RESTRICTED
WORLD TRADE GPA/IC/10
16January 1996
ORGANIZATION(96-0149)
Original: English Interim Committee onGovernment Procurement
MODIFICATIONS TOAPPENDIX IOFTHE EUROPEAN COMMUNITIES
AND THE UNITED STATES
Communication from theEuropean Communities andtheUnited States
Theattached communication*dated 22December 1995 from thePermanent Representative
oftheCommission oftheEuropean Communities totheInternational Organizations inGeneva and
theChargé d'Affaires ofthePermanent Mission oftheUnited States totheWTO hasbeenreceived
withtherequest thatitbecirculated totheMembers oftheInterim Committee.
*English onlyGPA/IC/10
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MODIFICATIONS TOAPPENDIX IOFTHE EUROPEAN COMMUNITIES
AND THE UNITED STATES
Iamwriting toyouconcerning themodifications toAppendix IoftheGovernment Procurement
Agreement, which follow onfrom theagreement reached between theEuropean Communities and
theUnited States. Article XXIV oftheAgreement contains theprovisions onitsentry intoforce and,
inconformity withthose provisions, Ihavethehonour tosendtoyoutheattached communication.
Theattached communication fromthedelegations oftheEuropean Communities andtheUnited
States contains (i)theGeneral Notes contained inAppendix IoftheECand(ii)Annexes 2and3and
theGeneral Notes contained inAppendix IoftheUS,asamended bythebilateral agreement reached
between theECandtheUSinMarrakesh inApril 1994.
Thiscommunication istobeconsidered aformal notification pursuant totheIWG'sDecision
of17January 1994onModifications oftheAnnexes toAppendix ItotheAgreement onGovernment
Procurementbeforeitsentryintoforceon1January1996andtohavebeenthesubjecttotheconsultation
ofother signatories following aprevious communication from thedelegations oftheEuropean
Communities andtheUnited States on14June1994inconformity withthedecision taken bytheInterim
Committee on7December 1995.
Thiscommunication isthefirststepinnotifying thefullresults oftheEU-US bilateral agreement
pursuant totheIWG'sDecision of17January 1994 onModifications oftheAnnexes toAppendix I
totheAgreement onGovernment Procurement before itsEntry intoforce on1January 1996.
Asecond communication willbemade andbesubject oftheconsultation foreseen intheabove
mentioned IWG'sDecision of17January 1994 withrespect tothemutual coverage agreed between
theEUandtheUSon19January 1995 asaresult ofEUenlargement.GPA/IC/10
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MODIFICATIONS TOAPPENDIX IOFTHE EUROPEAN COMMUNITIES
AMENDED GENERAL NOTES AND DEROGATIONS FROM THE PROVISIONS OF
ARTICLE IIIOFAPPENDIX IOFTHE EC
General notes andderogations from theprovisions ofArticle III
1. TheECwillnotextend thebenefits ofthisAgreement:
- asregards theaward ofcontracts byentities listed inAnnex 2tothesuppliers and
service providers ofCanada;
- asregards theaward ofcontracts, other thanforsuppliers, listed inAnnex 2tothe
suppliers andservice providers oftheUSA;
- asregards theaward ofcontracts byentities listed inAnnex 3paragraph
(a) (water), tothesuppliers andservice providers ofCanada andtheUSA;
(b) (electricity), tothesuppliers andservice providers ofCanada, Hong Kong and
Japan;
(c) (airports), tothesuppliers andservice providers ofCanada, Korea andthe
USA;
(d) (ports), tothesuppliers andservice providers ofCanada;
(e) (urban transport), tothesuppliers andservice providers ofCanada, Israel,
Japan, Korea andtheUSA
untilsuchtimeastheEChasaccepted thattheParties concerned givecomparable andeffective
access forECundertakings totherelevant markets;
- toservice providers ofParties which donotinclude service contracts fortherelevant
entities inAnnexes 1to3andtherelevant service category under Annexes 4and5
intheirowncoverage.
2. Theprovisions ofArticle XXshallnotapply tosuppliers andservice providers of:
- Israel, Japan, Korea andSwitzerland incontesting theaward ofcontracts byentities
listed under Annex 2paragraph 2,untilsuchtimeastheECaccepts thattheyhave
completed coverage ofsub-central entities;
- Japan, Korea andtheUSAincontesting theaward ofcontracts toasupplier orservice
provider ofParties other thanthose mentioned, which aresmall ormedium sized
enterprises under therelevant provisions ofEClaw,untilsuchtimeastheECaccepts
thattheynolonger operate discriminatory measures infavour ofcertain domestic small
andminority businesses;GPA/IC/10
Page4
- Israel, Japan andKorea incontesting theaward ofcontracts byECentities, whose
value islessthatthethreshold applied forthesame category ofcontracts awarded by
these Parties.
3. Until suchtimeastheEChasaccepted thattheParties concerned provide access for
ECsuppliers andservice providers totheirownmarkets theECwillnotextend thebenefits
ofthisAgreement tosuppliers andservice providers of:
- Canada, asregards procurement ofFSC36,70 and74(special industry machinery:
general purpose automatic dataprocessing equipment, software supplies andsupport
equipment (except 7010 ADPE configurations): office machines, visible record
equipment andADP equipment);
- Canada, asregards procurement ofFSG58(communications, protection andcoherent
radiation equipment) andtheUSA asregards airtraffic control equipment;
- Korea andIsrael asregards procurement byentities listed inAnnex 3paragraph (b),
asregards procurement ofHSNos8504, 8535, 8537and8544(electrical transformers,
plugs, switches andinsulated cables); andforIsrael, HSNos8501, 8536and902830;
- theUSAasregards procurement byentities listed inAnnex 3paragraph (d),asregards
procurement ofdredging services andprocurement related toshipbuilding;
- Canada andtheUSAasregards contracts forgoodorservice components ofcontracts
which, although awarded byanentity covered bythisAgreement, arenotthemselves
subject tothisAgreement.
4. TheAgreement shallnotapply tocontracts awarded under:
- aninternational agreement andintended forthejointimplementation orexploitation
ofaproject bythesignatory States;
- aninternational agreement relating tothestationing oftroops;
- theparticular procedure ofaninternational organization.
5. TheAgreement shallnotapply toprocurement ofagricultural products made infutherance
ofagricultural support programmes andhuman funding programmes.
6. Contracts awarded byentities inAnnexes 1and2inconnection withactivities inthefields
ofdrinking water, energy, transport ortelecommunications arenotincluded.
7. ThisAgreement shallnotapply tocontracts awarded byentities inAnnex 3:
- forthepurchase ofwater andforthesupply ofenergy oroffuelsfortheproduction
ofenergy;
- forpurposes other thanthepursuit oftheiractivities asdescribed inthisAnnex orfor
thepursuit ofsuchactivities inanon-member country;GPA/IC/10
Page5
- forpurposes ofre-sale orhiretothirdparties, provided thatthecontracting entity enjoys
nospecial orexclusive righttosellorhirethesubject ofsuchcontracts andotherentities
arefreetosellorhireitunder thesame conditions asthecontracting entity.
8. ThisAgreement shallnotbeapplicable tocontracts:
- fortheacquisition orrental ofland, existing buildings orother immovable property
orconcerning rights thereon;
- fortheacquisition, development, production orco-production ofprogramme material
bybroadcasters andcontracts forbroadcasting time.
9. ThisAgreement shallnotbeapplicable totheaward ofservice contracts bySpanish entities
listed inAnnex 3before 1January 1997 ortotheaward ofcontracts byGreek orPortuguese
entities listed inAnnex 3before 1January 1998.GPA/IC/10
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MODIFICATIONS TOAPPENDIX IOFTHE UNITED STATES
ANNEX 2
Sub-Central Government Entities which Procure inAccordance WiththeProvisions ofthisAgreement
Thresholds 355,000 SDRs forsupplies andservices; 5million SDRs forconstruction
ListofEntities
Arizona
Executive branch agencies
Arkansas
Executive branch agencies, including universities butexcluding theOffice ofFishandGame and
construction services
California
Executive branch agencies
Colorado
Executive branch agencies
Connecticut
Department ofAdministrative Services
Connecticut Department ofTransportation
Connecticut Department ofPublic Works
Constituent Units ofHigher Education
Delaware*
Administrative Services (Central Procurement Agency)
State Universities
State Colleges
Florida*
Executive branch agenciesGPA/IC/10
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Hawaii
Department ofAccounting andGeneral Services (with theexception ofprocurements ofsoftware
developed inthestateandconstruction)
Idaho
Central Procurement Agency (including allcolleges anduniversities subject tocentral purchasing
oversight)
Illinois*
Department ofCentral Management Services
Iowa*
Department ofGeneral Services
Department ofTransportation
Board ofRegents 'Institutions (universities)
Kansas
Executive branch agencies, excluding construction services, automobiles andaircraft
Kentucky
Division ofPurchases, Finance andAdministration Cabinet, excluding construction projects
Louisiana
Executive branch agencies
Maine*
Department ofAdministrative andFinancial Services
Bureau ofGeneral Services (covering stategovernment agencies
andschool construction)
Maine Department ofTransportation
Maryland*
Office oftheTreasury
Department oftheEnvironment
Department ofGeneral Services
Department ofHousing andCommunity Development
Department ofHuman Resources
Department ofLicensing andRegulation
Department ofNatural Resources
Department ofPublic Safety andCorrectional Services
Department ofPersonnel
Department ofTransportationGPA/IC/10
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Massachusetts
Executive Office forAdministration andFinance
Executive Office ofCommunities andDevelopment
Executive Office ofConsumer Affairs
Executive Office ofEconomic Affairs
Executive Office ofEducation
Executive Office ofElder Affairs
Executive Office ofEnvironmental Affairs
Executive Office ofHealth andHuman Service
Executive Office ofLabor
Executive Office ofPublic Safety
Executive Office ofTransportation andConstruction
Michigan*
Department ofManagement andBudget
Minnesota
Executive branch agencies
Mississippi
Department ofFinance andAdministration (does notinclude services)
Missouri
Office ofAdministration
Division ofPurchasing andMaterials Management
Montana
Executive branch agencies (only forservices andconstruction)
NewYork*
State agencies
State university system
Public authorities andpublic benefit corporations, withtheexception ofthose entities withmulti-state
mandates
Inaddition totheexceptions noted attheendofthisannex, transit cars,buses andrelated equipment
arenotcovered.
Nebraska
Central Procurement Agency
NewHampshire*
Central Procurement AgencyGPA/IC/10
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Oklahoma*
Office ofPublic Affairs andallstateagencies anddepartments subject totheOklahoma Central
Purchasing Act,excluding construction services.
Oregon
Department ofAdministrative Services
Pennsylvania*
Executive branch agencies, including:
Governor 'sOffice
Department oftheAuditor General
Treasury Department
Department ofAgriculture
Department ofBanking
Pennsylvania Securities Commission
Department ofHealth
Department ofTransportation
Insurance Department
Department ofAging
Department ofCorrection
Department ofLabor andIndustry
Department ofMilitary Affairs
Office ofAttorney General
Department ofGeneral Services
Department ofEducation
Public Utility Commission
Department ofRevenue
Department ofState
Pennsylvania State Police
Department ofPublic Welfare
FishCommission
Game Commission
Department ofCommerce
Board ofProbation andParole
Liquor Control Board
Milk Marketing Board
Lieutenant Governor 'sOffice
Department ofCommunity Affairs
Pennsylvania Historical andMuseum Commission
Pennsylvania Emergency Management Agency
State Civil Service Commission
Pennsylvania Public Television Network
Department ofEnvironmental Resources
State TaxEqualization Board
Department ofPublic Welfare
State Employees 'Retirement System
Pennsylvania Municipal Retirement Board
Public School Employees 'Retirement SystemGPA/IC/10
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Pennsylvania Crime Commission
Executive Offices
Rhode Island
Executive branch agencies, excluding boats, automobiles, buses andrelated equipment
South Dakota
Central Procuring Agency (including universities andpenal institutions)
Inaddition totheexceptions noted attheendofthisannex, procurements ofbeefarenotcovered.
Tennessee
Executive branch agencies (excluding services andconstruction)
Texas
General Services Commission
Utah
Executive branch agencies
Vermont
Executive branch agencies
Washington
Washington State executive branch agencies, including:
General Administration
Department ofTransportation
State Universities
Inaddition totheexceptions noted attheendofthisannex, procurements offuel,paper products, boats,
ships andvessels arenotcovered.
Wisconsin
Executive branch agencies, including
Department ofAdministration
State Correctional Institutions
Department ofDevelopment
Educational Communications Board
Department ofEmployment Relations
State Historical Society
Department ofHealth andSocial Services
Insurance CommissionerGPA/IC/10
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Department ofJustice
Lottery Board
Department ofNatural Resources
Administration forPublic Instruction
Racing Board
Department ofRevenue
State FairParkBoard
Department ofTransportation
State University System
Wyoming*
Procurement Services Division
Wyoming Department ofTransportation
University ofWyoming
Notes toAnnex 2
Inaddition totheconditions specified intheGeneral Notes, thefollowing conditions apply:
1. Forthose states marked byanasterisk withpre-existing restrictions, theAgreement doesnot
apply toprocurement ofconstruction-grade steel(including requirements onsubcontracts),
motor vehicles andcoal.
2. TheAgreementshallnotapplytopreferencesorrestrictionsassociatedwithprogramspromoting
thedevelopment ofdistressed areas andbusinesses owned byminorities, disabled veterans and
women.
3. Nothing inthisannex shallbeconstrued toprevent anystateentity fromapplying restrictions
thatpromote thegeneral environmental quality inthatstate, aslongassuchrestrictions are
notdisguised barriers tointernational trade.
4. TheAgreement shallnotapply toanyprocurement made byacovered entity onbehalf ofnon-
covered entities atadifferent levelofgovernment.
5. TheAgreement shallnotapply torestrictions attached toFederal funds formass transit and
highway projects.GPA/IC/10
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ANNEX 3
AllOther Entities which Procure inAccordance With theProvisions ofthisAgreement
Threshold: 400,000 SDRs forsupplies andservices (except asspecified below)
5million SDRs forconstruction
ListofEntities
Thefollowing entities attheSDR equivalent of$250,000 forsupplies andservices:
Tennessee Valley Authority
Power Marketing Administrations oftheDepartment ofEnergy
- Bonneville Power Administration
- Western Area Power Administration
- Southeastern Power Administration
- Southwestern Power Administration
- Alaska Power Administration
- St.Lawrence Seaway Development Corporation
Thefollowing entities are400,000 SDRs forsupplies andservices:
ThePortAuthority ofNewYork andNewJersey withthefollowing exceptions:
- Maintenance, repair andoperating materials andsupplies (e.g., hardware, tools,
lamps/lighting, plumbing);
- Inexceptional cases, individual procurements mayrequire certain regional production
ofgoods ifauthorized bytheBoard ofDirectors;
- Procurements pursuant tomulti-jurisdictional agreement (i.e.,forcontracts which have
initially beenawarded byother jurisdictions).
ThePortofBaltimore (subject totheconditions specified forthestateofNewYork inAnnex 2)
TheNewYork Power Authority (subject totheconditions specified forthestateofNewYork in
Annex 2)
Rural Electrification Administration Financing:
(1) waiver ofBuyAmerican restriction onfinancing forallpower generation projects
(restrictions onfinancing fortelecommunication projects areexcluded from the
Agreement);
(2) applicationofCode-equivalentprocurementproceduresandnationaltreatmenttofunded
projects exceeding thethresholds specified above.GPA/IC/10
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Notes toAnnex 3
1. Withrespect totheseentities, theAgreement shallnotapply torestrictions attached toFederal
funds forairport projects.
2. Theconditions specified intheGeneral Notes apply tothisAnnex.GPA/IC/10
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General Notes
1. Notwithstanding theabove, thisAgreement willnotapply tosetasides onbehalf ofsmall and
minority businesses.
2. Except asspecified otherwise inthisAppendix, procurement interms ofU.S.coverage does
notinclude non-contractual agreements oranyform ofgovernment assistance, including
cooperative agreements, grants, loans, equity infusions, guarantees, fiscal incentives, and
governmental provision ofgoods andservices topersons orgovernmental authorities not
specifically covered under U.S.annexes tothisagreement.
3. Procurement doesnotinclude theacquisition offiscal agency ordepository services, liquidation
andmanagement services forregulated financial institutions, andsaleanddistribution services
forgovernment debt.
4. Where acontract tobeawarded byanentity isnotcovered bythisAgreement, thisAgreement
shallnotbeconstrued tocover anygood orservice component ofthatcontract.
5. Forgoods andservices (including construction) ofthefollowing countries andsuppliers of
suchgoods andservices, thisAgreement doesnotapply toprocurement bytheentities listed
inAnnexes 2and3orthewaiver described inAnnex 3:
Canada
Austria
Switzerland
Norway
Sweden
Finland
Japan
TheUnited States isprepared toamend thisnoteatsuchtimeascoverage withrespect tothese
annexes canberesolved withaParty listed above.
6. ForconstructionservicesoftheRepublicofKoreaandsuppliersofsuchservices,thisAgreement
applies onlytoprocurement oftheentities listed inAnnexes 2and3above athreshold of
15million SDRs.
7. Forgoods andservices (including construction) ofJapan andsuppliers ofsuchgoods and
services, thisAgreement doesnotapply toprocurement bytheNational Aeronautics andSpace
Administration.
8. Aservice listed inAnnex 4iscovered withrespect toaparticular Party onlytotheextent that
suchParty hasincluded thatservice initsAnnex 4.