WORLD TRADE WT/DS88/1
ORGANIZATION GPA/D2/1
26June1997
(97-2641)
Original: English
UNITED STATES -MEASURE AFFECTING GOVERNMENT PROCUREMENT
Request forConsultations bytheEuropean Communities
Thefollowing communication, dated 20June1997, from thePermanent Delegation ofthe
European Commission tothePermanent Mission oftheUnited States andtotheDispute Settlement
Body, iscirculated inaccordance withArticle 4.4oftheDSU.
_________________________
Myauthorities haveinstructed metorequest consultations withtheUnited States pursuant to
Article XXII oftheGovernment Procurement Agreement (GPA) andArticle 4oftheUnderstanding
onRules andProcedures Governing theSettlement ofDisputes regarding theActRegulating State
Contracts withCompanies doing Business withorinBurma (Myanmar) enacted bytheCommonwealth
ofMassachusetts on25June1996 (Chapter 130oftheActsof1996). ThisActprovides, inessence,
thatpublic authorities oftheCommonwealth ofMassachusetts arenotallowed toprocure goods or
services from anypersons, whether USorforeign, whodobusiness withBurma (Myanmar).
TheEuropean Communities consider that,asMassachusetts iscovered under theUSofferto
thisAgreement, themeasure described above violates theobligations oftheUSunder theGPA:
specifically, theEuropean Communities areoftheviewthattheMassachusetts legislation contravenes,
though notnecessarily exclusively, thefollowing provisions oftheGPA: Article VIII(b), given that
itimposes conditions onatendering company which arenotessential toensure thefirm'scapability
tofulfilthecontract; Article Xasitimposes qualification criteria based onpolitical rather thaneconomic
considerations, andArticle XIIItotheextent thatthestatute allows theaward ofcontracts tobebased
onpolitical instead ofeconomic considerations.
ThismeasurealsoappearstonullifyorimpairthebenefitsaccruingtotheEuropeanCommunities
under thisAgreement, particularly asitlimits theaccess ofECsuppliers toprocurement byasub-federal
authority covered bytheGovernment Procurement Agreement insuchawaysoastoresult inade
facto reduction oftheUSsub-federal offer under theGPA.
TheEuropean Communities additionally consider thatthismeasure hastheeffect ofimpeding
theattainment oftheobjectives oftheGPA, including thatofmaintaining abalance ofrights and
obligations.
TheEuropean Communities arealsoveryconcerned bytherecent proliferation ofsimilar
initiatives taken orproposed byMassachusetts andother sub-federal authorities.
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GPA/D2/1
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Thisrequest forconsultations iswithout prejudice tothepotential pursuit ofactions under the
General Agreement forTrade inServices.
Ilookforward toreceiving yourreply tothisrequest andtofixing amutually acceptable date
forconsultations.