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FTAA - Free Trade Area of the Americas

Draft Agreement

Chapter on Government Procurement


[Article XXXIII. Publication of the Award]

[1. Having awarded a contract, entities shall publish, [for a reasonable period of time] [one time only] [ at least once] [information on contract awards] [notice] [the award], including: the name of the winning supplier, the value and date of the contract; [a description of the nature and quantity of the goods or services included in the contract; the name and contact location of the procuring entity;] [the [name and] position of the official authorized to sign the contract;] [and the type of procurement procedure used, [and in cases where limited tendering procedures are used, a description of the circumstances justifying the use of such procedures [and whether the award was covered by this Chapter]]].] 

[2. The entities shall publish [such information] [a notice] [award] [in the officially designated media listed in Annex XXXIII.2 (Publication of the Award – no text ) ] [in at least two daily national newspapers] [in a newspaper of national or international circulation] [which is readily accessible to suppliers and other Parties] [within 72 days of][within [3] [5] working days following] [no later than [90] days after] [the award of the contract. [Officially designated media may be electronic or paper.]]] 

[3. The Parties shall endeavor to make this information available to the public through electronic means, such as the Internet.]

[4. Notwithstanding the provisions of the preceding paragraphs, entities may decide, to withhold disclosure of certain awards, where such disclosure may be contrary to law enforcement objectives, or the wider public interest.] 

[Article XXXIV. Confidential Information]

[1. [Nothing in this Chapter shall be construed as requiring any Party and its procuring entities to disclose confidential information which would impede law enforcement or otherwise be contrary to the public interest or would prejudice the legitimate commercial interest of particular enterprises, public or private, [including their intellectual property rights,] or might prejudice fair competition between suppliers [, without formal authorization from the Party or supplier providing the information [, or a legal order that so provides]].] [No provision of this Chapter shall be interpreted as imposing on a Party the obligation of revealing information the divulging of which it considers contrary to vital security interests, or when its dissemination could constitute an impediment to complying with the laws, or if it is contrary to the pubic good, or if it harms the commercial interests of public or private enterprises.] ]

Article XXXV. Review and Appeal Procedure

[1. [Procurement processes must enable suppliers to challenge presumed infractions in the context of a bidding process of interest to them.] Each Party shall adopt or maintain [arbitration or] administrative or judicial procedures which permit, at the request of [an affected] supplier [from another Party], the [prompt] review of administrative decisions affecting government procurement under this Chapter.] 

2. [Each Party shall ensure [in its respective laws] that [[such] [the] appeals] [challenge] procedures are timely, transparent, [and] effective, [and impartial] [and that they comply with the principles of nondiscrimination and due process [, so as to give the right to a hearing to suppliers, who may be represented and assisted and who may submit any type of evidence recognized by the legislation of the Party, to give them access to proceedings, which shall be public except when legal reasons limit publicity, and to insure that the resolutions are available in writing and substained in law making them known to the suppliers through the media established in the legislation of the Party]].] [Each Party shall provide non-discriminatory, timely, transparent and effective procedures enabling suppliers to challenge alleged breaches of the Agreement arising in the context of procurements in which they have, or have had, an interest.]

[3. [[In the event of a complaint by a supplier that there has been a breach of this Chapter, each Party shall encourage such supplier and its relevant procuring entity to seek resolution of the complaint through consultations.] [The Parties shall guarantee that the] Procuring entities shall accord impartial and timely consideration to any such complaint, in a manner that is not prejudicial to suppliers’ participation in ongoing or future procurement activities or to suppliers’ rights to seek corrective measures under the challenge system.] [In the event of a complaint by a supplier that there has been a breach of this Agreement in the context of a procurement, each Party shall encourage the supplier to seek resolution of its complaint in consultation with the procuring entity. Procuring entities shall accord impartial and timely consideration to any such complaint, in a manner that is not prejudicial to suppliers’ participation in ongoing or future procurement activities or to suppliers’ rights to seek corrective measures under the challenge system.]]

[4. Each Party shall apply the procedures for legal redress, claims or complaints which are available to any affected supplier and ensure that their interests are defended. For the purpose of promoting fair, open and impartial procurement procedures, each Party shall adopt and maintain challenge procedures for procurements covered under this Chapter, pursuant to the following:] 
[a) each Party [, consistently with its domestic legislation,] shall allow goods suppliers and service providers to seek legal redress [and/] or enter a challenge at any stage of the procurement process [which, for the purposes of this article, is initiated from the moment an entity defines the purpose of procurement and runs through to the award of the contract];]

[b) each Party shall ensure that [its entities] consider in [an appropriate and] impartial manner any complaint of challenge regarding procurements covered under this Chapter; and]

[c) if the claim is not settled in the administrative sphere, no goods supplier or service provider shall be prevented from appealing to other bodies.] 
[5. [If a complaint is not resolved via consultation channels, it may be submitted to the decision of the [corresponding judicial authority].] [Regardless of who hears the complaint, procedures shall ensure that participating suppliers have the right to a hearing, that they may be assisted and represented, that they have access to all proceedings, and that they can present witnesses and documented evidence. The procedures for presenting challenges shall be available in writing, and the proceedings may be made public.]] 

[6. Each Party shall establish or designate at least one impartial authority, separate and independent from its procuring entities, to receive and review supplier challenges relating to the provisions of this Chapter and make appropriate findings and recommendations. Such authorities shall be authorized to take rapid interim measures, at the time a challenge is initiated, to prevent potential breaches of the provisions of this Chapter, including the possibility of delaying the award of a contract pending the resolution of a challenge.]

[7. Each Party shall provide timely, effective, transparent, [predictable], and non-discriminatory means for suppliers to challenge alleged breaches of this Chapter, without prejudice to suppliers’ participation in ongoing or future procurement activities. All challenge procedures shall be specified in writing and made generally available.] 

[8. [In the event that a challenge is initially reviewed by a body other than an authority established or designated under paragraph 4 (SIC),] each Party shall ensure that suppliers may appeal the [initial decision] [award, alleging procedure irregularities,] [of the procuring entity] to an impartial administrative or judicial authority which is separate and independent from the procuring entity that is the subject of the challenge.] 

[9. Each Party shall ensure that review procedures are conducted in accordance with the following:] 
[a) Suppliers shall be allowed a sufficient period of time to prepare and submit challenges, which in no case shall be less than [10] [5] days from the time when the basis of the complaint became known or reasonably should have become known to the supplier.] 

[b) The proceedings shall be conducted in an open and transparent manner, consistent with [predictable,] written procedures that are readily available to all participants in advance.] 

[c) A supplier that initiates a complaint [shall] [may] be provided an opportunity to be heard prior to a decision being reached on its complaint, and that supplier, its designated representatives, [witnesses, and other interested participants] shall have access to the [review proceedings at all times] [ruling on its appeal] [, with due regard to proprietary rights of suppliers and national security interests].] 

[d) Decisions relating to supplier challenges shall be provided in a timely fashion, in writing, with an explanation of the basis for each decision.] 

[e) Procuring entities [and suppliers that initiate complaints and/or challenges] shall disclose all relevant documents to the review body.] 

[f) The reviewing authority shall issue a recommendation to resolve the challenge, which may include directing the entity to re-evaluate offers, terminate or re-compete the contract in question.]
[10. All challenges filed by suppliers must specify the points in the tender document and bidding conditions which, in their opinion, were violated in the award of contract to another participating supplier.]

[Article XXXVI. Dispute Settlement]

[[1.] [Differences arising [between the Parties] with regard to the provisions stipulated in the Chapter on government procurement shall be resolved [as indicated in] [in accordance with] the Chapter on Dispute Settlement] [, which establishes the appropriate challenge and dispute settlement mechanisms for appeals].] 

[2. The Chapter on Dispute Settlement of the Agreement does not apply to the differences which arise between the entities and the suppliers of the Parties.]

[Article XXXVII. Technical cooperation and assistance]

[1. [The developed Parties shall provide the smaller and lesser developed Parties with technical cooperation and assistance, to enable them to develop their capacities to fully implement the provisions of this Chapter. Specific obligations are set out in Annex _______ (Technical Cooperation and Assistance – no text ).] [The Parties shall [endeavor to] provide each other with technical cooperation and assistance, taking into account the specific needs of countries, [through the development of] [in the area of] training [programs] [human resources], [in order to achieve a better understanding of their respective] government procurement and statistical [information] systems [, among others] [as well as better access to their respective markets and business opportunities in the field of government procurement].]] 

[2. For that purpose, the Parties shall provide information concerning the training and orientation programs related to their government procurement systems and nondiscriminatory access to any program they conduct. The training and orientation programs include:]
[a) training of public sector personnel who directly participate in government procurement procedures;]

[b) training of suppliers interested in taking advantage of the business opportunities in the government procurements;]

[c) explication and description of specific aspects of the Parties’ government procurement systems, such as their appeals mechanisms;]

[d) information on the market opportunities of Parties’ government procurements; and]

[e) training in the different electronic programs used by the Parties to process the government procurement data and provide statistics on them.] 
[3. The developed countries of the FTAA will cooperate with developing countries and countries with small and vulnerable economies, providing technical and financial support in this process. Also, they will provide technical assistance for solving problems related to government procurement, when requested by the developing countries. Specific obligations related to technical and financial assistance are laid out in Annex XXXVII.3 (Technical Cooperation and Assistance – no text ).] 

[4. Developed Parties to this Agreement shall seek to facilitate the requests of the small economies for technical assistance in the development and maintenance of suitable infrastructure to ensure the easy accessibility and availability of information in these member states. Smaller economies will require technical assistance in ensuring that notifications issued regarding invitations to participate in a procurement process are easily accessible to other parties as well as among smaller economies, particularly in light of the hardware requirement associated with the use of electronic media.]

[Article XXXVIII. [Special and Differential Treatment and Transitions] [Treatment of the Differences in the Level of Development and Size of Economies]]

[1. [[In accordance with the principles enshrined in this Agreement/Chapter] Parties to this Agreement shall, [in the implementation and administration of this Agreement,] apply the principle of] [Notwithstanding the general provisions of this Chapter, Parties shall, in the implementation and administration of this Agreement, accord] special and differential treatment [and accord flexible treatment] to the [smaller] economies of the hemisphere, taking into account, inter alia, their [small size,] level[s] of development [and the size of their economies] [and vulnerability to external shocks, [so that they can gradually conform and adapt] [in order to facilitate the shaping and adaptation of] their institutions to the new international context and harmonize their national laws, with a view to achieving the level of development they need to participate effectively in the agreement on government procurement, with the intention of creating the opportunity for all participating countries to effectively reap the benefits of the agreement. Such measures shall include, but are not limited to measures to:]]
[a) safeguard their balance of payments position and ensure a level of reserves adequate for the implementation of programmes for national economic development;]

[b) promote the establishment or development of domestic industries, through [the use of offsets,] exceptions to the national treatment obligations, such as buy national policies, including the development of small scale and cottage industries and economic development of other sectors of the economy;]

[c) support industrial units [or service providers,] so long as they are wholly or substantially dependent on government procurement;]

[d) encourage economic development and expansion through sub-regional arrangements] 
[2. [Developed countries, when drawing up their coverage schedules, shall make every effort to include entities that procure goods or services which developing countries in the FTAA are interested in exporting.] [Developed countries shall include in their coverage schedules entities that procure goods or services which developing countries in the FTAA are interested in exporting.]]

[3. [Smaller economies] [The countries, according to their level of development,] shall be allowed to maintain certain exceptions in order to pursue the development of domestic industry, the utilization of offsets and the safeguarding of sensitive sectors crucial to the national economic interest.]

[4. Once the present Agreement has entered into force, [developing countries] [the countries, according to their level of development] may ask the Joint Council to grant exceptions for certain entities, sectors, goods or services included on their coverage schedules, in light of the deterioration of their production sectors. Any request submitted by developing countries related to modifying coverage shall be accompanied by all documentation relevant to same, or by any other information that may be needed to consider the request.] 

[5. It is prohibited for entities in developed countries to use offsets in the qualification and selection of suppliers, for goods and services and in evaluating tenders or awarding contracts, such as the imposition of conditions that encourage local development or improve balance of payments accounts by such methods as local content requirements, licensing of technology, investment, compensatory trade or similar requirements.]

[6. [Nevertheless,] government entities [of the countries, according to their level of development especially] within smaller economies shall be allowed to utilize offsets [, under certain conditions,] in the qualification and selection of suppliers, products or services and in the evaluation of tenders and awards of contracts. Such offsets may include the requirement for incorporation of domestic content, among other provisions.]

[7. Developing countries and countries with small or vulnerable economies may apply objective and clearly defined offsets [which are not discriminatory]. These countries will receive special compensatory treatment in terms of longer time limits, exceptions to rules and greater support.]

[8. [Developing] countries, [according to their level of development, especially the smaller economies,] in the procurement of goods and services, may establish reservations in an amount not to exceed [ ___ ] [20] %; in the case of works, they may establish reservations in an amount not to exceed [ ___ ] [30] %.] 

[9. In fulfillment of the provisions of this Chapter, the adjustment period should not be more than ___ or ___.] 

[10. [Countries, according to their level of development, especially the,] Smaller economies shall be allowed a transitional period of 20 years to complete the full implementation of the provisions of this arrangement, beginning from the date of its entry into force.]

[11. The following countries or territories shall be granted a transition period of ___ years to accord reciprocal and/or national treatment to the other countries of the area; the following countries or territories will not have a period of ___ years.]

[12. [Countries, according to their level of development, especially the] Smaller economies [should also be allowed to] [may] engage in joint regional bidding for the award of contracts given the limitations of small size and limited infrastructural capability. Recognizing that such regional bidding will require a longer period for the preparation and submission of bids by [smaller economies] [those countries], more developed members should facilitate, as far as possible, the full participation of [smaller economies] [those countries] in the process.]

[13. [Countries, according to their level of development, especially the] Smaller economies retain the right to utilize all procurement methods (i.e. open tendering, selective tendering and limited tendering), provided that such methods are utilized in a transparent manner.]

[Article XXXIX. Administration of the Agreement]

[1. The Parties shall establish a Government Procurement Committee, composed of representatives of each of them, to be appointed within [ ____ ] [60 days] following the entry into force of this Agreement.] 

[2. The Government Procurement Committee shall have the following duties:] 
[a) oversee the implementation of the Chapter and compliance with its provisions;] 

[b) unless otherwise agreed to by the Parties, review the results of this Chapter’s application every two (2) years;] 

[c) meet [at least] once a year [, or when necessary,] to [examine] [evaluate] the operation of the Chapter and progress in achieving its objectives;] 
[d) conduct consultations and studies intended to incorporate the entities listed in Annex VII.1 (Entities) into the scope of this Chapter;] 

[e) promote the development and implementation of the [electronic] information and intermediation system referred to in Article XVIII ;] 

[f) coordinate the exchange of statistical information on government procurement;] 

[g) coordinate and promote the design of training programs for the Parties’ competent authorities;] 

[h) enhance technical cooperation and assistance referred to in Article XXXVII; and] 

[i) promote opportunities for micro-enterprises and small- and medium-scale enterprises, etc.] 
[3. The regulation and specific functions of the Committee on Government [Acquisitions and] Procurement is in Annex XXXIX.3 (Administration of the Agreement – no text ) to this Chapter.] 

[4. The committee may set up working groups or other auxiliary bodies to help in carrying out its assigned tasks.] 

[Article XL. [Amendments] [Modification to coverage]]

[1. The Agreement, its annexes and its appendices may be amended after the proposed amendment has been submitted to the corresponding body for consideration. Amendments shall enter into force [after notification that all legal proceedings have concluded] [after notification of the Parties to this Agreement by means of publication].]

[2. The Parties shall conduct consultations, at the request of any of them, to examine the possibility of incorporating the entities covered by Annex VII.1 (Entities) into the scope of this Chapter.] 

[3. A Party may make modifications to the scope of the present Chapter only under extraordinary circumstances.] 

[4. The Parties shall approve these agreements, in accordance with the terms of Article ___ [(Free Trade Commission)] [Administration of the Agreement].] 

[5. [In the case of privatization of the Parties’ entities covered by this Chapter, no provision in this Chapter shall be interpreted as meaning that a Party is prohibited from privatizing an entity covered in this Chapter. In these cases, another Party may not demand compensation of any kind.[The privatized entities shall not be subject to this Chapter’s application.]] [Nothing in this Chapter shall be construed to prevent a Party from withdrawing an entity covered by this Chapter if the State’s loses its effective control over the entity or if such control is removed from the State. [In these cases, another Party may not demand compensation of any kind.]] [The privatized entities shall not be subject to this Chapter’s application.]] 

[6. A Party may reorganize its [government] entities covered in this Chapter. This may include programs for the decentralization of procurement by said entities or decentralization of public functions, which an entity may cease to carry out, whether or not it is covered by this Chapter. No Party may withdraw entities covered by this Chapter with the intention of avoiding compliance with the obligations herein.] 

[7. Where an entity covered by this Chapter is withdrawn, any Party may request the initiation of negotiations with a view to obtaining compensation for the purpose of restoring balance to the coverage.]

[8. Notwithstanding the provisions herein above, a Party may make rectifications only as to form and minor amendments to its lists in the Annexes. The Party shall notify such rectifications to the ___ . [If no Party enters an objection to such rectifications within 90 (ninety) days, the] [Such] rectifications shall not trigger negotiations for the purpose of obtaining compensation and shall enter into force immediately [after this time period].]

[9. The withdrawal of an entity by [a Party] under this Chapter shall be preceded by a communication to ___ .]

[10. Each Party shall notify [within ___ days of their approval] modifications [relating to Annexes XI.3 (Publication of Laws and Regulations- no text ), XVIII.2 (Publication of Invitation to tender- no text ), XIX.1 (Invitation to participate in a Supplier List under Selective Tendering Procedures- no text ), XXI.2 (Shorter Time Periods- no text), and XXXIII.2 (Publication of the Award- no text )] [to its Laws and Regulation] to the other Parties or the Committee. [They shall become effective provided there is no objection within 30 days.]] 

[Article XLI. Privatization

1. No provision of this Chapter shall be construed to hinder the privatization of an entity covered in this Chapter by any Party. In these cases, another Party may not demand compensation. 

2. Privatized entities shall not be subject to the application of this Chapter.]

[Article XLII. Systems for implementing the Agreement]

[1. The Committee on Government [Acquisitions and] Procurement shall take the necessary steps to create within the Hemisphere statistical systems and an information platform which would allow the systematization of the information on Government [acquisitions and] procurement, with sufficient transparency and without discrimination.]

[2. Procuring entities shall prepare a report in writing on each contract awarded through limited tendering. Each such report shall include the name of the procuring entity, the value and kind of goods or services procured [, and a statement indicating the circumstances and conditions described in the previous paragraph that justified the use of limited tendering]. Entities shall retain each such report for a minimum of three years.]

[3. Parties shall ensure that their procuring entities maintain and make available upon request by any other Party, records of tendering procedures relating to procurements subject to this Chapter. [Procuring entities shall maintain such records for a period of at least [three] [five] years.]] 

[Annex V.1 Rules of Origin]

[1. The provisions contained in the Chapter on rules of origin shall apply to [goods acquired through] government procurement. [The following will be considered as originating in the FTAA: all live animals born and bred there, and the by-products of same; plants and plant by-products harvested or gathered there; minerals and other substances that are found there naturally; products of the sea and of the ocean floor and sub-floor extracted from its territorial waters; merchandise produced on board ships (factories), manufactured using products of the sea (fish, crustaceans, mollusks, and other aquatic invertebrates); merchandise prepared exclusively in the Parties of the FTAA using products that originate there; and merchandise that incorporates materials or products not originating there and whose processing bestows a new identity on them.]]

[2. A good shall be considered to be of national origin if the cost of the national materials, labor and [other] services used to produce it constitutes not less than 50% of their total cost.]

[3. Regarding the nationality of the enterprise, it must be constituted in conformity with the laws of the Party in which it has its principal domicile, or must have its principal business office in a Party of the FTAA. [More than 50% of its capital must be [domestically] owned [by a natural person or legal entity of one of the Parties of the FTAA, or by a citizen or resident of same]. Also, it must constitute an integral part of the economy of the Party in which it is domiciled.] ]

[Annex VII.1. Entities]

[Positive List:]

  • [Government entities at the central and sub-central levels]
  • [The federal and sub-federal government entities]
  • [Municipalities]
  • [State or Government enterprises]
  • [Decentralized, Autonomous and Semi-autonomous Institutions]
  • [Public enterprises that finance, totally or partially, 50% or more of their annual budget with public resources]
  • [Private companies that finance more than 50% of their annual budget with public resources.]
[This does not include government institutions in which 50% or more of their funding is contributed by their members; also, public enterprises in which 50% of the capital stock belongs to individuals are excluded.]

[Negative List:]

[For (…)] 

[Annex X.1. [Exceptions] [Types of Procurement]]

[Negative List:] 

[They types of government procurement excluded from this Chapter are the following:]

[a) government procurement processes for defense, of a strategic nature, and other procurements related to national security;] 

[b) government procurement of personnel assigned to perform duties inherent to the entities; and] 

[c) government procurement carried out with funds from States, regional or multilateral organizations, or persons that impose conditions inconsistent with the provisions of this Chapter.] 

[d) [Administrative] [Public] concessions.]

[e) procurement of armaments by the military and national police.] 
[Annex XXV. 3 e) Information Requirements for Qualification Procedures]

[1. A certifiably clean legal record, as well as the fulfillment of tax and reserve obligations shall be recognized, provided that such certification is submitted [by the bodies listed in Annex ___] [and certified by the competent public institutions of each Party], an insurance-backed guarantee of the bid, as well as an insurance-backed guarantee of performance.]

[1. Financial bonds and guarantees, technical qualifications and the information necessary to verify their financial, commercial and technical capacity, as well as certification of their legal existence issued by the competent authority of the Parties, if they are juridical persons.] 

[a) General requirements
  • Exact address or business address

  • Telephone and fax number 

  • Email address and post office box number]

[b) Legal capacity to conduct business 

  • Articles of incorporation and by-laws duly registered with the relevant government registering entity,

  • Power of attorney duly registered with the relevant government registering entity

  • A statement attesting that the supplier is not the subject of a suit brought by creditors, is not bankrupt, in receivership or subject to an injunction. 

  • A statement attesting that the supplier is not prohibited under national law from conducting business. 

  • Foreign-registered companies shall comply with the requirement to present a duly notarized document that certifies the incorporation of the company, as well as appoint a legal representative in the country, who shall be registered with the relevant government registering entity.

  • Current and previous year's financial statements]

[c) Technical capacity to conduct business

  • Relevant operating license 

  • Background on the natural person or legal entity in the field of business

  • Other (in accordance with the specific characteristics of the project for which tenders are to be invited) ]

[For Validation]

  • [ [Uncertified or certified] Copy of charter]

  • [Uncertified or certified] Copy of certificate legalizing enterprise (legal existence)

  • [Notice of constitution of enterprise]

  • [Uncertified or certified] Copy of list of shareholders

  • [[Uncertified or certified] Copy of by-laws of enterprise]

  • [Certification from a court that the enterprise has not filed for bankruptcy]

  • [Certification from a court that no judicial ruling has been issued against the enterprise]

  • [Proof of payment of taxes in its country.]

[For pre-qualification

  • Letter of introduction

  • List of projects executed by the enterprise in the specific field of the bidding process, indicating amount, beginning and ending dates, and evidentiary documents of the satisfactory execution of same

  • List of projects currently being executed by the enterprise, indicating amount, percentage completed, beginning date and possible ending date

  • List of executive and technical personnel of the enterprise who work in the specific field of the bidding process (curriculum vitae)

  • List of equipment available for use in the specific area of the bidding process

  • Organizational chart, showing structure and personnel of enterprise

  • Financial statement of the enterprise

  • Credit record and bank references of the enterprise

  • Credit record and business references.]

[Regarding the procurement of goods and services, in order to guarantee compliance with their obligations, tenderers and winning tenderers must post [performance] bonds with [their tenders and contract] [the] award[s], [and if applicable, for the total advance received] in the amount established in each case. In cases of non-compliance by the contractor, the bond shall be forfeited [in accordance with the procedures established in the laws of each Party].]

[Likewise, the participants in [bidding processes and] the awarding of contracts for works and services are obligated to post [bid bonds, contract or] performance bonds, payment bonds and bonds covering hidden defects [, when this requirement is duly set out in the tender documents].]

[Annex ___: Definitions]

[Government Procurement: any type of modality of government procurement of goods, services, or of a combination of goods and services, envisaged in the respective current legislation and carried out by the public entities of the Parties. This concept shall include public works concessions.]

[Limited tendering procedures: procedures in which a procuring entity does not issue an advance notice of invitation to tender and invites tenders only from a supplier [or suppliers] that the entity identifies through an internal non-competitive selection process.]

[Measures: includes any law, regulation, procedure, requirement or practice.]

[Offsets [or Performance Requirements]: any [requirements] or conditions imposed or considered by an entity, prior to, or in the course of the procurement process, in order to foster local development or improve its balance of payments accounts, by means of local content requirements, licensing of technology, investments, compensatory trade or similar requirements.]

[Open Tendering Procedures: those procedures in which the procuring entity permits all interested suppliers to participate in a procurement competition.]

[Privatization: a process by means of which a public entity is released from State control, be it through public tendering of shares in that entity or otherwise, as provided for in the Parties’ applicable legislation in force.]

[Selective Tendering Procedures: those procedures in which the procuring entity:

a) requires each supplier to be qualified before such supplier may participate in the tendering process; and 

b) permits interested suppliers to apply for qualification while the tendering process is underway.]
[State control: when the State has a majority economic share [and/or effective control of the entity].] 

[Technical specification: a specification which sets down the characteristics of goods or their related processes and production methods, or the characteristics of services or their related operating methods, such as quality, performance, safety and dimensions, including any applicable administrative provisions. It may also include or deal exclusively with issues relating to terminology, symbols, packaging, marking, labeling or the processes and methods for their production and requirements relating to conformity assessment procedures prescribed by procuring entities, as they apply to goods, processes, or production and operating methods.] 

[Provider: a person of any Party that provides goods or services pursuant to the this Chapter.]

[Tendering procedures: all procedures for government procurement that are not limited tendering. ]

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