RESTRICTED
WORLD TRADE G/STR/Q1/ISR/10
18July1997
ORGANIZATION(97-3040)
Original: English Working Party on
State Trading Enterprises
STATE TRADING
Replies toQuestions Posed byAUSTRALIA andNEW ZEALAND1Concerning
theArticle XVII Notification ofISRAEL2
Thefollowingcommunication,dated11July1997,hasbeenreceivedfromthePermanentMission
ofIsrael.
_______________
AUSTRALIA
Question
WenotethatIsrael 'srevised notification ofstatetrading enterprises doesnotinclude the
Israeli Cotton Production andMarketing Board andtheAgricultural Export Company
(AGREXCO). Both ofthese enterprises appear tofallwithin theWTO working definition of
state trading enterprises with AGREXCO, inparticular, having considerable market power.
Does Israel plantonotify these organizations asstatetrading enterprises totheWTO andifnot,
whynot?
Reply
TheIsrael Cotton Production &Marketing Board Ltd.
Asalready answered inSeptember 1996, theIsrael Cotton Production &Marketing Board Ltd.
isaprivate company owned, operated andfunded bythemajor cotton producers. There isnobarrier
toanyother producer establishing itsexport company orexporting onitsown. TheCotton Board
received nobenefits fromtheGovernment ofIsrael thatarenototherwise available toprivate companies.
TheGovernment ofIsrael doesnotmaintain anyestablished support programme forcotton.
Agrexco Ltd.
Asmentioned inSeptember 1996, Agrexco operates asacommercial export service agent for
theVegetable Board, Fruit Board, Flower Board andother producers. Israel doesnotseeanyreason
1G/STR/Q1/ISR/8 andG/STR/Q1/ISR/6.
2G/STR/N/1/ISR/Rev.1G/STR/Q1/ISR/10
Page2
toreport onexport services agents thatdonothaveanygovernment preferential status. Since 1990
Agrexco Ltd.maintains adominant position, butisnolonger asoleexporter.
NEW ZEALAND
Question
Wewelcome Israel 'srevised notification, which provides some useful information onsix
marketing boards identified asState Trading Enterprises.
- Would Israel beabletoprovide some further detail onhowthese boards are
funded?
- Forexample, dotheyreceive government funding, oraretheysolely funded by
producers?
Wealsonotetheresponse provided byIsrael thattheIsrael Cotton Production and
Marketing Board isnotaState Trading Enterprise under Article XVII. Wewould begrateful,
nevertheless, ifIsrael could provide thesame details forthisbody inrespect offunding.
Israel 'snotification explains thatoneofthepurposes oftheFruit Board istoensure regular
supplies offruitatstable prices. Wewould beinterested inclarification astotheFruit Board 's
roles inprice stability.
- Does theBoard setminimum prices, orsome other form ofprice support?
- Doanyoftheother Boards listed inthenotification havearoleinproviding price
support?
Reply
General
TheBoards arefunded bygrowers fees,which arecollected bytheBoards, under theirstatutory
authority. Inaddition theBoards mayserve asachannel todistribute special government payments
togrowers particularly natural disaster compensation. Those payments aretobereflected inIsrael's
notification totheWTO Committee onAgriculture.
TheFruit Board
TheFruit Board doesnotsetaminimum price orprovide anyother price support. However,
theFruit Board hasafundforremoving surpluses during highseasons, butasIsrael imports fruit,
themechanism ofregulating supply isbymonitoring cropproduction andensuring aregular supply
allyearlongoffruitwhich canbekeptinstorage. Thefundisreflected inIsrael'snotification to
theWTO Committee onAgriculture.G/STR/Q1/ISR/10
Page3
TheVegetable Board andtheEgg&Poultry Board
TheVegetable Board andtheEgg&Poultry Board havesmall funds forremoving surpluses
during highseason. Those funds aretobereflected inIsrael'snotification totheWTO Committee
onAgriculture.
TheIsrael Cotton Production &Marketing Board Ltd.
Asalready answered inSeptember 1996, theIsrael Cotton Production &Marketing Board Ltd.
isaprivate company owned, operated andfunded bythemajor cotton producers. There isnobarrier
toanyother producer establishing itsownexport company orexporting onitsown. TheCotton Board
received nobenefits fromtheGovernment ofIsrael thatarenototherwise available toprivate companies.
TheGovernment ofIsrael doesnotmaintain anyestablished support programme forcotton.