Important legal notice
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Summary of Treaty

Official Title Agreement between the European Community and the State of Israel on government procurement
Type of Agreement Bilateral
Place of Signature Brussels
Date of Signature 10/07/1997
Date of Entry Into Force 01/08/1997
Duration Indefinite
Objective of Agreement To complement and broaden the scope of the respective commitments entered into by the European Community and Israel in the Government Procurement Agreement of 1996 and to improve access to their respective procurement markets.
Remarks Government procurement is the term used for the purchasing activities of governmental authorities and covers purchases of everything from pencils and paper clips to computer systems and telecommunications equipment, ship building or consulting services. Government procurement is specifically exempted from the most basic of WTO disciplines (GATT Articles III:8 and XIII:1), in particular that of national treatment. Since it accounts for up to 15% of GDP, this significantly distorts trade and reduces potential growth. The only WTO régime on procurement now in existence is the plurilateral Agreement on Government Procurement (GPA), but apart from the Community, participation in this Agreement remains limited to a dozen or so Parties. The Community's own procurement market is effectively open to foreign competition but, outside the GPA, EC companies are often either de facto or de jure excluded from foreign procurement markets. In the WTO, the EC therefore attaches great importance to two other initiatives underway: * Negotiations on procurement of services mandated by Article XIII.2 of the GATS; * Transparency in Government Procurement. In the meantime, the EU remains committed to the Government Procurement Agreement and has continued to play an active role in its Review, to persuade other countries of the advantages of GPA membership and take and active interest in resolution of GPA Disputes. Outside the WTO framework, the Community has concluded a number of bilateral agreements on government procurement (South Korea, Mexico and the present agreement with Israel). The Community and Israel were participants in the negotiations, which led to the WTO's new Government Procurement Agreement (GPA). However, Israel delayed ratification pending an expansion of coverage to include access to procurement tenders for telecommunications equipment in the EU. As part of the EU-Israel Association Agreement negotiations, both parties reaffirmed their commitment to mutually open their respective procurement markets. Article 35 of the Euro-Mediterranean Association Agreement, signed in 1995, states that the parties shall take measures beyond the scope of what has been mutually and reciprocally covered under the Government Procurement Agreement concluded in the framework of the WTO. The Agreement covers government procurement complementing and broadening the scope of commitments under the GPA. It represents real progress in the EU's goal to continue to open up public procurement markets beyond what has already been achieved in the GPA. Israel will be committed to further market opening in urban transport, services, medical equipment and sub-central government procurement, such as municipal and state agencies. This agreement was adopted together with the agreement on procurement by telecommunications operators.
OJ Reference L202, 30/07/1997, p. 85
Depositary Council of the European Union
Contracting Parties European Community, Israel
Authentic Texts Danish, Dutch, English, Finnish, French, German, Greek, Hebrew , Italian, Portuguese, Spanish, Swedish
Subject Matters Trade
Management Consultations between parties (Article 3)
Conclusion Date 10/07/1997
Ratification Status NOT
Conclusion Decision Council Decision of 24 February 1997 concerning the conclusion of two Agreements between the European Community and the State of Israel on, respectively, procurement by telecommunications operators and government procurement; OJ L 202 of 30/07/1997, p.72
Competence Exclusive
Legal Basis Treaty EC: Article 66
Treaty EC: Article 57
Treaty EC: Article 113

Last Update :   06/08/2007