 RESTRICTED  
  
GPA/TN1994/2/Rev.2  
16 June 1999  
(24-2687) Page: 1/50 
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   
 
  
SUGGESTED DRAFTING CHANGES TO THE  1994 AGREEMENT*,** 
NOTE BY THE SECRETARIAT  
Revision  
At the informal meeting of 9  December  1998, it was agreed that delegations would proceed with the 
article -by-article examination of the Agreement on the basis of a two -column table to be prepared 
by the Secretariat . The present note includes an updated version of the two -column table that was 
circulated in response to that request . The left column contains the text of the 1994  Agreement an d 
the right column indicates the texts of any specific drafting changes on individual Articles that have 
been suggested since February  1997. The purpose of this note is to list the suggestions and not the 
reactions to these . The record of the full discussi on was circulated in the ninth revision of the 
Checklist of Issues Raised.  
 
It might also be noted that certain suggestions have been made for amending the structure of the 
provisions of the Agreement . These are not reflected in the two -column presentation . However, the 
specific proposal that has been made on this matter is annexed to this note.  
 
 
 
* English only . 
** Pursuant to the relevant Decision of the Committee on Government Procurement ( GPA/CD/5  
(16/11/2023)), this document (informal document symbol: negs6) was derestricted on 8 November 2023.    
  GPA/TN1994/2/Rev.2  
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 
Article I  
 
Scope and Coverage  
  
1. This Agreement applies to any law, regulation, procedure or practice 
regarding any procurement by entities covered by this Agreement, as specified in 
Appendix I.1 
 It has been suggested that footnote 1 should be made part of the main text.  
2. This Agreement applies to procurement by any contractual means, 
including through such methods as purchase or as lease, rental or hire  purchase, 
with or without an option to buy, including any combination of products and 
services.  
 It has been suggested that this Article might contain a definition of the term 
"government procurement" including what is meant by "government" for this 
purpose.  
 
It has been suggested that sub -paragraph 2 should include a reference to forms 
of procurement under new phenomena (partnerships between private and public 
sectors, multiplication of "Build Operate Transfer" (BOT) operations, joint 
ventures).  
 
3. Where entities, in the context of procurement covered under this 
Agreement, require enterprises not included in Appendix I to award contracts in 
accordance with particular requirements, Article  III shall apply mutatis mutandis  
to such requi rements.  
  
4. This Agreement applies to any procurement contract of a value of not less 
than the relevant threshold specified in Appendix I.  
 It has been suggested that the relationship between paragraph 4 and footnote  1 
relating to thresholds should be examined.  
The question has been asked whether relevant thresholds should continue to be 
specified in each Party's Appendix I or whether the applicable threshold values 
should be specified in paragraph 4.  
 
 
1 For each Party, Appendix I is divided into five Annexes:  
- Annex 1 contains central government entities.  
- Annex 2 contains sub -central government entiti es. 
- Annex 3 contains all other entities that procure in accordance with the provisions of this Agreement.  
- Annex 4 specifies services, whether listed positively or negatively, covered by this Agreement.  
- Annex 5 specifies covered construction services.  
Relevant thresholds are specified in each Party's Annexes.    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 
Article  II 
 
Valuation of Contracts  
  
1. The following provisions shall apply in determining the value of contracts2 
for purposes of implementing this Agreement.  
 It has been suggested that footnote 2 be amended to read : "This Agreement shall 
apply to any procurement contract for which the co ntract value is estimated to 
equal or exceed the threshold at the time of the publication of the notice in 
accordance with Article IX and at the time of first contact with the supplier in the 
case of limited tendering."  
 
It has also been suggested that the  language of footnote 2 should be aligned 
with that of Article I:4 on threshold values.  
 
2. Valuation shall take into account all forms of remuneration, including any 
premiums, fees, commissions and interest receivable.  
  
3. The selection of the valuatio n method by the entity shall not be used, nor 
shall any procurement requirement be divided, with the intention of avoiding the 
application of this Agreement.  
  
4. If an individual requirement for a procurement results in the award of more 
than one contract, or in contracts being awarded in separate parts, the basis for 
valuation shall be either:  
  
 (a) the actual value of similar recurring contracts concluded over the 
previous fiscal year or 12 months adjusted, where possible, for 
anticipated chang es in quantity and value over the subsequent 
12 months ; or 
 It has been suggested that individual contracts with values below the threshold 
values resulting from the practice of slicing up of contracts should also be 
subject to the provisions of this Agree ment.  
 (b) the estimated value of recurring contracts in the fiscal year or 
12 months subsequent to the initial contract.  
  
 
2 This Agreement shall apply to any procurement contract for which the contract value is estimated to equal or exceed the thres hold at the time of publication of the notice 
in accordance with Arti cle IX.    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 It has been suggested that the following paragraph should be inserted as an 
additional paragraph before the present paragraph 5 in order to take account 
of the valuation of multiple award contracts:  
 
"For contracts of an indefinite value, or for contracts involving the award of a 
contract to multiple suppliers or service providers, the basis for valuation shall 
be either:  
 
a. the maximum total estimated value of the procurement that could be 
awarded under the contract ; or 
the estimated value of the contract shall automatically be considered to be 
above the threshold values provided for in the national annexes to the GP A for 
the purposes of coverage under the Agreement."  
 
5. In cases of contracts for the lease, rental or hire purchase of products or 
services, or in the case of contracts which do not specify a total price, the basis 
for valuation shall be:  
  
 (a) in the case of fixed -term contracts, where their term is 12 months 
or less, the total contract value for their duration, or, where their 
term exceeds 12 months, their total value including the estimated 
residual value;  
  
 (b) in the case of contracts for an indefinite period, the monthly 
instalment multiplied by 48.  
  
If there is any doubt, the second basis for valuation, namely (b), is to be used.  
  
6. In cases where an intended procurement specifies the need for option 
clauses, the basis for valuation shall be the total value of the maximum 
permissible procurement, inclusive of optional purchases.  
    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 
Article III  
 
National Treatment and Non -discrimination  
  
1. With respect to all laws, regulations, procedures and practices regarding 
government procurement covered by this Agreement, each Party shall provide 
immediately and unconditionally to the products, services and suppliers of other 
Parties offering products or services of the Parties, treatment no less favourable 
than:  
  
 (a) that accorded to domestic products, services and suppliers ; and 
  
 (b) that accorded to products, services and suppliers of any other  
 Party.  
  
2. With respect to all laws, regulations, procedures and practices regarding 
government procurement covered by this Agreement, each Party shall ensure:  
  
 (a) that its entities shall not treat a locally -established supplier less 
favourably than another locally -established supplier on the basis of 
degree of foreign affiliation or ownership ; and 
 The point has been made that the term "foreign affiliation or ownership" seemed 
to apply both to Parties and non -Parties to the Agreement . It has been 
suggested that the consistency of the scope of this provision with that of 
paragraph 1 should be reviewed.  
 
 (b) that its entities shall not discriminate against locally -established 
suppliers on the basis of the country of production of the good or 
service being supplied, provided that the country of production is a 
Party to the Agreement in accordance with the provisions of 
Article  IV. 
  
3. 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 and formalities, and 
measures affecting trade in services other than laws, regulations, procedures and 
practices regarding government procurement covered by this Agreement.  
    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 It has been suggested that the following should be inserted as paragraph 4:  
 
"For p rocurements awarded to more than one supplier, Parties shall ensure that 
each awardee is provided a fair opportunity to be considered for each 
transaction under the procurement on a non -discriminatory basis."  
 
 
Article  IV 
 
Rules of Origin  
  
1. A Party shall not apply rules of origin to products or services imported or 
supplied for purposes of government procurement covered by this Agreement 
from other Parties, which are different from the rules of origin applied in the 
normal course of trade and a t the time of the transaction in question to imports 
or supplies of the same products or services from the same Parties.  
 It has been suggested that the issue of rules of origin of services should be 
taken up in the discussion concerning the extension of t he Agreement to 
services.  
 
 
2. Following the conclusion of the work programme for the harmonization of 
rules of origin for goods to be undertaken under the Agreement on Rules of Origin 
in Annex 1A of the Agreement Establishing the World Trade Organization  
(hereinafter referred to as "WTO Agreement") and negotiations regarding trade 
in services, Parties shall take the results of that work programme and those 
negotiations into account in amending paragraph  1 as appropriate.  
  
 
Article  V 
 
Special and Differe ntial Treatment for Developing Countries  
  
Objectives  
  
1. Parties shall, in the implementation and administration of this Agreement, 
through the provisions set out in this Article, duly take into account the 
development, financial and trade needs of developing countries, in particular 
least-developed countries, in their need to:  
  
 (a) safeguard their balance -of-payments position and ensure a level of 
reserves adequate for the implementation of programmes of 
economic development;  
    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 (b) promote the establishment or development of domestic industries 
including the development of small -scale and cottage industries in 
rural or backward areas ; and economic development of other sectors 
of the economy;  
  
 (c) support industrial units so long as they are wholly or substantially 
dependent on government procurement ; and 
  
 (d) encourage their economic development through regional or global 
arrangements among developing countries presented to the 
Ministerial Conference of the World Trade Org anization (hereinafter 
referred to as the "WTO") and not disapproved by it.  
  
2. Consistently with the provisions of this Agreement, each Party shall, in the 
preparation and application of laws, regulations and procedures affecting 
government procurement,  facilitate increased imports from developing countries, 
bearing in mind the special problems of least -developed countries and of those 
countries at low stages of economic development.  
  
Coverage  
  
3. With a view to ensuring that developing countries are able to adhere to this 
Agreement on terms consistent with their development, financial and trade 
needs, the objectives listed in paragraph  1 shall be duly taken into account in the 
course of negotiations with respect to the procurement of dev eloping countries to 
be covered by the provisions of this Agreement . Developed countries, in the 
preparation of their coverage lists under the provisions of this Agreement, shall 
endeavour to include entities procuring products and services of export inter est 
to developing countries.  
 It has been suggested that the issue of granting developing countries 
non-reciprocal access to procurement markets of Parties might be explored.  
 
It has also been suggested that the provisions should be improved to take in to 
account the specific interests of developing countries and to give developing 
countries additional incentives to join the Agreement.    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
Agreed Exclusions   
 
4. A developing country may negotiate with other participants in negotiations 
under this Agreement mutually acceptable exclusions from the rules on national 
treatment with respect to certain entities, products or services that are included 
in its coverage lists, having regard to the particular circumstances of each case . 
In such negotiations, the considerations mentioned in subparagraphs  1(a) 
through 1(c) shall be duly taken into account . A developing country participating 
in regional or global arrangements among developing countries referred to in 
subparagraph  1(d) may also negotiate exclusion s to its lists, having regard to the 
particular circumstances of each case, taking into account, inter alia, the 
provisions on government procurement provided for in the regional or global 
arrangements concerned and, in particular, products or services whi ch may be 
subject to common industrial development programmes.  
 It has been suggested that further flexibility should be provided in the 
evaluation of offers from developing countries with respect to 
non-discriminatory treatment and in the application of t he procedural 
provisions.  
 
5. After entry into force of this Agreement, a developing country Party may 
modify its coverage lists in accordance with the provisions for modification of such 
lists contained in paragraph  6 of Article  XXIV, having regard to it s development, 
financial and trade needs, or may request the Committee on Government 
Procurement (hereinafter referred to as "the Committee") to grant exclusions 
from the rules on national treatment for certain entities, products or services that 
are inclu ded in its coverage lists, having regard to the particular circumstances of 
each case and taking duly into account the provisions of subparagraphs  1(a) 
through 1(c) . After entry into force of this Agreement, a developing country Party 
may also request the Committee to grant exclusions for certain entities, products 
or services that are included in its coverage lists in the light of its participation in 
regional or global arrangements among developing countries, having regard to 
the particular circumstances of each case and taking duly into account the 
provisions of subparagraph  1(d). Each request to the Committee by a developing 
country Party relating to modification of a list shall be accompanied by 
documentation relevant to the request or by such informati on as may be 
necessary for consideration of the matter.  
  
6. Paragraphs 4 and 5 shall apply mutatis mutandis  to developing countries 
acceding to this Agreement after its entry into force.  
  
7. Such agreed exclusions as mentioned in paragraphs 4, 5 and 6 shall be 
subject to review in accordance with the provisions of paragraph  14 below.  
    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
Technical Assistance for Developing Country Parties  
  
8. Each developed country Party shall, upon request, provide all technical 
assistance which it may deem appropriate to developing country Parties in 
resolving their problems in the field of government procurement.  
  
9. This assistance, which shall be provided on the basis of non -discrimination 
among developing country Parties, shall relate, inter alia, to: 
 It has been suggested that the provisions on technical cooperation should be 
extended to take account of the needs of developing countries to adjust to new 
developments in the application of information technology to government 
procurement.  
 
 - the solution of particular technical problems relating to the award of 
a specific contract ; and 
  
 - any other problem which the Party making the request and another 
Party agree to deal with in the context of this assistance.  
  
10. Technical assistance refer red to in paragraphs  8 and 9 would include 
translation of qualification documentation and tenders made by suppliers of 
developing country Parties into an official language of the WTO designated by the 
entity, unless developed country Parties deem translati on to be burdensome, and 
in that case explanation shall be given to developing country Parties upon their 
request addressed either to the developed country Parties or to their entities.  
  
Information Centres  
  
11. Developed country Parties shall establish, individually or jointly, 
information centres to respond to reasonable requests from developing country 
Parties for information relating to, inter alia, laws, regulations, procedures and 
practices regarding governm ent procurement, notices about intended 
procurements which have been published, addresses of the entities covered by 
this Agreement, and the nature and volume of products or services procured or 
to be procured, including available information about future tenders . The 
Committee may also set up an information centre.  
    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
Special Treatment for Least -Developed Countries  
  
12. Having regard to paragraph  6 of the Decision of the CONTRACTING 
PARTIES to GATT  1947 of 28  November  1979 on Differential and More Favour able 
Treatment, Reciprocity and Fuller Participation of Developing Countries 
(BISD 26S/203 -205), special treatment shall be granted to least -developed 
country Parties and to the suppliers in those Parties with respect to products or 
services originating in  those Parties, in the context of any general or specific 
measures in favour of developing country Parties . A Party may also grant the 
benefits of this Agreement to suppliers in least -developed countries which are not 
Parties, with respect to products or s ervices originating in those countries.  
  
13. Each developed country Party shall, upon request, provide assistance which 
it may deem appropriate to potential tenderers in least -developed countries in 
submitting their tenders and selecting the products or services which are likely to 
be of interest to its entities as well as to suppliers in least -developed countries, 
and likewise assist them to comply with technical regulations and standards 
relating to products or services which are the subject  of the intended 
procurement.  
  
Review  
  
14. The Committee shall review annually the operation and effectiveness of 
this Article and, after each three years of its operation on the basis of reports to 
be submitted by Parties, shall carry out a major revi ew in order to evaluate its 
effects . As part of the three -yearly reviews and with a view to achieving the 
maximum implementation of the provisions of this Agreement, including in 
particular Article  III, and having regard to the development, financial and t rade 
situation of the developing countries concerned, the Committee shall examine 
whether exclusions provided for in accordance with the provisions of paragraphs  4 
through 6 of this Article shall be modified or extended.  
  
15. In the course of further rou nds of negotiations in accordance with the 
provisions of paragraph  7 of Article  XXIV, each developing country Party shall 
give consideration to the possibility of enlarging its coverage lists, having regard 
to its economic, financial and trade situation.  
    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 
Article  VI 
 
Technical Specifications  
  
1. Technical specifications laying down the characteristics of the products or 
services to be procured, such as quality, performance, safety and dimensions, 
symbols, terminology, packaging, marking and labelling, or the processes and 
methods for their production and requirements relating to conformity assessment 
procedures prescribed by procuring entities, shall not be prepared, adopted or 
applied with a view to, or with the effect of, creating unnecessa ry obstacles to 
international trade.  It has been suggested that the location of Article VI should be changed in order 
to reflect the close association of the provisions on technical specifications with 
those on tender documentation.  
It has been said that t he inclusion of basic principles of non -discrimination or 
promotion of competition in the main provisions of the Agreement would make 
this Article more clear.  
It has been said that the meaning of the term "unnecessary obstacles to 
international trade" shou ld be clarified.  
 
2. Technical specifications prescribed by procuring entities shall, where 
appropriate:  
 It has been suggested that there should be a hierarchy between paragraphs  (a) 
and (b) since the provisions of subparagraph  (a) should be the rule and  those 
of subparagraph  (b) the exception.  
 
 (a) be in terms of performance rather than design or descriptive 
characteristics ; and 
  
 (b) be based on international standards, where such exist ; otherwise, 
on national technical regulations3, recognized national standards4, or 
building codes.  
  
3. There shall be no requirement or reference to a particular trademark or 
trade name, patent, design or type, specific origin, producer or supplier, unless 
there is no sufficiently precise or intellig ible way of describing the procurement 
requirements and provided that words such as "or equivalent" are included in the 
tender documentation.  
  
 
3 For the purpose of this Agreement, a technical regulation is a document which lays down characteristics of a product or a ser vice or their related processes and production 
methods, including the applicable administrative provisions, with which co mpliance is mandatory. It may also include or deal exclusively with terminology, symbols, packaging, 
marking or labeling requirements as they apply to a product, service, process or production method.  
4 For the purpose of this Agreement, a standard is a do cument 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 labeling requirements as they apply to a product, service, process or production method.    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
4. Entities shall not seek or accept, in a manner which would have the effect 
of precluding competition, advice which may be used in the preparation of 
specifications for a specific procurement from a firm that may have a commercial 
interest in the procurement.  
  
 
Article  VII 
 
Tendering Procedures  
  
1. Each Party shall ensure that the tendering  procedures of its entities are 
applied in a non -discriminatory manner and are consistent with the provisions 
contained in Articles  VII through XVI.  
 It has been suggested that paragraphs  1 and  2 should be separated from 
paragraph  3 describing the types of  procurement procedures and be placed in 
an article addressing the general principles of procurement.  
 
2. Entities shall not provide to any supplier information with regard to a 
specific procurement in a manner which would have the effect of precluding 
competition.  
 It has been suggested that the term "precluding competition" should read 
"negatively affecting competition".  
3. For the purposes of this Agreement:  
 It has been suggested that the Agreement needs to be clearer about which of 
its procedural provisions apply to which tendering method as defined in 
Article  VII:3.  
It has also been suggested that the provisions on tendering procedures should 
be reviewed to accommodate the use of two -stage tendering and electronic 
catalogues.  
 
 (a) Open tendering procedures are those procedures under which all 
interested suppliers may submit a tender.  
  
 (b) Selective tendering procedures are those procedures under which, 
consistent with paragraph 3 of Article  X and other relevant provisions 
of this Agreement, those suppliers invited to do so by the entity may 
submit a tender.  
  
 (c) Limited tendering procedures are those procedures where the entity 
contacts suppliers individually, only under the conditions specified in 
Article  XV. 
    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 
Article VIII  
 
Qualification of Suppliers  
  
 In the process of qualifying suppliers, entities shall not discriminate among 
suppliers of other Parties or between domestic suppliers and suppliers of other 
Parties . Qualification procedures shall be consistent with the following:  
 It has been said that the rules on qualification of suppliers were either of general 
application (for instance, paragraph (b)) or related to the establishment of 
permanent lists of qualified suppliers . The text should be rev ised in order to 
separate these two types of rules.  
 (a) any conditions for participation in tendering procedures shall be 
published in adequate time to enable interested suppliers to initiate 
and, to the extent that it is compatible with efficient operat ion of the 
procurement process, complete the qualification procedures;  
  
 (b) any conditions for participation in tendering procedures shall be 
limited to those which are essential to ensure the firm's capability to 
fulfil the contract in question . Any conditions for participation 
required from suppliers, including financial guarantees, technical 
qualifications and information necessary for establishing the 
financial, commercial and technical capacity of suppliers, as well as 
the verification of qualific ations, shall be no less favourable to 
suppliers of other Parties than to domestic suppliers and shall not 
discriminate among suppliers of other Parties . The financial, 
commercial and technical capacity of a supplier shall be judged on 
the basis both of th at supplier's global business activity as well as of 
its activity in the territory of the procuring entity, taking due account 
of the legal relationship between the supply organizations;  
 It has been said that ways should be found to reduce administrative burdens 
on suppliers, particularly SMEs, regarding the procedures for the proof of their 
technical, financial and commercial capacity.  
 
 (c) the process of, and the time required for, qualifying suppliers shall 
not be used in order to keep suppliers of other Parties off a suppliers' 
list or from being considered for a particular intended procurement . 
Entities shall recognize as qualified suppliers such domestic suppliers 
or suppliers of other Parties who meet the conditions for participation  
in a particular intended procurement . Suppliers requesting to 
participate in a particular intended procurement who may not yet be 
qualified shall also be considered, provided there is sufficient time to 
complete the qualification procedure;  
    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 (d) entities maintaining permanent lists of qualified suppliers shall 
ensure that suppliers may apply for qualification at any time ; and 
that all qualified suppliers so requesting are included in the lists 
within a reasonably short time;  
  
 (e) if, after publicatio n of the notice under paragraph 1 of Article  IX, a 
supplier not yet qualified requests to participate in an intended 
procurement, the entity shall promptly start procedures for 
qualification;  
  
 (f) any supplier having requested to become a qualified supplier shall 
be advised by the entities concerned of the decision in this regard . 
Qualified suppliers included on permanent lists by entities shall also 
be notified of the termination of any such lists or of their removal 
from them;  
  
 (g) each Party shall ensure that:  
  
(i) each entity and its constituent parts follow a single 
qualification procedure, except in cases of duly substantiated 
need for a different procedure ; and 
  
(ii) efforts be made to minimize differences in qualification 
procedures between entities.  
  
 (h) nothing in subparagraphs (a) through (g) shall preclude the 
exclusion of any supplier on grounds such as bankruptcy or false 
declarations, provided that such an action is consistent with the 
national treatment and non -discrimination provisions of this 
Agreement.  
    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 
Article IX  
 
Invitation to Participate Regarding Intended Procurement  
  
1. In accordance with paragraphs  2 and 3, entities shall publish an invitation 
to participate for all cases of intended procurement, except as otherwise provided 
for in Article  XV (limited tendering) . The notice shall be published in the 
appropriate publication listed in Appendix  II. 
 It has been suggested that the terms "invitation to participate for all cases of 
intended procurement", "notice of proposed procurement", "notice of planned 
procurement" and "notice regarding a qualification system" should be clarified.  
 
It has been suggested that a footnote should be added defining "publication" to 
include either electronic or paper publication of notices and to indicate that 
electronic publication is on the Internet or in one location and is accessible 
worldwide by telephone.  
 
2. The invitation to participate may take the form of a notice of proposed 
procu rement, as provided for in paragraph  6. 
 It has been said that this paragraph should specify clearly that Annex  1 entities 
had an obligation to publish a notice containing the types of information as 
provided for in paragraph  6. The present use of the word  "may" might be 
interpreted to suggest otherwise.  
 
3. Entities in Annexes  2 and 3 may use a notice of planned procurement, as 
provided for in paragraph  7, or a notice regarding a qualification system, as 
provided for in paragraph  9, as an invitation to pa rticipate.  
 It has been suggested that entities at all levels of government should be able 
to use all methods of invitation to tender  
 
It has been suggested that the use of notices regarding qualification systems 
as invitations to participate should be cla rified.  
 
4. Entities which use a notice of planned procurement as an invitation to 
participate shall subsequently invite all suppliers who have expressed an interest 
to confirm their interest on the basis of information which shall include at least 
the in formation referred to in paragraph  6. 
 It has been suggested that further flexibility should be provided in the 
procedures on the use of a notice of planned procurement.  
5. Entities which use a notice regarding a qualification system as an invitation 
to participate shall provide, subject to the considerations referred to in paragraph 
4 of Article  XVIII and in a timely manner, information which allows all those who 
have expressed an interest to have a meaningful opportunity to assess their 
interest in participating in the procurement . This information shall include the 
information contained in the notices referred to in paragraphs 6 and 8, to the 
extent such information is available . Information provided to one interested 
supplier shall be pro vided in a non -discriminatory manner to the other interested 
suppliers.  
    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
6. Each notice of proposed procurement, referred to in paragraph  2, shall 
contain the following information:  
 It has been suggested that the provision should be modified to obligate  
procuring entities to include the means by which bids may be submitted in 
addition to paper -based tenders.  
 
 (a) the nature and quantity, including any options for further 
procurement and, if possible, an estimate of the timing when such 
options may be exercised ; in the case of recurring contracts the 
nature and quantity and, if possible, an estimate of the timing of the 
subsequent tender notices for the products or services to be 
procured;  
  
 (b) whether the procedure is open or selective or will involve 
negotiation;  
  
 (c) any date for starting delivery or completion of delivery of goods or 
services;  
  
 (d) the address and final date for submitting an application to be invited 
to tender or for qualifying for the suppliers' lists, or for receiving 
tenders, as well as the language or languages in which they must be 
submitted;  
  
 (e) the address of the entity awarding the contract and providing any 
information necessary for obtaining specifications and other 
documents;  
  
 (f) any economic and technical requirements, financial guarantees and 
information required from suppliers;  
  
 (g) the amount and terms of payment of any sum payable for the tender 
documentation ; and 
  
 (h) whether the entity is inviting offers for purchase, lease, rental or hire 
purchase, or more than one of these methods.  
  
7. Each notice of planned procurement referred to in paragraph 3 shall contain 
as much of the information referred to in paragraph  6 as is available . It shall in 
any case include the informatio n referred to in paragraph 8 and:  
    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 (a) a statement that interested suppliers should express their interest in 
the procurement to the entity;  
  
 (b) a contact point with the entity from which further information may 
be obtained.  
  
8. For each case of intended procurement, the entity shall publish a summary 
notice in one of the official languages of the WTO . The notice shall contain at least 
the following information:  
 It has been suggested that the provisions of Article IX:8 should follow the 
provision s of Article XI:1 on publication of an invitation to participate  
 (a) the subject matter of the contract;  
  
 (b) the time -limits set for the submission of tenders or an application to 
be invited to tender ; and 
  
 (c) the addresses from which documents relating to the contracts may 
be requested.  
  
9. In the case of selective tendering procedures, entities maintaining 
permanent lists of qualified suppliers shall publish annually in one of the 
publications listed in Appendix  III a notice of the following:  
  
 (a) the enumeration of the lists maintained, including their headings, in 
relation to the products or services or categories of products or 
services to be procured through the lists;  
  
 (b) the conditions to be fulfilled by suppliers with a view to their 
inscription on those lists and the methods according to which each 
of those conditions will be verified by the entity concerned ; and 
  
 (c) the period of validity of the lists, and the formalities for their renewal.  
  
When such a notice is used as an invitation to participate in accordance with 
paragraph 3, the notice shall, in addition, include the following information:  
  
 (d) the nature of the products or services concerned;  
  
 (e) a statement that the notice const itutes an invitation to participate.  
    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
However, when the duration of the qualification system is three years or less, and 
if the duration of the system is made clear in the notice and it is also made clear 
that further notices will not be published, it shall be sufficient to publish the notice 
once only, at the beginning of the system . Such a system shall not be used in a 
manner which circumvents the provisions of this Agreement.  
  
10. If, after publication of an invitation to participate in any case of intended 
procurement, but before the time set for opening or receipt of tenders as specified 
in the notices or the tender documentation, it becomes necessary to amend or 
re-issue the notice, the amendment or the re -issued notice shall be giv en the 
same circulation as the original documents upon which the amendment is based . 
Any significant information given to one supplier with respect to a particular 
intended procurement shall be given simultaneously to all other suppliers 
concerned in adequ ate time to permit the suppliers to consider such information 
and to respond to it.  
  
11. Entities shall make clear, in the notices referred to in this Article or in the 
publication in which the notices appear, that the procurement is covered by the 
Agree ment.  
  
 
Article  X 
 
Selection Procedures  
  
1. To ensure optimum effective international competition under selective 
tendering procedures, entities shall, for each intended procurement, invite 
tenders from the maximum number of domestic suppliers and suppliers of other 
Parties, consistent with the efficient operation of the procurement system . They 
shall select the suppliers to participate in the procedure in a fair and 
non-discriminatory manner.  
  
2. Entities maintaining permanent lists of qualified suppliers may select 
suppliers to be invited to tender from among those listed . Any selection shall allow 
for equitable opportunities for suppliers on the lists.  
    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
3. Suppliers requesting to participate in a particular intended procurement 
shall be permitted to submit a tender and be considered, provided, in the case of 
those not yet qualified, there is sufficient time to complete the qualification 
procedure under Articles  VIII and IX . The number of additional suppliers 
permitted to participate shall  be limited only by the efficient operation of the 
procurement system.  
  
4. Requests to participate in selective tendering procedures may be submitted 
by telex, telegram or facsimile.  
 It has been suggested to add the words "electronic means, including em ail" and 
to add a provision stating that the means of communication can be specified by 
the procuring entity.  
 
Article  XI 
 
Time-limits for Tendering and Delivery  
  
General  
  
1. (a) Any prescribed time -limit shall be adequate to allow suppliers of 
other Parties as well as domestic suppliers to prepare and submit 
tenders before the closing of the tendering procedures . In 
determining any such time -limit, entities shall, consistent with their 
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 by mail from foreign as well as domestic points.  
 It has been suggested to remove all of the deadlines identified in this Article.  
 
It has been further been suggested to modify Article XI:1(a) to delete the words 
by mail" in the last sentence.  
 
 (b) Each Party shall ensure that its entities shall take due account of 
publication delays when setting the final date for receipt of tenders 
or of applications to be invited to tender.  
  
Deadlines  
  
2. Except in so far as provided in paragraph 3:  
  
 (a) in open procedures, the period for the receipt of tenders shall not be 
less than 40 days from the date of publication referred to in 
paragraph 1 of Article  IX; 
    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 (b) in selective procedures not involving the use of a permanent list of 
qualified suppliers, the period for submitting an application to be 
invited to tender shall not be less than 25 days from the date of 
publication referred to in paragraph  1 of Article  IX; the period for 
receipt of tenders shall in no case be less than 40  days from the date 
of issuance of the invitation to tender;  
  
 (c) in selective procedures involving the use of a permanent list of 
qualified suppliers, the period for receipt of tenders shall not be less 
than 40 days from the date of the initial issuance of invitations to 
tender, whether or not the date of initial issuance of invitations to 
tender coincides with the date of the publication  referred to in 
paragraph  1 of Article  IX. 
  
3. The periods referred to in paragraph 2 may be reduced in the 
circumstances set out below:  
 It has been suggested to modify Article XI:3 so that when electronic tendering 
is used, all periods referred to in Article XI:2 may be reduced to a minimum of 
15 days  
 
It has also been suggested to modify Article XI:3 so that when electronic 
tendering and electronic bid receipt are used, second -stage periods referred to 
in Article XI:2(b) and (c) may be reduced to a mi nimum of one day.  
 
 (a) if a separate notice has been published 40 days and not more than 
12 months in advance and the notice contains at least:  
  
(i) as much of the information referred to in paragraph 6 of 
Article  IX as is available;  
  
(ii) the information referred to in paragraph 8 of Article  IX; 
  
(iii) a statement that interested suppliers should express their 
interest in the procurement to the entity ; and 
  
(iv) a contact point with the entity from which further information 
may be obtained,  
    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 the 40 -day limit for receipt of tenders may be replaced by a 
period sufficiently long to enable responsive tendering, which, as 
a general rule, shall not be less than 24 days, but in any case not 
less than 10 days;  
  
 (b) in the case of the second or subsequent publications dealing with 
contracts of a recurring nature within the meaning of paragraph 6 of 
Article  IX, the 40 -day limit for receipt of tenders may be reduced to 
not less than 24 days;  
  
 (c) where a state of urgency duly substantiated by the entity renders 
impracticable the periods in question, the periods specified in 
paragraph  2 may be reduced but shall in no case be less than 
10 days from the date of the publication referred to in paragraph  1 
of Article  IX; or 
  
 (d) the period referred to in paragraph  2(c) may, for procurements by 
entities listed in Annexes  2 and 3, be fixed by mutual agreement 
between the entity and the selected suppliers . In the absence of 
agreement, the entity may fix periods which shall be sufficie ntly long 
to enable responsive tendering and shall in any case not be less than 
10 days.  
  
4. Consistent with the entity's own reasonable needs, any delivery date shall 
take into account such factors as the complexity of the intended 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.  
  
 
Article  XII 
 
Tender Documentation  
  
1. If, in tendering proce dures, an entity allows tenders to be submitted in 
several languages, one of those languages shall be one of the official languages 
of the WTO.  
 It has been suggested that this Article should contain references to the use of 
information technology in commu nication between the purchasing authority and 
tenderers.    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
2. Tender documentation provided to suppliers shall contain all information 
necessary to permit them to submit responsive tenders, including information 
required to be published in the notice of intended procurement, except for 
paragraph 6(g) of Article  IX, and the following:  
  
 (a) the address of the entity to which tenders should be sent;  
  
 (b) the address where requests for supplementary information should 
be sent;  
  
 (c) the language or languages in which tenders and tendering 
documents must be submitted;  
  
 (d) the closing date and time for receipt of tenders and the length of 
time during which any tender should be open for acceptance;  
  
 (e) the persons authorized to be present at the opening of tenders and 
the date, time and place of this opening;  
  
 (f) any economic and technical requirement, financial guarantees and 
information or documents required from suppliers;  
  
 (g) a complete description of the products or services required or of any 
requirements including technical specifications, conformity 
certification to be fulfilled, necessary plans, drawings and 
instructional materials;  
  
 (h) the criteria for awarding the contract, including any factors other 
than price that are to be considered in the evaluation of tenders and 
the cost elements to be included in evaluating tender prices, such as 
transport, insurance and inspection costs, and in the case of products 
or serv ices of other Parties, customs duties and other import 
charges, taxes and currency of payment;  
  
 (i) the terms of payment;  
  
 (j) any other terms or conditions;  
    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 (k) in accordance with Article XVII the terms and conditions, if any, 
under which tenders from countries not Parties to this Agreement, 
but which apply the procedures of that Article, will be entertained.  
  
Forwarding of Tender Documentation by the Entities  
  
3. (a) In open procedures, entities shall forward the tender documentation 
at the request of any supplier participating in the procedure, and 
shall reply promptly to any reasonable request for explanations 
relating thereto.  
  
 (b) In selective procedures, entities shall forward the tender 
documentation at the request of any supplier requesting to 
participate, and shall reply promptly to any reasonable request for 
explanations relating thereto.  
  
 (c) Entities shall reply promptly to any reasonable request for relevant 
information submitted by a supplier participating in the tendering 
procedure, on condition that such information does not give that 
supplier an advantage over its competitors in the procedure for the 
award of the contract.  
  
 
Article  XIII 
 
Submission,  Receipt  and Opening  of Tenders  and Awarding  of Contracts  
  
1. The submission, receipt and opening of tenders and awarding of contracts 
shall be consistent with the following:  
    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 (a) tenders shall normally be submitted in writing directly or b y mail . If 
tenders by telex, telegram or facsimile are permitted, the tender 
made thereby must include all the information necessary for the 
evaluation of the tender, in particular the definitive price proposed 
by the tenderer and a statement that the tend erer agrees to all the 
terms, conditions and provisions of the invitation to tender . The 
tender must be confirmed promptly by letter or by the despatch of a 
signed copy of the telex, telegram or facsimile . Tenders presented 
by telephone shall not be permit ted. The content of the telex, 
telegram or facsimile shall prevail where there is a difference or 
conflict between that content and any documentation received after 
the time -limit; and 
 It has been suggested to add "electronic means" to the list of possible methods 
for receiving bids (i.e. telex, telegram and facsimile).  
 
It has been suggested to delete:  
 - the phrase "by mail" in the first sentence  
 - the second sentence which reads : "The tender must be  
  confirmed promptly by letter or by the dispatch of a signed copy  
  of the telex, telegram or facsimile."  
 
It has been suggested that a definition of the term "writing" should be 
incorporated which would read : "The term 'writing' as used in this Agreement 
is to be understood to include any worde d or numbered expression which can 
be read, reproduced, and later communicated, and includes electronically 
transmitted and stored information".  
 
 (b) the opportunities that may be given to tenderers to correct 
unintentional errors of form between the ope ning of tenders and the 
awarding of the contract shall not be permitted to give rise to any 
discriminatory practice.  
  
Receipt of Tenders  
  
2. A supplier shall not be penalized if a tender is received in the office 
designated in the tender documentation after the time specified because of delay 
due solely to mishandling on the part of the entity . Tenders may also be 
considered in other exceptional circumstances if the procedures of the entity 
concerned so provide.  
 It has been suggested to a dd a provision to indicate that the means for 
submitting tenders may be specified by the procuring entity, provided that such 
means shall not reduce access by foreign and domestic suppliers.   
Opening of Tenders  
  
3. All tenders solicited under open or se lective procedures by entities shall be 
received and opened under procedures and conditions guaranteeing the regularity 
of the openings . The receipt and opening of tenders shall also be consistent with 
the national treatment and non -discrimination provisio ns of this Agreement . 
Information on the opening of tenders shall remain with the entity concerned at 
the disposal of the government authorities responsible for the entity in order that 
it may be used if required under the procedures of Articles  XVIII, XIX , XX and 
XXII. 
    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
Award of Contracts  
  
4. (a) To be considered for award, a tender must, at the time of opening, 
conform to the essential requirements of the notices or tender 
documentation and be from a supplier which complies with the 
conditions for participation . If an entity has received a tender 
abnormally lower than other tenders submitted, it may enquire with 
the tenderer to ensure that it can comply with the conditions of 
participation and be capable of fulfilling the terms of the  contract.  
  
 (b) Unless in the public interest an entity decides not to issue the 
contract, the entity shall make the award to the tenderer who has 
been determined to be fully capable of undertaking the contract and 
whose tender, whether for domestic pro ducts or services, or 
products or services of other Parties, is either the lowest tender or 
the tender which in terms of the specific evaluation criteria set forth 
in the notices or tender documentation is determined to be the most 
advantageous.  
 It has be en said that the reference to "specific evaluation criteria" in this 
subparagraph should be clarified in the light of the relevant terms in 
Article  VIII(b).  
 (c) Awards shall be made in accordance with the criteria and essential 
requirements specified in the tender documentation.  
  
Option Clauses  
  
5. Option clauses shall not be used in a manner which circumvents the 
provisions of the Agreement.  
    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 
Article  XIV 
 
Negotiation  
  
It has been said Article XIV should be modified in the light of the practice of 
post-tender or even post -contract award negotiations between the procuring 
entities and tenderers.  
 
It has been suggested that this article could be combined with Articles  VII and  X 
on tendering procedures.  
 
1. A Party may provide for enti ties to conduct negotiations:  
  
 (a) in the context of procurements in which they have indicated such 
intent, namely in the notice referred to in paragraph 2 of Article IX 
(the invitation to suppliers to participate in the procedure for the 
proposed procurement) ; or 
  
 (b) when it appears from 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. Negotiations shall primarily be used to identify the strengths and 
weaknesses in tenders.  
  
3. Entities shall treat tenders in confidence . In particular, they shall not 
provide information intended to assist particular participants to bring their tenders 
up to the level of other participants.  
  
4. Entities shall not, in the course of negotiations, discriminate between 
different suppliers . In particular, they shall ensure that:  
  
 (a) any elimination of participants is carried out in accordance with the 
criteria set forth i n the notices and tender documentation;  
  
 (b) all modifications to the criteria and to the technical requirements are 
transmitted in writing to all remaining participants in the 
negotiations;  
  
 (c) all remaining participants are afforded an opportunity to submit new 
or amended submissions on the basis of the revised requirements ; 
and 
    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 (d) when negotiations are concluded, all participants remaining in the 
negotiations shall be permitted to submit final tenders in accordance 
with a common de adline.  
 It has been said that this provision which seemed to imply that procuring 
entities could initiate new negotiations with the remaining participants would 
need to be clarified.  
 
 
 
 
Article  XV 
 
Limited Tendering  
  
1. The provisions of Articles  VII through XIV governing open and selective 
tendering procedures need not apply in the following conditions, provided that 
limited tendering is not used with a view to avoiding maximum possible 
competition or in a manner which would constitute a means of discrimination 
among suppliers of other Parties or protection to domestic producers or suppliers:  
  
 (a) in the absence of tenders in response to an open or selective tender, 
or when the tenders submitted have been collusive, or not in 
conformity  with the essential requirements in the tender, or from 
suppliers who do not comply with the conditions for participation 
provided for in accordance with this Agreement, on condition, 
however, that the requirements of the initial tender are not 
substantial ly modified in the contract as awarded;  
  
 (b) when, for works of art or for reasons connected with protection of 
exclusive rights, such as patents or copyrights, or in the absence of 
competition for technical reasons, the products or services can be 
supplied only by a particular supplier and no reasonable alternative 
or substitute exists;  
 It has been suggested to add the phrase "or group of suppliers" after "a 
particular supplier" in order to address the circumstances where the products 
or services c an be supplied by a limited number of suppliers.  
 (c) in so far as is strictly necessary when, for reasons of extreme 
urgency brought about by events unforeseeable by the entity, the 
products or services could not be obtained in time by means of open 
or selective tendering procedures;  
    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 (d) for additional deliveries by the original supplier which are intended 
either as parts replacement for existing supplies, or installations, or 
as the extension of existing supplies, services, or installations where 
a change of supplier would compel the entity to procure equipment 
or services not meeting requirements of interchangeability with 
already existing equipment or services5; 
  
 (e) when an entity procures prototypes or a first product or  service 
which are developed at its request in the course of, and for, a 
particular contract for research, experiment, study or original 
development . When such contracts have been fulfilled, subsequent 
procurements of products or services shall be subject to Articles  VII 
through XIV6; 
  
 (f) when additional construction services which were not included in the 
initial contract but which were within the objectives of the original 
tender documentation have, through unforeseeable circumstances, 
become necessa ry to complete the construction services described 
therein, and the entity needs to award contracts for the additional 
construction services to the contractor carrying out the construction 
services concerned since the separation of the additional 
construct ion services from the initial contract would be difficult for 
technical or economic reasons and cause significant inconvenience 
to the entity . However, the total value of contracts awarded for the 
additional construction services may not exceed 50 % of the amount 
of the main contract;  
  
 (g) for new construction services consisting of the repetition of similar 
construction services which conform to a basic project for which an 
initial contract was awarded in accordance with Articles  VII through 
XIV and for which the entity has indicated in the notice of intended 
procurement concerning the initial construction service, that limited 
tendering procedures might be used in awarding contracts for such 
new construction services;  
  
 
5 It is the understanding that "existing equipment" includes software to the extent that the initial proc urement of the software was covered by the Agreement.  
6 Original development of a first product or service may include limited production or supply in order to incorporate the resul ts of field testing and to demonstrate that the 
product or service is suita ble for production or supply in quantity to acceptable quality standards. It does not extend to quantity production or supply  to establish commercial 
viability or to recover research and development costs.    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 (h) for products purchased on a commodity market;  
 It has been said that the Agreement's coverage of procurements through 
commercially -run websites should be examined in the light of the provisions of 
paragraphs (h) and (i)  
 
 (i) for purchases made under exceptionally adv antageous conditions 
which only arise in the very short term . This provision is intended to 
cover unusual disposals by firms which are not normally suppliers, 
or disposal of assets of businesses in liquidation or receivership . It is 
not intended to cover r outine purchases from regular suppliers;  
  
 (j) in the case of contracts awarded to the winner of a design contest 
provided that the contest has been organized in a manner which is 
consistent with the principles of this Agreement, notably as regards 
the publication, in the sense of Article  IX, of an invitation to suitably 
qualified suppliers, to participate in such a contest which shall be 
judged by an independent jury with a view to design contracts being 
awarded to the winners.  
  
 It has been suggested that the following paragraph should be added to 
Article  XV:1 
 
"(k) where end -users have specified strong technical or professional 
preferences for using particular suppliers, and are able to support their 
preferences on sound technical or professional reasons . These suppliers should 
demonstrate that they are able to meet the requisite quality standards and 
delivery schedule over the terms of the contract."  
 
2. Entities shall prepare a report in writing on each contract awarded under 
the pr ovisions of paragraph  1. Each report shall contain the name of the procuring 
entity, value and kind of goods or services procured, country of origin, and a 
statement of the conditions in this Article which prevailed . This report shall remain 
with the entit ies concerned at the disposal of the government authorities 
responsible for the entity in order that it may be used if required under the 
procedures of Articles  XVIII, XIX, XX and XXII.  
    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 
Article  XVI 
 
Offsets  
  
1. Entities shall not, in the qualification and selection of suppliers, products or 
services, or in the evaluation of tenders and award of contracts, impose, seek or 
consider offsets.7 
  
2. Nevertheless, having regard to general policy considerations, including 
those relating to deve lopment, a developing country may at the time of accession 
negotiate conditions for the use of offsets, such as requirements for the 
incorporation of domestic content . Such requirements shall be used only for 
qualification to participate in the procurement  process and not as criteria for 
awarding contracts . Conditions shall be objective, clearly defined and 
non-discriminatory . They shall be set forth in the country's Appendix I and may 
include precise limitations on the imposition of offsets in any contract  subject to 
this Agreement . The existence of such conditions shall be notified to the 
Committee and included in the notice of intended procurement and other 
documentation.  
  
 
Article  XVII 
 
Transparency  
  
1. Each Party shall encourage entities to indicate the terms and conditions, 
including any deviations from competitive tendering procedures or access to 
challenge procedures, under which tenders will be entertained from suppliers 
situated in countries not Parties to this Agreement but which, with a view to 
creating transparency in their own contract awards, nevertheless:  
  
 (a) specify their contracts in accordance with Article  VI (technical 
specifications);  
  
 
7 Offsets in government procurement are measures u sed to encourage local development or improve the balance -of-payments accounts by means of domestic content, 
licensing of technology, investment requirements, counter -trade or similar requirements.    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 (b) publish the procurement notices referred to in Article  IX, including, 
in the version of the notice referred to in paragraph  8 of Article  IX 
(summary of the notice of intended procurement) which is published 
in an official language of the WTO, an indication of the terms and 
conditions under which tenders shall be entertained from su ppliers 
situated in countries Parties to this Agreement;  
  
 (c) are willing to ensure that their procurement regulations shall not 
normally change during a procurement and, in the event that such 
change proves unavoidable, to ensure the availability of a 
satisfactory means of redress.  
  
2. Governments not Parties to the Agreement which comply with the 
conditions specified in paragraphs 1(a) through 1(c), shall be entitled if they so 
inform the Parties to participate in the Committee as observers.  
  
 
Article  XVIII 
 
Information and Review as Regards Obligations of Entities  
  
1. Entities shall publish a notice in the appropriate publication listed in 
Appendix II not later than 72 days after the award of each contract under 
Articles  XIII through XV . These notices shall contain:  
  
 (a) the nature and quantity of products or services in the contract 
award;  
  
 (b) the name and address of the entity awarding the contract;  
  
 (c) the date of award;  
  
 (d) the name and address of winning tenderer;  
  
 (e) the value of the winning award or the highest and lowest offer taken 
into account in the award of the contract;  
    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 (f) where appropriate, means of identifying the notice issued under 
paragraph 1 of Article  IX or justification according to Article  XV for 
the use of such procedure ; and 
  
 (g) the type of procedure used.  
  
2. Each entity shall, on request from a supplier of a Party, promptly provide:  
  
 (a) an explanation of its procurement practices and procedures;  
  
 (b) pertinent information concerning the reasons why the supplier's 
application to qualify was rejected, why its existing qualification was 
brought to an end and why it was not selected ; and 
  
 (c) to an unsuccessful tenderer, pertinent in formation concerning the 
reasons why its tender was not selected and on the characteristics 
and relative advantages of the tender selected as well as the name 
of the winning tenderer.  
  
3. Entities shall promptly inform participating suppliers of decisions on 
contract awards and, upon request, in writing.  
  
4. However, entities may decide that certain information on the contract 
award, contained in paragraphs  1 and 2(c), be withheld where release of such 
information would impede law enforcement or  otherwise be contrary to the public 
interest or would prejudice the legitimate commercial interest of particular 
enterprises, public or private, or might prejudice fair competition between 
suppliers.  
    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 
Article XIX  
 
Information and Review as Regards Obligations of Parties  
  
1. Each Party shall promptly publish any law, regulation, judicial decision, 
administrative ruling of general application, and any procedure (including 
standard contract clauses) regarding government procurement covered by  this 
Agreement, in the appropriate publications listed in Appendix IV and in such a 
manner as to enable other Parties and suppliers to become acquainted with them . 
Each Party shall be prepared, upon request, to explain to any other Party its 
government pr ocurement procedures.  
  
2. The government of an unsuccessful tenderer which is a Party to this 
Agreement may seek, without prejudice to the provisions under Article  XXII, such 
additional information on the contract award as may be necessary to ensure that  
the procurement was made fairly and impartially . To this end, the procuring 
government shall provide information on both the characteristics and relative 
advantages of the winning tender and the contract price . Normally this latter 
information may be disclosed by the government of the unsuccessful tenderer 
provided it exercises this right with discretion . In cases where release of this 
information would prejudice competition in future tenders, this information shall 
not be disclosed except after consul tation with and agreement of the Party which 
gave the information to the government of the unsuccessful tenderer.  
  
3. Available information concerning procurement by covered entities and their 
individual contract awards shall be provided, upon request, t o any other Party.  
  
4. Confidential information provided to any Party which would impede law 
enforcement or otherwise be contrary to the public interest or would prejudice 
the legitimate commercial interest of particular enterprises, public or private, or 
might prejudice fair competition between suppliers shall not be revealed without 
formal authorization from the party providing the information.  
  
5. Each Party shall collect and provide to the Committee on an annual basis 
statistics on its pro curements covered by this Agreement . Such reports shall 
contain the following information with respect to contracts awarded by all 
procurement entities covered under this Agreement:  
 A note by the Chair attempting to present a draft revision of the text of  
Article  XIX:5 was circulated in a separate document.    
  GPA/TN1994/2/Rev.2  
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 (a) for entities in Annex  1, statistics on the estimated value of contracts 
awarded, both above and below the threshold value, on a global 
basis and broken down by entities ; for entities in Annexes  2 and 3, 
statistics on the estimated value of contracts awarded above the 
threshold value on a global basis and broken down by categories of 
entities;  
  
 (b) for entities in Annex  1, statistics on the number and total value of 
contracts awarded above the threshold value, broken down by 
entities and categories of products and services according to uniform 
classification systems ; for entities in Annexes  2 and 3, statistics on 
the estimated value of contracts awarded above the threshold value 
broken down by c ategories of entities and categories of products and 
services;  
  
 (c) for entities in Annex  1, statistics, broken down by entity and by 
categories of products and services, on the number and total value 
of contracts awarded under each of the cases of Arti cle XV; for 
categories of entities in Annexes  2 and 3, statistics on the total value 
of contracts awarded above the threshold value under each of the 
cases of Article  XV; and 
  
 (d) for entities in Annex  1, statistics, broken down by entities, on the 
number and total value of contracts awarded under derogations to 
the Agreement contained in the relevant Annexes ; for categories of 
entities in Annexes  2 and 3, statistics on the total value of contracts 
awarded under derogations to the Agreement contained  in the 
relevant Annexes.  
  
To the extent that such information is available, each Party shall provide statistics 
on the country of origin of products and services purchased by its entities . With 
a view to ensuring that such statistics are comparable, the  Committee shall 
provide guidance on methods to be used . With a view to ensuring effective 
monitoring of procurement covered by this Agreement, the Committee may 
decide unanimously to modify the requirements of subparagraphs (a) through (d) 
as regards the nature and the extent of statistical information to be provided and 
the breakdowns and classifications to be used.  
    
  GPA/TN1994/2/Rev.2  
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 
Article  XX 
 
Challenge Procedures  
  
Consultations  
  
1. In the event of a complaint by a supplier that there has been a breach of 
this Agreement in the context of a procurement, each Party shall encourage the 
supplier to seek resolution of its complaint in consultation with the procuring 
entity . In such instances the procuring entity shall accord impartial and timely 
consideration to  any such complaint, in a manner that is not prejudicial to 
obtaining corrective measures under the challenge system.  
  
Challenge  
  
2. Each Party shall provide non -discriminatory, timely, transparent and 
effective procedures enabling suppliers to challenge alleged breaches of the 
Agreement arising in the context of procurements in which they have, or have 
had, an interest.  
  
3. Each Party shall provide its challenge procedures in writing and make them 
generally available.  
  
4. Each Party shall en sure that documentation relating to all aspects of the 
process concerning procurements covered by this Agreement shall be retained 
for three years.  
  
5. The interested supplier may be required to initiate a challenge procedure 
and notify the procuring ent ity within specified time -limits from the time when 
the basis of the complaint is known or reasonably should have been known, but 
in no case within a period of less than 10 days.  
  
6. Challenges shall be heard by a court or by an impartial and independent  
review body with no interest in the outcome of the procurement and the members 
of which are secure from external influence during the term of appointment . A 
review body which is not a court shall either be subject to judicial review or shall 
have procedur es which provide that:  
    
  GPA/TN1994/2/Rev.2  
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 (a) participants can be heard before an opinion is given or a decision is 
reached;  
  
 (b) participants can be represented and accompanied;  
  
 (c) participants shall have access to all proceedings;  
  
 (d) proceedings can take place in public;  
  
 (e) opinions or decisions are given in writing with a statement describing 
the basis for the opinions or decisions;  
  
 (f) witnesses can be presented;  
  
 (g) documents are disclosed to the review body.  
  
7. Challenge procedures shall provide for:  
  
 (a) rapid interim measures to correct breaches of the Agreement and to 
preserve commercial opportunities . Such action may result in 
suspension of the procurement process . However, procedures may 
provide that overriding adverse consequences for the interests 
concerned, including the public interest, may be taken into account 
in deciding whether such measures should be applied . In such 
circumstances, just cause for not acting shall be provided in writing;  
  
 (b) an assessment and a possibility for a decision on the justification of 
the challenge;  
  
 (c) correction of the breach of the Agreement or compensation for the 
loss or damages suffered, which may be limited to costs for tender 
preparation or protest.  
  
8. With a view to the preservation of the commercial and other interests 
involved, the challenge procedure shall normally be completed in a timely fashion.  It has been suggested to add new paragraph s 9 to 11 which would read 
as follows:    
  GPA/TN1994/2/Rev.2  
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 "9. With a view to ensuring effective implementation and operation 
of this Agreement at all levels, Parties undertake to establish an 
independent authority specialized in public procurement . This 
independent authority shall:  
  - serve as a contact point for the rapi d, informal solution  
 of problems encountered in gaining access to   
 contracts;  
  - provide useful advice to contracting entities;  
  - have the power to intervene on its own initiative to  
 check procurement practices in order to promote  
 efficiency and to ensure that mandatory reporting  
 requirements are complied with;  
  - be competent to receive any complaints from natural or 
 legal persons concerning the application of this  
 Agreement and competent also to lodge formal   
 complaints or otherwise take administrative or judicial  
 action against contracting entities in case of breach of  
 this Agreement in the context of a procurement   
 procedure;  
  - perform surveillance and monitoring  tasks;  
  - promote the use of preventive mechanisms aiming to  
 ensure that the market functions properly;  
  - have sufficient resources to perform its tasks effectively.  
 10. Parties shall notify the Committee of the authorities existing or 
established in their respective jurisdictions . Parties shall make clear the 
relationship between the independent authority and the review body.  
   
  GPA/TN1994/2/Rev.2  
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 11. Parties shall consider the establishment of special direct links 
between existing independent authorities  providing for regular contacts 
and regular exchange of information with a view to giving rapid and 
adequate solutions to problems arising in the application of the 
Agreement and to generally improving the functioning of the 
Agreement."  
 
Article XXI  
 
Institutions  
  
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 Vice -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 
objectives, and to carry out such other responsibilities as may be assigned to it 
by the Parties.  
  
2. The Com mittee may establish working parties or other subsidiary bodies 
which shall carry out such functions as may be given to them by the Committee.  
  
 
Article XXII  
 
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 except as otherwise 
specifically provided below.  
    
  GPA/TN1994/2/Rev.2  
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
2. If 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 obliga tions under this Agreement, or the 
application by another Party or Parties of any measure, whether or not it conflicts 
with the provisions of this Agreement, it may with a view to reaching a mutually 
satisfactory resolution of the matter, make written repr esentations or proposals 
to the other Party or Parties which it considers to be concerned . Such action shall 
be promptly notified to the Dispute Settlement Body established under the 
Dispute Settlement Understanding (hereinafter referred to as "DSB"), as s pecified 
below . Any Party thus approached shall give sympathetic consideration to the 
representations or proposals made to it.  
  
3. The DSB shall have the authority to establish panels, adopt panel and 
Appellate Body reports, make recommendations or give rulings on the matter, 
maintain surveillance of implementation of rulings and recommendations, and 
authorize suspension of concessions and other obligations under this Agreement 
or consultations regarding remedies when withdrawal of measures found to be in  
contravention of the Agreement is not possible, provided that only Members of 
the WTO Party to this Agreement shall participate in decisions or actions taken 
by the DSB with respect to disputes under this Agreement.  
  
4. Panels shall have the following t erms of reference unless the parties to the 
dispute agree otherwise within 20 days of the establishment of the panel:  
  
 "To examine, in the light of the relevant provisions of this Agreement and 
of (name of any other covered Agreement cited by the partie s to the 
dispute), the matter referred to the DSB by (name of party) in document 
... and to make such findings as will assist the DSB in making the 
recommendations or in giving the rulings provided for in this Agreement."  
  
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 only to those parts of the panel report conce rning the interpretation and 
application of this Agreement.  
  
5. Panels established by the DSB to examine disputes under this Agreement 
shall include persons qualified in the area of government procurement.  
    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
6. Every effort shall be made to accelerate t he proceedings to the greatest 
extent possible . Notwithstanding the provisions of paragraphs 8 and 9 of Article 
12 of the Dispute Settlement Understanding, the panel shall attempt to provide 
its final report to the parties to the dispute not later than fou r months, and in 
case of delay not later than seven months, 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 periods foreseen in paragraph 1 of Article 
20 an d paragraph 4 of Article  21 of the Dispute Settlement Understanding by two 
months . Moreover, notwithstanding the provisions of paragraph  5 of Article 21 of 
the Dispute Settlement Understanding, the panel shall attempt to issue its 
decision, in case of a di sagreement as to the existence or consistency with a 
covered Agreement of measures taken to comply with the recommendations and 
rulings, within 60 days.  
  
7. Notwithstanding paragraph  2 of Article 22 of the Dispute Settlement 
Understanding, any dispute ar ising under any Agreement listed in Appendix  1 to 
the Dispute Settlement Understanding 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. 
  
 
Article  XXIII 
 
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 which 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.  
 It has been suggested that the provisions of Article XXIII should be aligned with 
those in the corresponding provisions of G ATT 1994.   
  GPA/TN1994/2/Rev.2  
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
2. Subject to the requirement that such measures are not applied in a manner 
which wou ld constitute a means of arbitrary or unjustifiable discrimination 
between countries 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 enf orcing measures : necessary to protect public morals, 
order or safety, human, animal or plant life or health or intellectual property ; or 
relating to the products or services of handicapped persons, of philanthropic 
institutions or of prison labour.  
  
 Possible additional article  
It has been suggested that an article containing definitions of the various terms 
used in the Agreement should be considered.  
 
 
Article  XXIV 
 
Final Provisions  
  
1. Acceptance and Entry into Force  
  
This Agreement shall enter into force on 1 January  1996 for those governments8 
whose agreed coverage is contained in Annexes 1 through 5 of Appendix I of this 
Agreement and which have, by signature, accepted the Agreement on 
15 April 1994 or have, by that  date, signed the Agreement subject to ratification 
and subsequently ratified the Agreement before 1 January  1996. 
  
 
8 For the purpose of this Agreement, the term "government"  is deemed to include the competent authorities of the European Communities.    
  GPA/TN1994/2/Rev.2  
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
2. Accession  
  
Any government which is a Member of the WTO, or prior to the date of entry into 
force of the WTO Agreement which is a cont racting party to GATT  1947, and which 
is not a Party to this Agreement may accede to this Agreement on terms to be 
agreed between that government and the Parties . Accession shall take place by 
deposit with the Director -General of the WTO of an instrument o f accession which 
states the terms so agreed . The Agreement shall enter into force for an acceding 
government on the 30th day following the date of its accession to the Agreement.  
  
3. Transitional Arrangements  
  
 (a) Hong Kong and Korea may delay application of the provisions of this 
Agreement, except Articles  XXI and XXII, to a date not later than 
1 January  1997. The commencement date of their application of the 
provisions, if prior to 1  January  1997, shall be notified to the 
Director -General of t he WTO 30 days in advance.   
 
 Preambular paragraphs  
 
It has been suggested that the relationship between GATT Article III:8(a), GATS 
Article XIII and the plurilateral Agreement on Government Procurement should 
be spelled out.  
 
 (b) During the period between the date of entry into force of this 
Agreement and the date of its application by Hong Kong, the rights 
and obligations between Hong Kong and all other Parties to this 
Agreement which were on 15  April 1994 Parties to the Agreement 
on Governm ent Procurement done at Geneva on 12  April 1979 as 
amended on 2  February  1987 (the "1988 Agreement") shall be 
governed by the substantive9 provisions of the 1988 Agreement, 
including its Annexes as modified or rectified, which provisions are 
incorporated herein by reference for that purpose and shall remain 
in force until 31  December  1996.  
  
 (c) Between Parties to this Agreement which are also Parties to the 1988 
Agreement, the rights and obligations of this Agreement shall 
supersede those under the 1988  Agreement.  
  
 
9 All provisions of the 1988 Agreement except the Preamble, Article  VII and Article  IX other than paragraphs 5(a) and (b) and paragraph 10.    
  GPA/TN1994/2/Rev.2  
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 (d) Article  XXII shall not enter into force until the date of entry into force 
of the WTO Agreement . Until such time, the provisions of Article  VII 
of the 1988 Agreement shall apply to consultations and dispute 
settlement under this Agreement, which provisions are hereby 
incorporated in the Agreement by reference for that purpose . These 
provisions shall be applied under the auspices of the Committee 
under this Agreement.  
  
 (e) Prior to the date of entry into force of the WTO Agreeme nt, 
references to WTO bodies shall be construed as referring to the 
corresponding GATT body and references to the Director -General of 
the WTO and to the WTO Secretariat shall be construed as references 
to, respectively, the Director -General to the CONTRACT ING PARTIES 
to GATT 1947 and to the GATT Secretariat.  
  
4. Reservations  
  
 Reservations may not be entered in respect of any of the provisions of this 
Agreement.  
  
5. National  Legislation  
  
 (a) Each government accepting or acceding to this Agreement 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 the 
entities contained in its lists anne xed hereto, with the provisions of 
this Agreement.  
  
 (b) 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/TN1994/2/Rev.2  
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
6. Rectifications  or Modifications  
  
 (a) Rectifications, transfers of an entity from one Annex to another or, 
in exceptional cases, other modifications relating to  Appendices  I 
through IV shall be notified to the Committee, along with information 
as to the likely consequences of the change for the mutually agreed 
coverage provided in this Agreement . If the rectifications, transfers 
or other modifications are of a purely formal or minor nature, they 
shall become effective provided there is no objection within  30 days . 
In other cases, 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, with a 
view to maintaining a balance of rights and obligations and a 
comparable level of mutually agreed coverage provided in this 
Agreement prior to such notification . In the event of agreement not 
being reached, the matter may be pursued in accordance with the 
provisions contained in Article  XXII. 
    
  GPA/TN1994/2/Rev.2  
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 (b) Where a Party wishes, in exercise of its rights, to withdraw an entity 
from Appendix  I on the grounds that government control or influence 
over it has been effectively eliminated, that Party shall notify the 
Committee . Such modification shall become effective the day after 
the end of the following meeting of the Committee, provided that the 
meeting is no sooner than 30 days from the date of notification and 
no objection has been made . In the event of an objection, the matter 
may be pursued in accordance with the pr ocedures on consultations 
and dispute settlement contained in Article  XXII. In considering the 
proposed modification to Appendix I and any consequential 
compensatory adjustment, allowance shall be made for the 
market -opening effects of the removal of gover nment control or 
influence.  
 It has been suggested that this subparagraph should be modified to read as 
follows:  
 
"Where a Party wishes, in exercise of its rights, to withdraw an entity 
from Appendix  I on the grounds that government control or influence 
over it has been effectively eliminated, that Party shall notify the 
Committee . Such modification shall become effective the day after the 
end of the following meeting of the Committee, provided that the 
meeting is no sooner than 30 days from the date of not ification and no 
objection has been made . In the event of an objection, the matter may 
be pursued in accordance with the procedures on consultations and 
dispute settlement contained in Article XXII . In considering the 
proposed modification to Appendix  I, it shall be deemed that 
government control or influence over the entity in question has been 
effectively eliminated if all of the following conditions are met:  
(a) the government does not provide the entity with any 
special and exclusive right to operate;  
(b) the government does not appoint more than half of the 
members of the entity's managing board which has the 
power to decide on its operations ; and 
(c) the operation of the entity is financed by its business 
revenue, not by government subsidies or equity infusion.  
Unless these conditions are met, a compensatory adjustment may be sought 
for any remaining government control or influence."  
 
7. Reviews, Negotiations  and Future Work  
  
 (a) The Committee shall review annually the implementation and 
operation of this Agreement taking into account the objectives 
thereof . The Committee shall annually inform the General Council of 
the WTO of developments during the periods covered by such 
reviews.  
    
  GPA/TN1994/2/Rev.2  
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
 (b) Not later than the end of the third 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 on th e basis of mutual 
reciprocity, having regard to the provisions of Article  V relating to 
developing countries.  
  
 (c) Parties shall seek to avoid introducing or prolonging discriminatory 
measures and practices which distort open procurement and shall, 
in the context of negotiations under subparagraph (b), seek to 
eliminate those which remain on the date of entry into force of this 
Agreement.  
  
8. Information Technology  
  
With a view to ensuring that the Agreement does not constitute an unnecess ary 
obstacle to technical progress, Parties shall consult regularly in the Committee 
regarding developments in the use of information technology in government 
procurement and shall, if necessary, negotiate modifications to the Agreement . 
These consultation s shall in particular aim to ensure that the use of information 
technology promotes the aims of open, non -discriminatory and efficient 
government procurement through transparent procedures, that contracts 
covered under the Agreement are clearly identified and that all available 
information relating to a particular contract can be identified . When a Party 
intends to innovate, it shall endeavour to take into account the views expressed 
by other Parties regarding any potential problems.  
 It has been said that this article should be revised in the light of the ongoing 
work on possible modifications to the Agreement.  
9. Amendments  
  
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 
not enter into force for any Party until it has been accepted by such Party.  
    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
10. Withdrawal  
  
 (a) Any Party may withdraw from this Agreement . The withdrawal shall 
take effect upon the expiration of 60 days from the date on which 
written notice of withdrawal is received by the Director -General of 
the WTO . Any Party may upon such notification request an 
immediate meeting of the Committe e. 
  
 (b) If a Party to this Agreement does not become a Member of the WTO 
within one year of the date of entry into force of the WTO Agreement 
or ceases to be a Member of the WTO, it shall cease to be a Party to 
this Agreement with effect from the same d ate. 
  
11. Non-application  of this Agreement  between  Particular  Parties  
  
This Agreement shall not apply as between any two Parties if either of the Parties, 
at the time either accepts or accedes to this Agreement, does not consent to such 
application.  
  
12. Notes,  Appendices and Annexes  
  
The Notes, Appendices and Annexes to this Agreement constitute an integral part 
thereof.  
  
13. Secretariat  
  
This Agreement shall be serviced by the WTO Secretariat.  
  
14. Deposit  
  
This Agreement shall be deposited with the Director -General 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  6 and of each 
amendment thereto pursuan t to paragraph  9, and a notification of each 
acceptance thereof or accession thereto pursuant to paragraphs  1 and 2 and of 
each withdrawal therefrom pursuant to paragraph  10 of this Article.  
    
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AGREEMENT ON GOVERNMENT PROCUREMENT (1994)  PROPOSED MODIFICATIONS  
15. Registration  
  
This Agreement shall be registered in accordance with the provisions of Article 
102 of the Charter of the United Nations.  
  
Done at Marrakesh this fifteenth day of April one  thousand  nine hundred  and 
ninety -four in a single copy, in the English, French and Spanish languages, eac h 
text being authentic, except as otherwise specified with respect to the Appendices 
hereto.  
  
 GPA/TN1994/2/Rev.2  
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  ATTACHMENT  
 
OUTLINE OF A POSSIBLE FUTURE STRUCTURE FOR THE GPA  
("À DROIT CONSTANT ") 
The restructuring should consist of four sequential elements:  
 
1. deletion of those provisions relating to the entry into force of the WTO and transitional periods 
which have now expired (such as Article XXIV:3(a), (b), (d) and (e));  
 
2. grouping related provisions together to follow general WTO practice on structure of 
agreements and the  procurement procedure more closely, as well as to facilitate ease of use;  
 
3. renaming Articles to more closely reflect their content ; and 
 
4. renumbering the Articles in the new structure to make them consecutive.  
 
A possible revised structure of the main body of the GPA (not addressing the Preamble or the 
Appendices) based on these elements is set out below . It is not intended to be exhaustive . Neither 
does it take account of the fact that several Articles may need to be either clarified or 
reformulat ed - for example, the existing Articles XI and XII.  
 
A. SCOPE AND COVERAGE OF THE AGREEMENT  
 
 Article 1  Scope and coverage (was Article I)  
 
 Article 2  Valuation of contracts (was Article II)  
 
B. BASIC PRINCIPLES  
 
 Article 3  Publication of legislation (was Article XIX:1)  
 [This could also be moved to Part D]10 
 
 Article 4  National treatment and MFN (was Article XIX:1)  
 
 Article 5  Rules of origin (products and services) (was Article IV)  
 [NB: This Article contains an in -built review mechanism]  
 
 Article 6  Offsets (was Article XVI)  
 
 Article 7  Access of non -Parties to the Agreement (was Article XVI:1)  
 
C. PROCUREMENT PROCEDURES  
 
 Article 8  Methods of procurement (was Article VII)  
 
 Article 9  Use of the selective tendering pr ocedure (was Article X)  
 
 Article 10  Use of the limited tendering procedure (was Article XV)  
 
 Article 11  Qualification requirements for suppliers (was Article VIII)  
 
 Article 12  Technical specifications (was Article VI)  
 
 Article 13  Information to bidders : notices (was Article IX)  
 
 Article 14  Information to bidders : tender documentation (was Article XII)  
 
 Article 15  Time-limits for the submission of bids (was Article XI)  
 
10 In commenting on this proposal, it ha s been suggested that Article XIX:1 on publication of basic 
legislation should be placed between sections B and C.  GPA/TN1994/2/Rev.2  
- 50 - 
   
Article 16  Submission, receipt and opening of tenders (was Article  XIII:1 -3 + Article  XXII:1)  
   [This Article could be further split]  
 
 Article 17  Negotiation (was Article XIV)  
 
 Article 18  Award of contracts (was Article XIII:4 -5) 
 
 Article 19  Information on contracts awarded (was Article XVIII:1, 3, 4)  
 
C.1 BID REVIEW  
 
 Article 2 0 Information obligations of entities (was Article XVIII:2)  
 
 Article 21  Challenge procedures (was Article XX)  
 
D. INSTITUTIONAL  PROVISIONS  
 
(This chapter could be divided into different chapters, for instance exceptions to the Agreement + 
Article on devel oping countries could be a different chapter called "Exceptions to the Agreement".)  
 
 Article 22  Information obligation of Parties (was Article XIX:2 -4) 
 
 Article 23  Exceptions to the Agreement (was Article XXIII)  
 
 Article 24  Special treatment for developing countries (was Article V)  
 [NB: This Article has an in -built review mechanism]  
 
 Article 25  Statistical reporting requirements (was Article XIX:5)  
 [NB: This Article has in -built review mechanism]  
 
 Article 26  Institutions (was Article XXI)  
 
 Article 27  Consultations and dispute settlement (was Article XXII)  
 
 Article 28  Final provisions (was Article XXIV and Article XVII:2 on observer status)  
 
 
__________  