Session 1: WTO Work on Transparency in Government Procurement January, Dar es Salaam Vesile Kulaçoglu,WTO Secretariat

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

WTO: Main functions Administering and implementing the multilateral and plurilateral trade agreements Forum for multilateral trade negotiations Dispute settlement Overseeing national trade policy Administering and implementing the multilateral and plurilateral trade agreements Forum for multilateral trade negotiations Dispute settlement Overseeing national trade policy

History: Government Procurement and the WTO Government procurement excluded from the coverage of multilateral rules: - Goods (1947) : GATT Articles III:8 (a) and XVII:2 - Services (1994) : GATS Article XIII:1 Plurilateral Agreement on Government Procurement of 1979 and 1994 (GPA)

Current WTO Work on Government Procurement Multilateral - Working Group on Transparency in Government Procurement established in Work mandated by GATS Article XIII:2 Plurilateral - Government Procurement Agreement (GPA) - Negotiations under GPA Article XXIV:7

Existing International Framework International instruments Regional agreements and initiatives National legislative reforms

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

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) > 50 trade agreements 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) > 50 trade agreements

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

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.

Cancun Ministerial Meeting in September 2003 Transparency in government procurement as part of the « Singapore issues » Consensus on modalitites of negotiations of the agreement

Singapore cf Doha Working Group established Conduct study Develop elements for inclusion in an appropriate agreement 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

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

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

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)

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)

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)