WORLD TRADE
ORGANIZATIONG/STR/N/7
26 February 2001
(01-0938)
Working Party on
State Trading EnterprisesOriginal:  English
STATE TRADING
Notifications Pursuant to Article XVII:4(a) of the GATT 1994 and
Paragraph 1 of the Understanding on the Interpretation of Article XVII
1. Pursuant to Article XVII:4(a)  of the GATT 1994 and Paragraph 1 of the Understanding on the
Interpretation of Article XVII, Members shall notify their state trading enterp rises to the Council for
Trade in Goods in accordance with the followi ng working definition of such enterprises:
"Governmental and non-governmental enterprises, including marketing boards, which
have been granted exclusive or special ri ghts or privileges. including statutory or
constitutional powers, in the exercise of which they influence through their purchases
or sales the level or direction of imports or exports."
2. Members are required to submit every third year new and full notifications on state trading and
bring these notifications up to date in the intervenin g years.  Members are therefore invited to submit for
2001 new and full responses to the questionnaire on st ate trading (G/STR/3) re produced in the Annex to
this document.  Subsequent notifications for 2002 and 2003 will be updating notifications covering
changes to the new and full notification for 2001.
3. Members' attention is drawn to the fact that  the questionnaire annexed to this document is a
revision1 of the 1960 questionnaire previously used as the basis for the notifications on state trading.
The Council for Trade in Goods ag reed that this would be the basis for the 2001 new and full
notifications (G/C/M/33).
4. The deadline for submission of the 2001 new and full notifications is 29 June 2001 .
5. Responses to the above request will be issued, as received, in the G/STR/N/7 series under the
respective country codes.
                                                     
1Approved by the Council for Trade in Goods on 21 April 1998 (G/C/M/33).G/STR/N/7
Page 2
ANNEX
QUESTIONNAIRE2 ON STATE TRADING
Name of Member
I. Enumeration of State Trading Enterprises
A. Identification of state trading enterprises.
B. Description of products affected (including tariff item number(s) encompassed in
product description).
II. Reason and Purpose
A. Reason or purpose for establishing and/or maintaining state trading enterprise.B. Summary of legal basis for granting the relevant exclusive or special rights or
privileges, including legal provisions a nd summary of statutory or constitutional
powers.
III. Description of the Functioning of the State Trading Enterprise
A. Summary statement providing overview of operations of the state trading enterprise.
B. Specification of exclusive or special rights or privileges enjoyed by the state trading
enterprise.
C. Type of entities other than the state trading enterprise that are allowed to engage in
importation/exportation and conditions for participation.
D. How import/export levels are established by the state trading enterprise.
E. How export prices are determined.
F. How the resale prices of imported products are determined.
G. Whether long-term contracts are negotiated by the state trading enterprise.  Whether
the state trading enterprise is used to fulfil contractual obligations entered into by thegovernment.
H. Brief description of market structure.
IV. Statistical Information ( see attached Tables I - III)
V. Reason why no foreign trade has taken place ( as appropriate)
VI. Additional Information ( as appropriate)
                                                     
2This questionnaire is to be filled out accord ing to the Guidelines contained on pages 5-7.G/STR/N/7
Page 3TABLE I
STATE TRADING:  NAME OF STATE TRADING ENTERPRISE
STATISTICAL INFORMATION, IMPORTS
Description of product(s)
(including HS number(s))Total quantity imported3Quantity imported by
state trading enterprise1Average import price Average  representative
domestic sales priceMark-up4National production
1234567
                                                     
3In cases where no imports have taken place under columns 2 or 3,  provide an explanation under Section V of this questionnaire.
4Members may report either under columns 4 and 5 or under column 6.G/STR/N/7
Page 4 TABLE II
STATE TRADING:  NAME OF STATE TRADING ENTERPRISE
STATISTICAL INFORMATION, EXPORTS
Description of product(s)
(including HS number(s))Total quantity exported5Quantity exported by
state trading enterprise1Average procurement
price6Average  representative
domestic sales priceAverage export price National production
1234567
                                                     
5In cases where no exports have taken place under columns 2 or 3,  provide an explanation under Section V of this questionnaire.
6In cases where the initial procurement price is augmented by other payments, additional payments should also be reported.G/STR/N/7
Page 5TABLE III
STATE TRADING:  NAME OF STATE TRADING ENTERPRISE
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES
Description of product(s)
(including HS number(s))Domestic purchases by
state trading enterpriseNational production Domestic sales by
state trading enterpriseNational consumption
12345G/STR/N/7
Page 6
GUIDELINES FOR COMPLETING THE QUESTIONNAIRE
The following information should be provided separately for each state trading enterprise
notified.
SECTION I - to be submitted in full every three years and updated annually.
Objective:  Identify state trading enterprises at na tional and sub-national levels and the scope of products
covered.
A. Identification of state trading enterprise:  Name of the entity granted exclusive or special rights
or privileges.7
B. Description of product(s):  Products for which each identified state trading enterprise has
exclusive or special rights or privileges.  In clude HS tariff number(s), at appropriate level of
specificity, corresponding to the products under th e authority of the state trading enterprise
concerned.
SECTION II  - to be submitted in full every three years and updated annually.
Objective:  State reason or purpose for establishing  and/or maintaining the state trading enterprise.
Identify and summarize legal provisions.
A. Reason or purpose:  Expl anation of reason for granting exclusive or special rights or privileges
to the state trading enterprise.
B. Legal authority:  Identify and briefly summarize  authority which grants exclusive or special
rights or privileges.  Cite constitutional, legi slative, and/or regulatory provisions, if any.
SECTION III  - to be submitted in full every three years and updated annually.
Objective:  Describe functioning of the state trading enterprise.
A. Summary overview of operations of the stat e trading enterprise.  Include, where possible,
references to the illustrative list of activities of state trading enterprises.
B. Specify all exclusive or special rights or privileges granted to the STE as well as any other
support or assistance provided by the go vernment.  Comment should include, but not
necessarily be restricted to, descriptions of the following:  (i) monopoly importer;  (ii) single
desk seller; (iii) statutory power to contro l imports or exports even if not exercised;
(iv) responsibility for issuing import/export licences ;  (v) responsibility for administering tariff
rate quotas;  (vi) recipient of special financing (including commercial or concessional credit or
credit guarantees);  (vii) recipient of tax advantages ;  (viii) recipient of subsidies;  (ix) recipient
of off-budget support or other support provided by the government or its instrumentalities;
(x) preferential access to foreign exchange.
The descriptions should include, where possible, references to the illustrative list of
relationships between governments and state trading enterprises.
                                                     
7A "state trading enterprise" is de fined according to Article XVII of GATT 1994 and the Interpretative
Notes thereto, and the Understanding on the Interpretation of Article XVII of GATT 1994.G/STR/N/7
Page 7
C. Indication of other types of entities that partic ipate in the same activities as the state trading
enterprise, such as private traders that impor t/export commodities also imported/exported by the
state trading enterprise.  Description of conditions under which they are allowed to engage in
activities in competition with stat e trading enterprises - e.g., (i) equal terms for all trade, (ii)
equal terms for specified quantity, (iii) participa tion subject to special restrictions/guidelines.
D. Specify criteria/considerations taken into account by the state trading enterprise in determining
the quantity of imports or exports it will undertake - e.g., (i) minimum purchase commitments,
(ii) tariff rate quota administration proce dures, (iii) domestic supply/price situation,
(iv) international price situation, (v) export pe rformance requirements, (vi) export restrictions,
(vii) commercial considerations (e.g., marginal price relative to marginal cost, market demand).
Include a description of any  di rect or indirect government involvement in the determination.
E. How the state trading enterprise determines its export price - e.g., (i)  in relation to prices in
other markets, (ii) through tendering.  Include  information on the use of revenue generated.
F. When the state trading enterprise imports, how it determines the price at which it sells products
to domestic wholesalers, retailers, or end-us ers.  Include information on service fees and
mark-ups, as well as on use of revenue generated.
G. Whether and how long-term cont racts are negotiated by the state trading enterprise.  Include
information on any long-term contracts negotia ted during the reporting period.  Whether and
how the state trading enterprise is used to fulf il contractual obligations entered into by the
government.
H. Brief description of market stru cture - e.g., domestic market st ructure, nature of competition,
relation to international market, type of import protection, etc.
SECTION IV  - to be submitted annually on a calendar, fiscal or marketing year basis.  Tables should
cover the most recent three years for which data is available.  Price data required for standardized
products only.  Where price data expressed in ot her than US$, indicate applicable exchange rate.
Table I  - Objective:  Provide import information, by product.
1. Description of product(s):  Product descript ion (e.g, wheat/flour) including HS number.
2. Total imports:  Total quantity of imports of the product.
3. Quantity imported by state trading enterprise:  Quantity of imports of the product by state
trading enterprise.
4. Average import price:  Total cost of imports by the state trading enterprise (c.i.f. basis) divided
by the total quantity imported by the state trading enterprise.
5. Average representative domestic sales price:  Average domestic wholesale market price during
the year in question.
6. Mark-up:  Average difference between the impor t price and resale price.  Members may choose
to report the average mark-up instead of the average import price and the average representative
domestic price under columns 4 and 5.
7. National Production:  Quantity of national produc tion at the appropriate level of specificity.G/STR/N/7
Page 8
Table II  - Objective:  Provide export information, by product.
1. Description of product(s):  Product descript ion (e.g, wheat/flour) including HS number.
2. Total quantity exported:  Total quantity of exports of the product.
3. Quantity exported by state trading enterprise:  Quantity of exports of the product by the state
trading enterprise.
4. Average procurement price:  Average price paid  by state trading enterprise to procure the
product.  In cases where the initial procurement price is subsequently augmented by other
payments, such as pool returns or government subsidies, those additional payments should also
be reported.
5. Average representative domestic sales price:  Average domestic wholesale market price during
the year in question.
6. Average export price:  Average sales price of exports (f.o.b. basis) by the state trading enterprise
(total value divided by total quantity).
7. National Production:  Quantity of national production at the appropriate level of specificity.
Table III  - Objective:  Provide information on domestic commercial activities where products are
internationally traded by the state trading enterprise.
1. Description of product(s):  Product descript ion (e.g, wheat/flour) including HS number
2. Domestic purchases by state trading enterpri se:  Quantity purchased by the state trading
enterprise from domestic production.
3. National Production:  Quantity of national production at the appropriate level of specificity.
4. Domestic sales by state trading enterprise:  Qu antity sold by the state trading enterprise to
domestic users.
5. National Consumption:  Quantity of national cons umption at the appropriate level of specificity.
SECTION V  - Objective:  Explanation of why no trade has taken place.
In the event no trade has taken place for a product  covered by the authority of a state trading
enterprise, explain why.
SECTION VI  - Objective:  Provision of additional information.
Countries may provide any additional information that may be appropriate.
__________