GPA/75
Page 3

World Trade
Organization
GPA/75
15 July 2003
(03-3834)
Committee on Government Procurement

report (NOVEMBER 2002 – JUNE 2003) of the

Committee on Government Procurement

I. GENERAL

  1. This Report is submitted as an update to the 2002 Annual Report issued in November 2002 pursuant to Article XXIV:7(a) of the Agreement on Government Procurement. The period covered in this Report is November 2002 June 2003.
  2. Since the 2002 Annual Report, the Committee has held one formal meeting on 6February2003, and a series of informal meetings in February, May and June 2003. At its meeting on 6February2003, the Committee considered the following agenda: Modifications to the Appendices to the Agreement; Accessions; Review of National Implementing Legislation; Negotiations under Article XXIV:7; and Other Business. At the informal meetings, Parties pursued their work pertaining to the negotiations under Article XXIV:7. A further formal and informal meeting is foreseen in the week of 18-22 August 2003 to pursue this work.

II.  Implementation of the Agreement

Modifications to the Appendices to the Agreement

  1. Since the 2002 Report, modifications pertaining to their respective Appendices notified by Switzerland (GPA/W/225) became effective on 7 February 2003 (WT/Let/437); by the European Community, Iceland and Norway (GPA/W/226, 227 and 228, respectively) became effective on 11January2003 (WT/Let/438); by Hong Kong, China (GPA/W/256) became effective on 4April2003 (WT/Let/444); and by Japan (GPA/W/252-254) became effective on 9May2003 (WT/Let/446). Modifications have also been notified by Korea (GPA/W/250); Japan (GPA/W/255); Switzerland (GPA/W/268); and Hong Kong, China (GPA/W/269). In respect of Korea's modifications, the European Community (GPA/W/257) and the United States (GPA/W/258) sent communications objecting to the proposed modifications going into effect, and the United States submitted questions in GPA/W/264. With respect to Japan's proposed modifications, the European Community raised an objection in GPA/W/262.
  2. With regard to the proposed modification by Japan to its Appendix I notified in GPA/W/91 pertaining to the NTT Communications Corporation, the United States had withdrawn its objection in October 2001 (GPA/W/166) and Canada in October 2002 (GPA/W/213). In a statement at the February 2003 meeting, Japan reported that, despite further consultations with the European Community, it had not been able possible for the two Parties to reach a consensus, and the European Community confirmed that it maintained its objection to the proposed modifications going into effect.
  3. With regard to the proposed modifications by Japan to its Appendix I in GPA/W/144, 145 and 146 in respect of the three Japanese railway companies, namely East Japan Railway Company, Central Japan Railway Company, and West Japan Railway Company, Canada withdrew its objections in October 2002 (GPA/W/211) and February 2003 (GPA/W/246). The United States (GPA/W/151) and the European Community (GPA/W/155) continue to maintain their objections to the entry into force of the modifications. Japan's replies to follow-up questions put by the European Community in GPA/W/245 were circulated in GPA/W/263.
  4. With respect to Korea's proposed modifications to its Appendix I (GPA/W/207), replies by Korea to further questions put to it by the United States (GPA/W/242) and the European Community (GPA/W/244) were circulated in GPA/W/266 and 267, respectively.
  5. With respect to the proposed modifications to Annexes 1 and 3 of Appendix I by the United States (GPA/W/153), replies by the United States to further questions put by Japan (GPA/W/195) and the European Community (GPA/W/216) were circulated in GPA/W/223 and 243, respectively.

Thresholds

  1. In accordance with the Decision on Modalities for Notifying Threshold Figures in National Currencies (GPA/1, Annex 3), Korea (GPA/W/251) notified its threshold figures for 2003-2004.

Notification and review of national implementing legislation

  1. The Committee completed its review of Iceland's national implementing legislation submitted in GPA/69.

Consultations and dispute settlement

10.  There were no matters raised under Article XXII of the Agreement during the reporting period.

Procedural matters

  1. In accordance with its Decision on Procedures for the Circulation and Derestriction of Documents (GPA/1/Add.2), Parties agreed to the derestriction of the documents listed in GPA/74, dated 13 March 2003.

III.  Accessions

  1. Jordan submitted its entity offer on 6 February 2003. Questions and requests for information received from the United States regarding this offer have been circulated.
  2. With regard to the accession of Chinese Taipei, the Committee was informed at its February2003 meeting that all bilateral consultations had been successfully concluded with interested delegations on the substantive issues in December 2002. The issue of nomenclatures remained outstanding.
  3. Estonia reported at the February 2003 meeting that its Public Procurement Act was being reviewed, and was invited to duly communicate the changes, at the conclusion of the review, to the Committee with an explanation of their impact on its offer.
  4. Latvia reported at the February 2003 meeting that bilateral consultations were ongoing with the European Community.
  5. With respect to the accession of Bulgaria, Bulgaria's replies to follow-up questions put by Canada (GPA/W/219), were circulated in GPA/W/249. Bulgaria also provided further clarification in respect of a follow-up question by Canada to a reply it had previously given. Furthermore, at the February 2003 meeting, Bulgaria reiterated its request for information pertaining to export opportunities in the markets of GPA Parties for Bulgarian suppliers.
  6. With respect the accession of Georgia, questions received from Canada and the European Community regarding Georgia's replies to the Checklist of Issues were circulated in GPA/W/230 and GPA/W/232, respectively. Georgia's replies to Canada's questions were circulated in GPA/W/237.
  7. With regard to its accession, Slovenia reported at the February meeting that necessary changes were being drafted in order to streamline its Public Procurement Act.
  8. With regard to its accession, Albania's replies to questions put by Hong Kong, China; Switzerland; and Canada were circulated in GPA/W/238-241, respectively.
  9. With respect to the accession of Moldova, questions were submitted by Hong Kong, China (GPA/W/206) and the European Community (GPA/W/231).
  10. The Kyrgyz Republic submitted replies (GPA/W/248) to questions put by the United States (GPA/W/201).
  11. Since the October 2002 meeting, no developments have been reported in relation to the respective accessions of Oman, China, Croatia, Lithuania, Mongolia, and Panama.
  12. With regard to work pertaining to streamlining the accession process, the Committee considered at its February 2003 meeting a communication circulated by Chinese Taipei (GPA/W/224) as well as a note by the Secretariat summarizing the points made at the October 2002 meeting. The Committee agreed to take up this issue within the wider context of its work on the revision of the Agreement.

IV.  Negotiations

  1. Article XXIV:7(b) and (c) of the Agreement calls on the Parties, not later than the end of the third year from the date of its entry into force, to undertake further negotiations, with a view to improving the Agreement and achieving the greatest possible extension of its coverage among all Parties and eliminating any remaining discriminatory measures and practices. During the period covered by this report, Parties pursued their consultations at their formal meeting in February 2003, and in further informal meetings held in February, May and June 2003, on the basis of proposals made by delegations. This work focused primarily on simplification and improvement of the Agreement, but also discussed the other two elements. An objective of the negotiations under ArticleXXIV:7 is the expansion of the membership of the Agreement by making it more accessible to nonParties.
  2. At its meeting in May 2003, the Group considered in detail and heard comments made by Parties on a joint submission by Canada, the European Community, Japan and the United States (JobNo.3166). It also had a preliminary discussion on a proposal by Norway dealing with conflict of interest (Job No. 7935). At its meeting in June, the Group considered a revised joint submission (JobNo.4479) by Canada, the European Community, Japan and the United States incorporating comments and feedback by other Parties. The Group further had a preliminary discussion based on submissions by the European Community on challenge procedures (Job No. 4654) and consultations and dispute settlement (Job No. 4655), and by Switzerland on accession and developing countries (JobNo. 4287).
  3. Following the June 2003 meeting, all the available proposals have been consolidated into a single revised draft text which is to form the basis of further consultations in the period up to the Cancun Ministerial Conference.
  4. As regards the work pertaining to elements 2 and 3 of the work programme, namely the elimination of discriminatory measures and the expansion of coverage, the Group agreed at its informal meeting in May 2003 to pursue this after the Cancun Ministerial Conference.
  5. The Committee has set target dates of the Cancun Ministerial Conference for provisional agreement on the revision of the provisions of the Agreement (other than coverage related issues) and of 1 January 2005 to conclude the negotiations as a whole.

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