RESTRICTED
WORLD TRADE WT/WGTGP/M/2
28August 1997
ORGANIZATION(97-3501)
Working Group onTransparency
inGovernment Procurement
REPORT ONTHE MEETING OF21JULY 1997
Note bytheSecretariat
1. TheWorking Group onTransparency inGovernment Procurement helditssecond meeting
on21July1997 under theChairmanship ofAmbassador Werner Corrales Leal.
2. Theagenda forthismeeting consisted ofthefollowing items: (i)general statements;
(ii)information onnational procedures andpractices; (iii)transparency-related provisions inexisting
internationalinstrumentsongovernmentprocurementproceduresandinWTOAgreements;(iv)requests
forobserver status from intergovernmental organizations; and(v)organization ofwork.
General statements
3. Some delegations saidthat,inthestudy phase ofitswork, theGroup should adopt awide
approach tothedefinition oftheterm "transparency", leaving anynarrowing ofitsscope tothe
negotiations phase. Some delegations, emphasizing theeducational nature ofthefirstphase ofthe
Group 'smandate, saidthatinthestudy phase theWorking Group should laythepathtowards acommon
understanding oftheconcept oftransparency ingovernment procurement. Itwasalsosuggested that
theGroup 'swork should beguided bythemeaning oftransparency thatwasimplicit intherelevant
provisions ofinternational instruments ongovernment procurement procedures. Thepoint wasmade
thatanover-ambitious interpretation oftheterm"transparency" would imply achange inthescope
ofthemandate oftheWorking Group.
4. Some delegations stated thatgovernments haddeveloped avariety ofprocurement regimes
inorder tomeettheirvarious social andeconomic policy goals. Given thattheobjective oftransparency
wasachieved through adiversity ofways, theWorking Group should notseektobeover-prescriptive
about howtoensure transparency. Onedelegation saidthatanagreement ontransparency should allow
sufficient flexibility sothatthose countries which hadsuccessfully combined decentralization with
openness andnon-discrimination would notberequired tore-regulate procurement inawaythatwould
havetheeffect ofcompromising public sector management policy reforms andincurring unnecessary
costs.
5. Delegations alsoidentified anumber ofaspects oftransparency thattheybelieved theWorking
Groupshouldcoverinitsstudy.Theseincludedaccesstoprocurementlaws,regulationsandprocedures,
public notices ofprocurement opportunities, information onqualification ofsuppliers, information on
award decisions andcriteria including national preferences, adequate time-limits forsubmission of
bids, entities andthreshold values tobesubjected totherequirements oftransparency, mechanisms
fordomestic review andprocedures forthesettlement ofdisputes between governments. Theneed
toaddress thewayinwhich national policy objectives weretaken intoaccount, forexample through
exceptions totheprinciple ofnational treatment andtechnical assistance tolessdeveloped countries
wasalsomentioned.WT/WGTGP/M/2
Page2
6. Withregard totherelationship ofthework oftheWorking Group tothatofother WTO bodies,
onedelegation saidthattheWorking Group wassetuptodevelop elements ontransparency in
government procurement atthemultilateral levelgiven thattheplurilateral Agreement onGovernment
Procurement withitslimited membership hadfailed toadequately ensure transparency inallWTO
Members andthatthemandate oftheWorking Party onGATS Rules waslimited togovernment
procurement intheservices sector.
7. Thedelegations ofCanada andtheUnited States introduced non-papers setting outanumber
ofguiding principles thattheyconsidered important fordeveloping elements ontransparency in
government procurement (JobNos. 4099 and4133).
Information onnational procedures andpractices
8. TheChairman informed theWorking Group that,following itsrequest atitsprevious meeting,
theSecretariat hadinvited theAPEC andtheFTAA tomake available information regarding thesurveys
theyhadundertaken ofnational government procurement regimes. Theinformation thathadbeen
received from theChairman oftheAPEC Government Procurement Experts Group hadbeenmade
available totheGroup (WT/WGTGP/W/4 andS/SPGR/W/21). TheSecretariat hadbeeninformed
thatsimilar information fromtheFTAA would beavailable intheautumn. AnotebytheSecretariat
"Synthesis oftheResponses totheQuestionnaire onGovernment Procurement ofServices" hadbeen
prepared attherequest oftheWorking Party onGATS Rules (S/SPGR/W/20). TheWorking Group
expressed itsappreciation fortheinformation provided bytheAPEC Government Procurement Experts
Group.
9. Therepresentative oftheEuropean Community introduced anotesetting outtheprocedures
andpractices relating totransparency intheEuropean Community (WT/WGTGP/W/6). Another
delegation made anoralstatement describing its"best practice guidelines" approach thatconstituted
thebasis ofitsdecentralized andderegulated procurement regime.
10. TheChairman encouraged Members tomake written contributions providing information on
theirnational procedures andpractices ontransparency ingovernment procurement.
11. Anumber ofdelegations suggested thattheSecretariat prepare asynthesis document based
onthefactual information onnational procedures andpractices relating totransparency available in
thevarious sources mentioned under thisitemtogether withtheinformation inthenotebytheSecretariat
ontransparency-related provisions oftheexisting international instruments (WT/WGTGP/W/3).
Transparency-related provisions inexisting international instruments ongovernment procurement
procedures andinWTO Agreements
12. TheGroup hadbefore itanoteprepared bytheSecretariat "Transparency-Related Provisions
inExistingInternationalInstrumentsonGovernmentProcurementProceduresandinWTOAgreements"
(WT/WGTGP/W/3). Itwasstated thatthenotewasinstructive indemonstrating thelarge degree
ofcommonality inthetransparency provisions inexisting international instruments ongovernment
procurement. With regard toinformation inthenoteontheimportance transparency could havefor
theobjective ofgiving allsuppliers equal opportunity tocompete regardless ofnationality andthereby
promoting liberalization oftrade, aMember commented thatthetwoissues werenotlinked. Inthis
respect some other Members saidthattheGroup should recognize thattransparency wasessential in
terms ofmarket access even when national preferences were applied. Access toinformation on
preferences orother conditions favouring national suppliers would enable potential bidders toassess
whether tobidforacontract infullknowledge oftheconditions applying toabidandthusenhance
thepredictability andcertainty oftheoverall procurement process.WT/WGTGP/M/2
Page3
13. Some delegations saidthatthenotecould havebeenamplified ontheprovisions oftheexisting
international instruments thatgaveleeway toadoption ofpolicies aimed atachieving legitimate social
andeconomic goals, forexample offsets orother measures providing special treatment fordeveloping
countries. Theexisting international instruments weredesigned taking intoaccount thediversity of
national procurement systems andregimes. Onedelegation saidthatthenotecould havemore detailed
information onminimum threshold values forprocurement. Another delegation emphasized the
importance ofthetopics inthenoterelating tomaintenance ofrecords andinformation technology.
Oneother delegation alsomentioned that,transparency wasimportant topurchasers, aswellastothe
other interested parties mentioned inparagraph 4ofWT/WGTGP/W/3, since itfacilitated comparing
theprice paidasaresult ofprocurement policies withthemarket price ofaprocurement.
Request forobserver status from intergovernmental organizations
14. TheWorking Group considered requests forobserver status received fromtheOECD andthe
SELA andagreed toinvite these organizations toattend itsnextmeeting inanobserver capacity. At
thatmeeting theGroup would revert totheissue ofgranting these organizations amore permanent
observer status inaccordance withthenormal guidelines forobserver status forintergovernmental
organizations intheWTO which callforcase-by-case consideration ofrequests forobservership by
eachWTO body towhich arequest hasbeenaddressed (WT/L/161, Annex 3).
Organization ofwork
15. Onthebasis ofthediscussion under theabove items, theChairman suggested thefollowing
regarding theorganization ofthework oftheGroup. Delegations would provide information ontheir
national procedures andpractices relating totransparency ingovernment procurement. TheGroup
would request theSecretariat toprepare apaper synthesizing thefactual information onnational
procedures andpractices relating totransparency available intheresponses tothequestionnaire on
government procurement ofservices intheWorking Party onGATS Rules, thesurveys ofnational
legislation ofAPEC economies andcontributions tobesubmitted bydelegations together withthe
information inthenotebytheSecretariat onthetransparency-related provisions inexisting international
instruments. Further, inresponse toasuggestion byonedelegation, theSecretariat would make contact
withtheInternational Trade Centre inorder toobtain information onitstechnical assistance activities
intheareaofgovernment procurement forcirculation todelegations. TheGroup would holditsnext
meeting on3-4November 1997. Prior tothatmeeting, theWorking Group would holdinformal
consultations inmid-October toorganize thediscussion.
16. TheWorking Group agreed toproceed assuggested bytheChairman.