G/STR/N/18/BRA  
2 November  2020 
(20-7699) Page: 1/3 
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 PARAGRAPH 1 OF THE UNDERSTANDING ON  
THE INTERPRETATION OF ARTICLE XVII  
BRAZIL 
The following communication, dated 30 October 2020, is being circulated at the request of the 
delegation of Brazil.  
 
_______________  
 
 
Pursuant to Article XVII:4(a) of the GATT 1994 and paragraph 1 of the Understanding on the 
Interpretation of Article XVII of the GATT 1994, and in response to the call for notificati ons contained 
in document G/STR/N/18, Brazil makes the following notification for the years 2018 -2019.  
I.  ENUMERATION OF STATE TRADING ENTERPRISES  
A. Identification of state trading enterprises.  
Companhia Nacional de Abastecimento (Conab  – National Company  for Food Supply ). 
B. Description of products affected (including tariff item number(s) encompassed in 
product description).  
Agricultural Products (commodities).  
II.  REASON AND PURPOSE  
A. Reason or purpose for establishing and/or maintaining stat e trading enterprise.  
The company 's mission is to provide intelligence on agriculture and livestock and to participate in 
the formulation and execution of public policies, contributing to the regularity of food supply and to 
the provision of income to rura l producers . The enterprise maintains regular and grain warehouses 
in the different regions of Brazil, with the aim of stocking agricultural products and ensuring food 
supply to the population.  
Conab offers detailed and updated information on the national production in agriculture and 
livestock, by collecting data on forecasts of harvests , costs of production and stockholding, stock 
positioning and market indicators, besides technical studies on supply of and demand for relevant 
products, among other data . Its studies and research , as well as information on the company 's 
initiatives, are publicly available in its institutional website and allow for the general diffusion of data 
and information.  G/STR/N/18/BRA  
- 2 - 
  B. Summary of legal basis for granting the relevant exclusive or special rights or privileges, 
including legal provisions and summary of statutory or constitutional powers.  
Companhia Nacional de Abastecimento (Conab – National Company for Food Supply) is a public 
federal enterprise of private law with its h eadquarters in Brasília, linked to the Ministry of Agriculture, 
Livestock and Food Supply (MAPA) . The company was created by means of Law n ° 8.029 , of 
April 12th, 1990 . Its activities started on January  1st, 1991.  
Its administrative bodies are the Administ ration Council (Consad), Fiscal Council (Confis) and the 
Board of Directors . Consad is presided by the Executive -Secretary of MAPA and is composed by the 
President -Director of Conab, up to three representatives from MAPA and one from the Ministry of 
Econom y. Confis, Conab 's supervision body, is composed by three effective members and their 
alternates : one from the National Treasury ; and two from MAPA, appointed by the Minister of 
Agriculture, Livestock and Food Supply after approval from the President of Br azil. The board of 
Directors is composed of the Company 's President and its Directors:  
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE  
A. Summary statement providing overview of operations of the state trading enterprise.  
The Social Statute of Conab , in its object and social goals, provides for the following initiatives:  
• Formation of regulatory and strategic stocks to absorb surpluses and correct imbalances 
resulting from speculation;  
• Plannin g, regulating and  executing the Federal Government 's Policy for Ensurance of 
Minimum Prices;  
• Implementing other instruments for support of prices in agriculture and livestock;  
• Developing actions of foreign trade, according to directives from the Ministry of 
Agriculture, Li vestock and Food Supply (MAPA) and to legislation related to the Chamber 
of Foreign Trade (Camex);  
• Executing foreign trade operations in spot and future markets of products from 
agriculture and livestock, under exceptional conditions . Under normal circumst ances, 
the private sector is in charge of imports and exports of agricultural products . Conab's 
commercial activities related to stock moving are conditioned to authorization from 
MAPA and, when required, from Camex . All these activities, when authorized, are 
conducted by means of electronic tenders  with market prices and, therefore, no 
distortion is caused.  
B. Specification of exclusive or special rights or privileges enjoyed by the state trading 
enterprise.  
Conab holds no special right or privilege to export , import, buy or sell agricultural products . Conab 
is a federal public company  of private law, which operates under market conditions just as private 
companies do . It is granted no privilege from government.  
C. Type of entities other than the state trading en terprise that are allowed to engage in 
importation/exportation and conditions for participation.  
Any import, export, purchase or sale of agricultural commodities in Brazil may  be freely conducted 
by private agents , without any restriction.  
D. How import/expor t levels are established by the state trading enterprise.  
During the period covered by this notification , Conab has not imported or exported any agricultural 
product.  
E. How export prices are determined.  
Does not apply (see III.D).  G/STR/N/18/BRA  
- 3 - 
  F. How the resale prices of imported products are determined.  
Does not apply (see III.D).  
G. Whether long -term contracts are negotiated by the state trading enterprise.  Whether 
the state trading enterprise is used to fulfil contractual obligations entered into by the 
government.  
Does no t apply.  
H. Brief description of market structure.  
Operations in the market of agricultural products are conducted by private, independent buyers and 
sellers.  
IV.  STATISTICAL INFORMATION  
Does not apply . No foreign trade has taken place.  
V.  REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE  
During the period covered by this notification, Conab has not imported or exported agricultural 
products because such operations have not been necessary to accomplish its institutional mission.  
VI.  ADDITIONAL INFORMATION  
No addit ional information.  
 
__________