 RESTRICTED  
  
GPA/TN1994/1/Rev.7  
25 January  1999 
(24-2766) Page: 1/35 
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) General principles in the Agreement  ................................ ................................ .............  3 
(c) Enforcement and monitoring mechanisms  ................................ ................................ ..... 4 
(d) Information technology  ................................ ................................ ..............................  5 
(e) Statistical reporting  ................................ ................................ ................................ .. 10 
(f) Article -by-Article review of the Agreement  ................................ ................................ .... 14 
(g) Improving the structure of the Agreement  ................................ ................................ ... 22 
(h) Appendices to the Agreement  ................................ ................................ .....................  23 
2. Elimination of discriminatory measures and practices which distort open procurement  .........  23 
(a) General  ................................ ................................ ................................ ...................  23 
(b) Mutually agreed coverage of services  ................................ ................................ ..........  25 
3. Expansion of the coverage of the Agreement  ................................ ................................ . 26 
B. INSTITUTIONAL/PROCEDURAL POINTS  ................................ ................................ .. 28 
1. Work on government procurement in other WTO fora  ................................ ......................  28 
2. Institutional arrangements for the review  ................................ ................................ ...... 28 
3. Participation of WTO Members in the review  ................................ ................................ .. 28 
4. Next steps  ................................ ................................ ................................ ................  29 
ATTACHMENT  1  INFORMATION TECHNOLOGY SUGGESTED MODIFICATIONS TO THE 
AGREEMENT  ................................ ................................ ................................ ...................  30 
ATTACHMENT  2  OUTLINE OF A POSSIBLE FUTURE STRUCTURE FOR THE GPA (" À DROIT 
CONSTANT ") ................................ ................................ ................................ ..................  32 
 
* English only.  
** Pursuant to the relevant Decision of the Committee on Government Procurement ( GPA/CD/5  
(16/11/2023)), this document (informal document symbol: gpa7 8) was derestricted on 8 November 2023 ). GPA/TN1994/1/Rev.7  
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  ATTACHMENT  3  TIME -FRAME AND THE WORK PROGRAMME FOR THE NEGOTIATIONS 
UNDER ARTICLE XXIV:7  ................................ ................................ ................................ . 34 
 GPA/TN1994/1/Rev.7  
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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 re view, starting in 1997 with an 
examination of modalities, with a view to the implementation 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 the 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 lar gely have been addressed . In this connection, it has 
been suggested that an improved 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 the 
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 . Therefo re, it could not 
reasonably be expected that a mere improvement and simplification 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 s imultaneously.  
3.  It has also been stated that the discussion of the review item on discriminatory 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 procedures 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 advantages 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 accompanied 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 th at the review shall seek the expansion of 
membership by making the Agreement more accessible 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 Parties 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 only three years . Simplification of the provisions should be 
limited to what is absolutely essential for the purposes of the efficiency of procurement regimes.  
(b) General principles in the Agreement  
7.  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  that were widely accepted in 
day-to-day procurement practices such as transparency, equality of opportunities, GPA/TN1994/1/Rev.7  
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  non-discrim ination, proportionality, competition, liberalization and expansion of world trade . While 
such principles were already included in the Preamble or were implicit in some of the main provisions, 
they should be clearly spelled out as operational principles of  general application.  
8.  The following points have been made regarding the application of such principles in the 
Agreement:  
- "proportionality" was an underlying principle in a number of provisions, for example in 
the term "unnecessary obstacles" in Article  VI on Technical Specifications and the term 
"within a reasonably short time" in Article  VIII(d) on Qualification of Suppliers . 
Moreover, it was essential that any requirements relating to technical, financial or 
professional capacity of suppliers should be strictly limited to what were necessary and 
justified with respect to the objectives of th e procurement in question;  
- the principle of proportionality might be introduced as one of the objectives of the 
Agreement in the Preamble . However, it might be diff icult to set out clear criteria for 
determining the proportionality of a given procedure to the objective sought . Any 
unclear criteria regarding such principles would constitute an element of legal 
uncertainty;  
- the non -discrimination principle was an exp licit requirement in Article III . On the other 
hand, it might be difficult to incorporate obligations based on the abstract notions of 
competition, liberalization and expansion of world trade in the operational articles.  
(c) Enforcement and monitoring mech anisms  
9.  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 
the Agreement by increasing the effectiveness of the existing enforcement mechanisms that 
guaranteed the rights of suppliers . On the other hand, it has been said that a case had yet to be 
made that the greater flexibility in the rules that might be envisaged as a result of the process of 
simplification and improvement of the Agreement that was presently under way would give rise to 
the need for improved mechanisms for enforcement and monitoring . The outcome of the discussio ns 
on the simplification and improvement of the Agreement might show that there was no relationship 
between the two processes.  
10.  The suggestion has been made that Parties should consider to what extent Article  XX on bid 
challenge procedures had been effectiv e in achieving this objective . In addition, or as an alternative 
to, enforcement mechanisms based on the bid challenge procedures 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 aggrieved suppliers or investigate and monitor the application of procurement rules 
and procedures on their own initiative since suppliers m ight often be reluctant to bring cases against 
procuring entities.  
11.  A note addressing the issue  of enforcement and monitoring mechanisms , in particular in the 
light of the EC's own experience on the enforcement and monitoring mechanisms of public 
procuremen t rules, has been circulated in Job  No. 3871.  
12.  Whether the Agreement should prescribe in detail how government authorities should organize 
their interaction with suppliers has been questioned . It has been said that the establishment of 
independent review bo dies in individual Parties provided for under Article  XX:6 w ould reduce the 
need for any additional procedures in this respect.  
13.  With regard to the suggestion relating to the addition of  add new paragraphs  9 to 11 to 
Article  XX concerning the establishment of independent authorities (see section A.1.(f)), a  view has 
been expressed opposing the addition of such paragraphs . More time was needed for the evaluation 
of the operation of the arrangements under Article  XX which was a new feature of the 1994 
Agreemen t. A case had yet to be made that the current procedures in the Agreement on review, 
consultations and monitoring had not been adequate and that there was need for new requirements GPA/TN1994/1/Rev.7  
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  and additional mechanisms . The fact that only a limited number of cases had been reported under 
formal challenge procedures did not necessarily mean that the aims of Article  XX had not been 
achieved . It had not been established that suppliers had been ignorant of, or had been intimidated 
from using the procedures availab le to them under Article  XX. It has also been said that paragraph  1 
of Article  XX required Parties to encourage the complainant supplier to seek resolution of its 
complaint in consultation with the procuring entity before resorting to challenge procedures . 
Suppliers might have used the route of informal consultations for resolving their disputes with 
procuring entities and promoting mutual understanding and good relationships between them . 
Further views on this matter have been included in a non -paper by Ho ng Kong, China circulated in 
Job No. 5269. The point has also been made that any further procedures relating to enforcement 
might be perceived as an additional burden by those non -Parties that were considering accession to 
the Agreement . Moreover, the use of information technology as a vehicle for monitoring and 
enforcement should not lead to additional reporting requirements.  
14.  The following have been mentioned as among the other mechanisms which could be envisaged 
to guarantee transparency of procurement pr oceedings 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 . It has also been said that the Agreement included provisions relating to information 
on contract prices or the highest and lowest offer that had be en taken into account in the award of 
the contract (Article XVIII:1(c)).  
15.  It has been said that transparency through public scrutiny and monitoring by other suppliers 
was more effective in promoting compliance than the institution of additional bureaucratic  
procedures.  
16.  In this connection, another 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 ob ligations relating to enforcement and 
monitoring mechanisms additional to the challenge procedures of Article XX might deter non -Parties 
considering membership of the Agreement . Other views expressed on the matter have questioned 
the way in which independe nt mechanisms could operate in Parties with federal governments . On 
the other hand, the point has been made that independent enforcement mechanisms offered the 
possibility of arriving at rapid resolution of disputes and also avoiding the inconvenience of f ormal 
court proceedings . Provisions requiring the establishment of such mechanisms would provide an 
additional incentive to non -Parties to join the Agreement.  
(d) Information technology  
 (i) General  
17.  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.  
18.  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.  
19.  With respect to the Canadian proposal 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.  
20.  The need to continue the information -gathering process in response to the revised questionnaire 
on information technology was referre d to.1 
 
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 ), the United States ( GPA/W/24/Add.6 ) and Singapore ( GPA/W/24/Add.7 ). GPA/TN1994/1/Rev.7  
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  21.  It has been said that new obligations in the Agreement regarding the use of electronic 
publications and any requests to acceding countries to undertake commitments in this respect would 
cause them to incur considerable costs . It has also been 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  
22.  It has bee n 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 between entities and suppliers which can effectively operate in the information age, 
and those, in particular SMEs, which cannot, thus creating a competitive advantage in favour of the 
former group.  
23.  The point has been made that the non -discrimination aspect of the use of information 
technology should be considered 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 matter 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 effective in reaching all interested suppliers than pape r-based 
methods.  
24.  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 information technology which would allow entities to f avour only those suppliers who had access 
to information technology would be inconsistent with Articles VI:4 and VII:2 of the Agreement.  
25.  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 bids would proceed at different speeds because of c onsiderations 
related to security of data transmission issues and feasibility for large and complex bids.  
 (iii) Publication requirements  
26.  It has also been said that any modifications should be limited to allowing the use of information 
technology in parall el with the paper system currently in use . Some delegations have advocated or 
indicated their readiness to explore 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.  
27.  It has been said that denying easy access to information on procurement opportunities through 
the use of the most up -to-date publication and dissemination systems would go against the 
objectives of the Agreement of opening procurement markets to competition and fostering 
transparency . Procuring entities should be allowed to choose the vehicle to publish information under 
the Agreement . Article IX:1 required publication of tender notices in the "appropriate" public ation 
listed in Appendix  II. If electronic publication was considered to be an "appropriate publication", 
there would not be a need for any additional provisions specifically stipulating the use of electronic 
publications . Appendix  II currently contained r eferences to the websites that were being used in 
some Parties to disseminate tender information . Another view has been expressed questioning the 
use of websites as Appendix  II publications . It was question whether a website would need to have 
certain feat ures of publications that were essential to the users for instance relating to record 
keeping or legal evidence.  GPA/TN1994/1/Rev.7  
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  28.  Suggestions have been made concerning the provisions of the Agreement relating to publication 
requirements (Article IX on invitation to partici pate regarding intended procurement) ; Article XI on 
time-limits for tendering and delivery ; Article XVII on transparency ; Article XVIII on information and 
review as regards obligations of entities ; and Appendices  II and III to reflect the practice of elect ronic 
publication of notices (Job Nos. 3887 and 5211) . These are reproduced in Attachment  1 to this note.  
29.  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 a s a requirement in the Agreement . While 
the Agreement should not exclude the possibility of publishing in hard copy version, it 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.  
30.  It has been stated  that increased transparency of procurement opportunities was one of the 
main benefits of the electronic dissemination 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 cou ntries Parties to the Agreement to locate and easily 
access information on procurement opportunities that was currently published electronically . Parties 
should also update and supplement this information as necessary . On the other hand, a view has 
been ex pressed 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 Internet 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 in individual countries . In this connection, it has been 
said that it might not be necessary to stipulate such practices in the Agreement itself . 
31.  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 publication would have the f ollowing 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 depending 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 experience 
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 printing of electronic pub lications 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 pa per 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 less time -consuming and costl y 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 relevan t 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 Acquisition Virtual Library which provided pol icy guidance and GPA/TN1994/1/Rev.7  
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  information on current trends in procurement procedures as well as data on 
procurement legislation.  
32.  It has been suggested that, in order to ensure continued open access by all suppliers, Parties 
choosing to only utilize electronic publishi ng 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 point of entry, for instance by establishing 
a website that would be linked to several websites . In connection with the use of the Internet it has 
been said that, while the Internet was currently the most widely used means of electronic 
distribution, inclusion of a generic term in the Agreement for su ch electronic networks would allow 
for future evolution of information technology.  
33.  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 and that the use of electronic means of publication would facilitate 
this. 
34.  It has been said that a requirement to publish t ender 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.  
35.  It has been suggested that Parties could be invited to provide addresses of any sites on the 
Internet that give informati on on procurement opportunities in their countries . There was also a 
need to examine how information was structured in national databases . In this respect, it has also 
been mentioned that some national electronic tendering systems may not cover all procure ment 
covered by the Agreement.  
36.  With regard to the question of whether electronic publications should be accessible to suppliers 
in GPA Parties at minimal or no cost,  it has been said that, in the absence of evidence that the cost 
of using electronic public ations represented a true barrier to access, the Agreement should not have 
provisions regulating the charging of fees for electronic or hard -copy publications . In this connection, 
it has been mentioned that governments had been increasingly devolving the a ctivities 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.  
(iv) Electronic submission and receipt of tenders and other communications 
between the tenderer and the procuring entity  
37.  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 
electroni c means for other communications (Job Nos.  3887 and 5211 (1997) and Job No.  3842 
(1998)) . These are reproduced in Attachment  1 to this note.  
38.  The view has been expressed that it was premature to consider a requirement to provide all 
tender documents, in par ticular 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.  
39.  It has been mentioned that technical and content -related compatibility issues for the receipt of 
electronic bids could be resolved, particularly for routine transactions, through the use of the 
Internet . Widely available (a nd 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 complete d on-screen or 
downloaded and email ed by return to the procuring organization.  GPA/TN1994/1/Rev.7  
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  40.  Also, a suggestion has been made that the GPA should not require entities to submit paper 
copies of tender confirmations.  
41.  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.  
42.  Reference has also been made to legal and technical difficulties relating to the electronic 
submission of bids 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 Model Law on 
International Commerce, particularly Articles 5 -7 relating to the legal recognition of data messages, 
writings and signatures, could provide g uidance 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.  
43.  It has been said that the work that  was being carried out under the mandate of Article  XXIV:8 
to negotiate modifications to the Agreement in the light of developments in information technology 
was different from the work on possible changes in the tendering procedures under the Agreement 
to reflect new procurement methods . The discussion of the two topics should be kept separate.  
 (v) Ease of access to databases and use of information tools  
44.  It has been suggested that the ease of access to information sources (including establishing 
links bet ween 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.  
45.  With respect to ease of access to databases, it has been stated th at 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 t he 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 i n 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 multilingual procurement voc abulary 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 process . The use of standa rd 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 establish procurement statist ical 
databases . Furthermore, the use of multilingual CPV in the eleven official languages in the European 
Union and of the standard forms provided in it had facilitated the translation of, at least, the most 
important elements of procurement notices.  
46.  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 interested suppliers could sea rch 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 . It has also been suggested that Parties should share 
information on their experience rela ting to the technical aspects of this matter.  
 (vi) Deadlines  
47.  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.  
48.  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.  GPA/TN1994/1/Rev.7  
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  49.  It has also been stated that the ratio nale 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.  
50.  Suggestions have been made concerning the deadline s set out in the Agreement (Article  XI) to 
take account of electronic tender and electronic bid receipt (Job No. 3887) . These are reproduced in 
Attachment  1 to this note . On the other hand, the following points have been made to caution against 
any prematu re 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 i n 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 deadlines f or 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 transmission of docu ments could 
be relatively small compared to the total time needed for the preparation of responsive 
bids. 
 (vii) New issues related to electronic commerce  
51.  It has been stated that a wider use of electronic tools could call into question the traditional 
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 exchange of infor mation, 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 traditional b ehaviour of contracting entities inviting suppliers to tender could 
be called into question by new technological opportunities which would facilitate, for example, 
electronic qualification procedures, tendering of framework contracts and the selection of 
off-the-shelf products from electronic catalogues.  
(e) Statistical reporting  
 (i) General  
52.  It has been said that statistical reporting was an area where 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 sta tistics and in terms of the actual benefits to individual 
purchasers and suppliers . On the other hand, the point has been made that statistical reporting was 
an essential tool for enhancing transparency and monitoring compliance by Parties with the 
obligat ions of the Agreement . Moreover, statistical reporting provided a useful information basis to 
suppliers and purchasers on the functioning and development of public procurement markets . In any 
amendment of the existing requirements, Parties should try to st rike a balance between the 
advantages of having less onerous requirements and the disadvantages of de facto providing for 
less transparency.  
53.  Non-papers on this topic have been circulated in Job Nos.  5212 (in 1997), 3246, 3855, 3869 
and 5269 (in 1998) . A note by the Chair attempting to present a draft revision of the text of 
Article  XIX:5(a) will be circulated before the informal consultations in February  1999. GPA/TN1994/1/Rev.7  
- 11 - 
   (ii) Creating greater flexibility in GPA statistical reporting  
54.  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 flexibility in terms of the manner in which statistical data were  
reported . Increased flexibility would allow Parties to submit reports that more closely conformed to 
each Party's domestic procurement reporting practices for collecting and reporting public 
procurement statistics, thereby reducing the administrative burd en 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 basis ; or 
- allowing Parties to report aggregate annual ob ligations per contract rather than the total 
value of contracts awarded, considering that the duration of many contracts was longer 
than one year.  
55.  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.  
56.  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 Parties . 
Parties must continue to submit statistical data that are comp arable in scope and breadth.  
57.  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 required 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)) 
58.  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 contracts awarded both above 
and below the threshold value . Until a prop er 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 provisions 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 these types of statistics were necessary for the assessment of Parties' 
compliance with the Agreement.  
59.  Another suggestion has bee n that the Agreement should include an exception for procurements 
of very small value (a de minimis  exception) to the Article XIX:5(a) requirements that statistical 
data for Annex  1 entities must 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 sma ll-value procurements . Moreover, data on 
these smaller procurements tended to be less relevant to the underlying purposes of reporting 
statistical information under the Agreement, including the aim to achieve greater transparency and 
also to further GPA co mpliance monitoring efforts.  
 (iv) Uniform classification systems (Article XIX:5, subparagraph (b))  
60.  It has been suggested that the classification for statistical reporting should be done by standard 
customs classification, CPV classification or similar wid ely 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 enhanced consistency of reported procurement.  GPA/TN1994/1/Rev.7  
- 12 - 
  61.  On the other hand, it  has also been said that Parties should be allowed to report statistics in 
other types of nomenclatures than that established under the GPA, for instance in the nomenclatures 
of the reporting countries, if the reporting was done only at the two -digit level  (major category 
groups) accompanied by a description of those groups.  
62.  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 sy stems adopted 
for goods and services (the 26 product categories and the UNCPC) because no table of 
correspondence with the Common Procurement Vocabulary (CPV) existed . But this situation should 
soon disappear with the publication of a new CPV in 1998 and t he possible establishment of a table 
of correspondence between the CPV and the other two uniform classification systems.  
(v) Contracts awarded under limited tendering procedures (Article  XIX:5, 
subparagraph  (c)) 
63.  With regard to statistics relating to catego ries of entities in 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 circu mstances, the share 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 limiting the requirement to the provision of statistics:  
- on the number and the total value of contracts awarded in all cases where l imited 
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;  
- to two categories in Article  XV relating, respectively, to contracts awarded for reasons 
of extreme urgency in terms of paragraph  (c) and to additional deliveries in terms o f 
paragraph  (d). A third category of statistics would report on contracts awarded under 
all other condit ions specified in Article  XV. 
64.  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 . In connect ion with this suggestion, it has been said that Article  XIX:3 already 
allowed Parties to request such information.  
 (vi) Statistical reporting of derogations (Article XIX:5, subparagraph (d))  
65.  It has been suggested that there should be no requirement to rep ort 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 o f derogations and was also difficult to comply with and monitor ; the 
requirements to provide statistics on derogations were not cost effective ; and the advantages of 
publication of such information were limited.  
66.  In this connection, it has also been said th at, 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 
these types of statist ics was essential for transparency purposes.  
 (vii) Provision of statistics on the country of origin of products and services  
67.  It has been said that information on the country of origin of supplies has been considered to be 
important, for instance in the context of national procurement policy considerations . Nevertheless, 
the requirements in Article XIX:5 should be eliminated because the accuracy of such information, 
mainly based on entities' declarations, was doubtful . Moreover, such information could be 
misleading, particularly in respect of technologically advanced industries, where components and 
equipment were usually produced and assembled in several different countries.  GPA/TN1994/1/Rev.7  
- 13 - 
   (viii)  Reporting in national currency  
68.  The point has been ma de 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 th e 
administrative burden on Parties of converting data into SDRs . In fact, Parties might find statistical 
data prepared in national currencies to be more useful than information provided in SDRs . Parties 
should list a conversion rate into SDRs in their stat istical 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 in to SDRs.  
 (ix) Additional areas where statistical reporting may be useful  
69.  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 ea ch 
of the Annexes . This was an area where statistical reporting would be useful, but would only slightly 
increase administrative demands on Parties.  
 (x) Encouraging timely reporting of statistical data  
70.  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 
information . Under the GATT Agreement on Government Procurement, which also did not contain a 
deadline for the submi ssion of statistical reports, it often took as long as two years following the end 
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 fash ion that preserved their 
usefulness, GPA Parties should be encouraged to submit reports on a timely basis . It has been said 
that 12  months following the end of a Party's reporting cycle would generally be a reasonable period 
of time for submission of stati stical data.  
 (xi) The use of information and communication technology  
71.  The point has been made that more complete statistical data on public procurement could be 
obtained by utilizing the advantages offered by Information and Communication Technology (ICT) . 
It has been suggested that Parties should be able to obtain, under specified conditions, a general 
waiver from all the statistical reporting requirements, or a more specific waiver which only covered, 
for example, Annex  1 entities . This waiver should onl y be granted if certain conditions were met by 
the alternative system being used:  
- Parties should be required to operate a system which enabled interested Parties to 
access data on awarded contracts through one single entry point;  
- the data provided shou ld 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 cont ract or categories of products or services ; award procedure chosen (open 
or limited) ; date of award of contract ; and date of publication of tender notice;  
- the waiver might be extended only to those levels of government entities that provided 
their statis tical data through ICT systems.  
72.  It has been said that providing statistical data through the existing ICT systems, without having 
to go through formal procedures, would greatly improve statistical reporting . It has also been said 
that information posted on  individual websites, that could be extracted and collated through the use 
of ICT systems, could be made accessible through one single entry point . Under ICT systems 
statistical data would not need to be collected in a particular format . Rather, any intere sted party 
would be able to interrogate different databases and develop a statistical report by using the 
parameters that were of particular interest, for example relating to the number of award of contracts 
during a period, average value of contracts, etc . GPA/TN1994/1/Rev.7  
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  73.  The point has been made that any the data obtained by using ICT systems should have a 
common basis with the data that must be reported under the requirements of the Agreement in 
order to enable comparisons o f the data supplied by different Parties . In this connection it has been 
said that the use of a standard notice by entities for storing information in databases would facilitate 
comparison of data across countries . It has also been said that the use of ICT systems should not 
lead to further reporting r equirements.  
74.  The European Community has been invited to present a more specific proposal on the matter.  
 (xii) Other issues relating to statistical reporting requirements  
75.  In order to ensure the effective implementation of the requirements in Article  XIX:5,  the 
following suggestions have also been made:  
- the information 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;  
- the availability of statistics on government procurement on the Internet would be useful 
to civil society as well as to governments.  
(f) Article -by-Article review of the Agreement  
 (i) General  
76.  The desirability of simplifying some of the substantive rules of the Agreement and providing 
greater flexibility where possible under those rules has 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.  
77.  It has been said that in the review of the Articles of the Agreement, cons ideration should be 
given to the adaptation of the contents of specific provisions to take account of the experience gained 
during the application of the Agreement, as well as practical changes in government purchasing . 
One element of such adaptation is th e simplification and improvement of the procedural rules . This 
comprised the clarification of rules that had shown to be ambiguous . Furthermore where the ways 
and means of purchasing had changed Parties should examine the adaptation of the rules.  
 (ii) Individual Articles  
 Article I  
 paragraph 1  
78.  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 cover age of the Agreement in a more direct way . In this connection, the point has 
been made that the term "as specified in Appendix  I" reflected the negotiated understanding 
concerning the reciprocity -based coverage of the Annexes to Appendix I.  
 paragraph  2 
79.  It has been suggested that this paragraph should also include a reference to forms of 
procurement under new phenomena (partnerships between private and public sectors, multiplication 
of "Build Operate Transfer" (BOT) operations and joint ventures), which w ere difficult to classify GPA/TN1994/1/Rev.7  
- 15 - 
  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 Agreement involving these types of phenomena.  
 paragraph  3 
80.  The point has been made tha t there was scope for improvement and clarification in the language 
of this paragraph.  
 paragraph  4 
81.  It has been suggested that the provisions of the Agreement on valuation 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.  
82.  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 
83.  It has been said that purchasers in the private sector had the practice of maintaining open 
runnin g 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 value . Purchasers subsequently 
proceeded with the procurement by ordering from electronic ca talogues . 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 
84.  It has been suggested that fo otnote 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 the time of the publication of the notice 
in accordance with Article IX and at the time of fi rst contact with the supplier in the case 
of limited tendering ." 
85.  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)  
86.  The point has been made that 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 
87.  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 
88.  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 granting non -reciprocal access to developing countries to GPA/TN1994/1/Rev.7  
- 16 - 
  procurement markets of Parties m ight 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 developing countries additional incentives to join the Agreement . It has been suggested t hat 
the provisions on technical cooperation should be extended to take account of the needs of 
developing countries to adjust to new developments in application of information technology to 
government procurement.  
 Article VI  
89.  A comment has been made suggesting a rearrangement of the location of Article VII in the text 
of the Agreement in order to reflect the close association of the provisions on technical specifications 
with those on tender documentation.  
  paragraph 1, subparagraphs (a ) and (b)  
90.  It has been suggested that there should be a hierarchy between paragraphs  (a) and  (b) since 
the provisions of subparagraph  (a) should be the rule and those of subparagraph  (b) the exception.  
 paragraph 3  
91.  A view has been expressed that the prohibition in this p aragraph against requiring or referring 
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.  
 Article VII  
 paragraphs 1 and 2  
92.  It has been suggested that paragraphs  1 and  2 should be separated from paragraph  3 
describing the types of procurement procedures and be placed in an Article addressing the general 
principles of procurement.  
 paragraph 3  
93.  It has been sugge sted that the Agreement needed to be clearer about which of its procedural 
provisions apply to which tendering method as defined in Article VII:3.  
 Other tendering procedures  
94.  It has been suggested that the provisions on tendering procedures should be reviewed to 
accommodate the use of two -stage tendering and electronic catalogues . The question has been 
asked whether those two types of procurement would not appropriately fit in one of the tendering 
procedures defined in the current text of Article VIII . A non-paper on the subjects of the use of 
electronic catalogues and two -stage tendering has been circulated in Job No.  5295.  
  two-stage tendering  
95.  The point has been made that the provisions on open and selective tendering procedures did 
not cover two -stage tendering as provided in Chapter V, Article 46 of the UNCITRAL Model Law on 
Procurement of Goods, Construction and Services . The main elements of two -stage tendering were:  
- in the first stage, initial tender proposals were invited without a tender pric e. The 
proposal related to the technical and contractual aspects of the project, as well as the 
track records of the tenderers;  
- in the second stage, those tenderers who had not been rejected as a result of technical 
evaluation were invited to submit fina l tenders with prices and according to a single set 
of specifications.  GPA/TN1994/1/Rev.7  
- 17 - 
  The UNCITRAL two -stage tender was constructed to deliberately separate technical evaluation from 
price evaluation, and there may not be any negotiations with any suppliers or any modifi cations of 
tender specifications throughout the entire tendering process . In the first stage, a purely technical 
evaluation was done . In the second stage, only those which satisfy the technical evaluation were 
invited to quote their price offers . The price  evaluation might be done by a totally different committee 
from the technical evaluation, e.g. the entity may decide that the technical evaluation be done by a 
group of engineering experts, but the price evaluation be done by policy -makers . The two -stage 
tendering method was especially useful for complex projects where the procuring entity wished to 
separate technical evaluation from price evaluation, e.g. in complex engineering projects, for 
example the building of a nuclear plant . Technical experts were c alled upon to evaluate and shortlist 
technically acceptable tenders, but the final decision would be made by policy makers, taking into 
account the affordability and cost -effectiveness of the proposed tender as well as its technical 
feasibility.  
 
96.  The point  has further been made that the two -stage appeared to have some similarities to the 
procedures on negotiations described in Article  XIV of the GPA . The scope of the provisions on 
negotiations in the Tokyo Round Agreement had been expanded to include the co ncept of two -stage 
tendering in the 1994 Agreement . However, Article  XIV envisaged negotiations arising from the 
process of evaluation of tenders, where it became apparent that no one tender was obviously the 
most advantageous.  
  use of electronic catalogu es 
97.  It has been said that, based on practice in the private sector, there appeared to be two main 
modes of purchasing through electronic catalogues:  
- a commercially -run website service which grouped all suppliers of similar equipment 
together and allowed a  procuring entity to search for the best price . The site essentially 
operated like a supermarket whereby similar products and services were grouped 
together and presented to the customer . For example, if a procuring entity wished to 
buy computer modems, th e desired capabilities were searched . Products that fitted the 
criteria could be presented in increasing order of price . Alternatively, the entity might 
browse through the entire electronic catalogue . The main critique of this electronic 
catalogue approach was that suppliers who were not listed in the catalogue were 
excluded from the procuring entity's search;  
- the procuring entity or a group of entities might call for period contracts and operate an 
evaluated shortlist of suppliers . For example, t he government central procurement 
office could call open tenders for airline tickets, photocopiers, computer equipment and 
the like . Several suppliers could be shortlisted . But because the product changed from 
time to time, e.g. air travel, the several sho rtlisted suppliers were invited to quote the 
price for air travel by the entities each time a procurement was made . The evaluation 
of the shortlisted suppliers was done through open tender, but the individual quotations 
within the period of the contract we re limited to the shortlisted suppliers . At the end of 
the period in question, a fresh open tender was called, and the individual quotations 
within the new period were again limited to the successful shortlist of suppliers.  
98.  The question has been asked whet her procurement though electronic catalogues belonged to 
the category of open tender procedures, in which all interested suppliers may submit a tender ; or 
selective tendering procedures, in which shortlisted suppliers were invited to do so . It might well 
turn out that the current formulation in the GPA did not sufficiently cover the ground . In this respect, 
it has also been said that the use of electronic tendering, by itself, might not necessarily require a 
re-evaluation of the types of tendering procedure s broadly described in Article VII . Some of the 
questions with respect to the use of new technologies related also to traditional ways of procuring . 
The use of electronic catalogues in procurement might fall under open or selective tendering 
methods.  
99.  A question has been asked whether electronic catalogues were used mainly for low -value 
procurement . If this were to be the case, use made of electronic catalogues would fall largely outside 
the scope of the Agreement . In this connection, it has been said tha t, while the value of individual 
items purchased from electronic catalogues might be relatively low, total values would be substantial 
if a series of items was purchased on a regular and frequent basis from the suppliers listed in GPA/TN1994/1/Rev.7  
- 18 - 
  commercial catalogues . The point has also been made that the issue of recurrent contracts would 
be relevant to the use of electronic catalogues in procurement . Another point has been that 
commercially -run website services appeared to relate to direct purchasing under Article  XV ra ther 
than to open competition.  
  framework agreements  
100.  It has been said that a framework agreements was concluded between a contracting entity 
and a number of selected suppliers, contractors or service providers for a given period . Its purpose 
was to establ ish the terms that would govern the contracts to be awarded during that period, for 
instance the price, the quantity and conditions of delivery . A framework agreement could be awarded 
using, as appropriate, the open, selective or limited tendering procedur es under the Agreement . If 
contracting entities had awarded a framework agreement, at an initial stage, on the basis of 
competitive tendering procedures, a call for competition was not compulsory when contracts were 
awarded on the basis of that agreement a t a later stage . This type of procurement allowed the 
reduction of deadlines in day -to-day procurement, in particular for purchases of off -the-shelf 
products and certain standardized services . It has also been said that purchasing though electronic 
catalog ues under limited period contracts could be considered as a type of framework agreement . 
It has been suggested that the conditions of application of framework agreements should be further 
clarified.  
Article VII I 
101.  It has been said that the rules in Article  VIII on qualification of suppliers were either of general 
application (for instance, paragraph (b)) or related to the establishment of permanent lists of 
qualified suppliers . The text should be revised in order to separate these two types of rules.  
paragrap h (b) 
102.  It has been said that ways should be found to reduce administrative burdens on suppliers, 
particularly SMEs, regarding the procedures for the proof of their technical, financial and commercial 
capacity.  
Article  IX 
103.  The point has been made that there was a need for clarification of certain terms in this Article, 
for instance "invitation to participate for all cases of intended procurement", "notice of proposed 
procurement", "notice of planned procurement" and "notice regarding a qualification sys tem". The 
Committee has been advised that the delegation of the United States expects to prepare a non -paper 
on this point.  
paragraph 2  
104.  It has been said that this paragraph should specify clearly that Annex  1 entities had an 
obligation to publish a notice containing the types of information as provided for in paragraph  6. The 
present use of the word "may" might be interpreted to suggest otherwise.  
paragraphs 3 and 9  
105.  It has been said that the use of notices regarding qualification systems as invitations to 
participate should be clarified . Because the use of permanent lists of qualified suppliers might lead, 
in some cases, to the formation of a closed circle of suppliers, those suppliers who had not been 
inscribed on those lists should have the possibility of participation in the intended procurement.  
106.  It has also been said that the provisions on publication of tender notices made a distinctio n 
between entities in Annex 1 and entities in Annexes 2 and 3 with respect to invitation to tenders . 
The use of a notice of planned procurement as an invitation to tender wa s authorized only for 
Annexes  2 and  3 entities . It has been suggested that entities at all levels of government should be 
able to us e all methods of invitation to tender.  GPA/TN1994/1/Rev.7  
- 19 - 
  107.  It has also been suggested that t he provisions in this Article should be restructured . For 
instance, the provisions of Article IX:8 on publication of a summary notice in a WTO language should 
follow the provisions of Article IX:1 on publication of an invitation to participate.  
108.  It has been  said that further flexibility should be provided in the procedures on the use of a 
notice of planned procurement . The use of such notices would allow entities to make use of the 
state-of-the-art purchasing methods . For instance, entities might maintain su ch notices accessible 
in the electronic databases for the entire period of validity of the lists.  
Article  XI 
paragraph 2  
109.  It has been said that the Agreement, rather than prescribing fixed deadlines that applied to all 
types of procurement, should allow pro curing entities to decide the time -periods for the submission 
of tenders, having regard to the nature of the tender and other considerations, including the urgency 
of the procurement . The time required for the submission of tenders might vary considerably 
according to the complexity of the procurement and it was in the interest of the procuring entity to 
allow reasonable time -limits for the preparation of responsive bids . It has therefore been suggested 
that, instead of stipulating minimum time -periods that  applied to all types of procurement, Article  XI 
should have a provision stating the principle that reasonable time must be allowed for the 
preparation and submission of bids by all potential tenderers, including geographically distant 
tenderers . On the ot her hand, a statement has been made expressing reservations regarding the 
elimination of the requirements on fixed time -limits . The proposed substitution of the existing 
provisions on deadlines would not provide a legally predictable environment to procuri ng entities . 
Procuring entities might run the risk of being challenged by suppliers based on how they applied the 
subjective notion of "reasonableness" in time -limits . It has been suggested that the requirements in 
paragraph  3 could be made less rigid by i ncluding additional circumstances in which a reduction in 
the existing minimum time -limits may be warranted . For instance, the deadlines in the Agreement 
might be reduced when information technology had been used to provide tender information.  
Article XIII  
paragraph 1(a)  
110.  It has been suggested that Article  XIII:1(a) should be amended in the light of the increasing 
use of electronic means of communication.  
111.  A view has been expressed that electronic means of communication should not have to be 
used in parallel with paper -based systems . While, initially, procuring entities might choose to use 
electronic tendering in parallel with paper -based systems, provisions should be made allowing all 
tenders for a particular type of product to be submitted electroni cally in the future . The need for a 
paper -based system would mostly be confined to the purchase of basic commodities and 
low-technology products . For example, suppliers of computer hardware and software or of 
sophisticated medical and telecommunications eq uipment were already fully capable of submitting 
tenders by electronic means.  
112.  A further view expressed has been that any new provisions, while enabling entities to use 
electronic means of communication, should not permit them to reject a priori otherwise c ompetitive 
tenders only because they were submitted by suppliers using a paper -based mode of delivery . The 
use of electronic tendering should not lead to discrimination among suppliers with varying degrees 
of technological advance in the use of information  technology.  
113.  It has been said that, while electronic modes of communication were tools for increasing 
efficiency and productivity in procurement processes, electronic tendering could not be made 
mandatory in the present state of technology . The experience of the private sector had shown that 
it was impractical to transmit large documents through electronic means . In this connection it has 
been said that a single format document could be used to submit tenders rapidly and efficiently 
through elect ronic means whereas any substantive information could be transmitted in a 
paper -based format.  GPA/TN1994/1/Rev.7  
- 20 - 
  114.  Another concern that has been raised related to the interface between electronically 
transmitted documents and national legal systems for the settlement of disput es. It has been asked 
whether electronically transmitted documents had the same legal value as paper -based documents 
under national judicial systems . Safeguards should be devised to ensure that electronically 
transmitted documents that would have evidentia ry value in an eventual dispute would not be 
modified.  
115.  Section 1(c)(iv) of the present note is also relevant to the review of Article XIII:1.  
paragraph 4, subparagraph (b)  
116.  It has been said that the reference to "specific evaluation criteria" in this subpar agraph should 
be clarified in the light of the relevant terms in Article  VIII(b) which emphasized that any conditions 
for participation in tendering procedures should be limited to those which were essential to ensure 
the firm's capability to fulfil the co ntract in question.  
Article XIV  
117.  With regard to the relationship between the two -stage tendering method and the procedures 
under this Article, it has been said that Article XIV envisaged negotiations arising from the evaluation 
process when it was apparent that no single tender was obviously the most advantageous . On the 
other hand, the two -stage tendering method under the UNCITRAL Model Law was constructed to 
separate technical and price evaluations . The procedures under this method might not involve any 
negotiations with suppliers or any modifications of tender specifications throughout the entire 
tendering process.  
118.  It has also been said that this Article could be combined with Articles VII and X on tendering 
procedures.  
Article XV  
paragraphs  (h) and (i)  
119.  It has been said that the question of the Agreement's coverage of procurements through 
commercially -run websites should be examined in the light of the provisions of paragraphs  (h) 
and (i) of Article  XV relating to direct purchasing under certain conditions.  
paragraph (k)  
120.  It has been said that the present terms of Article XV did not adequately cover the various 
circumstances under which limited tendering might be justified . Public sector purchasers might 
sometimes have to satisfy their customers, who might ha ve confidence only in a limited range of 
brands . The problem was compounded as it was not always possible to determine the reliability of 
alternative brands by objective tests prior to the award of a contract . While end -users should not 
have an unlimited c hoice, their legitimate preferences based on their working experience might need 
to be respected . To cover such circumstances, it has been suggested that the following subparagraph 
should be added to the list of exceptions to open and selective tendering p rocedures:  
"(k) where there are only a limited number of suppliers who would be reliable in 
meeting the requisite standards and delivery schedule over the terms of the contract."  
121.  In connection with the above suggestion, a view has been expressed cautioning  against any 
additional exceptions to the use of open and selective tendering and also against the use of any 
subjective criteria, such as the reliability of suppliers, in this connection.  GPA/TN1994/1/Rev.7  
- 21 - 
  Article XIX  
subparagraph 5  
122.  The discussion of statistical reporting is reflected in section A.1.(e) of the present checklist . A 
note by the Chair attempting to present a draft revision of the text of Article  XIX:5 on that basis will 
be circulated before the informal meeting of February  1999. 
Article XX  
123.  A suggestion 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 advice 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 from 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 i n 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 sp ecial direct 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 impro ving the functioning of the 
Agreement."  
124.  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 further 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 because of the possibility of a c onflict of interest in assuming both these 
roles;  GPA/TN1994/1/Rev.7  
- 22 - 
  - individual countries could decide which 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.  
125.  The comments opposing the addition of new paragraphs 9 -11 to Article XX are in 
section  A.1.(b), paragraphs 11 -17 of the present note.  
Article XXIII  
126.  It has been suggested that the provisions of Article XXIII should  be aligned with those in the 
corresponding provisions of G ATT 1994. 
Article XXIV  
paragraph 6, subparagraph (b)  
127.  It has been said that the Agreement required Parties to notify the Committee of the proposed 
withdrawal of entities from Appendix  I over which government control or influence had been 
effectively eliminated . Even if such a modification in the nature of the entity warranted its 
withdrawal, the current text might give rise to some disagreement between trading partners 
regarding the extent to which the removal of government control or influence had actually occurred 
and the privatized entity was being managed on the basis of market economy principle s The removal 
of government control or influence made it impossible to enforce the disciplines of  the Agreement 
on the entity in question . Market forces, rather than the disciplines of the Agreement, would be 
relied on to ensure market access . The Agreement might hinder the effectiveness of the privatization 
process if a privatized entity was compelle d to conduct its procurement in accordance with the 
procedures of the Agreement . A further comment has been that the requirements on compensatory 
adjustment might deter developing countries or economies in transition from acceding to the 
Agreement if they expected to remove certain entities from government control or influence at some 
point as part of the process of rationalization of governments . The objective of privatization was to 
apply market economy principles in the daily conduct of business includin g in the application of 
procurement procedures . Countries that were in the process of acceding to the Agreement might be 
cautious about offering certain entities if they would be expected to pay compensatory adjustment . 
The provisions should be clarified i n order to address any concerns of future as well as present 
Parties in this respect . A suggestion has been made that the present provisions should be modified 
to state that there would be no compensatory adjustment, provided that the removal of government  
control or influence on that entity was expected to have market -opening effects . It has also been 
suggested that certain criteria for the removal of entities should be developed in order to make 
Article  XXIV:6(b) more operational.  
128.  Another view in this con nection has been that the present provisions were a carefully -balanced 
outcome of the negotiations between Parties and reflected the uncertainties in market access 
opportunities which might be associated with the withdrawal of an entity from Appendix  I, 
notwithstanding a claimed removal of government control or influence . Moreover, a delegation has 
indicated that its experience with privatization had not led to a need to provide compensatory 
adjustment.  
 Possible additional article  
129.  It has been suggested that an article containing definitions of the various terms used in the 
Agreement should be considered.  
(g) Improving the structure of the Agreement  
130.  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 a ccordance with their purpose 
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 an d transitional periods in Article XXIV:3(a), (b), (d) and (e) ; and GPA/TN1994/1/Rev.7  
- 23 - 
  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 possible 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.  
131.  A new structure for the GPA that has been suggested  in the document circulated in 
Job No. 6437 is reproduced in Attachment  2 to the present note . A comment has been made 
supporting the suggestion that the Articles of the Agreement be classified under different parts.  
(h) Appendices to the Agreement  
132.  It has been suggested that Appendix I to the Agreement might benefit from simplification, 
including the possibility of presenting the Annexes in the form 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 Appen dix I of individual Parties.  
133.  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 the 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 list 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 with 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  
134.  The point has been made that this 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 . The elimination of discriminatory measures would give true effect to the principle of 
non-discrimination in the Agreement and would also be conducive to encouraging the accession to 
the Agreement of non -Parties.  
135.  The Committee has agreed that this matter related to provisions that discriminated between 
Parties, it being understood that there was a close link between this issue and that of coverage under 
which issues relating to extension of the scope of application of the national treatment pri nciple 
would be taken up.  
136.  It has been suggested that, under this element of the review, consideration could be given to:  
- elimination of current reciprocity -based exceptions and derogations in the coverage of 
the Agreement;  
- establishment of a mutually a greed coverage of services.  
137.  With regard to the types of discriminatory provisions in the Appendices with respect to the 
"MFN" standard, the following comments have been made:  
- the matter was inextricably linked with that of coverage in that the need for a  balance 
of coverage had led Parties to introduce such discriminatory provisions in thei r 
Appendices . The insufficient coverage of entities and areas of procurement in the 
Schedules of some Parties was at the basis of the reciprocity provisions in the 
Agreement . Those Parties that had made comprehensive offers in the negotiations had GPA/TN1994/1/Rev.7  
- 24 - 
  included country -specific non -application provisions in their Schedules in order to 
maintain a balance of commitments with other Parties;  
- these provisions could be eliminated  to the extent that other Parties, who had previously 
been unable to cover certain areas, were prepared to open access to their procurement 
markets . Since the conclusion of the Agreement, negotiations had been held in the 
context of the Agreement for the r emoval of a number of derogations . It was essential 
to aim at the greatest level of coverage rather than to have a uniformity of coverage 
with the least common denominator;  
- while the Agreement did not provide for the maintenance of exceptions to Article  III, it 
was an in -built principle of the Agreement that opening up trade was subject to 
negotiations between Parties and was not granted automatically;  
- negotiations on the elimination of discriminatory measures should be held both 
bilaterally and in the context of the Committee;  
- reciprocity had been an effective tool in the negotiation of the schedules of 
commitments and, since then, in the elimination of the discriminatory provisions 
between a number of Parties . Any efforts to move away from the recipr ocity approach 
should not undermine the balance that had been achieved in the negotiations of the 
current coverage of the Agreement;  
- 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 
enhance the coverage of its offer;  
- drawing up Appendix  I in the form of negative lists would also contribute towards 
elimination of discriminatory measures.  
138.  With regard to the types of discriminatory provisions in the Appendices which were identified 
in the Note by the Secretariat circulated on 31  October  1997 (document with footer 'gpa38'), the 
following comments have been made:  
- the distinction made between the types o f provisions in paragraphs 7 and 9 of the Note 
was not clear . The provisions listed in paragraph 7 were also based on reciprocity 
considerations and had been included in order to maintain a balance of concessions 
under the Agreement;  
- the purpose of the non -application provisions referred to in the last sentence of the first 
indent of paragraph 13(a) of the Note was to provide clarifications regarding the 
coverage of contracts . These provisions concerned all the obligations under the 
Agreement, including the obligation on national treatment and could not be classified 
as discriminatory measures.  
139.  With regard to the timetable and work programme for the elimination of discriminatory 
provisions, the following points have been raised:  
- while the review work on dis criminatory provisions and that on the expansion of the 
coverage of the Agreement were closely linked, the work on the latter element might 
go beyond the target date for the completion of the negotiations set out in the suggested 
timetable;  
- the work on t he elimination of discriminatory provisions should be carried out in parallel 
with the work on the simplification and improvement of the Agreement;  
- the drawing up of a matrix of discriminatory provisions in the Schedules of individual 
Parties would show clearly any perceived imbalances between the commitments of 
Parties and identify where a new balance might lie as a result of the removal of 
discriminatory measures;  GPA/TN1994/1/Rev.7  
- 25 - 
  - the Secretariat should prepare a note listing the types of discriminatory provisions in 
the Appendices with respect to the "MFN" standard in the Schedules of Parties based on 
the descriptions in the relevant section of the note by the Secretariat (gpa38), dated 
31 October  1997.  
(b) Mutually agreed coverage of services  
140.  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 p rinciple.  
141.  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 th e outcome of a perceived need for reciprocity in 
this area because of the divergences in the levels of coverage offered by Parties in the negotiations . 
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.  
142.  The view has been expressed that reciprocity -based services coverage should be eliminated 
but only on the basis of all Parties covering an approximately uniform level of services on a mutually 
agreed basis . It has bee n said that it would be possible to move towards an MFN approach in the 
coverage of some of the specific services sectors, such as business, distribution, education, medical, 
banking and financial services, provided that all Parties were willing to make su fficient offers relating 
to those services in an overall package . On this point, another view has been that the discriminatory 
provisions were the result of the pre -existing reciprocal arrangements which had not been 
plurilateralized, or of perceived imbal ances 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 services under the Agreement.  
143.  With regard t o 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 expansion 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 should be initiated by simplification and el imination of derogations in Annex  4 
in Appendix I of individual Parties;  
- differing views have been expressed concerning the extent to which the work on this 
element should take its cue from that in the Working Party on GATS Rules.  
144.  In reviewing the servic es covered under Annexes 4 and 5 of Parties based on an informal note 
by the Secretariat, dated 8  December  1998 (Job  No. 6771), comments have been made 
seeking/providing clarification concerning the following aspects of the services schedules:  
- whether re ntal/leasing services (sector 1.E) were already covered by Article I:2 on 
lease, rental or hire purchase;  
- whether leasing would be considered the purchase of a good rather than a service;  
- some services covered under the Agreement might not be suitable for cross -border 
delivery . For example competition for legal services (sub -sector A.1.a) was limited in 
most countries;  
- some services in Annex 4 of Parties might not be related to government procurement 
procedures under the Agreement . For example, it was  questionable whether 
governments used tendering procedures for procuring legal services;  GPA/TN1994/1/Rev.7  
- 26 - 
  - the fact that there was no procurement business in a given service sector should not 
deter Parties from covering that category in their Annex 4;  
- the negative list  approach adopted by the United States in its Annex 4, which covered 
all services except those which had been specifically excluded, had made it difficult to 
verify the information contained therein . The problem had been aggravated by the fact 
that some of  the exclusions were related to the end -use of the services, for example 
services purchased in support of military forces located overseas;  
- whether the coverage of postal services (sector 2.A) in the United States Schedule 
meant that the government entities purchased such services from one supplier under 
the limited tendering method in Article XV.  
3. Expansion of the coverage of the Agreement  
145.  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:  
- The review should address the establishment of national self -monitoring mechanisms 
whereby individ ual Parties would commit themselves to review domestically and 
periodically whether national programmes in the form of set -aside programmes and 
other preferential policies contributed towards meeting their vowed objectives and, if 
so, how effective they we re in doing so, with a view to examining the scope for their 
elimination in the long term . It has also been said that the General Notes of Parties 
contained provisions excluding certain procurement from the coverage of the 
Agreement for domestic legal grou nds. 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 obje ctives . 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 the Agreement to the MFN  and national treatment 
principles.  
- Identification of potential sectors for extended coverage . Reference was made to the 
inclusion of the telecommunications, transportation and steel sectors . In response to 
this suggestion, the appropriateness of focusin g work on the expansion of coverage in 
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 e lement 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 Agreement.  
- In connection with privatization, the point has been made that, rather than adopting a 
sector -based approach, work might focus o n 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 which 
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 control 
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.  GPA/TN1994/1/Rev.7  
- 27 - 
  - Further expansion of the coverage of services in the Agreement . The suggestion has 
been made that the review work in this area shoul d 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 Agreem ent 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 bilat eral 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 
a high level of commitment  in terms of coverage and not the lowest common 
denominator.  
- Lowering of the threshold values applicable to certain Parties . 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 scope 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 would neither 
be procedurally feasible nor equitable . The suggestion was made that the Agreement 
should include provisions setting out unifor m 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 different threshold 
levels.  
146.  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 i mprovement of the provisions of the current Agreement.  
147.  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 count ries. Another view has been that an improved coverage might be an incentive 
to those countries that sought increased market access to join the Agreement.  
148.  In addition, the need to obtain adequate experience with the domestic implementation of the 
Agreement before expansion of its coverage has been referred to.  GPA/TN1994/1/Rev.7  
- 28 - 
  B. INSTITUTIONAL/PROCEDURAL POINTS  
1. Work on government procurement in other WTO fora  
149.  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 sam e, 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.  
150.  It has been said that the delegations might need to consider the relationship betwe en 
plurilateral Agreement on Government Procurement and a future multilateral agreement on 
transparency in government procurement . The plurilateral agreement migh t exist under the umbrella 
of a multilateral agreement . By way of example, it has been said th at, whereas the obligations in 
GATS Part II applied to all Members, the obligations in GATS Part III applied only to those Members 
that had undertaken specific commitments . The special rules under the plurilateral agreement, 
including those relating to mar ket-access commitments, might continue to be binding only on those 
Parties that would hav e subscribed to them.  
2. Institutional arrangements for the review  
151.  The discussion of the review in 1997 has been carried out mainly in informal consultations . 
One dele gation 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, e tc. 
3. Participation of WTO Members in the review  
152.  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, including 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 obser vers to 
the Committee in accordance with the Committee's Decision on Procedures for Participation of 
Observers ( GPA/1 ). 
153.  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 C ouncil, 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 o n the Participation of Observers ( WT/L/206 ). 
 
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/6  and S/WPGR/M/19 . GPA/TN1994/1/Rev.7  
- 29 - 
  4. Next steps  
154.  During the informal consultations held on 9 December  1998, it was agreed that the Committee 
would hold a further informal meeting on 2 2 February  1999. At that meeting the work would be 
carried forward in  the following way:  
(i) delegations would revert once more to the issues of information technology and 
procurement methods on the basis of a note that the Chair would draw up attempting 
to crystallize the state reached in the discussions and to identify the key questions that 
needed to be pursued . The discussion of the issue of enforcement and monitoring would 
be put aside until a clear view of likely changes in the Agreement had been made;  
(ii) delegations would revert to the issue of statistical reporting on the basis of a note by 
the Chair attempting to present a draft revision of the text of Article XIX:5, it being 
understood that the note would not suggest any compromise solutions where 
differences of views existed;  
(iii) delegation s would revert to the article -by-article examination of the Agreement on the 
basis of a two -column table to be prepared by the Secretariat . The left column would 
contain the text of 1994 Agreement and the right column would indicate the texts of 
any specif ic drafting changes that have been suggested since February  1997;  
(iv) delegations would initiate a discussion on the structure of the Agreement;  
(v) with respect to the elimination of discriminatory measures, the Secretariat would be 
invited to prepare a note listing the discriminatory provisions in Appendix  I of Parties 
relating to the most -favoured -nation treatment standard.  
155.  The time -frame and work programme for the negotiations under Article XXIV: 7 agreed by the 
Committee at its meeting of 2 5 June 1998 is included in Attachment 3 to the present note.  GPA/TN1994/1/Rev.7  
- 30 - 
  ATTACHM ENT 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 modifica tions 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 Internet 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 been 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 traditional publishing meth ods (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 of notices.  
 
 Support ha s 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 mean s 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 which 
bids may b e submitted.  
 GPA/TN1994/1/Rev.7  
- 31 - 
   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 numbered 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 met hods 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.  
 
Communications between tenderers and the procuring entity  
 
• Modify Article X:4 to add "electronic means, including email " 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 wil l 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 t endering ; 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 Article  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 expressed for Alternative  2. 
 
  GPA/TN1994/1/Rev.7  
- 32 - 
  ATTACHM ENT 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 fac ilitate 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 Artic le 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 XII)  
 
 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.7  
- 33 - 
   
 Article 16  Submission, receipt and opening of tenders (was Article  XIII:1 -3 + Article  XXII:1)  
 [This Article could be further split]  
 
 Article 17  Negotia tion (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 the Agreem ent".)  
 
 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 Article XVII:2 on observer status)  
 GPA/TN1994/1/Rev.7  
- 34 - 
  ATTACHM ENT 3 
 
TIME-FRAME AND THE WORK PROGRAMME FOR THE NEGOTIATIONS UNDER ARTICLE XXIV:7  
The Committee agreed to proceed in accordance with the following proposals by the Chair reg arding 
a time -frame for the negotiations under Article XXIV:7 and the overall work programme that should 
be envisaged within that time -frame, the text of which incorporates suggestions by delegations 
agreed to by the Committee:  
 
"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, reflect ing 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 improvement 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, prejudice to the right 
of participants to put forward at a later date modi fied 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 proposals 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 alread y 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 elements of the negotiations, 
namely on the elimination of discriminatory me asures 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 elim ination 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.  
 "If this 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 mayb e 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.  GPA/TN1994/1/Rev.7  
- 35 - 
  "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."  
_________ _ 