 RESTRICTED  
  
GPA/TN1994/3/Rev.7  
28 October 2004  
(24-2743) 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   
 
  
REVISION OF THE AGREEMENT ON GOVERNMENT PROCUREMENT  
AS AT 8 OCTOBER  2004 *,** 
CLEAN TEXT  
NOTE  BY THE SECRETARIAT  
Revision  
This note reflect s the state of the negotiations on the revision of the non-market -access -related 
provisions in the text of the Agreement on Government Procurement under Article  XXIV:7 as at the 
end of the meeting of the Informal Group of the Committee on Government Procure ment of  
5-8 October  2004. 
 
_______________  
 
 
* In English only.  
** Pursuant to the relevant Decision of the Committee on Government Procurement ( GPA/CD/5  
(16/11/2023)), this document (informal document symbol: negs1 59) was derestricted on 8 November 2023.  GPA/TN1994/3/Rev.7  
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  TABLE OF CONTENTS  
 
Article  I Definitions  ................................ ................................ ................................ .. 3 
Article  II Scope and Coverage  ................................ ................................ ....................  6 
Article  III General Principles  ................................ ................................ ........................  8 
Article  IV Publication of Procurement Information  ................................ ..........................  9 
Article  V Publication of Notice of Intended Procurement  ................................ .................  9 
Article  VI Time-Periods for Tendering  ................................ ................................ ..........  11 
Article  VII Information on Intended Procurements  ................................ ..........................  12 
Article  VIII [Conditions for Participation]JPN [Qualification of Suppliers]EC,US,NOR,CDA ................  15 
Article  IX Negotiation ................................ ................................ ................................  19 
Article  X Limited Tendering  ................................ ................................ ......................  19 
Article  XI Treatment of Tenders and Contract Awards  ................................ ....................  21 
Article  XIbis Use of Electronic Means  ................................ ................................ ...............  21 
Article  XII Transparency of Contract Award Information  ................................ ..................  23 
Article  XIII Non-Disclosure of Information  ................................ ................................ ...... 24 
Article  XIV Developing Countries*  ................................ ................................ ................  25 
Article  XV Exceptions to the Agreement  ................................ ................................ ....... 27 
Article  XVI Modifications and Rectifications to Coverage  ................................ ...................  27 
Article  XVII  Challenge Procedures  ................................ ................................ ..................  29 
Article  XVIII  Consultations and Dispute Settlement  ................................ ...........................  30 
Article  XIX Institutions  ................................ ................................ ................................  33 
Article XX  Final Provisions  ................................ ................................ ..........................  33 
 GPA/TN1994/3/Rev.7  
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  Preamble  
 
Parties to this Agreement (hereinafter referred to as "Parties"),  
 
Recognizing  the need for an effective multilateral framework for government procurement, with a 
view to achieving greater liberalization and expansion of, and improving the framework for, the 
conduct of international trade;  
 
Recognizing  that measures regarding government procurement should not be prepared, adopted or 
applied so as to afford protection to domestic suppliers, goods or services or discriminate among 
foreign suppliers, goods or services;  
 
Recognizing  that the inte grity and predictability of government procurement systems are integral to 
the efficient and effective management of public resources, the performance of the Parties' 
economies, and the functioning of the multilateral trading system;  
 
Recognizing  that the procedural commitments under this Agreement should be sufficiently flexible 
to accommodate the specific circumstances of each Party;  
 
[Recognizing  the need to take into account the development, financial and trade needs of developing 
countries, in particul ar the least -developed countries;]1  [NB: To be revised in light of revision 
of relevant provisions related to developing countries.]  
 
Recognizing the desirabi lity of transparent measures regarding government procurement and the 
importance of carrying out  procurements in a transparent and impartial manner, avoiding conflict of 
interest and corrupt practices, in accordance with relevant international instruments ; 
 
Recognizing the importance of using, and encouraging the use of , electronic means for procurem ent 
covered by this Agreement;  
 
Desiring  to encourage acceptance of and accession to this Agreement by WTO Members not party 
to it; 
 
Having undertaken  further negotiations in pursuance of these objectives;  
 
Hereby agree  as follows:  
 
Article  I Definitions  
For purposes of this Agreement:  
 
(a) [build -operate -transfer contract  and public works concession contract mean  
any contractual arrangement the primary purpose of which is to provide for the 
construction or rehabilitation of physical infrastructure, plant, buildings, facilities or 
other government -owned works and under which, as consideration for a supplier's 
execution of a contractual arrangement, a procuring entity grants to the supplier, for a 
specified period of time, temporary own ership or a right to control and operate, and 
demand payment for the use of such works for the duration of the contract;]US [Market 
Access Issue ] 
 
(b) commercial goods and services  mean goods and services with characteristics similar 
to those of goods and services that are sold or offered for sale to, and customarily 
purchased by, non -governmental buyers for non -governmental purposes ; it includes 
goods and services with modifications customary in the commercial marketplace [as 
well as minor modifications no t customarily available in the commercial marketplace 
 
1 Unattributed brackets [ ] indicates language that Parties are still considering.  GPA/TN1994/3/Rev.7  
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  that do not significantly alter the non -governmental function or essential physical 
characteristics or change the purpose]US,CDA; 
 
(c) construction services contract  means a contract that has as its obj ective the 
realization by whatever means of civil or building works[, in the sense of Division  51 of 
the Provisional U.N. Central Product Classification (CPC)] ; [Bracketed Language - 
Market Access Issue ] 
 
(d) country or countries  include any separate custo ms territory that is a Party to this 
Agreement . In the case of a separate customs territory that is a Party to this Agreement, 
where an expression in this Agreement is qualified by the term "national", such 
expression shall be read as pertaining to that cu stoms territory, unless otherwise 
specified;  
 
(e) days means calendar days;  
 
(f) [electronic auction  means  an iterative process involving electronic means for the 
presentation of new prices [or]US,EC revised [upwards or]US [downwards,]EC or new 
values concerning certain elements of tenders, which [occurs ]EC,KOR [may occur]US after 
an initial [full]EC evaluation of the tenders, enabling them to be ranked using automatic 
evaluation methods;]EC,US ,KOR  [NB: Canada and the United States quest ion the 
need for the phrase "which occurs after an initial full evaluation of the tenders" 
and whether it is necessary to prejudge the sequence of the evaluation and 
auction . According to the EC, for an electronic auction to take place, without 
running the  risk of discrimination, it is necessary that an initial full evaluation 
of the tenders  has taken place prior to the launching of the electronic auction 
and the subsequent application of the mathematical formula .] 
 
(g) [electronic means  means [using [electronic equipment] [hardware and software 
configured]  for the electronic]EC processing (including digital compression) and storage 
of data that is transmitted, conveyed and received by Internet, by wire, by radio, by 
optical means or by other ele ctromagnetic mean s;]EC,US  [NB: Canada, Japan and 
Israel reserve their position on this definition because of its links to other 
provisions.]  
 
(h) in writing  or written  means any worded or numbered expression that can be read, 
reproduced and later communic ated. It may include electronically transmitted and 
stored information;  
 
(i) limited tendering  means a procurement method where the procuring entity contacts 
a supplier or suppliers of its choice, only under the circumstances specified in Article  X; 
[NB: Japan  and Canada propose to delete this definition.]  
 
(j) measure  means any law, regulation, procedure, [or any act ion of a procuring entity 
relating to  a covered procurement]EC,US,NOR,KOR [requirement applied in a particular 
procurement ,]HKC administrative guidance or practice;  
 
(k) multi -use list  means a list of suppliers that a procuring entity has determined satisfy 
the conditions for participation in that list, and that the procuring entity intends to use 
more than once;  
 
(l) notice of int ended procurement  means a notice published by a procuring entity in 
accordance with Article  V inviting interested suppliers to submit tenders;  
 
(m) offsets  in government procurement means any [measures,]CT conditions or 
undertakings that encourage local de velopment or improve a Party's balance -of-
payments accounts, such as the use of domestic content, domestic suppliers, the GPA/TN1994/3/Rev.7  
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  licensing of technology, technology transfer, investment, counter -trade and similar 
actions [unless such conditions or undertakings ar e necessary to enable the contracts 
to be performed]HKC; [NB: Hong Kong, China is concerned that the addition of 
"domestic suppliers" and, along with Korea and Israel, that "technology 
transfer" expands the scope of offsets.]  
 
(n) open tendering  means a procurement method where all interested suppliers may 
submit a tender ; [NB: Japan and Canada propose to delete this definition.]  
 
(o) person  means a natural person or a juridical person;  
 
(p) [procurement  means the process by which a [government]US [procuring entity]JPN,CT 
obtains the use of or acquires goods or services, or any combination thereof, for 
governmental purposes and not with a view to commercial sale or resale, or use in the 
production or supply of goods or services for commercial sale  or resale;]JPN,US [Market 
Access Issue ] 
 
(q) procuring entity  means an entity covered under Annexes  1, 2 and 3 of Appendix  I of 
each Party;  
 
(r) qualified supplier  means a supplier that a procuring entity recognizes as having 
satisfied the conditions for participation;  
 
(s) [recurring contracts  mean contracts  that are related to the regular purchase of the 
same goods or services [for an individual requirement]SWI [and that are not subject to 
a framework agreement/purchasing system ]EC,NOR]EC,NOR; 
 
(t) selective tendering  means a procurement method where only suppliers satisfying the 
conditions for participation are invited by the procuring entity to submit a tender ; 
[NB: Japan and Canada propose to delete this definition.]  
 
(u) services  includes constru ction services, unless otherwise specified;  
 
(v) standard  means a document approved by a recognized body, that provides, for 
common and repeated use, rules, guidelines or characteristics for products or services 
or related processes and production methods,  with which compliance is not mandatory . 
It may also include or deal exclusively with terminology, symbols, packaging, marking 
or labelling requirements as they apply to a product, service, process or production 
method;  
 
(w) supplier  means a person or grou p of persons that provides or could provide goods or 
services;  
 
(x) [technical regulation  means a document which lays down characteristics of a product 
or a service or their related processes and production methods, including the applicable 
administrative provisions, with which compliance is mandatory . It may also include or 
deal exclusively w ith terminology, symbols, packaging, marking or labelling 
requirements as they apply to a product, service, process or production method;]JPN,EC 
 
(y) technical specification  means a tendering requirement that:  
 
(i) lays down the characteristics of goods or  services to be procured, including 
quality, performance, safety and dimensions, or the processes and methods for 
their production or provision ; or 
 
(ii) addresses terminology, symbols, packaging, marking or labelling requirements, 
as they apply to a good or service.  GPA/TN1994/3/Rev.7  
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  Article  II Scope and Coverage  
Application of Agreement  
 
1. This Agreement applies to any measure regarding covered procurement [, whether or not 
conducted by electronic means]EC. [NB: The EC proposes this as an alternative to 
Article  XIbis:1.]  
 
2. For the purposes of this Agreement , covered procurement means procurement : 
 
(a) of goods, services, or any combination thereof , [as specified] [provided for] in Appendix 
I; 
 
(b) by any contractual means, including purchase ; lease; rental or hire purchase, with or 
without an option to buy [and build -operate -transfer contracts and concessions for 
public works contracts;]US  [with or without utilization of the funds and the managerial 
or technical ability of the private sector]JPN; [Bracketed Language – Market Access 
Issue ] 
 
(c) for which the value as estimated, in accordance with paragraph  6, equals or exceeds 
the relevant threshold specified in [Appendix  I], at the time of publication of a notice in 
accordance with Article  V; [Bracketed Language – Market Access Issue ] 
 
(d) by a procuring entity [; and 
 
(e) that is not excluded from coverage by this Agreement.]US,EC,JPN ,NOR,SWI 
 
[2bis. Without prejudice to Article  [Exceptions], this Agreement applies to any procurement:  
 
(a) of central government entities where the value is estimated to equal or exceed:  
- [  ] SDR for contracts for supply of goods and services;  
- [  ] SDR for contracts for construction servi ces; 
 
(b) of sub -central government entities where the value is estimated to equal or exceed:  
- [  ] SDR for contracts for supply of goods and services;  
- [  ] SDR for contracts for construction services;  
 
(c) of entities according to Appendix  I, Annex  3 where the value is estimated to equal or 
exceed:  
- [  ] SDR for contracts for supply of goods and services;  
- [  ] SDR for contracts for construction services.]EC 
 
[Market Access Issue ] [NB: Korea does not support the text (2 bis) proposed by the EC.]  
 
3. For each Party, Appendix  I shall be divided into five Annexes:  
 
(a) Annex  1 specifies the central government entities whose procurement is covered by this 
Agreement;  
 
(b) Annex  2 specifies the sub -central government entities whose procurement is covered 
by this Agreement;  
 
(c) Annex  3 specifies all other entities whose procurement is covered by this Agreement;  
 
(d) Annex  4 specifies the services covered by this Agreement ; and 
 
(e) Annex  5 specifies the construction services covered by this Agreement.  
 GPA/TN1994/3/Rev.7  
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  Compl iance 
 
4. Each Party shall [take such reasonable measures as may be available to it to]CDA,HKC ensure 
that the procuring entities listed in its Appendix  I comply with the provisions of [Articles  VII to X 
of]CDA this Agreement in conducting covered  procurement . [NB: The EC, the US, Switzerland, 
Singapore, Japan , Norway  and Korea have reservation s on the bracketed language. ] 
 
5. Where a procuring entity, in the context of covered  procurement, requires persons not listed 
in Appendix  I to procure in accordance with particular requirements, Article  III shall apply 
mutatis  mutandis  to such requirements.  
 
Valuation  
 
6. In estimating th e value of a procurement for the purpose of ascertaining whether it is a 
covered procurement , a procuring entity shall:  
 
(a) neither divide a procurement into separate procurements nor select or use a particular 
valuation method for estimating the value of  a procurement with the intention of totally 
or partially excluding it from the application of this Agreement;  
 
[(b) include the maximum total estimated value of the procurement over its entire duration [, 
whether awarded to one or more suppliers]EC,SWI,NOR, taking into account [all forms of 
remuneration, inc luding]EC premiums, fees, commissions, interest [ and other revenue 
streams that may be provided for in such contracts ][Market Access Issue ] and, where 
the procurement provides for the possibility  of option clauses, the total maximum value 
[or total maximum estimated value] of the procurement, inclusive of optional 
purchases [, and any estimated residual value in the case of leases, rentals and hire 
purchases ; and]CDA,US]CDA,US ,EC,JPN 
 
[(c) deem the  procurement to be covered if the scope of the work or the period of the 
contract is indefinite.]CDA,US  
 
[NB: Canada  is proposing that subparagraphs  6(b) and (c) also replace paragraphs  7 
and 8. The EC considers  Canada's proposal to relate to market access as it would change 
coverage. ] 
 
[7. In the case of recurring contracts , the calculation of the estimated value shall be based on the 
total of:  
 
(a) the actual aggregate value of recurring contracts of the same type awarded during the 
preceding 12  months or fiscal year, adjusted where possible to take account of 
anticipated changes in quantity or value over the subsequent 12  months ; or  
 
(b) the estimated aggregate value of recurring contracts to be awarded during the 
12 months subsequent to the initia l contract or during the procuring entity's fiscal year, 
whichever is greater.]EC,SWI,KOR 
 
[NB: Canada  considers  the EC's proposal , read in conjunction with the new proposed 
definition of recurring contracts, to relate to market access as it would change coverage . 
The EC considers that this is a mere restatement of Article  II:4 of the GPA. ] 
 
[8. In the case of procurement by lease, rental or hire purchase of goods or services, or 
procurement for which a total price is not specified, the basis for valuation shall be, with respect to:  
 
(a) fixed-term contracts, where the term is 12  months or less, the total contract value for 
their duration, or, where the term exceeds 12  months, the total value including any 
estimated residual value ; or 
 GPA/TN1994/3/Rev.7  
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  (b) contracts for an indefinite period, the monthly instalment multiplied by 48. Where there 
is doubt as to whether the contract is to be a fixe d-term contract, this basis for valuation 
shall be used. ]EC,JPN,NOR,US,KOR ,SWI 
 
Article  III General Principles  
National Treatment and Non -Discrimination  
 
1. With respect to any measure and any covered procurement, each Party , including its procuring 
entities , shall accord immediately and unconditionally to the goods and services of any other Party 
and to the suppliers of any other  Party offering the goods or services of any Party, treatment no less 
favourable than the treatment the Party , including its procuring entities,  accords to:  
 
(a) domestic goods, services and suppliers ; and 
 
(b) goods, services and suppliers of any other Party.  
 
2. With respect to any measure and any covered  procurement, neither a Party nor  a procuring 
entity shall:  
 
(a) treat a locally established supplier less favourably than another locally established 
supplier on the basis of degree of foreign affiliation or ownership ; nor 
 
(b) discriminate against a locally established supplier on the basis that the goods or services 
offered by that supplier for a particular procurement are goods or services of any other 
Party.  
 
Procurement Methods  
 
3. A procuring entity shall conduct covered procurement in a manner that is consistent with this 
Agreement, and, except where spe cifically provided otherwise in this Agreement, in a transparent 
and impartial manner [, using methods such as open tendering, selective tendering and limited 
tendering ]. 
 
[new subheading]  
 
3bis. [A procuring entity  [in Annex  1]JPN shall ensure that the imp artiality of its procurement process 
may not be affected by family ties, business links, cross representation or other reasons that may 
cause a conflict of interest, in accordance with the measures of the Party of the procuring 
entity .]JPN,KOR  [A procuring entity shall ensure that the impartiality of the procurement process is 
not affected by a procurement official's personal interests, such as family ties or business links .]NOR 
 
Rules of Origin  
 
4. For purposes of covered procurement, no Party m ay apply rules of origin to goods or services 
imported from or supplied by another Party that are different from the rules of origin the Party 
applies  at the same time  in the normal course of trade to imports or supplies of the same goods or 
services from the same Party.  
 
Offsets  
 
5. With regard to covered procurement, a procuring entity shall not seek, take account of, impose 
or enforce offsets in the qualification and selection of suppliers, goods or services, in the evaluation 
of tenders , or in the award  of contracts [.]HKC [, [prior to or ]US,CDA in the course of a procurement 
process ]US,CDA,EC. 
 GPA/TN1994/3/Rev.7  
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  Measures Not Specific to Procurement  
 
6. The provisions of paragraphs  1 and 2 shall not apply to customs duties and charges of any 
kind imposed on, or in connection with, importation, the method of levying such duties and charges, 
other import regulations or formalities, and measures affecting trade in services other than measures  
governing covered procurement.  
 
Article  IV Publication of Procurement Information  
Each Party shall:  
 
(a) promptly publish any law, regulation, judicial decision, administrative ruling of general 
application, standard contract clauses that are mandated by law or regulation and are 
incorporated by reference in notices and tender documentation and procedure rega rding 
covered procurement, and any modifications thereof, in officially designated electronic 
or paper media that are widely disseminated and remain readily accessible to the public 
and that are in the appropriate publications listed in Appendix  IV; and 
 
(b) provide an explanation thereof to any Party, on request.  
 
Article  V Publication of Notice of Intended Procurement  
1. For each covered  procurement, except in the circumstances described in Article  X, a procuring 
entity shall publish a notice of intended procurement . The notice shall be published in the appropriate 
publication listed in Appendix  II. The notices shall be in electronic or paper media that are widely 
disseminated and remain readily accessible to the public . [[For procuring entities in 
Annex  1,]JPN,KOR,US [In all cases,]EC,NOR ,SWI the notices [where electronic ]JPN,US shall [always ]EC,NOR be 
[electronically]EC,NOR accessible free of charge  through a single point of access].EC,NOR ,KOR,SW I,JPN,US 
[Procuring entities in Annexes  2 and 3 shall be encouraged to make such publications available free 
of charge through a single point of access. ]US,JPN] [Where electronic, the Party shall ensure the 
notices are accessible from one location.]CDA 
 
2. Each notice of intended procurement shall include : 
 
(a) the name and address of the procuring entity and other information necessary to contact 
the procuring entity and obtain all relevant documents relating to the procurement, and 
their cost and terms of payment, if any;  
 
(b) a description of the procurement, including the nature and the quantity of the goods or 
services to be procured or, where the quantity is not known, the estimated quantity;  
 
- [whether the procuring entity is inviting offers for purchase, lease, rental or hire 
purchase, or more than one of these methods;]EC 
 
- [any options for further procurement and, if possible, an estimate of when such 
options may be exercised;]EC 
 
- [for recurring contracts, if possible, an estimate of the timing of subsequent 
notices of intended procurement;]EC  [NB: The US ; Japan ; CT; Singapore ; 
Korea ; Hong Kong, China ; Switzerland  and Canada continue to believe 
that it is not necessary to require the inclusion of these three items of 
the notice.]  
 
[(c) any options ;]CDA,NOR,US ,JPN 
[(c)]EC[(d)]CDA,NOR,US the time-frame for delivery of goods or services or the duration of 
the contract;  
 
[(d)]EC[(e)]CDA,NOR,US the procurement method that will be used and whether it will involve 
negotiation  [or the use of electronic means]EC [or electronic auction  GPA/TN1994/3/Rev.7  
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  and any require ment that tenders be submitted by electronic 
means]CDA,U S,JPN,NOR; [NB: The EC considers that the second 
bracketed language is too limitative and does not cover all 
situations where electronic means can be used . In any event, 
the EC considers that the bracketed language should be 
located in Article  XIbis:2(a).]  
 
[(e)]EC[(f)]CDA,NOR,US the address and the time -limits for the submission of tenders and, 
where applicable, any time -limits for the submission of applications 
to qualify for participation in the procurement ; 
 
[(f)]EC[(g)]CDA,NOR,US the language or languages in which tenders or applications  must be 
submitted, if other than an official language of the Party of the 
procuring entity;  
 
[(g)]EC[(h)]CDA,NOR,US a list and brief descri ption of any conditions for participation of 
suppliers [ , including any specific documents or certifications 
required from suppliers in connection therewith]EC,CDA,ISR,US ,SWI,NOR[, 
unless such information is already included in the tender 
documentation, wh ich is available at the same time as the notice of 
intended procurement]JPN; 
 
[(h)]EC[(i)]CDA,NOR,US where, pursuant to Article  VIII, a procuring entity intends to select a 
limited number of qualified suppliers to be invited to tender, the 
criteria that will be used to select them and, where applicable, any 
limitation on the number of suppliers that will be permitted to tender ; 
and 
 
[(i)]EC[(j)]CDA,NOR,US an indication that the procurement is covered by this Agreement.  
 
Summary Notice  
 
3. For each case of intended procurement, where  the notice of intended procurement is not 
already published in one  of the  official language s of the WTO , a procuring entity shall publish  [in a 
summary notice ]EC in one of the WTO languages  [at least the informa tion in 
paragraph  2 (a), (b)[,]EC,SWI [and]CDA,US ,KOR (e/f) [and (g)]EC,SWI.]CDA,US,SWI,EC,NOR ,KOR [[in a paper 
media listed in Appendix  2]ISR. [In addition, t]ISR [T]he notice [may be published also in electronic 
media and contain]ISR [shall contain at least]JPN the following information:  
 
(a) the subject -matter of the procurement;  
 
(b) the time -limits set for the submission of tenders or, where applicable, of applications to 
be invited to tender or for inclusion on multi -use lists ; and 
 
(c) the addresses from which documents relating to the procurement may be 
requested.]JPN,ISR 
 
[NB: Korea and Japan consider that the summary notice shall apply even if the notice of 
intended procurement is published in a WTO language. ] 
 
Notice of Planned P rocurement  
 
4. Procuring entities are encouraged to publish as early as possible in each fiscal year a notice 
regarding each procuring entity's future procurement plans . The notice should include the subject -
matter of the procurement and the planned date o f the publication of the notice of intended 
procurement . When the published information is in accordance with Article  VI:3 (a), a procuring 
entity may apply Article  VI:3 for the purpose of establishing shorter time -periods for tendering of a 
covered  procur ement.  
 GPA/TN1994/3/Rev.7  
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  5. A procuring entity in [Annex  2 and]US Annex  3 may use a notice of planned procurement as a 
notice of intended procurement provided that it includes as much of the information in paragraph  2 
as is available and a statement that  interested suppliers should express their interest in the 
procurement to the entity . 
 
Article  VI Time -Periods for Tendering  
General  
 
1. [A procuring entity shall ensure that any prescribed time -limit, including any extension of this 
time-limit, is common f or all interested  or participating suppliers and is adequate to allow suppliers 
of other Parties as well as domestic suppliers:  
 
(a) to prepare and submit tenders ; and 
 
(b) where a procuring entity requires suppliers to meet conditions of participation to 
participate in tendering, to submit applications requesting participation.  
 
In determining any such time -limit, a procuring entity shall, consistent with its own reasonable 
needs, take into account such factors as the complexity of the intended procurement , the extent of 
subcontracting anticipated, and the normal time for transmitting tenders from foreign as well as 
domestic points. ]EC,HKC,KOR ,NOR  [NB: Several Parties are still considering whether the next 
provision is adequate.]  
 
 [A procuring entity shall provide sufficient time for suppliers to prepare and submit : 
 
(a) [applications to participate in a covered procurement and ]US; and 
 
(b) responsive tenders[ , consistent with its own reasonable needs]EC, 
 
taking into account such f actors as the nature and complexity of the procurement  [and]CDA,US [,]JPN,EC 
the extent of subcontracting anticipated [, and the normal time for transmitting tenders from foreign 
as well as domestic points]EC. Such time -periods , including any extension of t he time -periods , shall 
be common for [all interested or participating] suppliers [of other Parties as well as domestic 
suppliers ]JPN,EC.]US,CDA,JPN,EC ,NOR 
 
Deadlines  
 
2. Except as provided for in paragraphs  3 and 4, a procuring entity shall [establish that the final 
date for the submission of tenders shall not be]US,EC,NOR [provide  no] less than 40  days:  
 
(a) from the date on which the notice of intended procurement is published [and the tender 
documents are made available]CDA,EC,JPN ,KOR,NOR; or 
 
(b) where [the entity has used procedures provided for in Article  VIII:[...] [, whether or not 
it uses a multi -use list,] ] [suppliers are required to  meet conditions for participation in 
advance of the tendering process,]CDA [suppliers who meet conditions for participation 
are invited to submit a tender]JPN from the date on which the entity [initially]JPN notifies 
suppliers [that] they will be [permitted ] [invited]JPN to submit tenders [to the final date 
for the submission of tenders ]. 
 
3. Under the following circumstances, a procuring entity may establish a time -period for 
tendering that is less than 40  days [from publication of a notice of intended procurement or an 
invitation to submit tenders, provided that su ch time -period is sufficient to enable suppliers to 
prepare and submit responsive tenders ] and is in no case less than 10  days [prior to the final date 
for submission ]: [The same shall apply to the 25 -day requirement for submitting applications 
specified i n Article  VIII:[ Selective Tendering ](3).]CT,JPN [NB: The EC considers that the last 
bracketed text is addressed in Article VIII:[ Selective Tendering ](3).] GPA/TN1994/3/Rev.7  
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  (a) where [the procuring entity published]US,EC ,CDA,NOR [a separate notice, including]US,CDA,JPN 
a notice of planned procurement under Article  V:4 [has been published ]JPN at least 
40 days and not more than 12  months in advance [, [and such notice contains: a 
description of the procurement ; the approximate time-limits for the submission of 
tenders or, when appropriate, applications for qualification ; a statement that interested 
suppliers should express their interest in the procurement to the procuring entity ; and 
the address from which documents relating to the procurement may be obtained]US,JPN,EC 
[together with as m uch information under Article  V:2 as is available]EC]; 
 
[(b)]HKC,EC ,US where a procuring entity publish es a second or subsequent notice based on an 
initial agreement or contract]HKC,EC,US  [NB: The US  considers that the omission of 
the reference to "recurring nature" in the current GPA may need to be re -
visited.]  
 
[(c)]US[b]CDA,JPN [where the procuring entity procures commercial goods or 
services;]JPN,CDA,US 
 
[(d)]US[(c)]CDA,JPN,EC where a state of urg ency duly substantiated by the procuring entity 
renders impracticable the periods specified in paragraph  2. 
 
4. A procuring entity may reduce the time -period of 40  days by [no more than]ISR [an increment 
of] five days for [each] [any]ISR one of the following circumstances:  
 
(a) the notice of intended procurement is published electronically ; [or]ISR 
 
(b) the [complete]EC tender documentation is made available electronically from the date 
of the publication of the notice of intended procurement ; [and] [or]ISR 
 
[(c) the tenders can be received electronically by the procuring entity ]. 
 
5. [The use of paragraph  4, in conjunction with paragraph  3, shall in no case result in the 
reduction of those time -periods to less than 10  days from the  date on which the notice of intended 
procurement is published. ]EC,SWI,NOR,US,KOR,JPN 
 
[6. Notwithstanding any other time -periods in this Article, where  a procuring entity is purchasing  
commercial goods [or]EC,US,SWI ,NOR [and]CDA services [and the notice of intended procurement and the 
tender documents are published electronically, and the tenders may be received 
electronically ]EC,US,SWI ,CDA, the entity may reduce the time -period to no less than 
[10]SWI,EC [5]US,KOR [three]CDA,HKC days, provided suc h time is sufficient  to allow suppliers to submit 
responsive electronic tenders.]CDA,EC,US,SW I,NOR 
 
[7. Where a procuring entity in Annex  [2 or]US,CDA 3 has selected all or a limited number of 
qualified suppliers, the time -period for bidding may be fixed b y mutual agreement between the 
procuring entity and the selected suppliers . In the absence of agreement, the period shall not be 
less than 10  days.]CDA,US,EC 
 
Article  VII Information on Intended Procurements  
Tender Documentation  
 
1. A procuring entity shall provide to suppliers tender documentation that includes all information 
necessary to permit suppliers to prepare and submit responsive tenders . Unless already provided in 
the notice of intended procurement, such documentation shall include a c omplete description of:  
(a) the procurement, including the nature and the quantity of the goods or services to be 
procured or, where the quantity is not known, the estimated quantity and any 
requirements to be fulfilled, including any technical specificati ons, conformity 
certification, plans, drawings or instructional materials;  
 GPA/TN1994/3/Rev.7  
- 13 - 
  (b) any conditions for participation of suppliers including a list of information and documents 
that suppliers are required to submit in connection therewith;  
 
(c) all criteria, including any cost factors, to be considered in the awarding of the contract, 
and the relative importance of such criteria;  
 
(d) where there will be a public opening of tenders, the date, time and place for the opening 
and, where appropriate, the  persons authorized to be present ; [and]EC 
 
[(e) where the tender documentation is available through electronic means, any information 
necessary to permit suppliers to use the tender documentation ; and]US,CDA  [NB: The 
EC considers this provision to be too narrow and not reflecting all the content 
of Article  XIbis:2(c).]  
 
[(e)]EC[(f)]US,CDA   any other terms or conditions, including terms of payment and any 
limitation on the means by which tenders may be submitted, e.g. paper or electronic 
means.  
 
[1bis. Where  a procuring entity intends to hold an electronic auction in a  covered procurement , the 
procuring entity  shall: 
 
(a) indicate in the tender document ation the conditions and rules under which the auction 
will be conducted [and the  features on which the  electronic auction will be run ], provided 
that such features are quantifiable and can be expr essed in figures or percentages ; and  
[NB: The United States and Canada  question whether the bracketed language 
is necessary  and whether the "features" are different from the conditions and 
rules?]  
 
(b) provide participants,  prior to  commencing  the electronic auction, with the evaluation 
factors th at will be used, including any mathematical formula determining the automatic 
ranking during t he electronic auction when the contract is to be awarded on the basis 
of the most economically advantageous tender .]US 
 
[NB: The EC considers that this provision should be located in Article  XIbis:3 and that the 
proposal by the United States does not fully  correspond to that paragraph . Canada 
questions whether subparagraphs  (a) and (b) could be combined. ] 
 
2. In establishing any delivery date for the goods or services being procured, a procuring entity 
shall take into account such factors as the complexity of the procurement, the extent of 
subcontracting anticipated and the realistic time required for production, de -stocking and transport 
of goods from the points of supply or for supply of services.  
 
3. A procuring entity shall promptly:  
 
(a) provide, on request, the tender documentation to any supplier participating in the 
procurement ; and 
 
(b) reply to any reasonable request for relevant information by a supplier participating in 
the procurement, provided that such information does not give t hat supplier an 
advantage over its competitors in the procurement.  
 
Technical Specifications  
 
4. A procuring entity shall not prepare, adopt or apply any technical specification or prescribe 
any conformity assessment procedure with the purpose or the effec t of creating unnecessary 
obstacles to international trade.  
 
5. In prescribing the technical specifications for the goods or services being procured, a procuring 
entity shall, where appropriate:  GPA/TN1994/3/Rev.7  
- 14 - 
  (a) specify the technical specification, in terms of performa nce and functional requirements, 
rather than design or descriptive characteristics ; and  [NB: The EC would prefer 
using "or" instead of "and" at the end of this sentence.]  
 
(b) base the technical specification on international standards, where such exist o therwise, 
on [national technical regulations,]CDA,EC recognized national standards or building 
codes[, provided that the notice of intended procurement or the tender documents shall 
state that equivalent solutions shall be considered].EC,SW I 
 
[5bis. Procuring entities [shall] [may]  consider tenders which do  not comply with the design or 
descriptive characteristics of the technical specification but do demonstrably meet the requirements 
thereof and are fit for the purposes intended . In this case, t he reference to the technical 
specifications in the tender doc uments must include words such as "or equivalent".]EC,KOR 
 
6. A procuring entity shall not prescribe technical specifications that require or refer to a 
particular trademark or trade name, patent, copyright , design or type, specific origin, producer or 
supplier, unless there is no other sufficiently precise or intelligible way of describing the procurement 
requirements and provided that, in such cases, words such as "or equivalent" are included in the 
tender documentation.  
 
7. A procuring entity shall not seek or accept, in a manner that would have the effect of 
precluding competition, advice that may be used in the preparation or adoption of any technical 
specification for a specific procurement from a person that may have a commercial interest in the 
procurement.  
 
[8. For greater certainty, this Article is not intended to preclude a Party from preparing, adopting, 
or applying technical specifications to promote the conservation of natural resources or protect the 
environment [provided that such technic al specifications are consistent with 
paragraphs  4 through  7].JPN,EC]JP,EC,US,SWI ,NOR [NB: Chinese Taipei reserves its position on the 
last bracket.]  
 
[8bis. Requirements and evaluation criteria which require subjective assessment or professional 
judgment should be kept to a minimum and should only be used where justified.]HKC 
 
Modifications  
 
[9. Where, [during the course of a procurement]US [prior to the award of a contract]HKC,CDA, a 
procuring entity modifies the criteria or technica l requirements set out in a notice or tender 
documentation provided to participating suppliers, [or]US amends or reissues a notice  or tender 
documentation , it shall transmit all such modifications or amended or re -issued notice [in writing ]CDA 
or tender do cumentation : 
 
(a) to all the suppliers that are participating at the time the information is amended, if 
known, and in all other cases, in the same manner as the original information ; and 
 
(b) in adequate time to allow such suppliers to modify and re -submi t amended tenders, as 
appropriate.]CDA,US 
 
[10.]US [[If, after publication of a notice of intended procurement, but before the time set for the 
opening or receipt of tenders as specified in the notices or the tender documentation, a procuring 
entity amends or re -issues the notice, the entity shall circulate the amendment or the re -issued 
notice in the same manner as the original documents upon which the amendment or re -issued notice 
is based. ]EC  [A procuring entity shall provide]US,EC [A]JPN[a]US,ECny significant [additional]EC 
information to [all suppliers at the same time]US,EC [one supplier with respect to a particular intended 
procurement shall be given simultaneously to all other suppliers concerned]JPN in adequate time to 
permit the suppliers to  consider such information and to respond to it].EC,JPN,US,HKC,CDA  
 GPA/TN1994/3/Rev.7  
- 15 - 
  Article  VIII [Conditions for Participation]JPN [Qualification of Suppliers]EC,US ,NOR ,CDA 
[NB: Parties are still reviewing the structure of this revision . The EC suggests the following 
structure : conditions for partici pation ; selective tendering ; multi -use lists ; and 
information on procuring entities' decisions . The United States and Canada suggest the 
following structure : conditions for participation ; multi -use lists ; notice i nviting 
applications ; selective tendering ; information on procuring entities' decisions .] 
 
[General Requirements]JPN [Conditions for Participation ]EC,US,CDA ,NOR 
 
1. A procuring entity shall limit any conditions for participation in a procurement to those t hat 
are essential to ensure that a supplier has the legal, commercial, technical and financial abilities to 
undertake the relevant procurement.  
 
2. In assessing whether a supplier satisfies the conditions for participation, a procuring entity 
shall:  
 
(a) evaluate the financial, commercial and technical abilities of a supplier on the basis of 
that supplier's business activities both inside and outside the territory of the Party of 
the procuring entity, and may not impose the condition that, in order for a su pplier to 
participate in a procurement, the supplier has previously been awarded one or more 
contracts by a procuring entity of a given Party [or that the supplier has prior work 
experience in the territory of a given Party ]US,EC,CDA,KOR,NOR,JPN,SWI; and [NB: Hong  Kong, 
China proposes either deletion of this bracket or adding a  new 
paragraph  2bis.] 
 
(b) base its determination on the conditions that the procuring entity has specified in 
advance in notices or tender documentati on. 
 
[2bis. If essential for the satisfactory performance of the contracts, the procuring entities may 
specify that the suppliers have prior and relevant working experience in the territory provided that 
this is not used to discriminate against suppliers o f any other Parties.]HKC 
 
3. A procuring entity may exclude a supplier on grounds such as bankruptcy , false declarations 
[, significant deficiencies in performance of any substantive requirement or obligation under a prior 
contract ]CDA,US ,KOR, [convictions  for criminal offences ][judgments in respect of serious criminal, 
administrative or delictual matters]EC, [professional misconduct]EC,NOR or failure to pay taxes . 
 
Multi-Use Lists  
 
1. Where a procuring entity maintains a multi -use list of suppliers [, and the list can be used by 
such suppliers to prove that they meet some or all of the conditions for participation in respect of 
more than one procurement,]EC,SWI,NOR the entity  shall annually publish [or otherwise make available 
continuously i n electronic form]US,CDA,KOR,JPN a notice inviting interested suppliers to apply for 
inclusion on the list in [one of  the]EC [the appropriate ]CDA,JPN,US publications listed in Appendix  III. 
The notice shall include:  
 
(a) a description of the goods and services, or categories thereof, for which the list may be 
used;  
 
(b) the conditions for participation to be satisfied by suppliers and the methods that the 
procuring entity will use to verify a supplier's satisfaction of the conditions;  
 
(c) the name and address of the procuring entity and other information necessary to contact 
the entity and obtain all relevant documents relating to the list;  
 
(d) the period of validity of the list and the means for its renewal or termination[, or where 
the period of vali dity is indefinite, an indication of the method by which notice will be 
given of the termination of use of the list]CDA,US,JPN; and 
 GPA/TN1994/3/Rev.7  
- 16 - 
  (e) an indication that, for procurement covered by this Agreement, the list may be used.  
 
[2. The notice referred to in par agraph  1 may be published only once, at the beginning of the 
validity of the list, provided that:  
 
(a) the period of validity is three years or less and is stated in the notice ; [and]US 
 
(b) the notice states that further notices will not be published[.]US; [and 
 
(c) this provision is not be used to circumvent the provisions of this 
Agreement. ]EC]EC,NOR,SWI ,US  [NB: Canada, Singapore and Japan  question the 
extent to which this paragraph is compatible with paragraph  1, which foresees 
an annual publication. ] 
 
3. A procuring entity shall allow suppliers to apply at any time for inclusion on a multi -use list 
and shall include on the list all suppli ers that satisfy the conditions for participation within a 
reasonably short time.  
 
[4. Notwithstanding the use of a multi -use list, procuring entities in Annexes  1 and 2 shall publish 
a notice of intended procurement in respect of each procurement and shal l comply with, inter alia, 
the provisions of paragraphs  1 through  5 of [Selective Tendering ] in respect of each procurement.]EC 
 
[Uniformity of Qualification and Registration Procedures]US,KOR,EC,NOR 
 
[5. Each Party shall ensure that:  
 
(a) each procuring entity and its constituent parts follow a single qualification procedure, 
except in cases of duly substantiated need for a different procedure ; and 
 
(b) efforts be made to minimize differences in qualification [and registration]KOR,EC,NOR 
procedu res between procuring entities.]SWI,EC ,NOR,KOR 
 
[Annex  [2 and]US,CDA 3 Entities]CDA,EC,US 
 
6. A procuring entity listed in Annexes  [2]US or [3]SWI,US,CDA,NOR,EC may use a notice inviting 
suppliers to apply for inclusion on a multi -use list as a notice of i ntended procurement, provided 
that: 
 
(a) the notice sets out, in addition to the information required in paragraph  1 of [ Multi-use 
Lists], as much of the information required in Article  V:2 as is available and contains a 
statement that it constitutes a not ice of intended procurement  [or that only the suppliers 
on the multi -use list will receive further notice of procurements that are covered by the 
multi-use list]US,CDA; 
 
(b) the entity promptly provides to suppliers that have expressed an interest to the entity 
in a given procurement, sufficient information to permit them to have a meaningful 
opportunity to assess their interest in the procurement, including all remaining 
information required in Article  V:2, to the extent such information is available ; and 
 
[(c) a supplier having applied for inclusion on a multi -use list in accordance with paragraph  3 
of [Multi-use Lists ] shall be entitled to tender in a given procurement, if there is 
sufficient time to examine whether it satisfies the conditions for participation].EC,SWI GPA/TN1994/3/Rev.7  
- 17 - 
  [Selective Tendering]EC,US [Notice Inviting Applications]JPN 
 
[1. A procuring entity that issues a se parate notice inviting applications from suppliers to meet 
conditions for participation shall [: 
 
(a)]US,KOR publish the notice in the appropriate publication listed in Appendix  III, and include  
in the notice the information in Article V:2(a),  (b), (g) and (h)[; and 
 
(b) provide a sufficient period of time for suppliers to prepare and submit 
applications]US,KOR.]US,CDA,KOR,JPN 
 
[1.]EC[2.]US,CDA,KOR,JPN [[Except where a notice of a multi -use list or a separate notice [, pursuant 
to paragraph  1]US[inviting applications to meet conditions for participation ]CDA,JPN has been 
[published or]JPN readily accessible in electronic form for a reasonable period of time, a]CDA,US,JPN 
[A]EC procuring entity that intends to limit the submission of tenders to all qualified suppliers or to a 
limited number of qualified suppliers selected by the procuring entity in advance of the deadline for 
submitting tenders shall publish the time limit for submitting applications in the notice [of intended 
procurement]EC.]EC,CDA, US,JPN 
 
[2.]EC[3.]US,CDA,KOR,JPN [Where the tender documents are not made publicly available from the date 
of publication of the notice of intended procurement, the procuring entity shall ensure that those 
documents are made available at the same time to a ll qualified or to a limited number of qualified 
suppliers.]EC,SWI 
 
[3.]EC[4.]KOR,JPN [A procuring entity shall provide a sufficient period of time for suppliers to prepare 
and submit applications . Such time -limit shall be  as a rule, at least 25  days from the date of 
publication of the notice of intended procurement, except in the circumstances foreseen under 
Article  VI:3, 4 and 5 [where it does not use a multi -use list]JPN,KOR.]EC,SWI,JPN,KOR 
 
[4.]EC,US,CDA[5.]KOR,JPN A procuring entity shall allow all domestic suppliers and suppliers of other 
Parties that satisfy the conditions for participation in a particular procurement to submit a tender, 
unless the entity intends to [select a limited number of qualified su ppliers] . [NB: Japan is still 
considering its position on this bracketed language .]  In such a case, the entity shall [: 
 
(a)] state in the notice of intended procurement  or, where publicly available, in the tender 
documentation,  any limitation on the numbe r of suppliers that will be permitted to 
tender and the [objective and non -discriminatory]EC,SWI,NOR criteria for such limitation[ ; 
and]EC,SWI[.]US,CDA 
 
[(b) comply with the provisions of paragraphs  1 through  3 of [ Selective Tendering ].]EC,SWI 
 
[5.]EC,US[6.]KOR,JPN [Where a supplier submits an application for recognition that it has satisfied the 
conditions for participation, and all other requested documents relating thereto, within the time -limit 
[referred to in paragraph  3 of [Selective Tendering ]]EC,SWI, a procuring entity shall examine it and 
may not exclude the supplier from consideration in respect of the procurement on the grounds that 
the procuring entity has insufficient time to examine the application[, unless due to the complexity 
of the procurement the entity is not able to complete the examination of the application ]HKC,US [within 
the time -period allowed for  the submission of  tenders ]US [before commencement of tendering]HKC. 
[The process of, and time required for, verifying if such suppl iers satisfy the conditions for 
participation shall not be used to exclude such suppliers from being considered for the 
procurement.]EC,SWI,KOR]EC,SWI,KOR,US 
 GPA/TN1994/3/Rev.7  
- 18 - 
  Information on Procuring Entities' Decisions  
 
[1. [Where a procuring entity has required supplie rs to apply for recognition that they have 
satisfied the conditions for participation in accordance with paragraphs  [ ], the]CDA,US [A 
procuring]EC,NOR entity shall  promptly inform  all such supplier s of its decision and, on request from a 
supplier, promptl y provide it with a written explanation of the reasons for the procuring entity's 
decision  to: 
 
(i) accept or reject the supplier's application [for recognition of satisfaction of 
conditions for participation, or for inclusion on a multi -use list ; or 
 
(ii) cease to recognize a supplier as satisfying the conditions for participation for a 
procurement or for inclusion on a multi -use list. ]EC,SWI ,NOR]EC,SWI,CDA,US ,NOR GPA/TN1994/3/Rev.7  
- 19 - 
  [Article  IX Negotiation  
 
1. A Party may provide for its procuring entities to conduct negotiations:  
 
(a) in the context of procurements in which they have indicated such intent in the notice of 
intended procurement in paragraph  2 of Article  V; or 
 
(b) where it appears from the evaluation that no one tender is obviously the most 
advantageous in terms of the specific evaluation criteria set forth in the notices or tender 
documentation.  
 
2. A procuring entity [shall treat tenders in confidence . In particular, it]EC,ISR,SW I [shall not provide 
information intended to assist particular par ticipants to bring their tenders up to the level of other 
participants.]EC,ISR,SW I,CT [NB: Canada , the US  and Korea believe that this issue is already 
addressed by Article s XI:2 and XIII, and suggest to delete this paragraph . The EC is 
considering this suggestion. ] 
 
3. A procuring entity shall ensure that any elimination of tenderers in negotiations is carried out 
in accordance with the [evaluation] criteria set out in the notices or tender documentation.  
 
4. A procuring entity shall tra nsmit, in writing, any modifications to the criteria made in the 
course of negotiations to tenderers whose tenders have not yet been eliminated according to the 
[evaluation] criteria set out in the notices or tender documentation, and when negotiations are  
concluded will provide a common deadline for the remaining tenderers to submit any new or revised 
tenders. ] 
[NB: The US and Canada suggest deleting the entire Article  as its substance is covered 
elsewhere . Hong Kong, China ; EC; Switzerland ; and Korea disagree as they consider that 
this Article is important on the substance and not all its elements are found elsewhere. ] 
 
Article  X Limited Tendering  
1. Provided that it does not use this provision for the purpose of avoiding competition among 
suppliers or in a manner that discriminates against suppliers of the other Parties, or that protects 
domestic suppliers, a procuring entity may [contact a supplier or suppliers of its choice]CDA,JPN [use 
a limited tendering procedure]EC,US,NOR,SWI and may choose not to ap ply Articles  [...] in the following 
circumstances : [NB: Canada , Japan and the US propose mat ching the Articles in the current 
Agreement . The EC is still considering if all Articles mentioned in the current Agreement 
are relevant. ] 
 
(a) provided that the requirements of the tender documentation are not substantially 
modified:  
 
(i) where no tenders were submitted or no suppliers applied to meet the conditions 
for participation;  
 
(ii) where no tenders that conform to the essential requirements of the tender 
documentation were submitted;  
 
(iii) where no suppliers satisfied the conditions for participation ; or 
 
(iv) where the tenders submitted have been collusive;  
 
(b) where the goods or services can be supplied only by a particular supplier and no 
reasonable a lternative or substitute goods or services exist for the following reasons:  
 
(i) the requirement is for a work of art;  
 GPA/TN1994/3/Rev.7  
- 20 - 
  (ii) the protection of patents, copyrights or other exclusive rights[, or proprietary 
information]US,CDA,JPN; or [NB: The EC is wonderin g what is the extent or 
definition of proprietary information.]  
 
(iii) due to an absence of competition for technical reasons;  
 
(c) for additional deliveries of goods or services by the original supplier that are intended 
either as replacement parts, exten sions, or continuing services for existing equipment, 
software, services or installations, where a change of supplier would compel the entity 
to procure goods or services [ [either]EC not meeting requirements of interchangeability 
with [or not operable with ]EC existing equipment, software, services, or 
installations]JPN,KOR,EC [that would : [NB: Switzerland notes that the relationship 
between (c)  and (g) needs further scrutiny.]  
 
(i) alter the operation or use of the existing goods or services ; or 
 
(ii) due to the change of goods or services, require existing equipment or services to 
be altered;]CDA,US 
 
(d) in so far as is strictly necessary where, for reasons of extreme urgency brought about 
by events unforeseeable by the procuring entity, the goods or s ervices could not be 
obtained in time under tendering procedures consistent with Articles  [ ]; 
 
(e) for goods purchased on a commodity market ; or 
 
(f) where a procuring entity procures a prototype or a first good or service that is developed 
at its request in the course of, and for, a particular contract for research, experiment, 
study or original development . Original development of a first good or service ma y 
include limited production or supply in order to incorporate the results of field testing 
and to demonstrate that the good or service is suitable for production or supply in 
quantity to acceptable quality standards , but does not include  quantity producti on or 
supply to establish commercial viability or to recover research and development costs;  
 
(g) where additional [construction]JPN,CDA,US ,KOR services which were not included in the 
initial procurement but which were within the objectives of the original  tender 
documentation have, through unforeseeable circumstances, become necessary to 
complete the services described therein, and the entity needs to award contracts for 
the additional services to the contractor carrying out the services concerned since th e 
separation of the additional services from the initial procurement would be difficult for 
technical or economic reasons and cause significant inconvenience to the procuring 
entity . However, the total value of contracts awarded for the additional services  may 
not exceed 50  per cent of the amount of the main procurement ; [NB: Switzerland, 
Norway and the EC question why this should be limited to construction .] 
 
(h) for new [construction]JPN,CDA,US ,KOR services consisting of the repetition of similar services  
which conform to a basic project for which an initial contract was awarded following an 
open or selective procurement method and for which the procuring entity has indicated 
in the notice of intended procurement concerning the initial service, that a limi ted 
procurement method might be used in awarding contracts for such new services;  
 
(i) for purchases made under exceptionally advantageous conditions which only arise in 
the very short term in the case of unusual disposals such as arising from liquidation,  
receivership or bankruptcy and not for routine purchases from regular suppliers ; and 
 
(j) in the case of a contract awarded to a winner of a design contest provided that:  
 
(i) the contest has been organized in a manner that is consistent with the principles 
of this Agreement, notably as regards the publication of a notice of intended 
procurement ; and 
 GPA/TN1994/3/Rev.7  
- 21 - 
  (ii) the participants are judged by an independent jury with a view to a design 
contract being awarded to a winner.  
 
2. A procuring entity shall prep are a report in writing on each contract awarded under 
paragraph  1. Each such report shall include the name of the procuring entity, the value and kind of 
goods or services procured and a statement indicating the circumstances and conditions described 
in paragraph  1 that justified the use of such procedures.  
 
Article  XI Treatment of Tenders and Contract Awards  
Receipt and Opening of Tenders  
 
1. A procuring entity shall receive and open all tenders under procedures that guarantee the 
fairness and impartiality of the procurement process.  
 
2. A procuring entity shall treat tenders in confidence at least until the award of the contract.  
 
3. A procuring entity shall not penalize any supplier whose tender is received after the time 
specified for receivi ng tenders if the delay is due solely to mishandling on the part of the procuring 
entity.  
 
4. When a procuring entity provides suppliers with opportunities to correct unintentional errors 
of form between the opening of tenders and the awarding of the contract, the procuring entity shall 
provide the same opportunities to all participating suppliers.  
 
Awarding of Contracts  
 
5. To be considered for award, a tender must be in writing and must, at the time of opening, 
comply with the essential requirements of the notices and tender documentation and be from a 
supplier that satisfies any conditions for participation.  
 
6. A procuring entity shall not use option clauses in a manner that circumvents the provisions of 
this Agreement.  
 
7. Unless a procuring entity  determines that it is not in the public interest to award a contract, 
it shall award the contract to the supplier that the entity has determined to be fully capable of 
undertaking the contract and whose tender is either the lowest price or the tender that  the entity 
has determined to be the most advantageous solely on the basis of the requirements and evaluation 
criteria specified in the notices or tender documentation.  
 
8. Where a procuring entity receives a tender with a price that is abnormally lower th an the 
prices in other tenders submitted, it may verify with the tenderer that it can comply with the 
conditions of participation and be capable of fulfilling the terms of the contract.  
 
[9. A procuring entity shall not cancel a procurement or modify award ed contracts in a manner 
that circumvents the obligations of this Agreement.]US,EC,NOR,JPN,SWI 
 
[Article  XIbis Use of Electronic Means ]   
[NB: Israel is still considering this proposed Article . Canada is questioning 
whether  2 (b), 2 (d) and 3 (d) are necessary.]  
 
1. [Procurement covered by this Agreement conducted, exclusively or not, by electronic means 
shall be subject to the provisions of this Agreement.]EC,SGP,KOR,SWI 
2. Where a procuring entity intends to conduct a procurement using electronic mea ns, either 
wholly or partially, it shall:  
 GPA/TN1994/3/Rev.7  
- 22 - 
  [(a) indicate  in the notice of intended procurement its intention to use electronic 
means ;]EC,KOR  [NB: The United States , Japan and Canada consider that this 
provision should be located in Article V:2[(d)]EC[(e)]CDA,NOR,US.] 
 
(b) ensure that any means and tools used for communicating electronically including 
authentication, integrity of data and encryption are [non -discriminatory] [.]JPN, 
[generally available and interoperable with the information an d communication 
technology products in general use and will not impose an unreasonable burden on 
other Parties' suppliers access to the tendering procedure] ; [NB: Canada , the US  and 
Japan  have reservations on th is subparagraph  and consider that, to the extent 
these matters need to be covered, they should be addressed in Article  III.] 
 
(c) ensure that all information necessary to permit potential suppliers to meet the 
specifications for using the necessary electronic means and t ools is available to 
interested parties and is included by the procuring entity in the tender documentation ; 
and  [NB: Canada , the US  and Japan  believe that this paragraph  should be  
modified and  moved to paragraph  1 in Article  VII.]  
 
(d) use mechanisms whi ch clearly and unambiguously guarantee that, pending the expiry 
of the deadlines set, the integrity of data is preserved, access to tenders and request 
to participate is prohibited and the timing of receipt of tenders and request to participate 
is accurate ly established . [NB: The US , Canada and Japan  consider that, to the 
extent these matters need to be covered, they should be addressed in Article 
III. The EC is wondering whe ther this is covered elsewhere.]  
 
3. [A procuring entity that intends  to hold an electronic auction in a ] [A]US covered procurement 
[may be conducted by electronic auction, provided that the procuring entity]US shall: [NB: Japan 
and Israel are wondering whether the requirements of confidentiality allow for the use of 
electronic auction . The EC believes that there is no contradiction between the running of 
an electronic auction and requirements of confidentiality. ] 
 
[(a) state their intention to use electronic auctions in the notice of intended procurement;]   
[NB: Canada and the United S tates consider that this provision should be 
located in Article  V:2.]  
 
(b) indicate in the tender documents the features on which the electronic auction will be 
run, provided that such features are quantifiable and can be expressed in figures or 
percentage s, and the conditions and rules under which the auction will be carried out ; 
[NB: Canada and the US believe this should be located in Article  VII relating to 
evaluation criteria.]  
 
(c) provide participants, before starting the electronic auction, with the evaluation factors 
that will be used, including [any]US [the]EC mathematical formula determining the 
automatic ranking during the electronic auction when the contract is to be awarded on 
the basis of the most economically advantageous tender ; [NB: Cana da believes this 
should be located in Article  VII relating to evaluation criteria.]  
 
[(d) ensure that electronic auctions operate in full accordance with the general principles of 
this Agreement, in particular, equal treatment, non -discrimination and trans parency. ]EC 
 
[4. A procuring entit y shall ensure that all stages of the procurement procedure  conducted by 
electronic [auction]SGP [means ]EC remain fully traceable for a period of at least three years from the 
award of the contract .]EC,KOR [NB: Canada, the US and Singapore wonder whether this should 
not be addressed in Article  XII:4bis, if at all necessary .] GPA/TN1994/3/Rev.7  
- 23 - 
  Article  XII Transparency of Contract Award Information  
Information Provided to Suppliers  
 
1. A procuring entity shall promptly inform [participating]EC,NOR suppliers [that have submitted 
tenders]CDA,JPN,US ,HKC,KOR of the entity's contract award decisions [ and, on requ est, in writing] .EC,SW I,NOR 
Subject to Article  XIII, a procuring entity shall, on request, provide an unsuccessful supplier with an 
explanation of the reasons that the entity did not select its tender and the relative advantages of 
the successful supplier' s tender.  
 
Publication of Award Information  
 
2. Not later than 72  days after the award of each contract covered by this Agreement, a procuring 
entity shall publish a notice in an officially designated publication listed in Appendix  II that may be 
in an electronic or paper medium . Where only an electronic medium is used, the information shall 
remain readily accessible for a reasonable period of time . The notice shall include at least the 
following information:  
 
(a) a description of the goods or services p rocured;  
 
(b) the name and address of the procuring entity;  
 
(c) the name and address of the successful supplier;  
 
(d) the value of the successful tender or the highest and lowest offers taken into account 
in the award of the contract;  
 
(e) the date of awa rd; and 
 
(f) type of procurement method used, and in cases where limited tendering was used 
pursuant to Article  [X (Limited Tendering) ], a description of the circumstances justifying 
the use of such procedure.  
 
Provision of [Award ] Information to Parties  
 
3. On request of any other Party, [and subject to Article  XIII:[2]  [1]EC]EC without prejudice to 
the provision under Article  XVIII [Dispute Settlement ], a Party shall provide promptly such 
information on the [procurement and]EC award of a contract, including information on the 
characteristics and relative advantages of the successful tender and on the contract price, as may 
be necessary to determine whether the procurement was conducted fairly, impartially and in 
accordance with thi s Agreement . [In cases where release of this information would prejudice 
competition in future tenders, t]EC,SWI [T]he Party that receives t hat information shall not disclose  it 
to any supplier, except after consultation with, and agreement of, the Party that provided the 
information . 
 
Maintenance of Documentation and Reports  
 
4. Each procuring entity shall maintain documentation and reports of tendering procedures and 
contract awards relating to covered procurement, including the reports provided for in Article  [X 
(Limited Tendering) ], and shall retain such documentation and reports for a period of at least 
three  years from the award of the contract.  
 
[4bis. A procuring entit y shall ensure that all stages of the procurement procedure  conducted by 
electron ic [auction]SGP [means ] remain fully traceable for a period of at least three years from the 
award of the contract .]KOR] [NB: The EC considers that this provision should be located in 
Article  XIbis:4  as the obligation of traceability does not correspond to  the obligation of 
maintaining documentation or reports . The US, Japan and Canada are still considering the 
content of, and the need for, this paragraph. ] GPA/TN1994/3/Rev.7  
- 24 - 
  Collection and Report of Statistics  
 
5. Each Party shall collect and report to the Committee statisti cs on its contracts covered by this 
Agreement . Each report shall cover one year and be submitted within two  years of the end of the 
reporting period, and shall contain:  
 
(a) For Annex  1 procuring entities:  
 
(i) the number and total value, for all such entities, of contracts covered by this 
Agreement;  
 
(ii) the number and total value of all contracts covered by this Agreement awarded 
by such entities, broken down by [categories of] goods and services [according 
to a[n internationally recognized]CDA,US uniform classification system] ; and  [NB: 
Switzerland suggests the deletion of "by categories of goods and services 
according to an internationally recognized uniform classification 
system" ; this should be left optional to Members depending on the use 
they m ay have from these statistics. ] 
 
(iii) the number and total value of contracts covered by this Agreement awarded by 
each such entity under limited tendering ; 
 
[(iv) the total value of contracts awarded under derogations to the Agreement 
contained in the relevant Annexes.]CDA 
 
(b) For Annex  2 and 3 procuring entities , the number and total value of contracts covered 
by this Agreement awarded by all such entities, broken down by Annex . 
 
(c) Where data to be provided under subparagraph  [(a) and]EC,US,JPN (b) is not available, 
estimates shall be provided.  
 
6. Where a Party publishes its statistics on an official website, the Party may substitute a 
notification of the website address for the submission of the data, with any instructions necessary 
to access and u se such statistics.  
 
7. Where a Party requires notices concerning awarded contracts, pursuant to Article  XII:2, to be 
published electronically and where such notices are accessible to the pub lic through a single database 
in a form permitting [automatic ] analysis  of the covered contract s, the Party may substitute a 
notification of the website address for the submission of the data, with any instructions necessary 
to access and use such data.  
 
Article  XIII Non-Disclosure of Information  
1. Notwith standing any other provision of the Agreement, a Party or a procuring entity may not 
provide information to a particular supplier that might prejudice fair competition between suppliers.  
 
2. Nothing in this Agreement shall be construed to require a Party o r procuring entity [or an 
authority or review body under Article  XVII [or XVIII]EC]EC,US ,HKC,JPN to release [confidential]CDA,JPN 
information under this Agreement where release:  
 
(a) would impede law enforcement;  
 
(b) might prejudice fair competition between suppliers;  
 
(c) would prejudice the legitimate commercial interests, including the protection of 
intellectual property, of particular persons ; or 
 GPA/TN1994/3/Rev.7  
- 25 - 
  (d) would otherwise be contrary to the public interest.  
 
[except to the extent that it ma y be required to be disclosed in the context of proceedings under 
Articles  XVII or XVIII.]EC 
 
Article  XIV Developing Countries * 
1. In negotiations on accession to, and in the implementation and administration of, the 
Agreement, the Parties shall take special consideration of developing countries' and least -developed 
countries' ( collectively referred to hereafter as "developing countri es", unless specifically identified 
otherwise ) development, financial and trade needs and circumstances, recognizing that these may 
differ significantly from country to country . In this context, the Parties shall give due consideration 
to requests by a dev eloping country for transitional measures with regard to its market access 
commitments under paragraph  3, as well as its implementation of the procedural obligations of the 
Agreement under paragraph  5. As provided for in this Article, t he Parties [: 
 
(a)]US,JPN shall accord special and differential treatment  to[: (a)]EC,NOR,SWI least-developed 
countries [and [other ] developing countries]SWI,ISR,KOR[.]ISR,KOR[; and 
 
(b) [may accord such treatment  to]US,CDA,JPN any other developing country , where and 
to the extent that [the Parties determine that]US,JPN,CDA [this]EC,NOR special and 
differential treatment  [meets  its]EC,NOR [responds to its]JPN,CDA,US development 
needs .]EC,US,SWI ,JPN,NOR ,ISR,CDA 
 
[bearing in mind the importance attached to the concept of development, in particular as it refers 
to small and medium enterprises from developing countries, the Parties shall give due consideration 
to a request by a developing country to invoke the use of "offsets" as defined in Article I and under  
the conditions stated below.]ISR 
 
2. [Subject to the coverage that a developed country Party has negotiated with a developing 
country, the]SWI,US ,JPN,CDA [Each]EC,NOR developed country Party shall provide immediately to the 
goods, services and suppliers o f the developing country the most favourable treatment offered by 
that Party under Appendix  I upon accession of the developing country . However, with respect to a 
developing country other than a least -developed country, where the Parties have agreed to  [the 
partial or total exclusion of a specific sector or entity ]EC,US,JPN [transitional measures,]SWI provided 
for in paragraph  3 for such country, in order to maintain appropriate reciprocal  opportunities under 
the Agreement, any Party may agree with the developing country to limit the scope of coverage that 
the Party provides to that country during the agreed transition period . Any such limitations shall be 
clearly identified in the Committee's accession decision and in each Party's Annexes or Notes to 
Appen dix I. 
 
3. Based on its development needs, and with the agreement of the Parties, a  developing country 
may, upon its accession to the Agreement,  adopt or retain  one or more of the following  transitional 
measures with a phase -out schedule set out in an Annex to its Appendix  I [during an agreed -upon 
transition period ]EC: 
 
(a) a price preference programme, provided that th e programme:  
 
(i) provides a preference only for the part of the tender incorporating goods or 
services originating in the developing country applying the preference or goods 
or services originating in other developing countries that have preferential 
agreements with the developing country applying the preference ; and 
 
 
* In the light of the request to the Secretariat made during the drafti ng session of 5 October 2004, to 
look into the use of the expressions 'developing country Parties' and 'acceding developing country' in this 
Article, the Secretariat suggest that the simplest way of making the text of the Article more coherent is by 
deleti ng the words 'Party' and 'acceding' wherever logically possible . This version is drafted accordingly.  GPA/TN1994/3/Rev.7  
- 26 - 
  (ii) is transparent, and its ap plication is clearly stated in notices of intended 
procurement and notices inviting suppliers to apply for participation in 
procurement covered by the Agreement ; [and]EC 
 
(b) an offset, provided that:  
 
(i) any requirement for, or consideration of, the impo sition of the offset is clearly 
stated in notices of intended procurement and notices inviting suppliers to apply 
for participation in procurement covered by the Agreement ; and 
 
(ii) the offset is applied in a non -discriminatory [and fair]JPN manner ; [and]EC,SWI 
 
[(c) [in exceptional cases and when duly justified by the developing country :]EC a threshold  
that is higher than its permanent threshold ; [and]US,CDA,JPN,KOR  [or]EC]US,CDA,JPN,KOR,EC 
 
(d) [in exceptional cases [and when duly justified by the developing country]EC,JPN,]EC,US,SWI 
the partial or total exclusion of a specific sector or entities.  
 
[4. The agreed -upon transition period shall not exceed 10 years for developing countries and 
20 years for least -developed countries. ]EC,JPN 
 
5. In order for a developing country to bring its measures into conformity with Articles 
[procedural Articles ] of the Agreement, it may, with the agreement of the Parties, apply a specified 
implementation period, which shall be:  
 
(a) for a least -developed country, [three] years upon its accession to  the Agreement ; and 
 
(b) for any other developing country, the period necessary to adopt measures relating to 
[specific provisions of]US,CDA,JPN the Agreement,  
 
provided that the developing country comp lies with Article  III [[national treatment and ]EC non-
discrimination ]. 
 
6. Any developing country that has been permitted to apply an implementation period under 
paragraph  5 shall list in an Annex to its Appendix  I the implementation period, and where appl icable, 
specific procedural obligations and any interim measures that it will take with regard to those 
obligations.  
 
7. At the end of the transition period, provided for in paragraph  3, and the implementation 
period, provided for in paragraph  5, the devel oping country shall fully comply with the Agreement.  
 
8. After the Agreement has entered into force for a developing country, the Committee, on 
request of the developing country [, and with a three -fourths majority vote, ]EC,SWI ,KOR may: 
 
(a) extend the transitional period for measures permitted under paragraph  3 or the 
implementation period permitted under paragraph  5 where a developing country 
demonstrates a need for the extension ; or 
 
(b) approve the application of a new transitional measure in special  circumstances 
unforeseen during the accession process, provided that the measure is consistent with 
paragraph  3. 
 
9. A developing country benefiting from a  transitional measure provided for in paragraph  3 or 8, 
or an implementation period provided for in paragraph  5, or any extension thereof under 
paragraph  8 shall take such steps as may be necessary to ensure the fulfilment of all of its obligations 
at the end of any such period . The developing country shall notify the Committee of such steps, 
including a ny special technical co-operation  and capacity building  needs.  
 
10. During a developing country 's accession process or after the entry into force of this Agreement 
for that country, the Parties shall give due consideration to any request by such country fo r technical 
cooperation and capacity building in relation to that country 's implementation of this Agreement.  
 GPA/TN1994/3/Rev.7  
- 27 - 
  11. The Committee shall review the operation and effectiveness of this Article every five  years.  
 
Article  XV Exceptions to the Agreement  
1. Nothing in this Agreement shall be construed to prevent any Party from taking any action or 
not disclosing any information that it considers necessary for the protection of its essential security 
interests relating to the procurement of arms, ammunition or  war materials, or to procurement 
indispensable for national security or for national defence purposes.  
 
2. Subject to the requirement that such measures are not applied in a manner that would 
constitute a means of arbitrary or unjustifiable discrimination  between Parties where the same 
conditions prevail or a disguised restriction on international trade, nothing in this Agreement shall 
be construed to prevent any Party from imposing or enforcing measures:  
 
(a) necessary to protect public morals, order or s afety;  
 
(b) necessary to protect human, animal or plant life or health;  
 
(c) necessary to protect intellectual property ; or 
 
(d) relating to goods or services of handicapped persons, of philanthropic institutions or of 
prison labour.  
 
[3. The Parties under stand that paragraph  2(b) includes environmental measures necessary to 
protect human, animal or plant life or health]CDA,US [or natural resources].CT]US,CDA,CT 
[NB: Hong  Kong, China ; Korea ; the EC ; and Japan considered this paragraph not 
necessary, given p aragraph  2(b).]  
 
[4. [Having regard to general policy considerations relating to tied aid, including the objective of 
developing countries with respect to untying of such aid, this Agreement does not apply to 
procurement made in furtherance of tied aid to developing countries so long as it is practised by 
Parties.]SWI,JPN,KOR  [NB: Location needs to be reconsidered . Norway propose s to delete this 
paragraph. ] [Market Access Issue ] 
 
[Article  XVI Modifications and Rectifications to Coverage  
[NB: Parties are still reviewing this compromise language proposed by the United States.]  
 
Notification of Proposed Modification  
 
1. A Party shall notify the Committee [of]US any rectification, transfer of an entity from one Annex 
to another, withdrawal [of an entity]US, or [in exceptional cases,]CDA other modification (referred to 
generally in this Article as "modification") of Appendices I through IV . The Committee shall circulate 
the notification to the Parties to the Agreement . The Party proposing the modifi cation ("modifying 
Party") shall include in the notification:  
 
(a) for proposed [withdrawals of an entity from]US [modifications, of]EC Appendix I [in 
exercise of its rights]JPN,US [in the exercise of a Party's right]EC on the grounds that 
government control or influence [over it]US has been effectively eliminated[, including 
by virtue of liberalisation]EC, evidence that such government control or influence has 
been effectively eliminated, including information that addr esses, as appropriate, the 
indicative criteria developed by the Committee in accordance with paragraph  [10]; or 
 
(b) for other proposed modifications, information as to the likely consequences of the 
change for the mutually agreed coverage provided in this  Agreement[, as 
appropriate]JPN. 
 
Objection to Notification  
 
2. Where a Party whose rights under this Agreement may be affected (referred to in this Article 
as an "affected Party") by a proposed modification notified under paragraph  1 submits to the GPA/TN1994/3/Rev.7  
- 28 - 
  Commit tee an objection in writing to the proposed modification within [45]US,CDA[30]KOR days, the 
Committee shall circulate the objection, and the modifying Party and the affected Party 
[shall]US,KOR,JPN [may]EC seek to resolve the objection through consultation s. In such consultations, 
the Parties concerned shall consider the proposed modification and, in the case of a notification 
under paragraph  1(b), any claim for compensatory adjustments[, as appropriate]JPN, with a view to 
maintaining a balance of rights an d obligations and a comparable level of mutually agreed coverage 
provided in this Agreement prior to such notification.1 
 
3. If no Party submits to the Committee an objection in writing to the proposed modification 
within [45]US,CDA[30]KOR days, [the] proposed [withdrawal or other]CDA modification [of a purely 
formal or minor nature]CDA shall become effective[.]EC,JPN,KOR ,US [30 days after the end of the 
45-day period.]CDA  [In other case s, the Chairman of the Committee shall promptly convene a 
meeting of the Committee . The Committee shall consider the proposal and any claim for 
compensatory adjustments.]CDA 
 
Arbitration  
 
4. If the [modifying Party and those]EC,US,NOR,JPN Parties who have objected are  unable to reach 
agreement within [120]  days f rom the [end of the objection period in paragraph  2]CDA,US [date of 
circulation of the first objection ]EC,NOR [or at any earlier date agreed by the Parties]KOR,US,NOR,EC,JPN, 
[any objecting  [Party or]CDA,KOR]EC,CDA,KOR [the modifying]US,CDA,KOR,JPN Party may refer the matter to 
arbitration[, by notifying the Chairman of the Committee]EC,US. [If no objecting party refers the 
matter to arbitration within [120] days from the date of circulation of the first objection, the 
proposed modification shall become effective.]EC,NOR,KOR  Where a proposed modification has been 
referred to arbitration, any affected Party [which has submitted an objection and]EC,US,NOR that wishes 
to enforce a right [to compensation]EC that it may have must par ticipate in the arbitration . If the 
Parties participating in the arbitration cannot agree on an arbitrator within 10  days after referring 
the matter to arbitration, the Director -General shall appoint the arbitrator within 10  days, after 
consulting the Part ies.2 
 
[4bis. Arbitration pursuant to this Article shall be the exclusive means to resolve any dispute arising 
with respect to the conformity of a proposed modification with this Article, the level of compensatory 
adjustment necessary to maintain the balance of rights and obligations and a comparable mutually 
agreed coverage provided in this Agreement consequent upon a modification made pursuant to this 
Article, or the withdrawal of substantially equivalent benefits pursuant to paragraph [9].]EC,KOR 
 
5. In the case of a proposed [withdrawal]US,JPN [modification]EC under paragraph  1(a), the 
arbitrator shall determine whether government control or influence [over the entity proposed to be 
withdrawn]US has been effectively eliminated . [The modifying Party shall have the burden of making 
a prima facie  case demonstrating that government control or influence over the entity has been 
effectively eliminated.]US,NOR,JPN  [If the arbitrator determines that government control or influence 
has been effectively eliminated, the modifying party may implement the proposed modification 
without providing any compensatory adjustment . If the arbitrator determines that government 
control or influence has not been effectively eliminated, the modifying party may implement the 
proposed modification by offering adequate compensatory adjustment . The modifying party may 
request arbitration to determine the level of compensatory adjustment to be offered . The arbitrator's 
determination shall be issued within 60  days from the request for arbitration.]EC 
 
6. In the case of any other proposed modification, the arbitrator shall determine the level of 
compensatory adjustments necessary to maintain  the balance of rights and obligations and a 
comparable level of mutually agreed coverage provided in the Agreement [also determine whether 
the proposed modification is of a purely formal or minor nature]JPN. [Each Party participating in the 
arbitration sh all bear the burden of proving what it believes to be the appropriate level of 
compensatory adjustments.]US 
 
7. The arbitrator [normally]US shall issue [its]US [a reasoned]EC determination [and a report of 
the reasons therefore]US to the Parties to the arb itration and to the Committee within [90] days of 
 
1 [Negotiator's note : The Parties may need to consider how implementation would proceed in the event 
that the modifying Party and the objecting Party are able to resolve the dispute through consultations.]  
2 The expression "arbitrator" shall be interpreted as referring either to an individual or a group . 
[Arbitrators shall be drawn from the same body of persons eligible to serve as panellists under the GPA.]EC GPA/TN1994/3/Rev.7  
- 29 - 
  the appointment of the arbitrator . The Committee shall promptly circulate the determination to the 
Parties to the Agreement.  
 
[7bis. Any party to the arbitration may appeal issues of law or legal interpreta tion developed by the 
arbitrator within 30  days of the circulation of the determination to the Parties to the Agreement . The 
provisions of the DSU on appeal shall apply mutatis mutandis  to an appeal brought under this 
provision . The arbitrator's report, as  modified by the Appellate Body, shall be promptly circulated to 
the Parties to the Agreement.]EC 
 
8. Where an affected Party has [referred the matter to arbitration]EC [objected to the proposed 
modification and the Parties concerned have not resolved the objection through consultations]US, 
the modifying Party may implement its proposed modification only after the [arbitrator issues its 
determination and only in a manner that is consistent with the findings of the arbitration]US 
[arbitration is complete]EC. 
 
9. If the modifying Party implements its proposed modification before the [arbitrator issues its 
determination]US [arbitration is complete]EC or implements such modification in a manner that is 
inconsistent with the findings of the arbitration [and other wise fails to offer adequate compensatory 
adjustment]EC, any affected Party that participated in the arbitration may [modify or withdraw 
substantially equivalent benefits]EC [adjust its coverage in order to restore the balance of rights and 
obligations and  a comparable level of coverage]US.3  [Notwithstanding Article [III], t]EC[T]UShe 
affected Party shall implement the modification solely with respect to the modifying Party and shall 
promptly notify the Committee of the modification.  
 
[9bis. The modifying  Party may request arbitration to determine the level of substantially equivalent 
benefits to be withdrawn pursuant to paragraph  [9]. Any modification or withdrawal of benefits shall 
be consistent with the arbitrators' determination . Any such determination  shall be issued within 
60 days from the request for arbitration.]EC 
 
Committee Responsibilities  
 
[10. The Committee shall develop [working procedures for arbitrations under this Article]US,EC[,]EC 
[and]US criteria that indicate the effective elimination o f government control or influence over an 
entity[, and criteria that indicate how to determine the level of compensatory adjustment to be 
offered for modifications made pursuant to this provision]EC.]US,EC,CDA 
 
Article  XVII  Challenge Procedures  
[Consultations between the Procuring Entity and Supplier  
 
1. In the event of a complaint by a supplier that there has been a breach of [another Party's 
measures implementing]US this Agreement arising in the context of a covered procurement in which 
the supplier has, or has had, an interest, each Party shall encourage the procuring entity and supplier 
to seek resolution of the complaint through consultations . The procuring entity shall accord impartial 
and timely consideration to any such complaint in a manner that is prejudicial neither to the 
supplier's participation in ongoing or future procurement  nor to the supplier's rights to seek 
corrective measures under the challenge syst em. 
 
Challenge  
 
2. Each Party shall provide timely, effective, transparent and non -discriminatory means for a 
supplier to challenge an alleged breach of this Agreement arising in the context of a covered 
procurement, in which it has, or has had, an interes t. The procedural rules for all  challenges shall 
be in writing and made generally available.  
 
 
3 [Negotiator's note : The Parties may wish to clarify what recourse the modifying Party has if it objects 
to the adjustment of the affected Party.]  GPA/TN1994/3/Rev.7  
- 30 - 
  3. Each supplier shall be allowed a sufficient period of time to prepare and submit a challenge, 
which in no case shall be less than 10  days from the time when th e basis of the complaint became 
known or reasonably should have become known to the supplier . [NB: Hong Kong , China believes 
that the time -period allowed for submitting a bid challenge should be specified.]  
 
4. Each Party shall establish or designate at le ast one impartial administrative or judicial 
authority that is independent of its procuring entities to receive and review complaints of suppliers 
arising in the context of a procurement covered by this Agreement.  
 
5. Where a body other than an authority r eferred to in paragraph  4 initially reviews a complaint, 
the Party shall ensure that the supplier may appeal the initial decision to an impartial administrative 
or judicial authority that is independent of the procuring entity that is the subject of a chal lenge.  
 
6. A review body that is not a court shall either be subject to judicial review or shall have 
procedures which provide that:  
 
(a) the procuring entity shall respond in writing to the complaint and disclose all relevant 
documents to the review body;  
 
(b) the participants to the proceedings shall have the right to be heard prior to a decision 
of the review body being made  on the complaint;  
 
(c) the participants to the proceedings shall have the right to be represented and 
accompanied;  
 
(d) the participants to the proceedings shall have access to all proceedings[, subject to 
Article  XIII (Non-Disclosure of Information)]US; 
 
(e) the participants to the proceedings shall have the right to request that the proceedings 
take place in public[, subject to Article  XIII (Non-Disclosure of Information),]US,JPN and 
that witnesses may be presented ; and 
 
(f) decisions  or recommendations relating to supplier [challenges]EC [complaints]US shall be 
provided, in a timely fashion, in writing, with an explanation of the basis for each 
decision or recommendation.  
 
7. Each Party shall adopt or maintain procedures that provide for:  
 
(a) rapid interim measures[, pending the resolution of a complai nt,]US,CDA ,HKC [to correct 
breaches of the Agreement and ]JPN,EC to preserve the supplier's opportunity to 
participate in the procurement . Such interim measures may result in suspension of the 
procurement process . However, procedures may provide that overri ding adverse 
consequences for the interests concerned, including the public interest, may be taken 
into account when deciding whether such measures should be applied . In such 
circumstances, just cause for not acting shall be provided in writing;  
 
(b) correction of the breach of the Agreement or compensation for the loss or damages 
suffered, which may be limited to costs for the preparation of the tender or [complaint]US 
[challenge]EC [; and 
 
(c) protection of the confidentiality of information subject to Ar ticle XIII:2]EC 
 
Article  XVIII  Consultations and Dispute Settlement  
1. [The provisions of the Understanding on Rules and Procedures Governing the Settlement of 
Disputes under the WTO Agreement (hereinafter referred to as the "Dispute Settlement 
Understanding") [shall be applicable ] [apply]CDA except as otherwise provided below.]CDA,EC,JPN ,NOR,ISR 
[The provisions of Article  XXII and XXIII of GATT[, except Article  XXIII:1(c),]US as elaborated and 
applied by the Understanding on Rules and Procedures Governing the Settlement of Disputes under GPA/TN1994/3/Rev.7  
- 31 - 
  the WTO Agreement (Disput e Settlement Understanding) [shall] apply to consultations and the 
settlement of disputes under this Agreement, except as otherwise specifically provided herein.]US,SW I 
 
[2. Where any Party considers that any benefit accruing to it, directly or indirectly,  under this 
Agreement is being nullified or impaired, or that the attainment of any objective of this Agreement 
is being impeded as the result of the failure of another Party or Parties to carry out its [or their]CT 
obligations under this Agreement, [or th e application by another Party or Parties of any measure, 
whether or not it conflicts with the provisions of this Agreement,]CDA,KOR,JPN it may with a view to 
reaching a mutually satisfactory resolution of the matter , [have recourse to the provisions of th e 
Dispute Settlement Understanding.]NOR [request consultations.]EC,CDA [make written representations 
or proposals to the other Party or Parties which it considers to be concerned . Such action [must]CDA 
[shall] be promptly notified to the Dispute Settlement  Body established under the Dispute Settlement 
Understanding (hereinafter referred to as "DSB"), as specified below . Any Party thus approached 
shall give sympathetic consideration to the representations or proposals made to it.]KOR,CDA,JPN  
[Whenever a Par ty to this Agreement other than the consulting Parties considers that it has a 
substantial trade interest in such consultations, it may notify the consulting Parties and the Dispute 
Settlement Body (DSB), within 10  days after the date of the circulation of  the request for 
consultations under this paragraph, of its desire to be joined in such consultations.]EC,JPN [NB: Japan 
and the EC indicated that further thinking should be devoted to avoiding that third Parties 
be entitled to join consultations in the context of disputes related not only to the GPA but 
also to other WTO Agreements . Japan indicated that the DSU renegotiations still need to 
address whether the standard should be "substantial trade interest".]  
 
[2bis. Where the dispute  concerns the award of a specific procurement, paragraphs  8 and 9 of 
Article  4 of the Dispute Settlement Understanding (DSU) may be invoked by the complaining 
Party.]EC 
 
3. Where a dispute exclusively concerns provisions of this Agreement, only Parties to this 
Agreement [shall] [may]CDA participate in decisions or actions taken by the DSB under this 
Agreement . [NB: All Parties, except Hong Kong, China, agree to deleting this paragraph as 
it is a duplication of Article  2, first paragraph, last sentence of th e DSU.]  
 
4. [In the case of a dispute in which provisions both of this Agreement and of one or more other 
Agreements listed in Appendix  1 of the Dispute Settlement Understanding are invoked by one of the 
parties to the dispute, [paragraph  3 [shall apply ] [applies]CDA only to those parts of the panel report 
concerning the interpretation and application of this Agreement]KOR,JPN,CT [only Members of the WTO 
that are Party to this Agreement [shall] [may]CDA participate in decisions or actions taken by the 
Dispute Settlement Body with respect to those parts of the dispute concerning this 
Agreement].US,CDA]KOR,JPN,CT,US,SW I,CDA [Where a dispute exclusively concerns provisions of this 
Agreement, only Parties to  this Agreement may participate as third Parties.]NOR,EC [A Member of the 
WTO may seek to join in consultations pertaining to this Agreement, pursuant to Article  4.11 of the 
DSU, only if that Member is also a Party to this Agreement.]US [NB: The US conside rs that the 
bracketed language proposed by Norway and the EC is a duplication of an existing 
provision in the DSU.]  
 
[5. [Each p]CDA,US[P]anel[s] established by the DSB to examine disputes under this Agreement 
[must]CDA [shall]US include [at least one]US person [s] qualified in the area of government 
procurement [, unless Parties agree otherwise]US.]US,KOR,JPN,CT,SW I,CDA 
[5bis. [Each p]CDA[P]anel[s] [must]CDA [shall] adopt appropriate procedures to protect confidentiality 
of information subject to Article  XIII:2.]EC 
 
6. [Every effort shall be made to accelerate the proceedings to the greatest extent 
possible.]KOR,JPN,CT,US  [Notwithstanding the provisions of paragraph s 8 and 9 of Article  12 of the 
Dispute Settlement Understanding, the panel shall attempt]CDA,JPN,CT [Where the dispute concerns 
the award of a specific procurement the panel shall aim,]EC,SW I to provide its final report to the parties 
to the dispute not la ter than [three months]EC [four months, and in case of delay not later than seven GPA/TN1994/3/Rev.7  
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  months,]CDA,JPN,CT, after the date on which the composition and terms of reference of the panel are 
agreed . Consequently, every effort shall be made to reduce also the period s foreseen in paragraph  1 
of Article  20 and paragraph  4 of Article  21 of the Dispute Settlement Understanding by 
[two]CDA,JPN,CT [three]EC months . Moreover, notwithstanding the provisions of paragraph  5 of 
Article  21 of the DSU, the panel shall attempt to issue its decision, in case of a disagreement as to 
the existence or consistency with a covered Agreement of measures taken to comply with the 
recommendations and rulings, within 60  days.]EC,JPN,CT 
 
[6bis. (a) In the communication referred to in  Article  [21.3] of the DSU, the Party concerned shall 
inform the DSB whether it is possible to bring the measures found to be inconsistent 
with this Agreement into conformity with the Agreement . If the Party concerned 
indicates that it is not possible to b ring the measures found to be inconsistent with this 
Agreement into conformity with the Agreement, that Party shall, immediately after 
having made that communication, enter into consultations with a view to developing 
mutually acceptable compensation.  
 
(b) Any Party which has entered into such consultations, may at any time request an 
arbitration to determine the level of nullification or impairment that was caused by the 
measure found to be inconsistent with this Agreement.  
 
(c) Unless a request for arbitration has been made, the Party concerned shall, within 
30 days from the request for consultations, submit to all Parties who have entered into 
such consultations, a proposal for mutually acceptable compensation.  
 
(d) When an arbitration has been requ ested, the Party concerned shall submit such a 
proposal within 30  days of the award of the arbitrator . Any such proposal shall be 
consistent with the award of the arbitrator.  
 
(e) Such arbitration shall be carried out by the original panel, if members are available, or 
by an arbitrator, which term shall be interpreted as referring to an individual or a group, 
appointed by the Director -General and shall be completed within 60  days after the 
request for arbitration.  
 
(f) If no proposal for compensation has be en submitted within the periods referred to in 
subparagraphs  (c) or (d), or if no agreement has been reached within 60  days from the 
submission of the later of:  
 
(i) a proposal for mutually acceptable compensation ; or 
 
(ii) such a proposal made subsequent to an arbitration award,  
 
the complaining Party shall be entitled to request authorization from the DSB to suspend the 
application to the Party concerned of concessions and other obligations under the covered 
agreements that is appropriate in light of the level of nullification or impairment that was caused by 
the measure.]EC 
 
[7. Notwithstanding paragraph  2 of Article  22 of the Dispute Settlement Understanding, any 
dispute arising under any Agreement listed in Appendix  1 to the Dispute Settlement Understan ding 
other than this Agreement shall not result in the suspension of concessions or other obligations 
under this Agreement, and any dispute arising under this Agreement shall not result in the 
suspension of concessions or other obligations under any other Agreement listed in the said 
Appendix  1.]CDA,KOR,JPN,US,CT,ISR 
 GPA/TN1994/3/Rev.7  
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  Article  XIX Institutions  
Committee on Government Procurement  
 
1. A Committee on Government Procurement composed of representatives from each of the 
Parties shall be established . This Committee shall elect its own Chairman and shall meet as 
necessary, but not less than once  a year, for the purpose of affording Parties the opportunity to 
consult on any matters relating to the operation of this Agreement or the furtherance of its 
objectiv es, and to carry out such other responsibilities as may be assigned to it by the Parties.  
 
2. The Committee may establish working parties or other subsidiary bodies that shall carry out 
such functions as may be given to them by the Committee.  
 
Observers  
 
3. Any WTO Member that is not a Party to this Agreement shall be entitled to participate in the 
Committee as an observer upon submission of a written notice to the Secretariat . Any WTO observer 
may submit a written request to the Secretariat to participate in the Committee as an observer, and 
may be accorded observer status by the Committee.  
 
Article XX  Final Provisions  
Acceptance and Entry into Force  
 
1. This Agreement shall enter force on  [ ] for those WTO Members whose agreed coverage is set 
out in Annexes  1 through  5 of Appendix  I, and which have, by signature, accepted this Agreement 
on [ ], or have, by or on that date, signed the Agreement subject to ratification and have 
subsequently ratified the Agreement before  [ ]. 
 
Transitional Arrangements  
 
2. Between the Parties to this Agreement that are also Parties to the Agreement on Government 
Procurement dated 15  April 1994 ("1994  Agreement"), the 1994  Agreement shall cease to apply . 
When all Parties to the 1994  Agreement have accepted th is Agreement, the 1994  Agreement shall 
be terminated.  
 
Accession  
 
3. Any Member of the WTO that is not a Party to this Agreement may accede to this Agreement 
on terms to be agreed between that Member and the Parties . Accession shall take place by deposit 
with the Director -General of the WTO of an instrument of accession that states the terms so agreed . 
This Agreement shall enter into force for an acceding Member on the 30th day following the date of 
its accession to this Agreement.  
 
Reservations  
 
4. No Part y may enter any reservation in respect of any provisions of this Agreement.  
 
National Legislation  
 
5. Each Party shall ensure, not later than the date of entry into force of this Agreement for it, 
the conformity of its laws, regulations and administrative procedures, and the rules, procedures and 
practices applied by its procuring entities, with the provisions of this Agreement.  
 
6. Each Party shall inform the Committee of any changes in its laws and regulations relevant to 
this Agreement and  in the administration of such laws and regulations.  
 GPA/TN1994/3/Rev.7  
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  Reports and Future Work  
 
7. The Committee shall annually inform the General Council of the WTO of developments relating 
to the implementation and operation of this Agreement.  
 
[7bis. Not later than the end of the tenth  year from the date of entry into force of this Agreement, 
and periodically thereafter, the Parties thereto shall undertake further negotiations, with a view to 
improving this Agreement [and achieving the greatest possible extension of its coverage among all 
Parties]EC [without prejudice to the needs of developing countries]ISR.]EC,ISR [NB: Hong Kong, China 
suggested deleting "and achieving the greatest possible extension of its coverage among 
all Parties", since "with a view to improving th is Agreement" is already general and fine .] 
 
[8. The Parties shall seek to avoid introducing or continuing discriminatory measures and practices 
that distort open procurement and shall, in the context of negotiations, seek to eliminate those which 
remain o n the date of entry into force of this Agreement.]HKC [Market Access Issue ] 
 
9. Following the conclusion of the work programme for the harmonization of rules of origin for 
goods be ing undertaken under the Agreement on Rules of Origin in Annex  1A of the Agreement 
Establishing the World Trade Organization and negotiations regarding trade in services, the Parties 
shall take the results of that work programme and those negotiations into ac count in amending 
Article  [ ] as appropriate.  
 
9bis. [Not later than the end of the third year from the date of entry into force of this Agreement, 
the Committee shall undertake further work to establish a common nomenclature for describing the 
subject of procurement notices and common standardized notices in view of improving the 
effectiveness of cross border procurement and simplifying the description and content of such 
notices.]EC 
 
Amendments  
 
10. The Parties may amend this Agreement having regard, inter alia, to the experience gained in 
its implementation . Such an amendment, once the Parties have concurred in accordance with the 
procedures established by the Committee, shall [take effect for the Parties that have accepted them 
upon acceptance by two thi rds of the Parties and thereafter for each other Party upon acceptance 
by it].EC,JPN ,KOR 
 
Withdrawal  
 
11. Any Party may withdraw from this Agreement . The withdrawal shall take effect upon the 
expiration of 60  days from the date the Director -General of the WTO receives written notice of the 
withdrawal . Any Party may upon such notification request an immediate meeting of the Committee.  
 
12. If a Party to this Agreement ceases to be a Member of the WTO, it shall cease to be a Party 
to this Agreement with effect from the same date.  
 
Non-application of this Agreement between Particular Parties  
 
13. This Agreement shall not apply as between any two Parties if either Party, at the time it 
accepts or accedes to this Agreement, does not consen t to such application.  
 
Appendices  
 
14. The Appendices to this Agreement constitute an integral part thereof.  
 
Secretariat  
 
15. This Agreement shall be serviced by the WTO Secretariat.  
 GPA/TN1994/3/Rev.7  
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  Deposit  
 
16. This Agreement shall be deposited with the Director -Gener al of the WTO, who shall promptly 
furnish to each Party a certified true copy of this Agreement, of each rectification or modification 
thereto pursuant to paragraph  [ ] and of each amendment thereto pursuant to paragraph  10, and a 
notification of each acce ssion thereto pursuant to paragraph  3 and of each withdrawal therefrom 
pursuant to paragraph  11. 
 
Registration  
 
17. This Agreement shall be registered in accordance with the provisions of Article  102 of the 
Charter of the United Nations.  
 
Done at [ ] this [ ] day of [ ] in a single copy in the English, French and Spanish languages, each 
text being authentic, except as otherwise specified with respect to the Appendices hereto.  
 
__________  