G/STR/N/19/GBR  
 
1 July 2022  
(22-5126) Page: 1/6 
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  
UNITED  KINGDOM  
The following notification, dated  29 June 2022 and received on 30  June 2022, is being circulated at 
the request of the delegation  of the  United  Kingdom.  
 
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The following notification covers the reporting period 2020 and 2021, during which time the UK was 
still a member of the European Union (EU) (until 31 January 2020), after which followed the UK -EU 
Transition Period (1 February 2020 to 31 December 2020).  
Pursuant to Article XVII:4(a) of  the GATT 1994 and paragraph 1 of the Understanding on the 
Interpretation of Article X VII of the GATT 1994, and in response to the call for notifications set out 
in document G/STR/N/19,  the United Kingdom makes the following new and full notification of its 
state trading enterprises.  
  G/STR/N/19/GBR  
 
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  I. Enumeration of state trading enterprises  
A. Identification of state trading enterprises  
British Wool Marketing Board (BWMB).  
B. Description of products affected (including tariff item number(s) encompassed in 
product description)  
Fleece wool (CN code: 5101110000).  
II. Reason and purpose  
A. Reason or  purpose for establishing and/or maintaining state trading enterprise  
The British Wool Marketing Board's purpose is to maximise the value of wool on behalf of 
approximately 35,000 producers across the UK. It does this by grading (sorting) their wool and 
amalgamating it by type to form commercially viable lots which are tested to International Wool 
Textile Organisation (IWTO) standards and sold steadily throughout the year by public auction.  
B. Summary of legal basis for granting the relevant exclusive or sp ecial rights or privileges, 
including legal provisions and summary of statutory or constitutional powers  
BWMB was established in 1950. Its powers are laid down under the British Wool Marketing Scheme 
(Approval) Order 1950 and the Agricultural Marketing Act  1958. The Order provides that wool 
producers with more than four adult sheep must register with BWMB (under paragraphs 49 and 
53 of the schedule) and also puts an obligation on BWMB to collect wool duly tendered by any 
registered producer (paragraph 72(2) of the schedule). This is in effect a Universal Service 
Obligation. The Order also provides for an optional monopoly on the collection and sale of producers ' 
wool (paragraph 71(2) -(5) of the schedule) which in practice is not utilised, lea ving producers the 
right to sell wool independently or outside of the scheme via one of BWMB 's competitors. Exemptions 
from the scheme are largely at the discretion of BWMB (paragraph 70 of the schedule).  
http://www.legislation.gov.uk/uksi/1950/1326/pdfs/uksi_19501326_en.pdf  
III. Description of the functioning of the state trading enterprise  
A. Summary statement providing overview of operations of the state trading enterp rise 
The BWMB arranges the collection of wool from producers and sells that wool on their behalf, via 
auction. British Wool is sold at open auctions, organised by the Board, in free competition with wool 
from other sources. British Wool receives no financi al support from the government. The "Scheme " 
exists to regulate the collection and marketing of UK fleece wool and obliges British Wool to provide 
a service to any producer with four sheep or more.  
B. Specification of exclusive or special rights or privile ges enjoyed by the state trading 
enterprise  
Whilst BWMB holds an optional monopoly on the collection of fleece wool from producers under the 
governing legislation, this is not used in practice. BWMB in practice only collects 80% of UK wool, 
with the remain ing 20% purchased directly from farms by competitors. These third -party buyers 
also purchase wool directly from British Wool through its auctions.    
C. Type of entities other than the state trading enterprise that are allowed to engage in 
importation/expor tation and conditions for participation  
The "Scheme " under which BWMB operates does not extend to the import or export of wool. The 
BWMB board has no direct role in regulating imports or exports of wool in the UK. Merchants 
purchasing wool via BWMB 's aucti ons are entitled to retain the wool for onward production in the 
UK, or export for onward processing or sale.  G/STR/N/19/GBR  
 
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  D. How import/export levels are established by the state trading enterprise  
BWMB does not import any wool, therefore non -UK producers (i.e. the pr oducers of wool from 
non-UK sheep) are not subject to the Scheme. The BWMB has no role in establishing export levels 
– the buyers are free to use the wool for whatever purposes they have bought it.  
E. How export prices are determined  
Merchants buy wool at  auction and may export this wool in both greasy and scoured form but as the 
BWMB has no role in establishing export level, it has no control over export prices. Export prices are 
determined by the market. With UK wool only accounting for <1.5% of global w ool production, the 
Board has no role in determining market prices, although it can dictate a reserve price at auction.  
F. How the resale prices of imported products are determined  
The BWMB does not import any wool/woollen products and, therefore, has no control over the resale 
prices.  
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 UK wool is sold via auction and, therefore, the BWMB has no contractual obligations, either private 
or governmental.  
H. Brief description of market structure  
The BWMB is required to register all producers with four or more sheep (with the exception of 
Shetland, which has its own arrangement).  It has an infrastructure of regional grading Depots, and 
Intermediate Depots, as well as a network of collection centres and hauliers throughout the UK. The 
wool is graded and stored at the Depots until it is sold – no wool is released wi thout payment being 
received. Wool from the UK is traded as a global commodity and, therefore, subject to global market 
changes.  
IV. Statistical information ( see attached Tables I - III) 
See Appendices  
V. Reason why no foreign trade has taken place (as appropriate ) 
Not applicable  
VI. Additional information ( as appropriate )  
  G/STR/N/19/GBR  
 
- 4 - TABLE I  
STATE TRADING:  BRITISH WOOL MARKETING BOARD  
STATISTICAL INFORMATION, IMPORTS  
Description of product(s)  
(including HS number(s))  Total quantity 
imported1 Quantity imported by  
state trading 
enterprise1 Average import 
price  Average 
representative  
domestic sales price  Mark -up2 National 
production  
1 2 3 4 5 6 7 
Greasy Fleece Wool 
CN 5101110000  
 18,832 tonnes 
(2021)  0 GBP600/tonne 
(2021)  Not Available  Not 
available  Not available  
 
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/19/GBR  
 
- 5 - TABLE II  
STATE TRADING:  BRITISH WOOL MARKETING BOARD  
STATISTICAL INFORMATION, EXPORTS  
Description of product(s)  
(including HS number(s))  Total quantity 
exported3 Quantity 
exported by  
state trading 
enterprise3 Average 
procurement 
price4 Average 
representative  
domestic sales 
price  Average export 
price  National 
production  
1 2 3 4 5 6 7 
Greasy Fleece Wool  
CN 5101110000  
 5,250 tonnes 
(2021)  0 Not Available  Not available  GBP1,000/tonne 
(2021)  Not available  
 
  
 
3In cases where no exports have taken place under columns 2 or 3, provide an explanation under Section V of this questionnaire . 
4In cases where the initial procurement pric e is augmented by other payments, additional payments should also be reported.  
  G/STR/N/19/GBR  
 
- 6 - TABLE III  
STATE TRADING:  NAME OF STATE TRADING ENTERPRISE  
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES  
Description of product(s)  
(including HS number(s))  Domestic purchases by  
state trading enterprise  National production  Domestic sales by  
state trading enterprise  National consumption  
Greasy Fleece Wool  
CN 5101110000  Nil 1 May – 30 April:  
2020E clip – 23.425m kg  
2019E clip – 26.724 m kg  
2018 clip – 27.170 m kg  
2017 clip - 28.955 m kg  
2016 clip - 29.338 m kg  
2015 clip – 29.288 m kg   
2020E clip - GBP13.9m**  
2019E clip - GBP19.8m*  
2018 clip - GBP27.190 m  
2017 clip – GBP29.341 m  
2016 clip  – GBP33.720 m  
2015 clip - GBP37.570 m  Estimated 15 m kg  
  
* The drop in value between 1 May 2019 and 30 April 2020 was largely a function of the Covid -19 situation.  
** The reduced value in sales is a further reflection of the international market closures caused by the Covid -19 pandemic . 
 
 
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