INFORMAL MEETINGS OF THE WTO GOVERNMENT PROCUREMENT COMMITTE

UNCLAS GENEVA 001505

SIPDIS

SENSITIVE BUT UNCLASSIFIED

E.O. 12958: N/A
TAGS: ECON ETRD WTO
SUBJECT: INFORMAL MEETINGS OF THE WTO GOVERNMENT PROCUREMENT COMMITTE
DURING THE WEEK OF MAY 30, 2005


1. (U) SUMMARY AND BACKGROUND: DURING THE WEEK OF MAY 30, 2005, THE
U.S. DELEGATION, LED BY JEAN HEILMAN GRIER, SENIOR PROCUREMENT
NEGOTIATOR, USTR, AND INCLUDING STEPHEN KHO, U.S. MISSION TO THE WTO,
AND JOHN LIUZZI, DEPARTMENT OF COMMERCE, PARTICIPATED IN INFORMAL
MEETINGS OF THE WTO GOVERNMENT PROCUREMENT COMMITTEE (COMMITTEE). TH
COMMITTEE MADE SUBSTANTIAL PROGRESS ON THE REVISION OF THE 1994
GOVERNMENT PROCUREMENT AGREEMENT (GPA) TEXT, SIGNIFICANTLY FACILITATE
BY A JOINT UNITED STATES-EUROPEAN COMMUNITIES SUBMISSION ON A NUMBER
OF PROVISIONS, AND A JOINT US-CANADA-JAPAN SUBMISSION ON THE DEVEOPIN
COUNTRIES ARTICLE. THE COMMITTEE ALSO HELD A SESSION ON HORIZONTAL
COVERAGE ISSUES, WHICH FOCUSED ON A U.S. SUBMISSION. THE U.S. MISSIO
HOSTED A QUAD MEETING ON MAY 31. THE U.S. DELEGATION ALSO
PARTICIPATED IN A BILATERAL MEETING WITH THE REPUBLIC OF KOREA
DELEGATION ON MAY 30. THE NEXT COMMITTEE MEETINGS ARE SCHEDULED FOR
THE WEEK OF JULY 18. END SUMMARY.


2. (SBU) QUAD MEETING: THE U.S. MISSION HOSTED A QUAD MEETING ON MA
31, 2005, WHICH DISCUSSED THE US-EC JOINT SUBMISSION ON REVISION OF
THE TEXT AND THE US-CANADA-JAPAN JOINT SUBMISSION ON THE DEVELOPING
COUNTRIES ARTICLE. THE QUAD ALSO DISCUSSED THE ORGANIZATION OF THE
WORK OF THE COMMITTEE.


3. INFORMAL MEETINGS OF THE COMMITTEE ON GOVERNMENT PROCUREMENT


4. (SBU) HORIZONTAL COVERAGE ISSUES: ON MAY 30, THE COMMITTEE HELD
AN INFORMAL SESSION ON THE SO-CALLED "HORIZONTAL COVERAGE ISSUES
PURSUANT TO THE COMMITTEE'S DECISION ON MODALITIES FOR THE
NEGOTIATIONS ON EXTENSION OF COVERAGE AND ELIMINATION OF
DISCRIMINATORY MEASURES AND PRACTICES (GPA/79),JULY 2004. THE
DISCUSSION FOCUSED ON A U.S. SUBMISSION (JOB 3373),MAY 20, 2005,
WHICH INCLUDED TEXT PROPOSALS RELATED TO HORIZONTAL COVERAGE ISSUES,
SUCH AS BUILD-OPERATE-TRANSFER CONTRACTS, THE DEFINITION OF
PROCURMENT, AND PROPOSED AGREEMENT-WIDE EXCLUSIONS. THE U.S. PAPER
ALSO PROPOSED MODIFICATIONS TO THE STRUCTURE AND THE CONTENT OF THE
ANNEXES TO ENSURE GREATER UNIFORMITY AND TRANSPARENCY, AS WELL AS TO
REMOVE UNNECESARY REPETITIONS. THE U.S. PROPOSALS WERE INCORPORATED
INTO THE REVISION OF THE TEXT. CANADA ALSO TABLED PAPERS ON
HORIZONTAL COVERAGE ISSUES.

5. (SBU) REVISION OF THE TEXT: THE COMMITTEE'S INFORMAL DRAFTING
SESSIONS ON THE REVISION OF THE AGREEMENT WERE VERY PRODUCTIVE, IN
LARGE MEASURE DUE TO THE COMMITTEE'S POSITIVE RESPONSE TO THE JOINT
U.S.-EU PROPOSALS ON A NUMBER OF PROVISIONS. THE PROPOSALS WERE
INCORPORATED INTO THE TEXT AS THE BASIS FOR CONTINUED NEGOTATIONS.
THE PROPOSALS PROVIDED THE COMMITTEE WITH A BASIS FOR FINALLY MOVING
FORWARD ON THE LONG-CONTENTIOUS ARTICLE VIII (CONDITIONS FOR
PARTICIPATION). SIMILARLY, THE JOINT SUBMISSION PROVIDED A BASIS FOR
SIGNIFICANT PROGRESS ON VALUATION PROVISIONS. ARTICLE XVI
(MODIFICATIONS AND RECTIFICATIONS TO COVERAGE) (AND A RELATED PROPOSE
COMMITTEE DECISION ON WORKING PROCEDURES FOR ARBITRATION),AND ARTICL
XVIII (CONSULTATIONS AND DISPUTE SETTLEMENT).


6. (SBU) THE JOINT U.S.-CANADA-JAPAN SUBMISSION ON THE DEVELOPING
COUNTRIES ARTICLE (JOB 3026),MAY 4, 2005, SERVED AS THE BASIS OF THE
COMMITTEE'S DISCUSSION ON THAT ARTICLE. THE EC PROPOSED SEVERAL
MODIFICATIONS TO THE PROPOSAL THAT ILLUSTRATED SIGNIFICANT DIFFERENCE
ON CERTAIN ASPECTS OF THE ARTICLE, IN PARTICULAR, THE TYPES OF
TRANSITIONAL MEASURES THAT SHOULD BE FAVORED. THE EU SUPPORTS A MORE
LIBERAL APPROACH TO PROVIDING INCENTIVES FOR DEVELOPING COUNTRY
ACCESSION TO THE GPA THAN DOES THE UNITED STATES.


7. INFORMAL BILATERAL WITH THE REPUBLIC OF KOREA


8. (SBU) THE UNITED STATES DELEGATION ALSO HELD AN INFORMAL BILATERA
DISCUSSION WITH THE KOREAN DELEGATION, BASED ON THE LATTER'S REQUEST,
ON THE STATUS OF MARKET ACCESS NEGOTIATIONS AND CLARIFICATIONS
REGARDING THEIR RESPECTIVE REQUESTS. KOREA ALSO EMPHASIZED THE
DIFFICULTIES IT FACED IN LOWERING ITS THRESHOLDS FOR CONSTRUCTION
SERVICES, WHICH ALONG WITH JAPAN, ARE HIGHER THAN OTHER PARTIES.


9. NEXT MEETINGS OF THE COMMITTEE


10. (SBU) THE COMMITTEE WILL CONVENE AGAIN THE WEEK OF JULY 18, 2005
WITH THE GOAL OF FINALIZING (TO THE EXTENT POSSIBLE) THE REVISION OF
THE NON-MARKET-ACCESS RELATED PROVISIONS OF THE TEXT. THE MAJOR
OUTSTANDING ISSUES IN THE TEXT ARE THE PROVISIONS ON DEVELOPING
COUNTRIES, THE MEANS AND EXTENT OF INCORPORATING ELECTRONIC
PROCUREMENT PROVISIONS INTO THE AGREEMENT, AND CONDITIONS FOR
PARTICIPATION, IN PARTICULAR, JAPAN'S CONCERNS THAT ITS SYSTEM DOES
NOT COMPLY WITH THE CURRENT REVISION. THE COMMITTEE WILL ALSO TAKE U
MARKET ACCESS ISSUES, IN PARTICULAR HORIZONTAL COVERAGE ISSUES, THE
UNITED STATES MAINTAINED ITS VIEW THAT BOTH TEXT AND MARKET ACCESS
WORK SHOULD CONTINUE TO PROGRESS IN PARALLEL, AND THAT BOTH SHOULD BE
COMPLETED BY THE CONCLUSION OF THE DOHA ROUND.

DSHARK