WORLD TRADE G/STR/N/3/ZAF
6August 1997
ORGANIZATION(97-3336)
Original: English Working Party on
State Trading Enterprises
STATE TRADING
Updating Notification Pursuant toArticle XVII:4(a) oftheGATT andParagraph 1
oftheUnderstanding ontheInterpretation ofArticle XVII
SOUTH AFRICA
Thefollowingcommunication,dated30July1997,hasbeenreceivedfromthePermanentMission
ofSouth Africa.
_______________
Duetoasignificant change inlegislation regarding themarketing ofagricultural products,
South Africa isinatransitional phase regarding liberalising itsagricultural trade. Thisnotification
istogiveMembers oftheWTO anoverview ofthetransition thatistaking place.
TheMarketing Act,1968 (Act59of1968) which enabled direct andindirect intervention in
themarketing ofagricultural products through asystem ofstatutory measures applied bycontrol boards
wasrevoked on31December 1996. Varying degrees ofcontrol andregulation inrespect ofthe
movement, pricing, quality standards, selling andsupply ofagricultural products wereintroduced in
terms oftheAct,while theGovernment alsoemployed theActasaninstrument toadminister subsidies.
Following theinternational trend towards economic liberalisation aswellasother factors such
asthegrowing gapbetween producer andconsumer prices ofagricultural products andtherapid rise
infoodprices,anumberofcommitteeswereappointedsince1992toinvestigatethesefactorsandsuggest
solutions. Subsequent tothesecommittees, anewWhite Paper forAgriculture waspublished. Aclear
indication inallthereports andtheWhite Paper wasthenecessity forfreermarkets foragricultural
products.
Inorder toimplement newproposals aswellastheprinciples contained intheReconstruction
andDevelopment Programme, anewAct,theMarketing ofAgricultural Products Act,Act47ofthe
1996, came intooperation on1January 1997.
Theobjectives ofthisActarethefollowing:
- increasing market access forallmarket participants;
- promotion oftheefficiency ofmarketing ofagricultural products;
- optimisation ofexport earnings from agricultural products; and
- enhancement oftheviability oftheagricultural sector.
./.G/STR/N/3/ZAF
Page2
TheActprovides forthefollowing statutory measures, where necessary, namely:
- theimposition oflevies;
- theconduct ofpools;
- control overexports ofagricultural products;
- safeguard measures;
- records andreturns; and
- registration ofdirectly affected groups.
Interms oftheActanyfuture statutory intervention willbesubject totheapproval byallthe
directly affected parties. Theapplication ofstatutory measures willalsobemore transparent andwill
havetobere-evaluated every twoyears.
Furthermore, nostatutory measure orprohibition which islikely tobesubstantially detrimental
tofoodsecurity; thenumber ofemployment opportunities within theeconomy ortofairlabour practices
maybeinstituted interms ofthenewAct.
TheActalsomakesprovisionfortheappointmentofaNationalAgriculturalMarketingCouncil,
consisting oftenmembers toadvise theMinister inhisdecision-making onagricultural marketing issues.
TheCouncil shall, when requested bytheMinister, oronitsownaccord, investigate theestablishment,
continuation, amendment orrevocation ofstatutory measures affecting themarketing ofagricultural
products, evaluate thedesirability, necessity orefficiency andifthenecessary, propose alternatives
fortheestablishment, continuation, amendment orrepeal ofastatutory measure andreport toandadvise
theMinister accordingly.
TheActstipulates thatanymarketing scheme established under theprevious Marketing Act,
1968, mayremain validforaperiod ofoneyearafterthefirstfullmeeting oftheNational Agricultural
Marketing Council (which tookplace on6January 1997), oruntilitisrepealed bytheMinister,
whichever occurs first.
TheMaize Marketing Scheme andassociated Maize Board wasterminated on30April 1997.
Remaining control boards andtheestimated dateoftermination oftheirfunctions, areasfollows:
BOARD DATE OFTERMINATION
Canning Fruit Board 30September 1997
Citrus Board 31December 1997
Cotton Board 31December 1997
Deciduous Fruit Board 31December 1997
Dried Fruit Board 31December 1997
Lucerne SeedBoard 31December 1997
Meat Board 31December 1997
Milk Board 31December 1997
Mohair Board 31December 1997
Oilseeds Board 31December 1997
Sorghum Board 31December 1997
Wheat Board 31December 1997
Wool Board 31August 1997
Atpresent, thedifferent industries arediscussing possible future structures andfunctions and
whether theseshould befinanced through statutory intervention orbymeans ofvoluntary contributions.
Afollow upNotification willbesubmitted ifnewstatetrading functions areestablished.