Session 1: WTO Work on Transparency in Government Procurement

1

• Session 1 WTO Work on Transparency in Government
  Procurement
• 14 -17 January, Dar es Salaam
• Vesile Kulaçoglu,WTO Secretariat

2

• INTRODUCTION
• EXISTING INTERNATIONAL FRAMEWORK
• WTO AND GOVERNMENT PROCUREMENT
• MULTILATERAL WORK SINCE 1996
• FUTURE NEGOTIATIONS ON
• THE WTO TRANSPARENCY AGREEMENT

3
WTO Main functions

• Administering and implementing the multilateral
  and plurilateral trade agreements
• Forum for multilateral trade negotiations
• Dispute settlement
• Overseeing national trade policy

4
HistoryGovernment Procurement and the WTO

• Government procurement excluded from the coverage
  of multilateral rules
• - Goods (1947) GATT Articles III8 (a) and
  XVII2
• - Services (1994) GATS Article XIII1
• Plurilateral Agreement on Government Procurement
  of 1979 and 1994 (GPA)

5
Current WTO Work on Government Procurement

• Multilateral
• - Working Group on Transparency in
• Government Procurement established in 1996
• - Work mandated by GATS Article XIII2
• Plurilateral
• - Government Procurement Agreement (GPA)
• - Negotiations under GPA Article XXIV7

6
Existing International Framework

• International instruments
• Regional agreements and initiatives
• National legislative reforms

7
International instruments

• UNCITRAL Model Law on Procurement of Goods,
  Construction and Services
• WORLD BANK Guidelines on goods and works and on
  consultants services
• WTO Plurilateral Agreement on Government
  Procurement

8
Regional Initiatives

• Main regional fora
• APEC Non-binding principles adopted in 1999
• FTAA Negotiations on government procurement
  since 1996
• Other regional agreements (NAFTA, EC Agreements
  with third countries)
• gt 50 trade agreements

9
1996 Singapore Ministerial Mandate

• Establishment of the multilateral Working Group
  
• - to conduct a study on transparency in
  government procurement practices
• - taking into account national policies
• - based on study, develop elements for inclusion
  
• in an appropriate agreement

10
2001 Doha Ministerial Mandate

• Paragraph 26 Doha Ministerial Declaration 2001
• Recognises case for a multilateral agreement and
  need for enhanced technical assistance and
  capacity building
• Agreement that negotiations will take place after
  the 5th Ministerial Conference on the basis of
  explicit consensus at that Session on modalities
  of negotiations.
• Negotiations to
• build on the progress made in the Working Group
  on Transparency in Government Procurement by that
  time
• take into account participants' development
  priorities, especially those of least-developed
  country participants.
• be limited to the transparency and will not
  restrict the scope for countries to give
  preferences to domestic supplies and suppliers.

11
Cancun Ministerial Meeting in September 2003

• Transparency in government procurement as part of
  the  Singapore issues 
• Consensus on modalitites of negotiations of the
  agreement
• 2003-2005

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Singapore cf Doha

• The case for a multilateral agreement recognized
• Agree to negotiations
• after the 5th Ministerial Conference in 2003
• Decision at 5th MC on modalities for negotiation
• Future negotiations to be built on the progress
  made in the WGroup

• Working Group
• established
• Conduct study
  
• Develop elements for inclusion in an appropriate
  agreement
  

13
Negotiations and future agreement limited to
transparency

• Singapore cf
• Study
• on transparency in government procurement
  practices
• to take into account national policies

• Doha
• Negotiations
• shall be limited to transparency aspects
• will not restrict the scope for countries to
  give preferences to domestic supplies and
  suppliers

14
Development Dimension

• Singapore
• No direct reference
• to development dimension

• Doha
• Recognizing the need for enhanced technical
  assistance and capacity building
• Negotiations will take into account participants
  development priorities, especially those of least
  developed countries
• Commitment to ensuring adequate technical
  assistance and support for capacity building

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Twelve Elements under discussion

• Definition and scope of government procurement
  (item I)
• Procurement methods (item II)
• Publication of information on national
  legislation and procedures (item III)
• Information on procurement opportunities,
  tendering and qualification procedures
• (item IV)

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Twelve Elements under discussion ( contnd

• Time-periods (item V)
• Transparency of decisions on qualification
• (item VI)
• Transparency of decisions on contract awards
• (item VII)
• Domestic review procedures (item VIII)

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Twelve Elements under Discussion (contnd)

• Other matters (maintenance of records, use of
  information technology, language, fight against
  bribery and corruption) (item IX)
• Information to be provided to other governments
  (notification, enquiry points, statistical
  reporting)
• (item X)
• WTO Dispute Settlement Procedures (item XI)
• Technical cooperation and special and
  differential treatment for developing countries
  (item XII)