WORLD TRADE
ORGANIZATIONG/STR/N/4/MLT
6 October 1998
(98-3860)
Working Party on
State Trading EnterprisesOriginal:  English
STATE TRADING
Notification Pursuant to Article XVII:4(a) of the GATT 1994 and Paragraph 1
of the Understanding on the Interpretation of Article XVII
MALTA
The following communication, dated 30 September 1998, has been received from the
Permanent Mission of Malta.
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Malta wishes to notify, under the above-mentioned WTO Agreements, the following two state
trading enterprises as specified in the questionnaire on state trading reproduced in the Annex of WTOdocument G/STR/N/4 of 22 April 1998.
Page
Part 1:  State Trading Activ ities in Certai n Cereals .......................................................................1
Part 2:  State Trading Activitie s in Certain Petr oleum Products....................................................4
Annex I ....................................................................................................................... ...................7
Annex 2 ....................................................................................................................... ..................9
Part I: State Trading Activities in Certain Cereals
I. ENUMERATION OF STATE TRADING ENTERPRISES
A. IDENTIFICATION OF STATE TRADING ENTERPRISES
Medigrain Company Limited
A32 Industrial Estate
Marsa HMR 15
MaltaTel:  356 233260/245190
Fax:  356 245099G/STR/N/4/MLT
Page 2
B. DESCRIPTION OF PRODUCTS AFFECTED (INCLUDING TARIFF ITEM NUMBER (S) ENCOMPASSED
IN PRODUCT DESCRIPTION )
1. Hard Milling Wheat (HS Code No. 100 190 9100)
2. Soft Milling Wheat (HS Code No. 100 190 9100)
3. Animal Feed Barley (HS Code No. 100 300 9000)4. Animal Feed Maize (HS Code No. 100 590 0000)
II. REASON AND PURPOSE
A. R
EASON OR PURPOSE FOR ESTABLISHING AND /OR MAINTAINING STATE TRADING ENTERPRISE
To keep stable the selling prices of bread and animal feeds to the consumer.
B. SUMMARY OF LEGAL BASIS FOR GRANTING THE RELEVANT EXCLUSIVE OR SPECIAL RIGHTS OR
PRIVILEGES , INCLUDING LEGAL PROVISIONS AND SUMMARY OF STATUTORY OR
CONSTITUTIONAL POWERS
Exclusive or special rights or privileges are granted through the import licensing procedures
in terms of the Importation (Control) Regulations 1969, which are issued in exercise of the powers
conferred by section 3 of the Supplies and Services Act (Chapter 117 of the Laws of Malta).
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE
A. SUMMARY STATEMENT PROVIDING OVERVIEW OF OPERATIONS OF THE STATE TRADING
ENTERPRISE
Medigrain Limited was set up in January 1980 and since then has been the exclusive importer
of milling wheat and major feed grains to cater for Malta's domestic consumption.  Medigrain then
sells all grains generally at a subsidized price to local mills.
B. SPECIFICATION OF EXCLUSIVE OR SPECIAL RIGHTS OR PRIVILIEGES ENJOYED BY THE STATE
TRADING ENTERPRISE
All grains, other than those mentioned above, are imported freely into Malta.
C. TYPES OF ENTITIES OTHER THAN THE STATE TRADING ENTERPRISE THAT ARE ALLOWED TO
ENGAGE IN IMPORTATION /EXPORTATION AND CONDITIONS FOR PARTICIPATION
Private traders are allowed to import minor feed grains not handled by Medigrain Limited.
Export of these grains from Malta is non-existent.
D. HOW IMPORT /EXPORT LEVELS ARE ESTABLISHED BY THE STATE TRADING ENTERPRISE
Import levels are established based on the level of sales which have been fairly stable
throughout the past two decades at about 160,000 metric tonnes per year.
E. HOW EXPORT PRICES ARE DETERMINED
Malta does not have any grain exports.G/STR/N/4/MLT
Page 3
F. HOW THE RESALE PRICES OF IMPORTED PRODUCTS ARE DETERMINED
Medigrain's imports are sold at prices established by Price Regulation Orders issued by the
Maltese Government as follows:
1. Milling Wheat at Lm 62.224 per tonne as per Price Order No. 40 of 1993.2. Animal Feed Barley at Lm 56.00 per tonne as per Price Order No. 177 of 1987.3. Animal Feed Maize at Lm 56.00 per tonne as per Price Order No. 179 of 1987.
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 THE GOVERNMENT
It is not the practice to negotiate long-term contracts on purchase of grains.  Medigrain
Limited issues on a regular basis invitations to tender to numerous grain-trading houses.
Medigrain Limited operates within the framework established by the Maltese Government.
H. BRIEF DESCRIPTION OF MARKET STRUCTURE
Medigrain imports on an annual basis, 60,000 metric tonnes animal feed maize, 55,000 metric
tonnes animal feed barley, 35,000 metric tonnes hard milling wheat and 15,000 metric tonnes soft
milling wheat.  Shipment size varies from 3,000 metric tonnes to 9,000 metric tonnes.  On the otherhand sales are of above 1,000 metric tonnes per week each for wheat, barley and maize.  The internal
market is characterized by both private and public sector entities.
IV. STATISTICAL INFORMATION
See Annex I.
V. REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE
Not applicable in this case.
VI. ADDITIONAL INFORMATION
No additional information is being provided.G/STR/N/4/MLT
Page 4
Part 2:  State Trading Activities in Certain Petroleum Products
I. ENUMERATION OF STATE TRADING ENTERPRISES
A. IDENTIFICATION OF STATE TRADING ENTERPRISES
Enemalta Corporation
Central Administration Building
Church Wharf, Marsa HMR 01
Malta
Tel:  356 223601 – 221907 – 220462
Fax:  356 243055Telegrams:  ELPEGA MALTA
Telex:  1735 ENECOR MW
B. DESCRIPTION OF PRODUCTS AFFECTED (INCLUDING TARIFF ITEM NUMBER(S)
ENCOMPASSED IN PRODUCT DESCRIPTION)
1. Unleaded (HS Code No. 2710002700)
2. Premium (HS Code No. 2710003600)
3. AV Gas (HS Code No. 2710003600)
4. Jet A1 (HS Code No. 2710005100)5. Kerosene (HS Code No. 2710005100)
6. Gas Oil (HS Code No. 2710006900)
7. Fuel Oil (HS Code No. 2710007800)
8. LP Gas (HS Code No. 2711129800)
II. REASON AND PURPOSE
A. REASON AND PURPOSE FOR ESTABLISHING AND FOR MAINTAINING STATE
TRADING ENTERPRISE
Geographical considerations and the small size of the market in Malta pose constraints for full
competition in the sector.  Other logistical difficulties also arise in view of the limited space available.
B. SUMMARY OF LEGAL BASIS FOR GRANTING THE RELEVANT EXCLUSIVE OR
SPECIAL RIGHTS OR PRIVILEGES, INCLUDING LEGAL PROVISIONS AND
SUMMARY OF STATUTORY OR CONSTITUTIONAL POWERS
The relevant exclusive or special rights or privileges are granted in terms of the provisions of
the Enemalta Act 1977 (Chapter 272 of the Laws of Malta).
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE
A. SUMMARY STATEMENT PROVIDING OVERVIEW OF OPERATIONS OF THE
STATE TRADING ENTERPRISE
Enemalta Corporation is a body corporate established with exclusive rights in importation of
certain petroleum products intended for local consumption.    These petroleum products include fueloil for power stations (electricity generation), gas oil, kerosene, jet A1 for refuelling of aircraft
landing in Malta, premium leaded and unleaded, and LP gas.G/STR/N/4/MLT
Page 5
Sales of jet A1 are made by the Corporation, whereas retailing of gas oil, kerosene, premium
leaded and unleaded is done through petrol stations owned by the private sector.  Distribution of LP
gas is carried out through private distributors.
B. SPECIFICATION OF EXCLUSIVE OR SPECIAL RIGHTS OR PRIVILEGES ENJOYED
BY THE STATE TRADING ENTERPRISE
Special rights are vested by virtue of the Enemalta Act 1977 (Chapter 272 of the Laws of
Malta).
C. TYPES OF ENTITIES OTHER THAN THE STATE TRADING ENTERPRISE THAT ARE
ALLOWED TO ENGAGE IN IMPORTATION/EXPORTATION AND CONDITIONS FORPARTICIPATION
Bunkering companies are allowed to import and sell fuel oil and gas oil to vessels.  The oil
handling facilities at Malta Freeport (70 per cent owned by a private company and 30 per cent by
Malta Freeport Corporation) is also allowed to import, store and deal in products on behalf of thirdparties.
D. HOW IMPORT/EXPORT LEVELS ARE ESTABLISHED BY THE STATE TRADING
ENTERPRISE
The criteria on imports for the internal market depends on the local consumption patterns.
Enemalta Corporation also sells jet fuel to aircraft landing in Malta.
E. HOW EXPORT PRICES ARE DETERMINED
Sales of jet A1 are market-oriented plus an acceptable variation to cover local expenses.
F. HOW THE RESALE PRICE OF IMPORTED PRODUCTS ARE DETERMINED
Reseale prices of imported products are determined after calculating all the costs involved,
including excise duty.
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 THE GOVERNMENT
Yes.
H. BRIEF DESCRIPTION OF MARKET STRUCTURE
Enemalta Corporation is the sole importer of the main petroleum products listed in Part 2/1B,
that are marketed in Malta.
IV. STATISTICAL INFORMATION
See Annex 2
V. REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE
Not applicable in this case.G/STR/N/4/MLT
Page 6
 VI. ADDITIONAL INFORMATION
No additional information is being provided.G/STR/N/4/MLT
Page 7
Annex 1
TABLE 1
STATE TRADING:  MEDIGRAIN LIMITED
STATISTICAL INFORMATION, IMPORTS
Product HS Code Imports mt. Avg. Import
Price US$Dom. Sales
Price US$Mark-Up
Price US$National
production
Year ending 30/09/95
Milling wheat 100 190 9100 47000 193.95 158.67 -35.28 Nil
Animal feed barley 100 300 9000 42000 109.79 142.80 33.01 Nil
Animal feed maize 100 590 0000 52128 144.28 142.80 -1.48 Nil
Year ending 30/09/96
Milling wheat 100 190 9100 42000 240.79 158.67 -82.12 Nil
Animal feed barley 100 300 9000 53358 176.42 142.80 -33.62 Nil
Animal feed maize 100 590 0000 49000 196.40 142.80 -53.60 Nil
Year ending 30/09/97
Milling wheat 100 190 9100 47000 188.85 158.67 -30.18 Nil
Animal feed barley 100 300 9000 54000 143.24 142.80 -0.44 Nil
Animal feed maize 100 590 0000 61000 143.38 142.80 -0.58 Nil
TABLE II
STATE TRADING:  MEDIGRAIN LIMITED
STATISTICAL INFORMATION, EXPORTS
Product HS Code Exports mt. Avg. purchase
Price US$Dom. Sales
Price US$Avg. Exp.
Price US$National
production
Year ending 30/09/95
Milling wheat 100 190 9100 Nil Nil Nil Nil Nil
Animal feed barley 100 300 9000 Nil Nil Nil Nil Nil
Animal feed maize 100 590 0000 Nil Nil Nil Nil Nil
Year ending 30/09/96
Milling wheat 100 190 9100 Nil Nil Nil Nil Nil
Animal feed barley 100 300 9000 Nil Nil Nil Nil Nil
Animal feed maize 100 590 0000 Nil Nil Nil Nil Nil
Year ending 30/09/97
Milling wheat 100 190 9100 Nil Nil Nil Nil Nil
Animal feed barley 100 300 9000 Nil Nil Nil Nil Nil
Animal feed maize 100 590 0000 Nil Nil Nil Nil NilG/STR/N/4/MLT
Page 8
TABLE III
STATE TRADING:  MEDIGRAIN LIMITED
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES
Product HS Code Domestic
purchasesNational
productionDomestic sales
mt.National
consumption mt.
Year ending 30/09/95
Milling wheat 100 190 9100 Nil Nil 47000 47000
Animal feed barley 100 300 9000 Nil Nil 42000 42000
Animal feed maize 100 590 0000 Nil Nil 52128 52128
Year ending 30/09/96
Milling wheat 100 190 9100 Nil Nil 42000 42000
Animal feed barley 100 300 9000 Nil Nil 53358 53358
Animal feed maize 100 590 0000 Nil Nil 49000 49000
Year ending 30/09/97
Milling wheat 100 190 9100 Nil Nil 47000 47000
Animal feed barley 100 300 9000 Nil Nil 54000 54000
Animal feed maize 100 590 0000 Nil Nil 61000 61000
Source:  Medigrain Company LimitedG/STR/N/4/MLT
Page 9Annex 2
TABLE I
STATE TRADING:  ENEMALTA CORPORATION
"STATISTICAL INFORMATION, IMPORTS
Year Description of product(s)
(including HS number(s))Total quantity
importedQuantity imported
by state trading
enterpriseAverage import
priceAverage
representative
domestic sales
priceMark-up National
production
mt mt Lm/mt (inc. duty) Lm/mt Lm/mt
Unleaded HS 2710 002700  14,259  14,259 168.12 319.50 151.38 NIL
Premium HS 2710 003600  63,092  63,092 162.06 342.54 180.48 NIL
Avgas HS 2710 003600      139      139 372.22 555.56 183.34 NIL
Jet/Kero HS 2710 005100 128,324 128,324   58.23   86.42   28.19 NIL
Gas oil HS 2710 007800 128,656 128,656   81.48 126.21    44.73 NIL
Fuel oil HS 2710 007800 450,132 450,132   33.92   33.79     (0.13) NIL1995
L.P.G. HS 2711 129800   17,371   17,371 112.12 112.12 / NIL
Unleaded HS 2710 002700   14,254   14,254 170.87 319.91 149.04 NIL
Premium HS 2710 003600   57,229   57,229 169.13 341.27 172.14 NIL
Avgas HS 2710 003600       143      143 582.69 572.63 (10.06) NIL
Jet/Kero HS 2710 005100 112,561 112,561   67.64   78.82   11.18 NIL
Gas oil HS 2710 007800 182,170 182,170   90.77 122.13   31.36 NIL
Fuel oil HS 2710 007800 466,448 466,448   35.42   34.81    (0.61) NIL1996
L.P.G. HS 2711 129800   16,069   16,069 114.76 114.76 / NIL
Unleaded HS 2710 002700   18,324   18,324 215.51 346.10 130.59 NIL
Premium HS 2710 003600    63,222   63,222 221.72 373.99 152.27 NIL
Avgas HS 2710 003600       117      117 530.83 679.62 148.79 NIL
Jet/Kero HS 2710 005100 140,590 140,590   76.16 101.52   25.36 NIL
Gas oil HS 2710 007800 158,796 158,796 102.26 130.41   28.15 NIL
Fuel oil HS 2710 007800 475,491 475,491   36.98   36.94    0.04 NIL1997
L.P.G. HS 2711 129800   17,032   17,032 134.32 134.32 / NIL
(LM1 = US$2.5)G/STR/N/4/MLT
Page 10TABLE II
STATE TRADING:  ENEMALTA CORPORATION
STATISTICAL INFORMATION, EXPORTS*
Year Description of product(s)
(including HS number(s))Total quantity
exportedQuantity exported
by state trading
enterpriseAverage
procurement
priceAverage
representative
domestic sales
priceAverage export
priceNational
production
mt mt US$ (incl. duty) US$ (incl. duty) US$
1995 Jet A1 HS 2710 0051 00
Avgas HS 2710 0036 00107,983
      106107,983
     106  145.58
  879.85   492.40
1,805.13    210.88
1,431.07NIL
NIL
1996 Jet A1 HS 2710 0051 00
Avgas HS 2710 0036 00109,105
        64109,105
       64  167.28
1,270.25  477.89
1,903.33   249.26
1,438.65NIL
NIL
1997 Jet A1 HS 2710 0051 00
Avgas HS 2710 0036 00113,963
       27113,963
       27   190.30
1,035.60   494.81
1,785.83   231.01
1,424.50NIL
NIL
*Consists of re-exports only.G/STR/N/4/MLT
Page 11TABLE III
STATE TRADING:  ENEMALTA CORPORATION
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES
Year Description of product(s)
(including HS number(s))Domestic purchases by
state trading enterprisesNational production Domestic sales by state
trading enterprisesNational consumption
mt. mt.
Unleaded HS 2710 002700 NIL NIL   11,797   11,797
Premium HS 2710 003600 NIL NIL   62,248   62,248
Avgas HS 2710 003600 NIL NIL          24          24
Jet HS 2710 005100 NIL NIL        196        196
Kerosene HS 2710 005100 NIL NIL   17,731   17,731
Gas oil HS 2710 006900 NIL NIL 137,922 137,922
Fuel oil HS 2710 007800 NIL NIL 499,903 499,9031995
L.P.G. HS 2711 129800 NIL NIL   17,164   17,164
Unleaded HS 2710 002700 NIL NIL   14,909   14,909
Premium HS 2710 003600 NIL NIL   61,775   61,775
Avgas HS 2710 003600 NIL NIL        40         40
Jet HS 2710 005100 NIL NIL       160       160
Kerosene HS 2710 005100 NIL NIL   18,722   18,722
Gas oil HS 2710 006900 NIL NIL 170,235 170,235
Fuel oil HS 2710 007800 NIL NIL 456,923 456,9231996
L.P.G. HS 2711 129800 NIL NIL   16,094   16,094
Unleaded HS 2710 002700 NIL NIL   18,036   18,036
Premium HS 2710 003600 NIL NIL   58,503   58,503
Avgas HS 2710 003600 NIL NIL        97         97
Jet HS 2710 005100 NIL NIL       173       173
Kerosene HS 2710 005100 NIL NIL   18,159   18,159
Gas oil HS 2710 006900 NIL NIL 168,712 168,712
Fuel oil HS 2710 007800 NIL NIL 488,418 488,4181997
L.P.G. HS 2711 129800 NIL NIL   17,007   17,007
Source:  Enemalta Corporation
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