WORLD TRADE  
ORGANIZATION  G/STR/N/10/NZL 
8 November 2004 
 (04-4744) 
Working Party on 
State Trading Enterprises Original:   English 
 
 
 
STATE TRADING 
 
New and Full Notification Pursuant to Article XVII:4(a)  
of the GATT 1994 and Paragra ph 1 of the Understanding on  
the Interpretation of Article XVII  
 
NEW ZEALAND 
  
 The following communication, dated 8 November 2004, is being circulated at the request of 
the Delegation of New Zealand.  
_______________ 
 
 
 Pursuant to Article XVII:4(a) of the GATT 1994 and Paragraph 1 of the Understanding on the 
Interpretation of Article XVII, and in accordance w ith the following working definition of State Trading 
Enterprises:  
"Governmental and non-governmental enterp rises, including marketing boards, which 
have been granted exclusive or special rights or privileges. including statutory or 
constitutional powers, in the exercise of which they influence through their purchases 
or sales the level or direction of imports or exports." 
and in accordance with the recommendation adopted by the Working Party on 11 November 2003
1 
New Zealand submits the following new and full notification.   
 
 
                                                     
 
1 The Council for Trade in Goods approved this recommendation on 26 November 2003, and agreed to 
implement it as of the year 2004. G/STR/N/10/NZL 
Page 2  
 
QUESTIONNAIRE
2 ON STATE TRADING 
 
I. ENUMERATION OF STATE TRADING ENTERPRISES 
 A Enterprise: Zespri Group Limited 
 B Product: Kiwifruit – HS 08 10 50 
 
II. REASON AND PURPOSE 
A The New Zealand Government maintains a State Trading Enterprise for kiwifruit 
exports so as to obtain the best possible return from world markets for producers in 
New Zealand.  
 B The Kiwifruit Industry Restructuring Act 1999 and Kiwifruit Export Regulations 
1999 provide the legal basis for a special export authority for Zespri Group Limited 
which is not accorded to other exporters of kiwifruit destined for markets other than 
Australia. 
 III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE 
Zespri Group Limited 
A. S
UMMARY STATEMENT PROVIDING  OVERVIEW OF OPERATIONS OF THE STATE TRADING 
ENTERPRISE  
 The Kiwifruit Industry Restructuring Act was enacted in September 1999.  On 1 April 2000 
the Act converted the New Zealand Kiwifruit Marketi ng Board into a company, Zespri Group Limited 
and distributed shares in Zespri Group Limited to kiwifruit growers.   
  For the purposes of this notification, Zespri is considered a state trading enterprise.   
 B. S
PECIFICATION OF EXCLUSIVE OR SPECIAL RI GHTS OR PRIVILEGES ENJOYED BY THE STATE 
TRADING ENTERPRISE  
 The promulgation of the Kiwifruit Export Regulations 1999 provides Zespri Group Limited 
with an automatic right, but not the sole right, to export kiwifruit.     Zespri does not administer tariff rate quotas nor does it receive subsidies, tax advantages, special financing, preferential access to fore ign exchange or any other support provided by 
government.   
 C. T
YPE OF ENTITIES OTHER THAN THE STATE TRADING ENTERPRISE THAT ARE ALLOWED TO 
ENGAGE IN IMPORTATION /EXPORTATION AND CONDITIONS FOR PARTICIPATION  
 Applications from other prospective exporte rs, to export kiwifruit in collaboration with 
Zespri, are assessed and decided on by Kiwifruit New Zealand, an independent regulatory body 
established under the provisions of the Kiwifruit Regulations 1999.  Private traders can export 
kiwifruit to Australia without prior permission of Kiwifruit New Zealand and independent of 
collaboration with Zespri.     Zespri has a minor involvement in the domestic market but the extent of that involvement is 
restricted under the terms of the Kiwifruit Regulations and must be no more than “incidental” to its 
principal activity, that of exporting kiwifruit. 
                                                     
 
2 This questionnaire is to be filled out according to the Guidelines contained on pages 5-7.  G/STR/N/10/NZL 
 Page 3 
 
 
 Zespri is not involved in the import of fruit.  There are no restrictions on who may import product into New Zealand and currently the tariff on kiwifruit imports is zero.    D. H
OW IMPORT /EXPORT LEVELS ARE ESTABLISHED BY THE STATE TRADING ENTERPRISE  
 Zespri Group Limited has total discretion over the quantities it decides to export.   
 
 Imports, if undertaken by Zespri Group Limited, would be based solely on commercial considerations.    E. H
OW EXPORT PRICES ARE DETERMINED  
 The world market determines export prices.   
 F. H
OW THE RESALE PRICES OF IMPO RTED PRODUCTS ARE DETERMINED  
 Zespri Group Limited has no special rights or privileges in regard to importing product.  If 
Zespri Group Limited were to import product, the resale price would be determined by commercial 
considerations.   
 G. W
HETHER LONG -TERM CONTRACTS ARE NEGOTIATED BY  THE STATE TRADING ENTERPRISE .  
WHETHER THE STATE TRADING ENTERPRISE IS US ED TO FULFIL CONTRACTUAL OBLIGATIONS 
ENTERED INTO BY THE GOVERNMENT  
Procurement 
  Zespri with its suppliers determine the peri od for which each set of terms and conditions for 
the purchase of kiwifruit is applicable.  This pe riod would generally be short-term, annual supply 
contracts.  Under the Kiwifruit Export Regulations  1999, Zespri is prohibited from discriminating 
between suppliers or potential supp liers other than on purely commerc ial grounds.  This prohibition is 
monitored and enforced by the independent indus try regulator.  Government does not enter into 
contractual obligations regarding these products.  
Sales/Exports  
 
 All of Zespri’s contracts for sale/export of kiwifruit are negotiated be tween Zespri and its 
customers with no Government involvement whatsoever .  These contracts are therefore driven solely 
by commercial considerations and world market pric es and are generally of a short term (season-by-
season) nature.  H. B
RIEF DESCRIPTION OF MARKET STRUCTURE  
 There are around 1,600 kiwifruit growers throughout New Zealand.  Kiwifruit production 
averages at around 290,000 tonnes.  About 90 per cent of the kiwifruit production is exported.  The domestic market is fully open to competition, w ith growers having the choice to supply fruit to the 
domestic or export markets.  There is duty free access for imports of kiwifruit.     
 G/STR/N/10/NZL 
Page 4  
 
IV. STATISTICAL INFORMATION (SEE ATTACHED TABLES I - III)  
V. REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE (NOT APPLICABLE ) 
VI. ADDITIONAL INFORMATION  
 All other state trading enterprises (STEs) no tified in New Zealand’s last notification 
(G/STR/N/7/NZL dated 27 July 2001) are no longer STEs  due to legislative changes since the time of 
that notification. 
  ENZA Limited is no longer an STE as a con sequence of the commencement of the Apple 
Industry Restructuring Act Repeal Act 2001 which ef fected the deregulation of apple marketing.  
 
 The New Zealand Dairy Board is no longer an STE as a consequence of the commencement 
in 2001 of the Dairy Industry Restructuring Ac t 2001 which deregulated exports of dairy products 
from New Zealand.   The Hop Marketing Board has been abolished as a consequence of the commencement of the 
Hop Industry Restructuring Act 2003. 
  The Horticultural Export Authority is no longer notified as a consequence of the commencement of the New Zealand Horticultu ral Export Authority Amendment Act 2003 which 
removed powers of the Authority to include quantita tive export restrictions in mandatory marketing 
plans established under the parent legislation.   
   G/STR/N/10/NZL
 Page 5TABLE I 
 
STATE TRADING:  ZESPRI GROUP LIMITED 
 
STATISTICAL INFORMATION, IMPORTS 
 
 
Description of 
product(s) 
 Total quantity 
imported1 
(thousand tonnes) Quantity imported by 
state trading 
enterprise1 Average import price Average 
representative 
domestic sales price 
(estimate-NZ$/Kg) Mark-up2 National production 
(thousand tonnes ) 
Kiwifruit       
2001-02 0.114 Nil Not applicable 1.50-1.60 Not applicable 262.5 
2002-03 1.032 Nil Not applicable 1.50-1.60 Not applicable 246.0 
2003-04 0.901 Nil Not applicable  1.50-1.60 Not applicable 258.0 
 
1  In cases where no imports have taken place under columns 2 or 3,  provide an explanation under Section V of this questionnaire. 
 2  Members may report either under columns 4 and 5 or under column 6. 
 
   G/STR/N/10/NZL 
Page 6 TABLE II 
 
STATE TRADING:  ZESPRI GROUP LIMITED 
 
STATISTICAL INFORMATION, EXPORTS 
 
 
Description of 
product(s) 
 Total quantity 
exported1 
(thousand tonnes) Quantity exported by 
state trading 
enterprise1 
(thousand tonnes) Average procurement 
price2 
(NZ$/kg) Average  
representative 
domestic sales price 
(estimated NZ$/kg) Average export price 
(NZ$/kg) National production 
(thousand tonnes) 
Kiwifruit 
2001-02  
247.475  
238.648   
2.01  
1.50-1.60  
3.38  
262.5 
2002-03 229.940 223.870  2.33 1.50-1.60 3.83 246.0 
2003-04 238.326 234.346  2.50 1.50-1.60 3.90 258.0 
 
1  In cases where no exports have taken place under columns 2 or 3,  provide an explanation under Section V of this questionnaire. 
2  In cases where the initial procurement price is augmented by other payments, additional payments should also be reported.   G/STR/N/10/NZL
 Page 7TABLE III 
 
STATE TRADING:  ZESPRI GROUP LIMITED 
 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES 
 
 
Description of product(s) 
 Domestic purchases by 
state trading enterprise 
(thousand tonnes) National production 
(thousand tonnes) Domestic sales by 
state trading enterprise 
(thousand tonnes) National consumption 
(estimated thousand tonnes) 
Kiwifruit 
2001-02  
238.648  
262.5  
2.009  
7 - 9 
2002-03 223.870 246.0 1.211 7 - 9 
2003-04 234.346 258.0 1.310 7 - 9 
 
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