World Trade Organization Agreement FAQ.doc

THE WORLD TRADE ORGANIZATION /

GOVERNMENT PROCUREMENT AGREEMENT (WTO/GPA)

Frequently Asked Questions:

1. What is the fundamental intent of the WTO/GPA?

The WTO/GPA is an international treaty to which the United States is a signatory. Its basic mission is to create an effective, multilateral, international framework of rights and obligations regarding governmental procurements with a goal of achieving greater liberalization and expansion of world trade. Historically, it has been the United States’ most effective negotiating tool for opening up opportunities for U.S. suppliers to compete for foreign government contracts on a non-discriminatory basis. To date, the GPA has given U.S. firms and their workers access to overseas procurement markets estimated to be worth more than $200 billion annually.

2. What types of procurements does the WTO/GPA apply to?

The WTO/GPA applies to all procurements for commodities/goods and/or services if the maximum potential value of the contract will be in excess of $522,000 (US). Construction services procurements in excess of $7,358,000 (US) are also subject to the WTO/GPA.

3. How frequently does this US dollar threshold change?

It changes every two-(2) years. The next expected change will be in January 2018.

4. Are there any procurement exceptions to the application of the WTO/GPA?

Yes. Procurements under $522,000 (US) or for transportation services, public utility services including telecommunications and electricity provision, research and development and related services, printing services and dredging services are exempt from the treaty’s application. Also, small- and minority-business set-asides and other requirements associated with socio-economic preference programs and procurements from workshops for the sight-impaired, disabled or the products of prison labor are exempted.

5. What steps must be taken by state officials in order for their procurements to comply with the Treaty?

First of all, a notice of the procurement must be advertised by publishing it at least forty (40) days prior to the RFR Response due date to allow vendors to prepare and submit Responses. This notice can be the RFR itself or a notice of planned procurement. Therefore, the notice can be published before the RFR itself is available to the public. This allows for the 40-day period to commence running.

6. Can the 40-day notice period be reduced and, if so, under what circumstances?

Yes. The 40-day period may be reduced to 24 days and to as little as 10 days under documented extenuating urgent circumstances, which justify the reduced period.

7.

What must the notice contain?

The Notice must contain at a minimum: the anticipated contract subject matter, the response due time, date and place, award criteria, terms and conditions, and a statement that the procurement is covered by the WTO/GPA.

8.

What would happen if another country challenges one of my contracts?

If WTO dispute settlement proceedings arise, which challenge a particular state’s measures, the United State Trade Representative’s office will notify the Governor’s office, the Attorney General’s office and other designated state offices as appropriate, and will coordinate closely with them to resolve any questions. Until such time as the challenge is resolved, performance of the contract can go forward unless we agree to suspend its performance or a local court orders its suspension.

9. Where can I go for any further answers to my WTO/GPA issues?

You could contact your Department’s legal counsel, the U.S. Trade Representative’s office in Washington, D.C., or log onto the WTO web site at www.WTO.org.

Revised: September 26, 2017