RESTRICTED
WORLD TRADE G/STR/Q1/CYP/1
12August 1996
ORGANIZATION(96-3190)
Original: English Working Party onState Trading Enterprises
REPLIES TOQUESTIONS POSED BYCANADA1AND THE UNITED STATES2
CONCERNING THE ARTICLE XVII NOTIFICATION OFCYPRUS3
Thefollowingcommunication,dated25July1996,hasbeenreceivedfromthePermanentMission
ofCyprus.
_______________
Canada
Inthestatistics fortheCyprus Grain Commission, thedataforfeedbarley, maize andwheat
havebeenaggregated. Could Cyprus please provide disaggregated dataforthese products?
Disaggregated dataforproducts youhaveenquired about areprovided inthefollowing table:
National Production Imports Exports
Year Quantity
(tons)Value
£C'000Quantity
(tons)Value
£C'000Quantity Value
1992-1993
Feed barley 161,050 18,199 231,710 12,310 nil -
Maize - - 113,990 6,291 nil -
Wheat 9,210 1,197 81,490 5,265 nil -
TOTAL 170,260 19,396 427,190 23,866
1993-1994
Feed barley 181,610 20,522 236,831 9,925 nil -
Maize - - 152,767 9,407 nil -
Wheat 10,220 1,329 73,437 5,309 nil -
TOTAL 191,830 21,851 463,035 24,641
1G/STR/W/13,2G/STR/W/10.
3G/STR/N/1/CYP.G/STR/Q1/CYP/1
Page2
National Production Imports Exports
Year Quantity
(tons)Value
£C'000Quantity
(tons)Value
£C'000Quantity Value
1994-1995
Feed barley 144,200 17,109 275,836 11,888 nil -
Maize - - 151,659 9,071 nil -
Wheat 6,480 0,885 81,931 5,894 nil -
TOTAL 150,680 17,994 509,426 26,853
United States
Could Cyprus elaborate onitsstatements under Description oftheFunctioning oftheState
Trading Enterprises, part3ofthe1960 Questionnaire, including thefollowing elements:
1. (a) Import andExport Quantities: "Cyprus Grain Corporation: ...Thecriteria usedfor
determining thequantities tobeimported aretheneeds forlocal consumption".
Could Cyprus explain inmoredetail howitdetermines theneedforimports andexports?
Cyprus Grain Commission isasemi-Government Organization responsible bylawfor
theimport, storage anddistribution ofgrain (barley, wheat, maize) tothelocalmarket. The
criteriafordeterminingthequantitiestobeimporteddependsontheavailabilityofgrainrequired
forthelocalmarket.
Wedonotexport grain since thelocalproduction isnotsufficient forthelocalneeds.
(b) "Cyprus Olive Products Marketing Board: ...TheBoard authorizes private traders
toimport orexport olive products depending onthevolume andquality oflocal
production. There isnocompetition between private traders andtheboard".
Could Cyprus explain inmoredetail howitdetermines theneedforimports andexports?
Olive production varies fromyeartoyear. Sometimes thisgives ashortage ofolive
oilinthemarket. TheBoard isresponsible forkeeping enough stocks tosatisfy thelocalneeds.
Inthecaseofpoorproduction precalculated quantities areimported bymeans ofpublic offers.
Asfrom1January 1996private enterprises arefreetoimport oliveproducts provided
theypaytheimport duty. Inthissense there iscompetition inthemarket interms ofquality
andprice.
2. (a) Export Prices: "Cyprus Potato Marketing Board: ...Export prices ofpotatoes are
determined bysupply anddemand oftheimporting country".
Could Cyprus explain inmore detail howitdetermines export prices, howtheyrelate
toprices paidtoproducers, andhowtherelate todomestic prices?G/STR/Q1/CYP/1
Page3
Theexport prices ofCyprus potatoes aredetermined bysupply anddemand.
Cyprus potatoes areexported almost 100percenttocountries oftheEuropean Union.
Cyprus normally cannot affect theprices inmostmarkets asthedemand forpotatoes
ismore orlessandatmost times elastic andthesupply inelastic.
Furthermoretheexportedquantityofabout150thousandtonsisveryminimalcompared
tothetotalconsumption intheEuropean Union (over 50million tons).
Having inmind theabove, when determining theprice forCyprus potatoes, inany
onemarket, thefollowing factors areseriously taken intoconsideration:
(a) Thequantity, thequality andtheprices ofoldstock inthehome market and
other European countries.
(b) Thequantity supplied from newcroppotatoes from EUMember States.
(c) Thequantity, quality, prices andthetimeofarrival ofimported potatoes from
other competitive countries non-EU Members.
(d) Theexpected quantity oflocally produced newpotatoes aswellasthetime
ofsupply andthequality anticipated.
(e) Thetotalquantity ofCyprus potatoes andtheirseasonal availability.
Based ontheabove information, theC.P.M.B. aimsindetermining suchprice levels
thatwould serve thefollowing purposes:
(a) Toincrease theconsumption ofnewpotatoes from Cyprus.
(b) Tocreate astable market forCyprus potatoes.
(c) TosellCyprus potatoes atreasonable prices taking intoaccount thehighcost
ofproduction inrelation tothelong-term cooperation withitscustomers.
Thedomestic prices arenotalways related tothepriceofCyprus potatoes intheexport
markets.
Given thattheC.P.M.B. isanon-profit Organization thefinalaverage price paidto
theCyprus potato grower istheprice secured from selling thepotatoes bothabroad andin
thelocalmarket lessthepacking, marketing andadministration expenses.
2. (b) "Cyprus Carrot andBeetroot Marketing Board: ...Export prices ofcarrots andbeetroot
aredetermined bysupply anddemand intheimporting country".
Could Cyprus explain inmore detail howitdetermines export prices, howtheyrelate
toprices paidtoproducers, andhowtherelate todomestic prices?G/STR/Q1/CYP/1
Page4
Theexport prices ofCyprus beetroot aredetermined bysupply anddemand.
Cyprus beetroot isexported tocountries oftheEuropean Union.
Cyprus normally cannot affect theprices inmostmarkets asthedemand forbeetroot
ismore orlessandatmost times elastic andthesupply inelastic.
Furthermore,theexportedquantityofabout1.5thousandtonsisveryminimalcompared
tothetotalconsumption intheEuropean Markets.
Having inmind theabove when determining thepriceforCyprus beetroot, inanyone
market, thefollowing factors areseriously taken intoconsideration:
(a) Thequantity, quality andtheprices ofoldstock inthehome market andother
European countries.
(b) Thequantity supplied from newcrops ofbeetroot from European Union
Member States.
(c) Thequantity, quality, theprices andthetimeofarrival ofimported beetroot
from other competitive countries non-EU members.
(d) Theexpected quantity oflocally produced beetroot aswellasthetimeofsupply
andthequality anticipated.
(e) Thetotalquantity ofCyprus beetroot andtheirseasonal availability.
Based ontheabove information, theC.C. &B.M.B. aimsatdetermining suchprice
levels thatwould serve thefollowing purposes:
(a) Toincrease theconsumption ofbeetroot from Cyprus.
(b) Tocreate astable market forCyprus beetroot.
(c) TosellCyprus beetroot atreasonable prices taking intoaccount thehighcost
ofproduction inrelation tothelong-term cooperation withitscustomers.
Thedomestic prices arenotalways related tothepriceofCyprus beetroot intheexport
market.
Given thattheC.C. &B.M.B. isanon-profit Organization thefinalaverage price
paidtotheCyprus beetroot grower istheprice secured fromselling beetroot bothabroad and
inthelocalmarket lessthepacking, marketing andadministration expenses.