GPA INITIAL OFFER STEP BY STEP: HOW TO USE EXISTING PARTIES’ SCHEDULES AS GUIDANCE & RECIPROCITY Anna Caroline Müller Legal Affairs Officer, WTO Secretariat EBRD Capacity Building Session for Azerbaijan, Kazakhstan and Tajikistan London, UK 9 December

ACCESSION STEP BY STEP 2

3 The accession process step by step initiation Communication of interest in accession to Director-General and Committee on Government Procurement. Submission of relevant information, including on: (i) proposed coverage (draft Appendices); and (ii) national legislation negotiation Consultations to be held by the Committee, as necessary (supplemented by bilateral discussions with individual Parties) conclusion Agreement on terms of accession, submission of Report on legislation and decision by the GPA Committee Deposit of accession instrument/terms and entry into force 30 days later

Legislative Compliance Replies to the Questionnaire Questions by Parties Answers to questions, Legislative changes if necessary Coverage Appendix I Offer Negotiations with Parties (bilateral meetings before GPA meetings) Revised Offer (several rounds of negotiation & offer) 4

THE INITIAL OFFER STEP BY STEP 5

Structure of Appendix I Annex 1: Thresholds Central Government Entity list Notes Annex 2: Thresholds Sub-central government Entity list Notes Annex 3: Thresholds Other Entity list Notes Annex 4: Goods All goods: restate Notes non-sensitive defense procurement Annex 5: Services Positive list Notes Annex 6: Construction Services CPC Div. 51 Notes ? Annex 7: General Notes List notes of general application Transitional measures 6

What is negotiable – some experiences 7 o Basically everything in your offer. BUT o Reciprocity o Expectations that generally accepted standards will by met o Explain where your system/situation differs, know your economy.

EntitiesGoodsServicesConstruction Services Annex 1130,000 5,000,000 Annex 2200,000 5,000,000 Annex 3400,000 5,000,000 o Coverage commitments of covered goods/services/construction services by covered entities are only applicable to procurements above specified thresholds. o Most Parties apply the general threshold levels. o Reciprocity is the foundation of coverage commitments generally. o Revised GPA: Some reductions in thresholds by some Parties Thresholds (general levels in SDR) 8

Summary overview of coverage Annex 1: Central Government Entities Generally comprehensive coverage Annex 2: Sub-central Government Entities Some Parties do not cover all entities at this level Some important improvements in 2012 GPA (e.g. Canada). Annex 3: Other entities E.g. public utilities, state-owned enterprises. Variable coverage Importance depends on structure of economy Annexes 4-6: goods, services, cons services Goods (Annex 4): in principle covered: negative list; defence list Services (Annex 5): Mostly positive list; negative list: US. Armenia: full coverage Construction services (Annex 6): full coverage of CPC 51 + BOTs Notes and General Notes: a balancing tool 9

Flexibilities 10 Transition period Offset Price preference Initially higher thresholds Phasing-in entities

USE EXISTING PARTIES’ SCHEDULES AS GUIDANCE 11

e-GPA: 12

Concluding Remarks o Reciprocity is key! o Study existing Parties’ coverage. o Set your goals, negotiating strategy before making your first offer! o Strategic considerations. Plan ahead! 13