SECTION I

SUMMARY: COMPARATIVE TABLE OF GOVERNMENT PROCUREMENT RULES IN INTEGRATION AGREEMENTS IN THE AMERICAS

 

1.  General Considerations

WTO

NAFTA

MERCOSUR

Andean Group

Central America

CARICOM

Group of Three Accord

Bilateral Agreements with Mexico

Bilateral Agreements with Chile

 

It is one of the four Plurilateral Agreements. The agreement is only applicable to signatory countries.

Among the countries of the region only the US and Canada have signed the agreement.

 

The agreement entered into force on January 1, 1996

 

Chapter 10 of the NAFTA contains obligations similar to those in the WTO Agreement on Government Procurement. The NAFTA, however, adopts lower thresholds, and does not include sub-central government entities.

 

All goods and services are covered unless specifically exempted.

 

Parties will begin negotiations to expand the agreement. Consultations to include provincial and state governments will take place within that context.

 

NAFTA entered into force on January 1, 1994.

 

In December 1994 the Common Market Council created a Technical Committee on "Public Policies which Distort Competitiveness" to treat among other topics government procurement. The Committee is to identify the major themes regarding procurement practices. The Committee has carried out seven meetings with respect to government procurement. However, it has only proceeded to exchange legislation on the subject.

 

The Commission approved in August 1995, the "New Strategic Design of the Andean Group". This document refers to the need for adopting legislation on government procurement.

 

The countries pertaining to the Central-American Common Market are studying the possibility of negotiating an agreement in the area of services were government procurement regulation could be addressed.

 

However, the Central American Agreement on Fiscal Incentives to Industrial Production in its Chapter XI, Article 42 states that: The Governments, autonomous or decentralized government institutions, municipalities and all public entities of the Contracting Parties will give preference in their procurement to products of the Central American industry, provided that the price of these products is equal or inferior to those imported and their quality is comparable. To the effect of price comparison, the price of the imported product (not Central American) will be composed of 50% of the import tariffs, related duties and other import costs, even when the procuring entity is exempted from their payment.

 

In February 1994 the Council approved the "Promotional Program for Increasing Procurement of Regional Goods and Services by Member States from within the Community" and an action plan has been developed. It aims to make national tender procedures and notices known by creating a central regional information coordinating agency.

 

Thresholds are at the same level as NAFTA. Covers goods, services and construction services as well.

 

Colombian and Venezuelan obligations are lower than Mexico?s. For example, most provisions on tendering procedures do not apply for those countries and their respective national legislation apply. Bid challenge procedures do not apply either for these countries.

 

Mexico?s agreements cover all goods, services and construction services.

 

The Mexico-Bolivia and Mexico-Costa Rica Agreements entered into force on January 1, 1995.

 

Four of the five agreements signed contain the same provision. It states that an administrative commission will, within the first year subsequent to the agreement?s entry into force, define the scope and terms that will regulate government purchases among the signatory countries. For that effect, it will consider the criteria established in the GATT procurement code.

 

 

 

 

 

2.1 Scope and coverage

 

WTO

NAFTA

MERCOSUR

Andean Group

Central America

CARICOM

Group of Three

Bilateral Agreements with Mexico

Bilateral Agreements with Chile

 

Covers central and sub-central government entities as well as public enterprises.

 

Product coverage comprises all goods procured by the listed entities and the services, including construction services, that are specified in the agreement. However, the US uses a negative list.

 

Thresholds for central government entities are SDR 130,000 for goods and services and SDR 5,000,000 for construction services.

 

Covers federal government entities and government enterprises.

 

 

Product coverage comprises all goods and services including construction services for the listed entities, unless they are expressly exempted.

 

 

Threshold for federal government departments and agencies is $50,000 for goods and services, except that, between Canada and the US, the threshold is $25,000 for procurement of goods. For construction services the threshold is $6,500,000.

 

Not covered.

 

Not covered.

 

Not covered.

 

Not covered.

 

Covers federal government entities and government enterprises.

 

Product coverage comprises all goods and services including construction services procured by the listed entities, unless they are expressly exempted.

 

Thresholds for federal government entities are $50,000 for goods and services and $6,500,000 for construction services.

However, a number of reservations have been made by the three countries.

 

Covers central and sub-central government entities as well as public enterprises.

 

Product coverage comprises all goods and services including construction services procured by the listed entities, unless they are expressly exempted in the Annexes to the Agreements.

 

Thresholds for federal government entities are $500,00 for goods and services, and $6,5000,000 for construction services. However, for Bolivia transition mechanisms are in place, hence, the current threshold is $90.000 for goods and services and $7,500,000 for construction services. These sums will be gradually reduced down to the Mexican levels by the year 2000.

 

Not covered.

 

2.2 Obligations regarding sub-central levels of government

 

WTO

NAFTA

MERCOSUR

Andean Group

Central America

CARICOM

Group of Three Accord

Bilateral Agreements with Mexico

Bilateral Agreements with Chile

 

Provides coverage for purchases of goods and services by sub-central levels of government.

 

Although not uniform for all countries, the threshold for goods and services is generally over SDR 200,000. For construction services the threshold is over SDR 5,000,000.

 

 

Only federal level coverage but Parties will further negotiate to include state and provincial governments on a voluntary and reciprocal basis. Negotiations should take place before December 31, 1998.

 

Not covered.

 

Not covered.

 

Not covered.

 

Not covered.

 

Only federal level coverage but Parties have undertaken to further negotiate to include State and Departmental governments on a voluntary and reciprocal basis. No date has been specified for further negotiations.

 

Provides coverage for purchases of goods and services by sub-central levels of government. However, only entities from Bolivia and Costa Rica are listed. The thresholds are the same as the ones for federal entities. Both Agreements provide that Parties will further negotiate to include State and Municipal governments on a voluntary and reciprocal basis. Mexico and Bolivia have undertaken to initiate negotiations not after January 1, 1998. Mexico and Costa Rica also provide for future negotiations, but no date has been specified for further negotiations. These negotiations depend on the decision of the Administrative Commission.

 

Not covered.

 

 

2.3 Government enterprises

 

WTO

NAFTA

MERCOSUR

Andean Group

Central America

CARICOM

Group of Three Accord

Bilateral Agreements with Mexico

Bilateral Agreements with Chile

 

Government enterprises are listed in each country?s schedule.

 

Coverage for government enterprises includes purchases of goods and services over SDR 355,000 for Canada and SDR 400,000 for the U.S., and for construction services over SDR 5,000,000. for both.

 

Government enterprises are listed in each country?s schedule.

 

Coverage for government enterprises includes purchases of goods and services over $250,000 and construction services over $8,000,000.

 

Not covered.

 

Not covered.

 

Not covered.

 

Not covered.

 

Similar to NAFTA.

 

Mexico has the same thresholds as NAFTA. Bolivia?s current level of coverage is $450,000 for goods and services and $11,000,000 for construction services. These thresholds will be reduced down to match the Mexican level by the year 2000. Costa Rica?s level of coverage is $250.000 for goods and services, and $8,000,000 for works.

 

 

Not covered.

 

 

2.4 Valuation of contracts

 

WTO

NAFTA

MERCOSUR

Andean Group

Central America

CARICOM

Group of Three

Accord

Bilateral Agreements with Mexico

Bilateral Agreements with Chile

 

Valuation shall take into account all forms of payment, including any premiums, fees, commissions and interest receivable.

 

Prohibits the use of valuation methods and division of procurement with the purpose of avoiding the application of the agreement.

 

It provides for a basis for valuation for cases where an individual procurement has been awarded in more than one contract or in separate parts and contracts that do not specify a total price.

 

 

Similar to WTO.

 

Not covered.

 

Not covered.

 

Not covered.

 

Not covered.

 

Similar to WTO.

 

 

Similar to WTO.

 

Not covered.

 

 

2.5 National treatment and non-discrimination, and most favored nation

 

WTO

NAFTA

MERCOSUR

Andean Group

Central America

CARICOM

Group of Three Accord

Bilateral Agreements with Mexico

Bilateral Agreements with Chile

 

Parties shall accord goods, services and suppliers of other Parties, treatment that is no less favorable than the most favorable treatment accorded to domestic products, services and suppliers or any other Party?s products, services and suppliers.

 

Signatories have specified in their schedules derogations to nondiscrimination and national treatment with respect to other signatories.

 

 

Parties shall accord goods, services and suppliers of other Parties, treatment that is no less favorable than the most favorable treatment accorded to domestic products, services and suppliers or any other Party?s products, services and suppliers.

 

 

Not covered.

 

Not covered.

 

Not covered.

 

Not covered.

 

Essentially similar to NAFTA. Colombia and Venezuela apply their national legislation for tendering procedures, therefore, various articles pertaining to Section B of the Agreement (Tendering procedures) do not apply to these countries. Consequently, Annex to article 15-09 states that concerning tendering procedures Colombia and Venezuela will grant Mexico no less favorable treatment than the most favorable treatment accorded to other countries which are not Parties to the Agreement.

 

Essentially similar to NAFTA.

 

Not covered.

 

2.6 Rules of origin

 

WTO

NAFTA

MERCOSUR

Andean Group

Central America

CARICOM

Group of Three

Accord

Bilateral Agreements with Mexico

Bilateral Agreements with Chile

 

Prohibits the application of rules of origin to products or services from other Parties, which are different from or inconsistent with the ones applied in the normal course of trade.

 

 

Prohibits the application of rules of origin to products from other Parties which are different from or inconsistent with the ones applied in the normal course of trade. Parties may deny benefits to a supplier of services of another party, if nationals of a non-Party own or control the enterprise, and such enterprise has no substantial business activities in the territory of the Party under whose laws it is constituted.

 

Not covered.

 

Not covered.

 

Not covered.

 

Not covered.

To the effect of government purchases covered by the Agreement, no Party will apply rules of origin to imported goods from another Party different than the rules of origin established in Chapter VI of the Agreement, or incompatible with them. Parties may deny benefits to a supplier of services of another party, if nationals of a non-Party own or control the enterprise, and such enterprise has no substantial business activities in the territory of the Party under whose laws it is constituted.

 

Similar to the Group of Three Accord.

 

 

Not covered.

 

 

2.7 Offsets

 

WTO

NAFTA

MERCOSUR

Andean Group

Central America

CARICOM

Group of Three

Accord

Bilateral Agreements with Mexico

Bilateral Agreements with Chile

The use of offsets in the qualification and selection of suppliers, goods or services and evaluation of tenders is explicitly prohibited.

Nevertheless, a developing country may at the time of accession negotiate conditions for the use of offsets, such as requirements for the incorporation of domestic content.

 

The use of offsets in the qualification and selection of suppliers, goods or services and evaluation of tenders is explicitly prohibited.

 

Not covered.

Not covered.

Not covered.

Not covered.

Essentially similar to NAFTA. In addition the Parties will exchange information on the results of the application of programs aimed to support local industries, or the activities of any type of committee set up for the same purposes, such as consultative commissions. Each Party may resort to the Agreement?s dispute settlement mechanism if as a result of the application of such programs or committees, its suppliers are being discriminated.

 

Essentially similar to NAFTA.

Not covered.

 

 

2.8 Technical specifications

 

WTO

NAFTA

MERCOSUR

Andean Group

Central America

CARICOM

Group of Three

Accord

Bilateral Agreements with Mexico

Bilateral Agreements with Chile

 

Prohibits the adoption or application of technical specifications with a view to or with the effect of creating unnecessary obstacle to international trade.

 

 

Similar to WTO.

 

Not covered

 

Not covered.

 

Not covered.

 

Not covered.

 

Similar to WTO.

 

Similar to WTO.

 

Not covered.

 

 

2.9 Special and differential treatment

 

WTO

NAFTA

MERCOSUR

Andean Group

Central America

CARICOM

Group of Three

Accord

Bilateral Agreements with Mexico

Bilateral Agreements with Chile

 

Transitional rules were set out for Hong Kong and Korea. Differential treatment may be provided for developing countries at the time of accession and after the signature of the agreement.

 

 

Not covered.

 

Not covered.

 

Not covered.

 

Not covered.

 

Not covered.

 

Colombia and Venezuela are not bound by bid challenge procedures. and most tendering procedures. The Agreement establishes transitory and permanent reserves or set asides to protect industries identified as ?sensitive? for each country. They are generally entities related to the energy and defense sectors.

 

Establishes transition mechanisms for both Mexico and Bolivia. For Costa Rica no differential treatment is made but it establishes some for Mexico.

 

Not covered.

 

 

3.1 Tendering procedures

 

WTO

NAFTA

MERCOSUR

Andean Group

Central America

CARICOM

Group of Three

Accord

Bilateral Agreements with Mexico

Bilateral Agreements with Chile

 

Tendering procedures shall be applied in a non-discriminatory way. The Agreement provides for three methods of tendering: open, selective and limited.

 

Similar to WTO.

 

Not covered.

 

Not covered.

 

Not covered.

 

Not covered.

 

Essentially similar to the WTO. However, they do not apply for Colombia and Venezuela in their entirety.

 

Essentially similar to the WTO. However, selective tendering procedures do not apply to Costa Rica until established and regulated in its national legislation.

 

Not covered.

3.2 Qualification of suppliers

 

WTO

NAFTA

MERCOSUR

Andean Group

Central America

CARICOM

Group of Three

Bilateral Agreements with Mexico

Bilateral Agreements with Chile

 

Entities are not allowed to discriminate among suppliers or between domestic suppliers and suppliers of other Parties. Conditions to access tendering procedures, such as publication and other requirements shall not be discriminatory.

 

Similar to the WTO.

 

Not covered.

 

Not covered.

 

Not covered.

 

Not covered.

 

Essentially similar to WTO. However, they do not apply for Colombia and Venezuela in their entirety.

 

Essentially similar to WTO.

 

Not covered.

 

 

3.3 Publication invitation to participate

 

WTO

NAFTA

MERCOSUR

Andean Group

Central America

CARICOM

Group of Three

Bilateral Agreements with Mexico

Bilateral Agreements with Chile

 

Entities must publish an invitation to participate for all cases of intended procurement. It can take the form of a notice of proposed procurement, a notice of planned procurement or a notice regarding a qualification system, depending on the method of procurement.

 

Similar to WTO.

 

Not covered.

 

Not covered.

 

Not covered.

 

Not covered.

 

Similar to WTO. However, they do not apply for Colombia and Venezuela in their entirety.

 

Similar to the WTO.

 

Not covered.

 

3.4 Selective Tendering Procedures

 

WTO

NAFTA

MERCOSUR

Andean Group

Central America

CARICOM

Group of Three

Bilateral Agreements with Mexico

Bilateral Agreements with Chile

 

Entities shall invite tenderers from the maximum number of domestic suppliers and other Parties which is consistent with the efficient operation of the procurement system. Suppliers must be selected in a fair and non-discriminatory way.

 

Similar to the WTO.

 

Not covered.

 

Not covered.

 

Not covered.

 

Not covered.

 

Similar to WTO. However, they do not apply for Colombia and Venezuela in their entirety.

 

Similar to WTO. They do not apply to Costa Rica until provided for in its national legislation.

 

Not covered.

 

 

3.5 Time limits for tendering and delivery

 

WTO

NAFTA

MERCOSUR

Andean Group

Central America

CARICOM

Group of Three

Bilateral Agreements with Mexico

Bilateral Agreements with Chile

 

Limits have to be adequate to allow suppliers prepare and submit tenders before the closing of the tendering procedures. To that effect, entities shall take into account factors such as the complexity of the procurement, the extent of the subcontracting anticipated and the time it will take for transmitting tenders by mail from foreign and domestic points.

 

The periods are: For open procedures not less than 40 days from the date of publication of the invitation to participate; for selective procedures, not less than 25 days from the date of publication of the invitation to participate. However, there are a number of exceptions to these general requirements.

 

Similar to WTO.

 

Not covered.

 

Not covered.

 

Not covered.

 

Not covered.

 

Similar to WTO. However, they do not apply for Colombia and Venezuela in their entirety.

 

Similar to WTO.

 

Not covered.

 

3.6 Tender documentation

 

WTO

NAFTA

MERCOSUR

Andean Group

Central America

CARICOM

Group of Three

Bilateral Agreements with Mexico

Bilateral Agreements with Chile

 

Tender documentation must have all the same information as the notice of intended procurement and other information such as: addresses to which tenders and information should be sent; language or languages in which tenders and other documents must be submitted; the closing date and time; the date and time of the opening of tenders and the persons authorized to be present; technical specifications and other conditions, such as terms of payments; and the criteria for awarding the contract.

 

 

Similar to WTO.

 

Not covered.

 

Not covered.

 

Not covered.

 

Not covered.

 

Similar to WTO. However, they do not apply for Colombia and Venezuela in their entirety.

 

Similar to WTO.

 

Not covered.

 

3.7 Submission, receipt and opening of tenders and awarding of contracts

 

WTO

NAFTA

MERCOSUR

Andean Group

Central America

CARICOM

Group of Three

Bilateral Agreements with Mexico

Bilateral Agreements with Chile

 

Submissions must be in writing. They can be submitted directly or by mail or other means if permitted.

 

Suppliers can not be penalized if a tender is received after the time specified because of delays solely due to mishandling on the part of the entity.

 

Tenders must be received and opened under conditions guaranteeing the transparency and regularity of such procedure.

 

An entity is obliged to award a procurement contract to the tenderer who has been determined to be fully capable of performing the contract and whose tender is either the lowest or, in terms of the specific evaluation criteria contained in the tender documentation, the most advantageous.

 

Similar to WTO.

 

Not covered.

 

Not covered.

 

Not covered.

 

Not covered.

 

Similar to WTO. However, they do not apply for Colombia and Venezuela in their entirety.

 

Similar to WTO.

 

Not covered.

3.8 Negotiations with tenderers

 

WTO

NAFTA

MERCOSUR

Andean Group

Central America

CARICOM

Group of Three

Bilateral Agreements with Mexico

Bilateral Agreements with Chile

 

Negotiation procedures may be conducted in procurements in which the entities have indicated their intent to do so in the invitation to participate, or when it appears from the evaluation that no tender is obviously the most advantageous.

 

 

Similar to WTO.

 

Not covered.

 

Not covered.

 

Not covered.

 

Not covered.

 

Does not contain any provision on negotiation with tenderers.

 

Does not contain any provision on negotiation with tenderers.

 

Not covered.

 

3.9 Limited tendering

 

WTO

NAFTA

MERCOSUR

Andean Group

Central America

CARICOM

Group of Three

Bilateral Agreements with Mexico

Bilateral Agreements with Chile

 

Limited tendering is allowed only when justified by any of the reasons provided in Article XV and not as means to discriminate among suppliers.

 

Similar to WTO.

 

Not covered.

 

Not covered.

 

Not covered.

 

Not covered.

 

Similar to WTO.

 

Similar to WTO

 

Not covered.

4.1 Bid challenge by interested suppliers

 

WTO

NAFTA

MERCOSUR

Andean Group

Central America

CARICOM

Group of Three

Bilateral Agreements with Mexico

Bilateral Agreements with Chile

 

Members are required to establish bid protest procedures. Nevertheless, some signatory countries are allowed to make derogations on the applicability of the bid challenge procedures with respect to certain procurements with certain signatories to ensure reciprocity.

 

Challenges shall be heard by a court or an impartial and independent review body with no interest in the outcome of the procurement.

 

 

Generally rules are similar to the WTO provisions but more detailed. Challenge procedures apply for all three countries.

 

Not covered.

 

Not covered.

 

Not covered.

 

Not covered.

 

Similar to NAFTA, but bid challenge procedures do not apply for Colombia and Venezuela, and only apply to Mexico.

 

Similar to NAFTA.

 

Not covered.

 

4.2 Dispute settlement

 

WTO

NAFTA

MERCOSUR

Andean Group

Central America

CARICOM

Group of Three

Bilateral Agreements with Mexico

Bilateral Agreements with Chile

 

A Party considering that its rights or benefits under the Agreement have been nullified or impaired by another Party can seek satisfactory remedy of the dispute through consultations.

 

Recourse to panel procedures is an option if bilateral consultations fail to produce a satisfactory result. Requests for the establishment of Panels will be forwarded to the Dispute Settlement Body which is responsible for making recommendations and rulings.

 

 

Does not contain specific provisions on dispute settlement mechanisms for government procurement. General dispute settlement rules under Chapter 20 apply.

 

Not covered.

 

Not covered.

 

Not covered.

 

Not covered.

 

General dispute settlements of the Agreement are applicable. However, specific time-limits are provided for government procurement.

 

General dispute mechanisms apply, no special rules are provided.

 

Not covered.

 

 

5.1 Exceptions

 

WTO

NAFTA

MERCOSUR

Andean Group

Central America

CARICOM

Group of Three

Bilateral Agreements with Mexico

Bilateral Agreements with Chile

 

Measures necessary to protect national security or defense; public morals; human plant or animal life or health, intellectual property; products and services of handicapped persons, philanthropic institutions or prison labor are all exceptions to the Agreement.

 

Similar to WTO.

 

Not covered.

 

Not covered.

 

Not covered.

 

Not covered.

 

Similar to WTO.

 

Similar to WTO.

 

Not covered.

 

 

5.2 Special Committees

 

WTO

NAFTA

MERCOSUR

Andean Group

Central America

CARICOM

Group of Three

Bilateral Agreements with Mexico

Bilateral Agreements with Chile

 

Established a Committee on government procurement. The committee is composed by representatives from each of the Parties.

 

Establishes a committee on promotion of government procurement opportunities for small businesses which is composed of representatives of the Parties. Parties have also established a Working Group to address issues arising under the Chapter on Procurement.

 

Not covered.

 

Not covered.

 

Not covered.

 

Not covered.

 

Establishes a Government Procurement Committee and a Committee on Micro, Small and Medium Size Industry which is composed by the representatives of the Parties.

 

Establishes a Working Group on Micro, Small and Medium Size Industry for Bolivia and a Committee on Micro, Small and Medium size Industry for Costa Rica.

 

Not covered.

 

 

5.3 Provision of information

 

WTO

NAFTA

MERCOSUR

Andean Group

Central America

CARICOM

Group of Three

Bilateral Agreements with Mexico

Bilateral Agreements with Chile

 

Parties shall promptly publish any law, regulation, or judicial decision administrative ruling of general application and any procedure, including standard contract clauses, regarding government procurement covered by the agreement.

 

Entities must publish a notice not later than 72 days after the award of each contract under the Agreement.

 

In addition, if requested, entities should inform the participant suppliers of the decisions concerning the award of contracts, and if requested, in writing. Entities should also facilitate unsuccessful bidders pertinent information on the reasons why his offer was not selected and the characteristics and advantages of the selected offer, along with the name of the successful bidder.

 

Parties shall promptly publish any law, regulation, precedential judicial decision, administrative ruling of general application and any procedure, including standard contract clauses, regarding government procurement covered by the agreement.

 

In addition, if requested, entities should inform the participant suppliers of the decisions concerning the award of contracts, and if requested, in writing. Entities should also facilitate unsuccessful bidders pertinent information on the reasons why his offer was not selected and the characteristics and advantages of the selected offer, along with the name of the successful bidder.

 

 

Not covered.

 

Not covered.

 

Not covered.

 

Not covered.

 

Essentially similar to NAFTA.

 

However, they do not apply for Colombia and Venezuela in their entirety. These two countries have a period 3 years to fully comply with their obligations regarding the provision of information. In addition, Mexico has undertaken to cooperate with these countries to facilitate their fulfillment.

 

Essentially similar to NAFTA.

 

Not covered.

 

5.4 Technical Cooperation

 

WTO

NAFTA

MERCOSUR

Andean Group

Central America

CARICOM

Group of Three

Bilateral Agreements with Mexico

Bilateral Agreements with Chile

 

Developed countries shall provide technical assistance to developing countries when requested.

 

 

Parties shall cooperate to increase understanding of their respective procurement systems and provide each other with the pertinent information.

 

Not covered.

 

Not covered.

 

Not covered.

 

Not covered.

 

Similar to NAFTA.

 

Similar to NAFTA.

 

Not covered.

5.5 Government entities in charge of gathering pertinent data

 

WTO

NAFTA

MERCOSUR

Andean Group

Central America

CARICOM

Group of Three

Bilateral Agreements with Mexico

Bilateral Agreements with Chile

 

Each Party collects statistics on an annual basis and provides it to the Committee on Government Procurement.

 

Similar to the WTO.

 

Not covered.

 

Not covered.

 

Not covered.

 

Not covered.

 

For Mexico, Dirección General de Organismos Comerciales Multilaterales. For Colombia, Ministerio de Desarrollo Económico and for Venezuela the Instituto de Comercio Exterior.

 

 

Similar to WTO.

 

Not covered.

 

5.6 Divestiture of entities

 

WTO

NAFTA

MERCOSUR

Andean Group

Central America

CARICOM

Group of Three

Bilateral Agreements with Mexico

Bilateral Agreements with Chile

 

Allows withdrawal of entities on the grounds that government control or influence has been effectively eliminated. Other signatories may seek compensation taking into account market opening effects.

 

Parties may withdraw an entity from coverage of the Agreement if the entity is no longer subject to federal government control. The other parties may object to the withdrawal on the grounds that the entity remains subject to government control and may have recourse to dispute settlement procedures.

 

Not covered.

 

Not covered.

 

Not covered.

 

Not covered.

 

Similar to NAFTA.

 

Similar to NAFTA.

 

Not covered.

 

5.7 Rectifications or modifications

 

WTO

NAFTA

MERCOSUR

Andean Group

Central America

CARICOM

Group of Three

Bilateral Agreements with Mexico

Bilateral Agreements with Chile

 

Rectifications and transfer of entities is allowed in exceptional cases. Any transfers shall be notified to the Committee along with explanations and other information regarding the change in the agreed coverage. Compensatory adjustments are available to maintain a comparable level of coverage as existed before the modification.

 

 

Similar to WTO.

 

Not covered.

 

Not covered.

 

Not covered.

 

Not covered.

 

Similar to WTO.

 

Similar to WTO.

 

Not covered.

 

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