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GENERAL AGREEMENT ON
TARIFFS AND TRADE

Multilateral Trade Negotiations

Group "Non-Tariff Measures"

Sub-Group "Government Procurement"

AGREEMENT ON GOVERNMENT PROCUREMENT

Revision

RESTRICTED

MTN/NTM/W/211/Rev.2*
11 April 1979
Special Distribution

is hereby

Following the meeting of the Sub-Group on 6 April 1979, a further revision of document MTN/NTM/W/211 "Agreement on Government Procurement" circulated to participants in the Multilateral Trade Negotiations.

For technical reasons and to permit the earliest circulation of this document, Rev.1 should be read as Rev.2 on the following pages.

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- Qualification of Suppliers

- Notice of Proposed Purchase and Tender Documentation

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Part IV

Part V

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NOTES

Part I, paragraph 1

Part V, paragraph 14(h)

ANNEXES

ANNEX I Lists of Entities referred to in Part I, Paragraph 1(c)
ANNEX II Publications utilized by Parties to this Agreement for the
Publication of Notices of proposed Purchases Part V,
Paragraph 3

ANNEX III Publications utilized by Parties to this Agreement for the 101
Publication annually of Information on Permanent Lists of
Suppliers in the case of Selective Tendering Procedures -
Part V, Paragraph 6

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ANNEX IV Publications utilized by Parties to this Agreement for the 102
Prompt Publication of Laws, Regulations, Judicial Decisions,
Administrative rulings of General Application and any
Procedure regarding Government Procurement covered by this
Agreement

Part VI, Paragraph 1

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Considering that Ministers agreed in the Tokyo Declaration of

14 September 1973 that comprehensive Multilateral Trade Negotiations in the framework of GATT should aim, inter alia, to reduce or eliminate non-tariff measures or, where this is not appropriate, their trade restricting or distorting effects, and to bring such measures under more effective international discipline;

Considering that Ministers also agreed that negotiations should aim to secure additional benefits for the international trade of developing countries, and recognized the importance of the application of differential measures in ways which will provide special and more favourable treatment for them where this is feasible and appropriate;

Recognizing that in order to achieve their economic and social objectives to implement programmes and policies of economic development aimed at raising the standard of living of their people, taking into account their balance-of-payments position, developing countries may need to adopt agreed differential measures;

Considering that Ministers in the Tokyo Declaration recognized that the particular situation and problems of the least developed among the developing countries shall be given special attention and stressed the need to ensure that these countries receive special treatment in the context of any general or specific measures taken in favour of the developing countries during the negotiations;

Recognizing the need to establish an agreed international framework of rights and obligations with respect to laws, regulations, procedures and practices regarding government procurement with a view to achieving greater liberalization and expansion of world trade and improving the international framework for the conduct of world trade;

Recognizing that laws, regulations, procedures and practices regarding government procurement should not be prepared, adopted or applied to foreign or domestic products and to foreign or domestic suppliers so as to afford protection to domestic products or suppliers and should not discriminate among foreign products or suppliers;

Recognizing that it is desirable to provide transparency of laws, regulations, procedures and practices regarding government procurement;

Recognizing the need to establish international notification, consultation, surveillance and dispute settlement procedures with a view to ensuring a fair, prompt and effective enforcement of the international provisions on government procurement and to maintain the balance of rights and obligations at the highest possible level;

Hereby agree as follows:

MTN/NTM/W/211/Rev.1
Page 5

1.

PART I

Scope and Coverage

This Agreement applies to:

(a) any law, regulation, procedure and practice regarding the procurement of products by the entities1 subject to this Agreement. This includes services incidental to the supply of products if the value of these incidental services does not exceed that of the products themselves, but not service contracts per se;

2

No

(b) any procurement contract of a value of SDR 150,000 or more." procurement requirement shall be divided with the intent of reducing the value of the resulting contracts below SDR 150,000. If an individual requirement for the procurement of a product of the same type results in the award of more than one contract or in contracts being awarded in separate parts, the value of these recurring contracts in the twelve months subsequent to the initial contract shall be the basis for the application of this Agreement;

(c) procurement by the entities under the direct or substantial control of parties to this Agreement and other designated entities with respect to their procurement procedures and practices. Until the review and further negotiations referred to in the Final Provisions, the coverage of this Agreement is specified by the lists of entities, and to the extent that rectifications, modifications or amendments may have been made, their successor entities, in Annex I.

2. Parties shall inform their entities not covered by this Agreement and the regional and local governments and authorities within their territories of the objectives, principles and rules of this Agreement, in particular the rules on national treatment and non-discrimination, and draw their attention to the overall benefits of liberalization of government procurement.

Throughout this Agreement, the word entities is understood to include

agencies.

2For contracts below the threshold, the parties to this Agreement shall

consider, in accordance with paragraph 6 of Part IX, the application in whole or in part of this Agreement. In particular, they shall review the procurement practices and procedures utilized and the application of nondiscrimination and transparency for such contracts in connexion with the possible inclusion of contracts below the threshold in the Agreement.

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