G/STR/N/18/AUS  
 
22 April 2021  
(21-3462) Page: 1/7 
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  
AUSTRALIA  
The following communication, dated and received  on 21 April 2021 , is being circulated at the request 
of the delegation of Australia . 
 
_______________  
 
 
Pursuant to Article XVII:4(a) of the GATT 1994 and paragraph 1 of the Understanding on the 
Interpretatio n of Article XVII of the General Agreement on Tariffs and Trade, Australia makes the 
following new and full notification of its state trading enterprise for the years 2018/19 and 2019/20 . 
I. ENUMERATION OF STATE TRADING ENTERPRISES  
A. IDENTIFICATION OF STATE TRADING ENTERPRISES  
The Rice Marketing Board for the State of New South Wales.  
B. DESCRIPTION OF PRODUCTS AFFECTED (INCLUDING TARIFF ITEM NUMBER(S) 
ENCOMPASSED IN PRODUCT DESCRIPTION)  
Rice grown i n the State of New South Wales ( HS 1006). 
II. REASON AND PURPOSE  
A. REASON OR PURPOSE FOR ESTABLISHING AND/OR MAINTAINING STATE TRADING 
ENTERPRISE  
The objectives of the Rice Marketing Board for the State of New South Wales are:  
• to encourage the development of a competitive domestic market for rice. 
• to ensure the best possible returns from rice sold outside Australia based on the quality 
differentials or attributes of Australian grown rice.  
• to liaise with and represent the interest of all NSW rice growers in relation to the Board 's 
functions and  objects.  G/STR/N/18/AUS  
 
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  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  
The legal basis for the Rice Marketing Board (the Board) for the State of New South Wales is provided 
by the State of New South Wales Rice Marketing Act 1983. Rice produced in NSW is vested in the 
Board , however rice can be traded on the domestic market pu rsuant to the issuance of an 
Authorised  Buyer 's license by the Rice Marketing Board . A single export license has been issued by 
the Board to Ricegrowers Limited (trading as SunRice) . 
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE  
A. SUMMARY ST ATEMENT PROVIDING OVERVIEW OF OPERATIONS OF THE STATE TRADING 
ENTERPRISE  
All rice grown in the State of New South Wales is divested from producers and becomes the property 
of the Rice Marketing Board for the State of New South Wales under a vesting proclam ation.  The 
Board exercises its rights as the legal owner of all rice produced in NSW to determine who is allowed 
to trade NSW rice on the domestic and export markets, pursuant to the issuance of an Authorised 
Buyer 's license. Authorised Buyers are appointed by the Board and all applicants are eligible to 
become Authorised Buyers, subject to the Board's discretion to refuse an application where it has 
reason to believe that the applicant will breach the conditions of appointment . Authorised Buyers 
have a condition of appointment prohibiting the exporting of rice where another Authorised Buyer 
has already been granted permission to export. The  Board is therefore restricted to  issuing a single  
export licence, which is currently iss ued to Ricegrowers Limited, trading as SunRice Australia. The 
Board has also entered into a related but separate Sole and Exclusive Export Licence (SEEL) 
Agreement with SunRice that it will not issue any other export licences.  
The Rice Marketing Board for the State of New South Wales does not negotiate contracts for the sale 
of rice. All rice trading is conducted on behalf of the Rice Marketing Board for the State of 
New South  Wales by Authorised Buyers.  Authorised Buyers are able to freely buy and sell ric e grown 
in New South Wales on the domestic market in Australia.  All sales contracts are entered into on a 
commercial basis.  
The Rice Marketing Board for the State of New South Wales has appointed Ricegrowers Limited 
(trading as SunRice) as its sole exporte r. SunRice has no obligation to set a benchmark price and 
has not done so.  
It is the Board's responsibility to ensure that these export arrangements generate the best possible 
returns based on quality differentials or attributes on behalf of all New South Wales rice growers.  
B. SPECIFICATION OF EXCLUSIVE OR SPECIAL RIGHTS OR PRIVILEGES ENJOYED BY THE STATE 
TRADING ENTERPRISE  
The State of New South Wales Rice Marketing Act 1983  entitles the Rice Marketing Board for the 
State of New South Wales to award an Autho rised Buyer with the exclusive right to export rice grown 
in the State of New South Wales . 
C. TYPE OF ENTITIES OTHER THAN THE STATE TRADING ENTERPRISE THAT ARE ALLOWED TO 
ENGAGE IN IMPORTATION/EXPORTATION AND CONDITIONS FOR PARTICIPATION  
Rice can be imported into Australia by any entity.  
Ricegrowers Limited (trading as SunRice) is the sole exporter of rice grown in New South Wales.  The 
Board does not have special or exclusive privileges to import rice.  
There are no statutory restrictions on the export of rice grown in other Australian states.  
D. HOW IMPORT/EXPORT LEVELS ARE ESTABLISHED BY THE STATE TRADING ENTERPRISE  
Australian rice import and export levels are determined by market forces on a commercial basis.  G/STR/N/18/AUS  
 
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  There are no tariffs or quantitative restriction s applied on the import of rice (HS 1006) into Australia. 
The Rice Marketing Board for the State of New South Wales has no role in regulating imports of rice 
into Australia.  
E. HOW EXPORT PRICES ARE DETERMINED  
Export prices are determined by the market for Au stralian rice at levels influenced by the quality of 
the rice and prevailing world prices.  
F. HOW THE RESALE PRICES OF IMPORTED PRODUCTS ARE DETERMINED  
Not applicable. The arrangements for rice grown in New South Wales do not cover imports.  
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  
All sales contracts are entered into on a commercial basis.  The Rice Marketing Board for  the State 
of New South Wales is not used to fulfil contractual obligations entere d into by the government nor 
does the government enter into any obligations on behalf of the Rice Marketing Board for the State 
of New South Wales.  
H. BRIEF DESCRIPTION OF MARKE T STRUCTURE  
The Australian market is open to competition from imports and significant quantities of rice are 
imported. There are no tariffs or quantitative restrictions applied on the import of rice (HS 1006) 
into Australia.  
About 99  per cent of total rice grown in Australia is grown in the State of New South Wales.  
Effective from 1 July 2006, the domestic marketing arrangements for rice grown in New South Wales 
were changed so that multiple Authorised Buyer permits could be issued for sales of NSW rice  within 
Australia.  Entities wanting to participate in the domestic market for rice grown in New South Wales 
must apply to the Rice Marketing Board for the State of New South Wales to become an 
Authorised  Buyer.  
Authorised Buyers are able to buy and sell ri ce grown in New South Wales on the domestic market 
in Australia.  
IV. STATISTICAL INFORMATION  (SEE ATTACHED TABLES I - III) 
The data contained in the attached tables is not available on a consistent basis and figures in different 
columns are generally not comparable.  In particular, no adjustments may have been made for 
factors such as quality, transport terms, and different time periods (e.g. marketing year versus fiscal 
year).  Differing sources may have been used, also resulting in non -comparability.  In addition, some 
portions of the data are not collected or are otherwise not available.  
 Key to notes:  
 N/A Not applicable.  
V. REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE  (AS APPROPRIATE)  
Not applicable. The Australian market is open to competition from imports a nd significant qu antities 
of rice are imported. There are no tariffs or quantitative restrictions applied on the import of rice 
(HS 1006) into Australia.  G/STR/N/18/AUS  
 
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  VI. ADDITIONAL INFORMATION  (AS APPROPRIATE)  
On 21 December 2016 the New South Wales Minister for Primary Industries announced that the 
NSW Government was renewing the vesting powers of the NSW Rice Marketing Board, with vesting 
in the Rice Marketing Board extended until 30 June 2022.  A review of  the current rice  vesting 
arrangements  commenced  on 10 March 2021 .   
  G/STR/N/18/AUS  
 
- 5 - TABLE I  
STATISTICAL INFORMATION, IMPORTS  
Description of 
product(s)  
(including HS 
number(s))  Unit Year Total quantity 
imported1 Quantity 
imported by 
state trading 
enterprise  Average import 
price2 Average 
representative 
domestic sales 
price  Mark -up National 
production3 
1   2 3 4 5 6 7 
Rice (HS 1006)  '000 tonnes  2017/2018  165.2  Nil 1.23 $A per kilo  N/A N/A 635 
Rice (HS 1006)  '000 tonnes  2018/2019  183.9  Nil 1.40 $A per kilo  N/A N/A 66.8 
Rice (HS 1006)  '000 tonnes  2019/20204 234.4  Nil 1.40 $A per kilo  N/A N/A 52.8 
 
1 ABARES Agricultural Commodity Statistics 2020. Marketing year (April to March) basis.  
2 As above.  
3 As above.  
4 Figures for 2019/2020 are ABARES estimates.   
  G/STR/N/18/AUS  
 
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TABLE II  
STATISTICAL INFORMATION, EXPORTS  
Description of 
product(s)  
(including HS 
number(s))  Unit Year Total quantity 
exported1 Quantity 
exported by 
state trading 
enterprises2 Average 
procurement 
price  Average 
representative 
domestic sales 
price  Average export 
price3 National 
production4 
1   2 3 4 5 6 7 
Rice (HS 1006)  '000 tonnes  2017/2018  372 N/A N/A N/A 0.95 $A per kilo  635 
Rice (HS 1006)  '000 tonnes  2018/2019  287 N/A N/A N/A 1.22 $A per kilo  66.8 
Rice (HS 1006)  '000 tonnes  2019/2020  114 N/A N/A N/A 1.22 $A per kilo  52.8 
 
 
1 ABARES Agricultural Commodity Statistics 2020. Marketing year (April to March) basis.  
2 The Rice Marketing Board for the State of New South Wales has vested exclusive exporting powers in Ricegrowers  Limited (trading as SunRice), which is the sole exporter 
of rice grown in New South Wales.  
3 ABARES Agricultural Commodity Statistics 2020. Marketing year (April to March) basis.  
4 As above.   
  G/STR/N/18/AUS  
 
- 7 - TABLE III  
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES  
Description of 
product(s)  (including 
HS number(s))  Unit Year Domestic purchases 
by state trading 
enterprise  National 
production1 Domestic sales by 
state trading 
enterprise  National 
consumption2 
1   2 3 4 5 
Rice (HS 1006)  '000 tonnes  2017/2018  N/A 635 N/A 329 
Rice (HS 1006)  '000 tonnes  2018/2019  N/A 66.8 N/A 335 
Rice (HS 1006)  '000 tonnes  2019/2020  N/A 52.8 N/A 340 
 
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1 ABARES Agricultural Commodity Statistics 2020. Marketing year (April to March) basis.  
2 ABARES Agricultural Commodity Statistics 2020. Financial year (July to June) basis.