WORLD TRADE WT/DS73/1
GPA/D1/1
1April 1997
ORGANIZATION(97-1309)
Original: English
JAPAN -PROCUREMENT OFANAVIGATION SATELLITE
Request forConsultations bytheEuropean Communities
Thefollowing communication, dated 26March 1997, fromthePermanent Delegation ofthe
European Commission tothePermanent Mission ofJapan andtotheDispute Settlement Body, is
circulated inaccordance withArticle 4.4oftheDSU.
________________
Myauthorities haveinstructed metorequest consultations withJapan pursuant toArticle XXII
oftheGovernment Procurement Agreement andArticle 4oftheUnderstanding onRules andProcedures
Governing theSettlement ofDisputes regarding arecent procurement tender published bytheMinistry
ofTransportation (MoT) ofJapan topurchase amulti-functional satellite fortheinstallation ofaGlobal
Navigation Satellite System (MSAS) forAirTraffic Management.
Following thepublication bytheMoT ofMSAS specifications inAugust 1996, theEuropean
Commission raised theconcern onseveral occasions thatthese specifications referexplicitly tothose
oftheUSWAAS andthatamore neutral formulation wasrequested allowing forextended
interoperability. Thiswould prevent European companies frombeing discriminated against andallow
them toparticipate inthetender, iftheywanted todoso.
When publishing acallfortender on15November 1996, noaccount wastaken oftheconcerns
raised bytheCommunity. Asaresult, European bidders hadnoeffective possibility ofparticipating
inthetender andwere treated lessfavourably thansuppliers ofother Parties. Thissituation raises
thequestion ofcompatibility oftheabove-mentioned tender andrelated measures withtheGovernment
ProcurementAgreement(GPA),asMoTiscoveredunderAnnexIofAppendixIofJapan'scommitments
under thisagreement. TheEuropean Community considers thatthedirect reference inthespecifications
ofthetender totheUSsystem isincontravention ofthegeneral provision onNon-discrimination under
Article IIIGPA.
TheCommunity considers, moreover, thatthedirect reference inthespecifications ofthetender
totheUSsystem isalsoincontravention ofprovisions concerning technical specifications aslaiddown
inArticle VI(3)GPA. Thisrequires inter aliathattechnical specifications shall beinterms of
performance rather thandesign andthatthere shallnotbeanyreference toaparticular trademark,
design ortype, etc.
Finally, sinceUSWAAS specifications arenotpublic, thereference tosuchspecifications also
appears toinfringe Article XII(2)GPA. Thisprovision requires thattender documentation shallcontain
allinformation necessary topermit suppliers tosubmit responsive tenders. Suchdocumentation should
include acomplete description ofanyrequirements, including technical specifications, which haveto
befulfilled.
Ilookforward toreceiving yourreply tothisrequest andtofixing amutually acceptable date
forconsultations.