WORLD TRADE
ORGANIZATIONG/STR/N/2/SVN
G/STR/N/3/SVN
18 November 1998
(98-4617)
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
SLOVENIA
The following communication, dated 10 November 1998, has been received from the
Permanent Mission of Slovenia.
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I. ENUMERATION OF STATE TRADING ENTERPRISES
The Republic of Slovenia does not have state trading enterprises in the context of the
provisions of Article XVII of the GATT 1994.
In part, the Agency of the Republic of Slovenia for Commodity Reserves (forthwith "the
Agency") assumes state trading functions and is acco rded exclusive and special privileges within the
meaning of GATT Article XVII.  As a legal person, the Agency is authorized by government decree
for duty-free tariff-quota imports of wheat and sugar for stocking and disposal by the Agency.
II. REASON OR PURPOSE FOR INTRODUCING AND MAINTAINING STATE
TRADING ENTERPRISE
The Agency (as a legal entity) was established on 1 January 1996 as a state-owned agency for
the purpose of maintaining public stocks and strategic reserves as a means of market intervention and
emergency relief.  The activities of the Agency are based on the Law on National Commodity
Reserves (Official Gazette RS Nos. 60 and 72, 1995).  Previously these activities were conducted by adivision in the Ministry of Economic Relations and Development of the Republic of Slovenia.
In May 1998, the Agency of the Republic of Slovenia for Commodity Reserves was
reorganized, splitting the agency into the follow ing three units with separate business operations:
- obligatory oil products reserves unit
- strategic reserves unit
- agricultural interventions unit
In establishing the oil products unit, the objective was to ensure the obligatory reserves of oil
products in accordance with EC Directive 68/414 and amendment 72/425 (for 90 days of
consumption).G/STR/N/2/SVN
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Page 2
The creation of the agricultural interventions unit will facilitate specialist work in this area
and enable those tasks performed by intervention agencies in EC countries to be conducted in
Slovenia.  The unit's principal tasks include the purchase of agricultural products at intervention
prices, the organization and/or sale of agricultural products on the domestic market or on foreign
markets, and intervention in the market during market disturbances.
The principal purpose of the Agency is to provide and maintain stocks of commodities in
order to support the market stabilization measures put forward by the Ministry of Economic Relations
and Development.  These measures are implemented through market interventions in cases of
shortage, oversupply, or in emergency situations.
Operations of the Agency are financed by the annual budget of the Republic of Slovenia.The Government promotes, through Agency operations, its agriculture-related policy
objectives, by price support and other measures, underlined by the need for food security.
III. DESCRIPTION OF FUNCTIONING OF THE STATE TRADING ENTERPRISE
The Agency conducts part of its duties as an intervention agency (the purchase of agricultural
products at intervention prices on the basis of appropriate resolutions by the Government of the
Republic of Slovenia in accordance with the Law on National Commodity Reserves (Official Gazette
RS No. 60/95)), while its other tasks are in connection with strategic and obligatory reserves.
With regard to wheat, each year the Government of the Republic of Slovenia adopts market
arrangements by which it stipulates the intervention price for wheat produced in Slovenia, which the
Agency is obliged to purchase and store.  The shor tfall in meeting the needs of the country is freely
imported by companies on the basis of quotas assigned in accordance with WTO and in accordancewith CEFTA.  Some of the shortfall in wheat (partic ularly wheat of very high quality) is also imported
by the Agency on a quota basis, without customs duties or other levies.
Until this year, domestic production of wheat covered approximately 45 per cent of the
country's needs.  This year we were faced with a larger harvest.
The Agency buys wheat and imports it exclusively on a public tender basis, from which the
most favourable bidder is selected to import wheat on behalf of and for the account of the Agency.
The Agency sells the domestic wheat together with the imported wheat to companies at a
determined fixed price.  Any difference between that and the purchase price of the wheat, including
costs of purchase, storage, and financing of stocks, is in principle covered partly by the differencebetween the Agency's import and sales prices, and partly from the national budget to support price
stability on the domestic market.
A change in the market arrangement is currently under preparation, and is set to both reduce
the intervention price and limit (with regard to 1998, reduce) the purchased quantities in which theAgency participates.
IV. STATISTICAL INFORMATION
(See following Tables I-III).
V. REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE
This Agency is not yet dealing with export business.G/STR/N/2/SVN
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Page 3TABLE I
STATISTICAL INFORMATION, IMPORTS
(Metric tonnes)
Description of product(s)
(including HS number(s))Total quantity
importedQuantity imported
by state trading
enterpriseAverage import priceAverage representative
domestic sales price Mark-up National production
12 3 4 5 6 7
WHEAT100190990
1995 81,933 77,233 23.96 SIT/kg 155,575
1996 62,685 51,695 32.23 SIT/kg 137,120
1997 148,821 110,197 33.77 SIT/kg 138,930
1998 (until 7 Sept.) 62,775 0
SUGAR WHITE1701991
1995 26,067 12,000 60.40 SIT/kg
1996 15,208 9,989 53.80 SIT/kg
1997 12,861 0
1998 (until 7 Sept.) 536 0
TABLE II
STATISTICAL INFORMATION, EXPORTS
Description of product(s)
(including HS number(s))Total quantity
importedQuantity exported
by state trading
enterpriseAverage procurement
priceAverage representative
domestic sales price Average export price National production
12 3 4 5 6 7
-- - - - - -G/STR/N/2/SVN
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Page 4 TABLE III
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES
(Metric tonnes)
Description of product(s)
(including HS number(s))Domestic purchases by state
trading enterpriseNational production Domestic sales by state trading
enterprisesNational consumption
12345
WHEAT
100190990
1995        89,360 155,575      163,595 230,000
1996        78,037 137,120      211,147 230,000
1997        83,080 138,930      193,338 230,000
1998 cca 130,000 cca 50,000 230,000
Sources: Statistical Office of the Republic of Slovenia
Customs Authority of the Republic of Slovenia
Agency of the Republic of Slovenia for Commodity Reserves
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