GENERAL NOTES AND DEROGATIONS FROM THE PROVISIONS OF ARTICLE III OF APPENDIX I OF THE EC

General Notes and Derogations from the Provisions of Article III

1.         The EC will not extend the benefits of this Agreement:

-           as regards the award of contracts by entities listed in Annex 2 to the suppliers and service providers of Canada;

-           as regards the award of contracts, other than for supplies, listed in Annex 2 to the suppliers and service providers of the USA;

- as regards the award of contracts by entities listed in Annex 3 paragraph

(a)       (water) to the suppliers and service providers of Canada and the USA,

(b)       (electricity) to the suppliers and service providers of Canada, and Japan,

(c)        (airports) to the suppliers and service providers of Canada, Korea and the USA,

(d)       (ports) to the suppliers and service providers of Canada,

(e)        (urban transport) to the suppliers and service providers of Canada, Japan, Korea and the USA;  to the suppliers and service providers of Israel, as regards bus services,

until such time as the EC has accepted that the Parties concerned give comparable and effective access for EC undertakings to the relevant markets;

-           to service providers of Parties which do not include service contracts for the relevant entities in Annexes 1 to 3 and the relevant service category under Annexes 4 and 5 in their own coverage.

2.         The provisions of Article XX shall not apply to suppliers and service providers of:

-           Israel, Japan and Korea in contesting the award of contracts by entities listed under Annex 2 paragraph 2, until such time as the EC accepts that they have completed coverage of sub-central entities;

-           Japan, Korea and the USA in contesting the award of contracts to a supplier or service provider of Parties other than those mentioned, which are small or medium sized enterprises under the relevant provisions of EC law, until such time as the EC accepts that they no longer operate discriminatory measures in favour of certain domestic small and minority businesses;

-           Israel, Japan and Korea in contesting that award of contracts by EC entities, whose value is less than the threshold applied for the same category of contracts awarded by these Parties.

3.         Until such time as the EC has accepted that the Parties concerned provide access for EC suppliers and service providers to their own markets, the EC will not extend the benefits of this Agreement to suppliers and service providers of:

-           Canada, as regards procurement of FSC 36, 70 and 74 (special industry machinery, general purpose automatic data processing equipment, software, supplies and support equipment (except 7010 ADPE configurations), office machines, visible record equipment and ADP equipment);

-           Canada, as regards procurement of FSG 58 (communications, protection and coherent radiation equipment) and the USA as regards air traffic control equipment;

-           Korea and Israel as regards procurement by entities listed in Annex 3 paragraph (b), as regards procurement of HS Nos 8504, 8535, 8537 and 8544 (electrical transformers, plugs, switches and insulated cables); and for Israel, HS Nos. 8501, 8536 and 902830;

-           the USA, as regards procurement by entities listed in Annex 3 paragraph (d), as regards procurement of dredging services and procurement related to shipbuilding;

-           Canada and the USA as regards contracts for good or service components of contracts which, although awarded by an entity covered by this Agreement, are not themselves subject to this Agreement.

4.         The Agreement shall not apply to contracts awarded under:

-           an international agreement and intended for the joint implementation or exploitation of a project by the signatory States;

- an international agreement relating to the stationing of troops;

- the particular procedure of an international organization.

5.         The Agreement shall not apply to procurement of agricultural products made in furtherance of agricultural support programmes and human feeding programmes.

6.         Contracts awarded by entities in Annexes 1 and 2 in connection with activities in the fields of drinking water, energy, transport or telecommunications, are not included.

7.         This Agreement shall not apply to contracts awarded by entities in Annex 3:

-           for the purchase of water and for the supply of energy or of fuels for the production of energy;

-           for purposes other than the pursuit of their activities as described in this Annex or for the pursuit of such activities in a non-member country;

-           for purposes of re-sale or hire to third parties, provided that the contracting entity enjoys no special or exclusive right to sell or hire the subject of such contracts and other entities are free to sell or hire it under the same conditions as the contracting entity.

8.         This Agreement shall not be applicable to contracts:

-           for the acquisition or rental of land, existing buildings, or other immovable property or concerning rights thereon;

-           for the acquisition, development, production or co-production of programme material by broadcasters and contracts for broadcasting time.

9.         This Agreement shall not be applicable to the award of service contracts by Spanish entities listed in Annex 3 before 1 January 1997 or to the award of contracts by Greek or Portuguese entities listed in Annex 3 before 1 January 1998.

10.       The provision of services, including construction services, in the context of procurement procedures according to this Agreement is subject to the conditions and qualifications for market access and national treatment as will be required by Austria in conformity with her commitments under the GATS.

11.       This Agreement shall not apply to contracts awarded to an entity in Finland which itself is a contracting authority within the meaning of the Public Procurement Act:  "Laki julkisista hankinnoista" (1505/92), or in Sweden within the meaning of the "Lag om offentlig upphandling" (1992:1528), on the basis of an exclusive right which it enjoys pursuant to a law, regulation or administrative provision or to contracts of employment in Finland and Sweden.

12.       When a specific procurement may impair important national policy objectives, the Finnish or Swedish Governments may consider it necessary in singular procurement cases to deviate from the principle of national treatment in the Agreement.  A decision to this effect will be taken at Cabinet level.  Finland also reserves its position with regard to the application of this Agreement to the Åland Islands (Ahvenanmaa).