. However, it was an in -built principle of 
the Agreement that opening up trade was subject to negotiations between Parties and was not 
granted automatically.  In this respect, it was said that negotiations on the elimination of 
discriminatory measures should b e held both bilaterally and in the context of the Committee.  The 
view has also been expressed that the work on drawing up Appendix  I in the form of negative lists 
would also contribute towards elimination of discriminatory measures.  Whereas the list of 
discriminatory provisions in the Appendices with respect to the "national treatment" standard could 
be reduced, discriminatory provisions with respect to the MFN standard might need to continue to 
exist in order to maintain the balance of coverage with respec t to those Parties whose offers were 
less than comprehensive.  Moreover, Parties might have to retain the possibility of introducing 
discriminatory provisions with respect to the MFN standard in negotiations with an acceding country 
as an incentive to enhan ce the coverage of its offer.  
91.  In this connection, a suggestion has been made that, as a first step, Parties who maintained 
discriminatory provisions should explain the reasons for maintaining such provisions, any plans for 
removing these provisions and, if  they had no such plans currently, the circumstances under which 
they were prepared to remove them.  The note by the Secretariat on the types of discriminatory 
provisions in the Appendices which was circulated on 31  October  1997 (document with footer 
'gpa38') could form the basis of such a discussion.  
(b) Mutually agreed coverage of services  
92.  The point has been made that, while establishment of a mutually agreed coverage of services 
would have the effect of eliminating reciprocity conditions in various Parties, it was essential that 
Parties conducted negotiations in this area on the basis of the most -favoured -nation principle.  
93.  It has been stated that the current coverage of services in the Agreement was characterized by 
its diversity with respect to both  the specific sectors covered by each Party as well as the overall 
level of services covered by each Party.  It was the outcome of a perceived need for reciprocity in 
this area because of the divergences in the levels of coverage offered by Parties in the n egotiations.  
Future negotiations should aim at a uniform level of coverage among all Parties, at least in terms of 
the quality of the coverage of services.  
94.  The view has been expressed that reciprocity -based services coverage should be eliminated but 
only o n the basis of all Parties covering an approximately uniform level of services on a mutually 
agreed basis.  On this point, another view has been that the discriminatory provisions were the result 
of the pre -existing reciprocal arrangements which had not bee n plurilateralized, or of perceived 
imbalances in the commitments by Parties.  Rather than seeking such a linkage, which might not 
produce the expected outcome, Parties should keep an open mind in carrying forward the mandate 
of improving the coverage of se rvices under the Agreement.  GPA/TN1994/1/Rev.5  
- 17 - 
   
95.  With regard to the modalities for negotiations in this area the following points have been made:  
- the element of the review concerning the elimination of discriminatory measures and 
practices was independent of that on the exp ansion of coverage.  On the other hand, 
the view has been expressed that the two elements would overlap and that the review 
should address not only the elimination of discriminatory measures and practices but 
also the expansion of coverage;  
 
- the review sh ould be initiated by simplification and elimination of derogations in Annex  4 
in Appendix I of individual Parties;  
 
- in order to assist the work on the review of derogations in the area of services, the 
Secretariat should prepare an analysis of services p resently covered by each Party under 
the GPA.  The identification of the services not presently covered, either by some or all 
Parties, could provide the basis for discussion and development of priorities for 
extension of coverage;  
 
- differing views have b een expressed concerning the extent to which the work on this 
element should take its cue from that in the Working Party on GATS Rules.  
 
3. Expansion of the coverage of the Agreement  
96.  It has been suggested that the coverage of the Agreement could be expanded with a view to 
achieving a balance of market access commitments among Parties.  For this purpose, the following 
specific areas that might be addressed have been suggested:  
- Identification of potential sectors for extended coverage.  Reference was m ade to include 
the telecommunications, transportation and steel sectors.  In response to this 
suggestion, the appropriateness of focusing work on the expansion of coverage on the 
telecommunications and transportation sectors has been questioned since many 
countries had made significant progress towards privatization in these sectors.  It has 
been suggested that the review relating to this element should focus on the elimination 
of the derogations from coverage in some other sectors existing in Appendix  I of Parties.  
On the other hand, the point has been made that the process of privatization had not 
been significant in all countries and that a large number of public entities operating in 
the telecommunications sector remained outside the coverage of the Agreem ent. 
 
- In connection with privatization the point has been made that, rather than adopting a 
sector -based approach, work might focus on the relationship between entities and 
government control.  The terms of Article XXIV:6(b) relating to the withdrawal of an 
entity from Appendix  I on the grounds of removal of government control or influence 
did not give adequate guidance in this respect.  In order to determine the scope for 
expanding the number of covered entities, Parties should examine the policies by whic h 
governments exerted control or influence over entities.  Another view has been that the 
present provisions reflected the existence of a multitude of configurations with respect 
to the relationships between different government entities and the amount of c ontrol 
that could be exerted over them.  By drawing up a more precise definition of how to 
treat privatization -type situations, Parties might fail to take into account all types of 
government ownership or control and any relevant developments in the future.  
 
- Further expansion of the coverage of services in the Agreement.  The suggestion has 
been made that the review work in this area should be initiated by identifying the sectors 
of common interest to Parties based on domestic supplier surveys.  On the other  hand, 
the point has been made that, while certain sectors were not included in the scope of 
the Agreement, the provisions of the Agreement did not exclude the expansion of its 
scope to any additional sectors.  Rather than defining the sectors that could be  included 
horizontally within the scope of the Agreement, the extension of coverage should be 
handled, for the time being, through bilateral agreements. Another view was that, while 
negotiations on specific sectors might have to be carried out bilaterally,  Parties should 
identify the specific sectors to be negotiated in a plurilateral context.  Parties should seek GPA/TN1994/1/Rev.5  
- 18 - 
  a high level of commitment in terms of coverage and not the lowest common 
denominator.  
 
- Lowering of the threshold values applicable to certain P arties.  In response to this 
suggestion, the point has been made that, with the present threshold levels, Parties 
with larger procurement markets subjected a greater proportion of their overall 
procurement to the Agreement.  The impact of thresholds on the s cope of the 
commitments of individual Parties would need to be taken into account in considering 
the overall balance that had been struck under the Agreement between various Parties.  
On the other hand, the view has been expressed that such an approach woul d neither 
be procedurally feasible nor equitable.  The suggestion was made that the Agreement 
should include provisions setting out uniform levels of thresholds applicable 
automatically to all Parties and independent of the size of their procurement markets  
and that Parties should no longer have the possibility of applying differential threshold 
levels.  
 
97.  It has been stated that expansion of the coverage of the Agreement would require significant 
preparatory work.  It was also stated that any further expansion  of the existing coverage of the 
Agreement at the sub -central levels of government would be dependent on progress in the 
simplification and improvement of the provisions of the current Agreement.  
98.  A view has been expressed stating that there was a trade -off between the objective of increasing 
the membership of the Agreement and the burden that wider commitments might incur for the 
acceding countries.  Another view has been that an improved coverage might be an incentive to 
those countries that sought increase d market access to join the Agreement.  
99.  In addition, the need to obtain adequate experience with the domestic implementation of the 
Agreement before expansion of its coverage has been referred to.  
B. INSTITUTIONAL/PROCEDURAL POINTS  
1. Work on government procurement in other WTO fora  
100.  It has been suggested that, in the process of the review of the Agreement, Parties should take 
account of the work on government procurement in the Working Group on Transparency in 
Government Procurement and in the Working Party on GATS Rules.2 The point has also been made 
that, while the level of obligations sought under each forum may not necessarily be the same, the 
overall outcome of work in these fora should be coherent and consistent.  However, the review of 
the Agreement should not be delayed by the pace of other discussions.  
2. Institutional arrangements for the review  
101.  The discussion of the review in 1997 has been carried out mainly in informal consultations.  
One delegation has suggested that an informal group  should be established to conduct the work on 
the review of the Agreement and that expert groups might be set up to handle specific topics such 
as information technology, simplification of statistical reporting, etc.  
3. Participation of WTO Members in the review  
102.  It was noted that an objective of the review was the expansion of the membership of the 
Agreement.  The review should serve the purpose of making the Agreement more attractive to other 
WTO Members as well as making accession of other WTO Members, inc luding developing countries, 
easier.  For this purpose, interested WTO Members should be given the opportunity to participate 
actively in the Committee's discussions on the review of the Agreement by becoming observers to 
the Committee in accordance with th e Committee's Decision on Procedures for Participation of 
Observers ( GPA/1 ). 
 
2 The most recent reports of the Working Group on Transparency in Government Procurement and the 
Working Party on GATS Rules were circulated respectively in documents WT/WGTGP/M/5  and S/WPGR/M/18 . GPA/TN1994/1/Rev.5  
- 19 - 
  103.  As agreed by the Committee at its February 1997 meeting, the Chairman sent a communication 
to the WTO Members, through the Chairman of the General Council, drawing the attention of WTO 
Members , as well as governments which are in the process of acceding to the WTO, to the review 
and inviting them to participate as observers in the meetings of the Committee in accordance with 
the Committee's Decision on the Participation of Observers ( WT/L/206 ). 
4. Next steps  
104.  During the informal consultations held on 25 June 1998, the Committee held informal 
consultations regarding a time -frame for the negotiations under Article XXIV:7 and the overall work 
programme that should be envisaged within that time -frame.  In the light of those consultations, the 
Committee agreed to proceed in accordance with the following proposals by the Chair, the text of 
which incorporates suggestions by delegations agreed to by the Committee:  
"We have two sets of points on which the Group  should decide.  One is the time -frame 
for the negotiations under Article XXIV:7 and the overall work programme that should 
be envisaged within this time -frame and the other is the more immediate issue of the 
work that should be envisaged for the Group's ne xt meeting.  
"On the first of these questions, I sense a widespread view that we should aim to 
complete the negotiations, at least in respect of the simplification and improvement of 
the Agreement, by the third WTO Ministerial to be held at the end of next year with a 
view to, in particular, increasing the attractiveness of the Agreement to new members.  
"If this is to be done, we would need to reserve the whole of the fall of next year to an 
intensive negotiating process.  This, in turn, would require that by  the summer of next 
year there would be in existence a document, reflecting the outstanding proposals, that 
could constitute the basis for these negotiations.  The preparation of such a document 
would require that all the proposals and suggestions for impro vement of the text would 
have been thoroughly discussed and digested by that time.  In order for this to be done, 
we might wish to set a target date of the end of April next year for the tabling of all 
such proposals and suggestions – without, of course, pr ejudice to the right of 
participants to put forward at a later date modified or additional proposals where 
necessary.  
"To sum up therefore I would suggest the following key elements of a timetable and 
work programme:  
- The tabling of suggestions and propos als no later than the end of 
April 1999.  
- The preparation of a document reflecting all outstanding proposals 
and suggestions, as a basis for the final negotiating phase, no later 
than the summer of 1999.  I would, of course, hope that in the course 
of the review and discussion of the proposals and suggestions that 
would already have been undertaken by that time, a considerable 
measure of agreement would already have been reached on many 
points and that the number of outstanding points left for the final  
negotiating phase would be kept to a manageable minimum.  
- A target of the third WTO Ministerial for the completion of the 
negotiations, at least on the simplification and improvement of the 
Agreement.  
"We would in parallel continue work on the other elem ents of the negotiations, namely 
on the elimination of discriminatory measures and practices which distort open 
procurement and the expansion of the coverage of the Agreement.  We will revert at our 
next meeting to the timetable and work programme for these  parts of the negotiations.  
To the extent that the objective of the elimination of discriminatory measures could be 
achieved through modifications to the Agreement itself, this work would also have the 
target date of the third Ministerial Meeting.  GPA/TN1994/1/Rev.5  
- 20 - 
   "If thi s way of proceeding were to be acceptable to you, we would need to give 
some thought to the sort of meeting schedule that should be envisaged for the 
remainder of this year and for next year.  My own suggestion would be that you might 
consider two meetings in the fall of this year (our October meeting already scheduled 
and maybe one in mid -December), and three meetings in the first part of next year (for 
example February, May and July).  In the fall period of 1999, we would need to envisage 
a semi -continuous process of negotiation, i.e.  the Group would need to be on call for 
the whole period.  
 "WTO Members, not parties to the GPA, and other observer governments to the 
GPA would be invited to participate fully in the work, it being understood that the final 
decision on the outcome would remain with Parties to the GPA.  
 "As regards the second issue that I mentioned, namely the specific work 
programme for our next meeting in October, we have already agreed:  
- to revert once more to the issues of information techno logy and 
statistical reporting;  
- to revert to the issue of monitoring and enforcement, on which the 
Community presented a paper today;  
- furthermore, we have been advised to expect a paper from the 
Community on the issue of procurement methods;  
- we have also agreed that we will continue our examination of 
Articles  I through VI and take up Articles VII through XV.  In this 
regard, I encourage participants to put forward drafting proposals in 
advance;  
- using the Secretariat note on the types of discriminato ry provisions 
in the Appendices, we will discuss the reasons for the maintenance 
of such provisions, any plans for their removal and what is needed 
for their removal;  
- coverage of services.  
"Of course, delegations remain free to put forward proposals or suggestions on any of 
the other issues before us and I would urge them to do so.  
"In order to assist this further work, the Secretariat will once more update the Checklist 
of Issues.  In addition, we will revert at the next meeting to the paper proposed by 
Canada for a text of the Agreement reflecting proposed changes."  
 
 
  GPA/TN1994/1/Rev.5  
- 21 - 
  ATTACHMENT 1  
INFORMATION TECHNOLOGY  
Suggested Modifications to the Agreement  
Publishing methods  
 
Alternative 1:  
 
• No wording changes to Articles IX, XI, XVII and XVIII.  
 
• Parties agree to accept modifications to Appendices II and III to delete paper publications and 
replace with electronic publications, where the electronic publication is:  
 
- on the Internet or in one location;  and 
 
- accessible worldwide by telephone.  
 
Alternative 2:  
 
• Add a footnote to the Agreement defining "publication" to include either electronic or paper 
publication of notices.  The definition would include the requirements in Alternative 1 above, 
where electronic publication is:  
 
 - on the Interne t or in one location; and  
 
 - is accessible worldwide by telephone.  
 
• Parties would agree to accept modifications to Appendices II and III to delete paper 
publications and replace with electronic publications.  
 
In commenting on these suggestions, it has b een suggested that all GPA Parties should include 
information in their Appendices II (and III) to the GPA on relevant electronic tender databases as 
well as information on access to these bases.  This information should be in addition to information 
on trad itional publishing methods (until the time comes for these to be replaced).  This requirement 
could be made clear by means of footnotes to the relevant Articles of the Agreement defining 
publication as including both electronic and paper -based publication o f notices.  
 
Support has been expressed for Alternative 2.  
 
Submission of tenders  
 
• Amend Article XIII:1(a):  
 
- to add "electronic means" to the list of possible methods of receiving bids (i.e. telex, 
telegram and facsimile) that are already listed;  
 
 -  to delete the phrase "or by mail" in the first sentence;  and 
 
- to delete the sentence "The tender must be confirmed promptly by letter or by the 
despatch of a signed copy of the telex, telegram or facsimile".  
 
• Add a provision to Article XIII to indicate  that the means for submitting tenders can be 
specified by the procuring entity, provided such means shall not reduce access by foreign and 
domestic suppliers.  
 
• Modify Article IX:6 to obligate the procuring entity to include in the notice the means by wh ich 
bids may be submitted.  
 GPA/TN1994/1/Rev.5  
- 22 - 
  Another suggestion has been that a definition of the term "writing" should be incorporated in 
Article  XIII:1(a) which would read:  
 
"The term "writing" as used in this Agreement is to be understood to include any worded 
or number ed expression which can be read, reproduced, and later communicated, and 
includes electronically transmitted and stored information."  
In commenting on these suggestions, it has been suggested that the term "electronic means" should 
be added to the list of possible methods for receiving bids. Until a satisfactory solution has been 
reached regarding electronic signatures, the confirmation requirement by mail, etc. must be 
maintained, bearing in mind the general fundamental principles mentioned above.  
 
Communi cations between tenderers and the procuring entity  
 
• Modify Article X:4 to add "electronic means, including e -mail" to the list of ways (e.g. telex, 
telegram and facsimile) that suppliers may use to request to participate in selective tendering.  
 
• Add to Article X the provision that the means of communication can be specified by the 
procuring entity.  
 
• Modify Article IX:6 to obligate the procuring entity to include in the notice of proposed 
procurement the means by which requests to participate will be  accepted.  
 
In commenting on these suggestions, it has been suggested that Article  X:4 should be modified by 
adding: "electronic means, including electronic mail" to the list of methods available to suppliers for 
requests to participate in selective tender ing; and that Article IX:6 should be modified to obligate 
the procuring entity to include in the notice the means by which bids may be submitted in addition 
to paper -based tenders.  
 
Deadlines  
 
Alternative 1:  
 
• Remove all of the "deadlines" identified in A rticle XI. 
 
• Modify Article XI:1(a) to delete the words "by mail" from the last sentence.  
 
Alternative 2:  
 
• Modify Article XI:3 so that when electronic tendering is used, all periods referred to in 
Article  XI:2 may be reduced to a minimum of 15 days.  
 
• Modify Article XI:3 so that when electronic tendering and electronic bid receipt are used, 
second -stage periods referred to in Article  XI:2(b) and (c) may be reduced to a minimum of 
one day.  
 
In commenting on these suggestions, support has been ex pressed for Alternative  2. 
 
  GPA/TN1994/1/Rev.5  
- 23 - 
  ATTACHMENT 2  
OUTLINE OF A POSSIBLE FUTURE STRUCTURE FOR THE GPA  
("À DROIT CONSTANT ") 
The restructuring should consist of four sequential elements:  
 
1. deletion of those provisions relating to the entry into force of the WTO and transitional periods 
which have now expired (such as Article XXIV:3(a), (b), (d) and (e));  
 
2. grouping related provisions together to follow general WTO practice on structure of 
agreements and the procurement procedure more closely, as well as to faci litate ease of use;  
 
3. renaming Articles to more closely reflect their content;  and 
 
4. renumbering the Articles in the new structure to make them consecutive.  
 
A possible revised structure of the main body of the GPA (not addressing the Preamble or the 
Appendices) based on these elements is set out below.  It is not intended to be exhaustive.  Neither 
does it take account of the fact that several Articles may need to be either clarified or reformulated 
- for example, the existing Articles XI and XII.  
 
A. SCOPE AND COVERAGE OF THE AGREEMENT  
 
 Article 1  Scope and coverage (was Article I)  
 
 Article 2  Valuation of contracts (was Article II)  
 
B. BASIC PRINCIPLES  
 
 Article 3  Publication of legislation (was Article XIX:1)  
 [This could also be moved to Part D]3 
 
 Article 4  National treatment and MFN (was Article XIX:1)  
 
 Article 5  Rules of origin (products and services) (was Article IV)  
 [NB: This Article contains an in -built review mechanism]  
 
 Article 6  Offsets (was Article XVI)  
 
 Article 7  Access of non-Parties to the Agreement (was Article XVI:1)  
 
C. PROCUREMENT PROCEDURES  
 
 Article 8  Methods of procurement (was Article VII)  
 
 Article 9  Use of the selective tendering procedure (was Article X)  
 
 Article 10  Use of the limited tendering procedure (was A rticle XV)  
 
 Article 11  Qualification requirements for suppliers (was Article VIII)  
 
 Article 12  Technical specifications (was Article VI)  
 
 Article 13  Information to bidders:  notices (was Article IX)  
 
 Article 14  Information to bidders:  tender documentation (was Article II)  
 
 Article 15  Time-limits for the submission of bids (was Article XI)  
 
3 In commenting on this proposal, it has been suggested that Article XIX:1 on publication of basic 
legislation should be placed between sections B and C.  GPA/TN1994/1/Rev.5  
- 24 - 
   
 Article 16  Submission, receipt and opening of tenders (was Article  XIII:1 -3 + 
Article  XXII:1)  
 [This Article could be further split]  
 
 Article 17  Negotiation (was Article XIV)  
 
 Article 18  Award of contracts (was Article XIII:4 -5) 
 
 Article 19  Information on contracts awarded (was Article XVIII:1, 3, 4)  
 
C.1 BID REVIEW  
 
 Article 20  Information obligations of entities (was Article XVIII:2)  
 
 Article 21 Challenge procedures (was Article XX)  
 
D. INSTITUTIONAL PROVISIONS  
 
 (This chapter could be divided into different chapters, for instance exceptions to the 
Agreement + Article on developing countries could be a different chapter called "Exceptions to th e 
Agreement".)  
 
 Article 22  Information obligation of Parties (was Article XIX:2 -4) 
 
 Article 23  Exceptions to the Agreement (was Article XXIII)  
 
 Article 24  Special treatment for developing countries (was Article V)  
 [NB: This Article has an in-built review mechanism]  
 
 Article 25  Statistical reporting requirements (was Article XIX:5)  
 [NB: This Article has in -built review mechanism]  
 
 Article 26  Institutions (was Article XXI)  
 
 Article 27  Consultations and dispute settlement (was Article XXII ) 
 
 Article 28  Final provisions (was Article XXIV and was XVII:2 on observer 
status)  
 
__________  