WORLD TRADE G/STR/N/1/ISR/Rev.1
26September 1996
ORGANIZATION(96-3831)
Original: English Working Party onState Trading Enterprises
STATE TRADING
Notification Pursuant toArticle XVII:4(a) oftheGATT andParagraph 1
oftheUnderstanding ontheInterpretation ofArticle XVII
ISRAEL
Revision
Thefollowing communication, dated 18September 1996, hasbeenreceived fromthePermanent
Mission ofIsrael.
_______________
After further consideration ofthecriteria setoutinthedefinition ofstatetrading inthe
Understanding ontheInterpretation ofArticle XVII, theGovernment ofIsrael wishes torevise the
notification made inG/STR/N/1/ISR asfollows:
Table ofContents Page
1. Groundnuts ...............................................1
2. Ornamental plants ...........................................2
3. Fruits ...................................................3
4. Vegetables ................................................4
5. Citrus fruits ...............................................4
6. Eggandpoultry ............................................5
1. Ground nuts
I. Enumeration oftheState Trading Enterprise
Israel Groundnuts Production andMarketing Board
II. Reason andpurpose
TheBoard wasestablished bytheGroundnuts Board Lawof1959. Itspurposes aretofacilitate
thedevelopment, planning andproduction ofgroundnuts andtocoordinate marketing activities inthe
branch.G/STR/N/1/ISR/Rev.1
Page2
III. Description ofthefunctioning oftheState Trading Enterprise
- BylawtheBoard isthesoleexporter ofgroundnuts fromIsrael. TheBoard doesnot
actinimport.
- Thequantities tobeexported andtheexport prices aredetermined bymarket demand
andproduction capacity.
- TheBoard doesnotgenerally establish long-term export contracts.
IV. Statistical information
Year Exports ofGroundnuts Domestic Production ofGroundnuts
Quantity (tons) Value (US$) Quantity (tons)
1992/3 8,924 9,986,829 18,870
1993/4 10,796 12,607,222 20,200
1994/5 10,184 13,008,861 19,500
2. Ornamental plants
I. Enumeration oftheState Trading Enterprise
Production andMarketing Board ofOrnamental Plants
II. Reason andpurpose
TheBoard wasestablished bytheBoard ofOrnamental Plants Lawof1976 asanon-profit
corporation. Itspurposes aresupporting research anddevelopment intheornamental branch, taking
measures toreduce theproduction andmarketing costs, andthecoordination ofexport activities.
III. Description ofthefunctioning oftheState Trading Enterprise
- According tothelawof1976theBoard istheexclusive exporter ofornamental plants
inIsrael. TheBoard doesnotactinimport.
- Some exporters thatbegan theiractivity before 1976("past-traders") retain theirexport
licence andcompete withtheBoard. TheBoard carries outexport onbehalf ofIsrael's
producers bycontract withAGREXCO Ltd.,apartially-government-owned company.
Since 1992private companies canexport Dried Flowers andPropagation Materials
tocountries where theBoard doesnotoperate.
- Export prices andquantities aredetermined bymarket demand andproduction capacity.
Most oftheBoard 'sexports aresoldonEuropean flower auction, theprice being
determined bytheoutcome oftheauction.
- Exports within theframework oflong-term contracts account forlessthan1percent
ofthetotalornamental plants export.G/STR/N/1/ISR/Rev.1
Page3
IV. Statistical information
Year Exports bytheBoard Total Exports Domestic
Production
Quantity
('000un.)Value
(US$'000)Quantity
('000un.)Value
(US$'000)Quantity
('000un.)
1992/3 954,253 122,338 1,004,477 128,777 1,104,925
1993/4 1,041,515 127,592 1,096,332 134,307 1,205,965
1994/5 1,045,874 138,454 1,100,920 145,741 1,211,012
3. Fruits
I. Enumeration oftheState Trading Enterprise
Fruit Board ofIsrael
II. Reason andpurpose
TheBoard wasestablished bytheFruit Board Lawof1973 asanon-profit corporation. Its
purposes aresupporting research anddevelopment inthefruitbranch, taking measures toreduce the
production andmarketing costs offruit, andensuring regular supplies offruitatstable prices inthe
domestic consumer market.
III. Description ofthefunctioning oftheState Trading Enterprise
- BylawtheBoard isexclusive exporter ofnon-citrus fruits from Israel. TheBoard
doesnotactinimport.
- Until theendof1992 theBoard 'sexport wascarried outonlybycontract with
AGREXCO Ltd., apartially-government-owned company. Onthe8September 1992
thispolicy wasabolished byGovernment Decision No.130andNo.131. TheBoard
nowestablishes criteria forother export agencies andexports through several different
firms.
- Export prices andquantities aredetermined bymarket demand andproduction capacity.
- Long-term contracts account foronlyaverysmall partofexport contracts.
IV. Statistical information
Year Exports bytheBoard Domestic Production
Quantity (tons) Value (US$'000) Quantity (tons)
1993 49,681 73,255 405,840
1994 52,499 80,035 385,491
1995 69,835 91,065 435,009G/STR/N/1/ISR/Rev.1
Page4
4. Vegetables
I. Enumeration oftheState Trading Enterprise
TheVegetable Production andMarketing Board
II. Reasons andpurpose
TheBoard wasestablished bytheVegetable Board Lawof1959 asanon-profit corporation.
Itspurposes aretosupport research anddevelopment inthevegetable sector, establishing storage and
packing centres, planning ofvegetable production, andcoordinating exports. TheBoard alsocarries
outmarket stabilization activities inthelocalmarket.
III. Description ofthefunctioning oftheState Trading Enterprise
- BylawtheBoard isexclusive exporter ofvegetables from Israel. TheBoard does
notactinimport.
- Until theendof1992 theBoard 'sexport wascarried outonlybycontract with
AGREXCO Ltd., apartially-government-owned company. On8September 1992this
policy wasabolished byGovernment Decisions No.130andNo.131. TheBoard
nowestablishes criteria forotherexport agencies, andexports through several different
firms.
- Export prices andquantities aredetermined bymarket demand andproduction capacity.
- Long-term contracts account foronlyaverysmall partofexport contracts.
IV. Statistical information
Year Exports bytheBoard Total Exports Domestic
Production
Quantity
(tons)Value
(US$'000)Quantity
(tons)Value
(US$'000)Quantity
(tons)
1992/3 96,504 68,905 96,504 68,905 1,420,000
1993/4 97,950 76,967 98,043 76,983 1,550,000
1994/5 90,938 73,251 99,900 82,855 1,720,000
5. Citrus fruits
I. Enumeration oftheState Trading Enterprise
Citrus Marketing Board ofIsrael (CMBI)G/STR/N/1/ISR/Rev.1
Page5
II. Reason andpurpose
TheBoard wascreated bythe"Temporary State Council Order" of1948 (so-called "Citrus
Fruits Order") intheformoftwodifferent offices: theCitrus Products Marketing Board andtheCitrus
Products Supervision Board. In1984 bothofthem werecombined bythe"Citrus Fruits (Marketing
andSupervision) Reform".
Thepurposes ofCMBI aredetermining thecitrus branch strategy, responsibility forthe"Jaffa ®"
trademark, carrying outagrotechnical activities inthecitrus field, particularly national pestcontrol
programmes, andsupporting research anddevelopment inthefield.
III. Description ofthefunctioning oftheState Trading Enterprise
- Until 1991 theBoard hadafresh citrus fruitmarketing monopoly. Thismonopoly
wasabolished byTheOrder ofMinister ofAgriculture of31January 1991. CMBI
doesnotactinimport.
- Private traders carry outallexport ofcitrus fruitfrom Israel competing inworld
markets. CMBI doesnotexport onitsown. Itdoeslicense theuseofthe"Jaffa ®"
trademark toprivate companies, iftheymeet thequality andfinancial requirements
of"Jaffa ®".
- Export prices andquantities oftheprivate traders aredetermined bymarket demand
andproduction capacity.
IV. Statistical information
Since theCMBI doesnotexport orimport onitsown,thereisnorelevant statistical information.
6. EggandPoultry
I. Enumeration oftheState Trading Enterprise
EggandPoultry Board
II. Reasons andpurpose
TheBoardwasestablishedbytheEggandPoultryBoardLawof1963asanon-profitcorporation
toencourage quality poultry breeding, toorganize veterinary control inthepoultry industry, andto
encourage consumption ofpoultry meat.
III. Description ofthefunctioning oftheState Trading Enterprise
- Bylaw,theBoard hasexclusive righttoexport eggandpoultry products. Itdoesnot
actinimport.
- TheBoard maintains anopen export policy andgrants licences toprivate exporters
without anylimitations. TheBoard coordinates exports ofgoose livers andbreast
ofturkeysthroughAGREXCOLtd.,apartially-government-ownedcompany,butother
private traders compete onthese products.
IV. Statistical information
Since theBoard doesnotexport orimport onitsown,thereisnorelevant statistical information.