WORLD TRADE
ORGANIZATIONG/STR/N/6/NAM
24 July 2000
(00-3051)
Working Party on
State Trading EnterprisesOriginal:  English
STATE TRADING
Updating Notification Pursuant to Article XVII:4(a) of the GATT 1994
and Paragraph 1 of the Understanding on the Interpretation of Article XVII
NAMIBIA
The following communication, dated 20 July 2000, has been received from the Ministry of
Agriculture, Water and Rural Development, Namibia.
_______________
TABLE OF CONTENTS
Page
I. ENUMERATION OF STATE TRADING ENTE RPRISES.................................................2
II. REASONS AND PURPOSE FOR INTRODUCING AND MAINTAINING
STATE TRADING ENTERPRIS ES.......................................................................................2
III. DESCRIPTION OF THE FUNCTIONS OF THE STATE TRADING
ENTERPR ISES.................................................................................................................... .....2
A. SPECIFIC SCHEMES .......................................................................................................................2
1. Namibian Agronomic Board....................................................................................................2
2. The Meat Board of Namibia .................................................................................................... 3
3. Meatco....................................................................................................................... .................3
4. Karakul Board ................................................................................................................ ..........3
B. HANDLING OF IMPORTS ...............................................................................................................3
C. HANDLING OF EXPORTS ...............................................................................................................4
D. DETERMINATION OF QUANTITIES EXPORTED OR IMPORTED ........................................................4
E. EXPORT PRICES ............................................................................................................................4
F. MARK -UP ON IMPORTED PRODUCTS ............................................................................................4
G. CONTRACTS ............................................................................................................................... ..4
IV. STATISTICAL INFORMATION...........................................................................................4
V. REASONS WHY NO FOREIGN TRADE HAS TAKEN PLACE (IF THIS IS
THE CASE) IN PRO DUCTS AFFE CTED ............................................................................4G/STR/N/6/NAM
Page 2
VI. ADDITIONAL IN FORMATION............................................................................................4
I. ENUMERATION OF STATE TRADING ENTERPRISES
Enterprises falling within the provisions of Article XVII are control boards concerned with
the marketing arrangements for certain agricultural products:
Boards exist for the following products:1. Agronomic crops – maize and wheat
2. Livestock and meat
3. Karakul skins and wool
II. REASONS AND PURPOSE FOR INTRODUCING AND MAINTAINING STATE
TRADING ENTERPRISES
Namibia is a semi-arid country with poor soils and thus it has low agricultural production
potential.  At the same time over 70 per cent of its population are dependent on the agricultural sectorfor a livelihood.
The Boards for the commodities referred to were established under separate legislative
instruments for the purpose of promoting domestic production so as to contribute to household food
security and employment.
The Boards are currently undergoing a process of change in line with the general market
liberalization taking place internationally.  Review committees have been established with a view to
planning a future strategy for involvement of the board s in their respective areas of activity.  In future,
it is foreseen that boards will act as facilitators of agricultural production and marketing rather thanhaving a direct involvement in marketing.
III. DESCRIPTION OF THE FUNCTIONS OF THE STATE TRADING ENTERPRISES
A. 
SPECIFIC SCHEMES
1. Namibian Agronomic Board
The Board was established under the provisi ons of the Agronomic Industry Act 1992 (Act
No. 20 of 1992).  The said Act provides for the designation of agronomic crops as controlled by theMinister of Agriculture.  Thus, two crops name ly maize and wheat, have been so designated by
Government Notice No. 293 of 1996.  While the provisions of the Act empowered the Board to
purchase the whole of the crops in question at a pri ce approved by the Minister, it (the Board) is no
longer involved in purchasing the crops.  In surplus situations the Board may operate as buyer of last
resort at market oriented prices.  The domestic production of maize and wheat, on average, accountsfor some 40 per cent and 12 per cent of domestic requirements.
The Board issues licences to processors of controlled products, issues permits for the
importation/exportation of controlled products and carries out quality controls of the raw grain/seed
and processed products.
(i) We do, however, not consider that the Namibian Agronomic Board falls squarely
within the working definition of state trading enterprises contained in paragraph 1 of
the understanding on the interpretation of Article XVII of the GATT 1994.  In theG/STR/N/6/NAM
Page 3
interests of transparency, however, we hereby submit the above information pursuant
to the questionnaire contained in document G/STR/3.
(ii) These measures do not distort conditions of competition in internal/domestic markets
in Namibia.
(iii) All services are available/and or applied generally, without any discrimination.
2. The Meat Board of Namibia
The Board is a statutory body established under the provisions of the Meat Industry Act 1981
(Act No. 12 of 1981) as amended.  The Board's primary function is one of market facilitator of live
animals (cattle, sheep and goats) and meat and meat products derived therefrom.  It is thus notinvolved in the direct purchasing or selling of livestock or meat.  It monitors the movement of
livestock to abattoirs and to the on-the-hoof trade to South Africa through the operation of a permit
system.  This enables the Board to collect a statutory level on sales of livestock.  The levies fund the
Board's administrative activities as well as providing funding for livestock development schemes.
These include the provision of drought assistance to  affected farming communities, research activities
on aspects such as bush encroachment, contributing to the provision of quarantine facilities for
livestock etc.
The Board engages in the promotion of beef in  Namibia's main export markets and assists
meat exporters in the identification of alternative markets.  It issues permits for theexportation/importation of live animals as well as meat and meat products.  The purpose of this latter
control is primarily for monitoring and statistical purposes.
3. Meatco
Meatco is a corporation established under the provisions of the Swameat Corporation
Ordinance, 1986 for the purposes of operating abattoirs and meat processing.  Although established
by legal instrument, it functions in a commercial environment without government involvement in its
day to day operations.  Meatco operates the only abattoirs approved for export of red meat to the
European Communities.  There is no restriction on the establishment of competing with private
abattoirs.
4. Karakul Board
The Board was established under the provisions of the Karakul Pelts and Wool Act 1982 (Act
No. 14, 1982).  The main function of the Board is the marketing of karakul pelts on behalf of
producers on the international market.  In addition, the Board is engaged in a joint venture with a
Namibian cooperative with the aim of achieving value-added processing of pelts.  Given the difficult
marketing environment in the fur trade, there ar e no immediate changes foreseen in the current
functions of the Board.
B. 
HANDLING OF IMPORTS
The following boards, with the approval of the Minister of Agriculture, have powers to issue
permits to the trade for the importation of the following commodities:
- Namibian Agronomic Board:  wheat and maize and the main products derived therefrom.
- The Meat Board of Namibia:  meat and meat products of cattle, sheep and goats.G/STR/N/6/NAM
Page 4
C. HANDLING OF EXPORTS
(a) Meatco undertakes exports on its own account.
(b) The Karakul Board undertakes exports on behalf of producers.
D. DETERMINATION OF QUANTITIES EXPORTED OR IMPORTED
The quantities are determined by volume of domestic production and market forces.  In the
case of controlled crops (maize and wheat), import requirements are procured by the trade on a free
market basis.
E. EXPORT PRICES
Price on the export markets is the sole determinant of price realized.
F. MARK -UP ON IMPORTED PRODUCTS
The boards are not involved in importing products.  However, a small levy is collected on the
imports of controlled agronomic crops, which is equal to a levy payable by domestic producers.  The
proceeds of the levy are utilized to fund the activities of the Board.
G. CONTRACTS
The Boards are not involved in contractual arrangements.
IV. STATISTICAL INFORMATION
Not applicable.
V. REASONS WHY NO FOREIGN TRADE HAS TAKEN PLACE (IF THIS IS THE
CASE) IN PRODUCTS AFFECTED
Domestic production meets market demand.
VI. ADDITIONAL INFORMATION
None.
__________