1. 1 Session 9 - Government -to-government dispute settlement procedures APPLICATION OF WTO DISPUTE SETTLEMENT PROCEDURES TO GOVERNMENT PROCUREMENT 14-17 January 2003, Dar es Salaam Vesile Kulaçoglu, WTO Secretariat

2. 2 Enforcement of rules Enforcement of rules Two distinct systems Domestic bid challenge systems Domestic bid challenge systems WTO Dispute Settlement Procedures WTO Dispute Settlement Procedures Kulacoglu:

3. 3 How the two DS systems are distinct? WTO DSP Accessibility open only to governments Grounds breaches of a WTO agreement breaches of a WTO agreementRelief prospective, change of the measure breaching the rules prospective, change of the measure breaching the rules DOMESTIC BID CHALLENGE Accessibility open to suppliers open to suppliersGrounds breaches of national law or GPA breaches of national law or GPA Remedies (GPA Article XX) rapid interim measures correction of the breaching measure rapid interim measures correction of the breaching measure compensation, suspension of the contract compensation, suspension of the contract

4. 4 Five DS cases under the WTO/GPA -Three Panels Procurement of toll collection equipment for the City of Trondheim in Norway (1992) Procurement of toll collection equipment for the City of Trondheim in Norway (1992) Procurement of a Sonar Mapping System in the United States (1992) Procurement of a Sonar Mapping System in the United States (1992) Measures affecting government procurement in the construction of the Inchon International Airport in Korea (1999-2000) Measures affecting government procurement in the construction of the Inchon International Airport in Korea (1999-2000)

5. 5 2 cases resolved through consultations R Procurement of a navigation Satellite by Japan (1997-98) R Massachusetts State Law prohibiting contracts with firms doing business in or with Myanmar (1997-2000)

6. 6 Discussions in WGTGP on the application of WTO DS Procedures Arguments in favour of the linkage to WTO/DSU: Systemic Transparency agreement to reflect the general approach in other WTO agreements Transparency agreement to reflect the general approach in other WTO agreements

7. 7 Questions raised regarding the linkage to WTO/DSU Nature of the future agreement Will the future agreement be part of the single undertaking? Would the agreement be in the form of guidelines? Would the agreement be in the form of guidelines?

8. 8 Substance of the future obligations How WTO/DSU apply to certain obligations ? How would WTO/DSU apply in the absence of market access commitments? How would WTO/DSU apply in the absence of market access commitments?

9. 9 In what circumstances, if any, should WTO dispute settlement apply to individual procurement decisions and domestic legislation ? In what circumstances, if any, should WTO dispute settlement apply to individual procurement decisions and domestic legislation ? How would WTO DSU and domestic review mechanisms interact? How would WTO DSU and domestic review mechanisms interact?