World Trade Organization

• Author: International Law Group

The Inchon International Airport (IIA) is currently under construction on reclaimed land between Yongjong and Yongyu islands, approximately 52 kilometers west of the capital, Seoul. The Korean Government provides approximately 40% of the funds while the rest comes from sources such as Korean and international capital markets.

The WTO Agreement on Government Procurement (GPA) applies to each WTO member's government entities classified as "central government entities," "sub-central government entities," and "other entities" (see Annexes 1 to 3 of Appendix I to the GPA). Korea acceded to the GPA in 1994, noting that it would not apply the GPA to airport procurement (See Paragraph 2.44 of Panel Report).

The U.S. had brought the complaint challenging Korea's government procurement practices for the airport by asking for consultations in February 1999. After these consultations failed, the U.S. requested the establishment of a Panel to decide the dispute in May 1999. In its request, the U.S. claimed, among other things, that (1) contractors had to have manufacturing facilities in Korea to qualify, (2) foreign firms must partner with Korean...