RESTRICTED
WORLD TRADE GPA/IC/W/31
21November 1995
ORGANIZATION(95-3633)
Interim Committee onGovernment Procurement
RECOMMENDATIONS FOR DECISIONS ONPROCEDURAL MATTERS UNDER THE
AGREEMENT ONGOVERNMENT PROCUREMENT (1994)
Atitsmeetingon25October1995,theInterimCommitteeonGovernmentProcurementadopted
theannexed recommendations fordecisions onprocedural matters under theAgreement onGovernment
Procurement (1994), forapproval bytheCommittee onGovernment Procurement under thenew
Agreement.
- Participation ofObservers intheCommittee onGovernment Procurement (1994)
(Annex 1);
- Accession totheAgreement onGovernment Procurement (1994) (Annex 2);
- Modalities forNotifying Threshold Figures inNational Currencies (Annex 3).GPA/IC/W/31
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ANNEX 1
PARTICIPATION OFOBSERVERS INTHE COMMITTEE
ONGOVERNMENT PROCUREMENT (1994)
Recommendation foraDecision
1. Members oftheWorld Trade Organization which arenotParties totheAgreement mayfollow
theproceedings oftheCommittee onGovernment Procurement inanobserver capacity.
2. Governments which arenotMembers oftheWorld Trade Organization, butareintheprocess
of,orhaveexpressed theintent of,accepting oracceding totheWTO Agreement andwhich arealso
interested ininitiating negotiations foraccession totheAgreement onGovernment Procurement (1994)
andhaveaninterest infollowing theproceedings oftheCommittee onGovernment Procurement in
anobserver capacity, should communicate arequest totheDirector-General oftheWorld Trade
Organization indicating their desire tohave observer status intheCommittee onGovernment
Procurement. TheCommittee shalldecide oneachrequest.
3. TheCommittee shalldecide ontheconditions ofobservership, including withrespect tothe
provision ofinformation byobservers. Observers mayparticipate inthediscussions butdecisions shall
betaken onlybyParties.
4. TheCommittee onGovernment Procurement maydeliberate onconfidential matters inspecial
restricted sessions.
5. TheCommittee mayinvite, asappropriate, international organizations toparticipate insessions
oftheCommittee onGovernment Procurement inanobserver capacity. Inaddition, requests from
international organizations toparticipate insessions oftheCommittee onGovernment Procurement,
inanobserver capacity, shall beconsidered onacase-by-case basis bytheCommittee. Insuch
considerations, thecriteria andconditions forobserver status forintergovernmental organizations in
theWTO shallbetaken intoaccount.
6. ThisDecision iswithout prejudice totheprovisions ofparagraph 2ofArticle XVII ofthe
Agreement.GPA/IC/W/31
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ANNEX 2
ACCESSION TOTHE AGREEMENT ONGOVERNMENT PROCUREMENT (1994)
Recommendation foraDecision
1. Inaccordance withparagraph 2ofArticle XXIV oftheAgreement onGovernment Procurement
(1994), anygovernment which isaMember oftheWTO mayaccede tothisAgreement onterms to
beagreed between thatgovernment andtheParties.
2. Tothiseffect,agovernmentinterestedinaccessionshallcommunicateitsinteresttotheDirector-
General oftheWTO and,through him,totheCommittee onGovernment Procurement andshallsubmit
relevant information including anofferbywayofappropriate Appendices containing listsofentities
andservices which would becovered bytheAgreement, aswellaslistsofrelevant publications, having
regard totheprovisions oftheAgreement, inparticular Article Iand,where appropriate, Article V.
3. ThegovernmentinterestedinaccessionshallholdconsultationswiththePartiestotheAgreement
ontheterms foritsaccession totheAgreement.
4. Withaviewtofacilitating accession, theCommittee onGovernment Procurement shallestablish
aworking party iftheapplicant government, oranyParty totheAgreement, sorequests. Theworking
party should examine: (i)thecoverage offer made bytheapplicant government; and(ii)relevant
information pertaining toexport opportunities inthemarkets oftheParties, taking intoaccount the
existing andpotential export capabilities oftheapplicant government andexport opportunities forthe
Parties inthemarket oftheapplicant government.
5. Upon adecision bytheCommittee onGovernment Procurement agreeing totheterms of
accession including thelistsofentities andservices aswellasofrelevant publications oftheapplicant
government, theapplicant government shalldeposit withtheDirector-General oftheWTO aninstrument
ofaccession which states theterms soagreed. Theapplicant government 'slistsofentities, services
andpublications intheirauthentic WTO language(s) shallbeappended totheAgreement.GPA/IC/W/31
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ANNEX 3
MODALITIES FOR NOTIFYING THRESHOLD FIGURES INNATIONAL CURRENCIES
Recommendation foraDecision
General
Each Party willcalculate andconvert foritself thevalue ofthethresholds contained inits
Appendix Iintoitsownnational currency, itbeing understood thatthese calculations willbebased
ontheconversion ratespublished bytheIMFinitsmonthly "International Financial Statistics" (for
theEC,theMember States 'currency equivalents oftheECU fordetermining thevalue ofpublic
contracts arecalculated andpublished bytheECCommission). Parties willnotify without delay to
theCommittee themethod andresult oftheircalculation, forpossible examination andchallenge in
theCommittee.
Basis forcalculation1
Theconversion rateswillbetheaverage ofthedailyvalues oftherespective national currency
interms oftheSDRoverthetwo-year period preceding 1October or1November oftheyearprior
tothethresholds innational currency becoming effective which willbefrom 1January. ForIsrael
andJapan theconversion ratewillbeestablished inthesame wayasabove buttherelevant datefor
thecalculation willbe1January (rather than1October or1November) andthenewly-established
conversion ratewilltakeeffect on1April.
Period ofvalidity ofnational thresholds
Thresholds expressed innational currencies willbefixed fortwoyears, i.e.calendar years
forallParties except Israel andJapan, where thefiscal year(1April-31 March) willbeused.
Safeguard mechanism
Ifamajor change inanational currency vis-à-vis theSDR during ayearwere tocreate a
significant problem withregard totheapplication oftheAgreement, thematter willbeconsidered in
theCommittee.
1Itisunderstood thattheECcalculates itsthresholds based onaunilateral reduction of13percentinthethresholds
applicabletotheEC(pursuant totherelevant decisionbytheCommi tteeunder theTokyo Code of20May1987, infurtherance
ofthepanel decision onValue-Added TaxandThreshold (GPR/21, GPA/IC/W/2, pages 3and4).