G/STR/N/18/NZL  
2 July 2020 
(20-4590) 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  
NEW ZEALAND  
The following communication, dated 5 June 2020, 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 XVI I, and in accordance with the following working definition of State Trading 
Enterprises:  
"Governmental and non -governmental enterprises, 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 response to the call for notifications set forth in document G/STR/N/18, New Zealand submits 
the following new and full notification.  G/STR/N/18/NZL  
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  QUESTIONNAIRE  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 commercial return from world markets for producers in New Zealand.  
B. The Kiwifruit I ndustry Restructuring Act 1999 and Kiwifruit Export Regulations 1999 provide 
the legal basis for a specia l 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. SUMMARY 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 Marketing Board into a private company, Zespri Gr oup 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. SPECIFICATION OF EXCLUSIVE OR SPECIAL RIGHTS OR PRIVILEGES ENJOYED BY THE STATE 
TRAD ING ENTERPRISE  
The promulgation of the Kiwifruit Export Regulations 1999 provides Zespri Group Limited with an 
automatic but not sole right to export kiwifruit.  
Zespri does not administer tariff rate quotas nor does it receive any trade -distorting subsidie s, tax 
advantages, special financing, or preferential access to foreign exchange. It does not receive any 
specific support from the government based on its status as a State Trading Enterprise.  
C. TYPE OF ENTITIES OTHER THAN THE STATE TRADING ENTERPRISE TH AT ARE ALLOWED TO 
ENGAGE IN IMPORTATION/EXPORTATION AND CONDITIONS FOR PARTICIPATION  
Applications from other prospective exporters, to export kiwifruit in collaboration with Zespri, are 
assessed and decided on by Kiwifruit New Zealand, an independent regul atory body established 
under the provisions of the Kiwifruit Export 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 invol vement 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.  
Zespri is not involved in the import o f fruit. There are no restrictions on who may import product 
into New Zealand and currently the tariff on kiwifruit imports is zero.  
D. HOW IMPORT/EXPORT LEVELS ARE ESTABLISHED BY THE STATE TRADING ENTERPRISE  
Zespri Group Limited has total discretion over the quantities it decides to export.  G/STR/N/18/NZL  
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  Imports, if undertaken by Zespri Group Limited, would be based solely on commercial 
considerations.  
E. HOW EXPORT PRICES ARE DETERMINED  
The world market determines export prices.  
F. HOW THE RESALE PRICES OF IMPORTED 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. 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  
Procurement  
The Industry Advisory Council, which has representatives of Zespri, grower s and post harvest 
operators determines the conditions for the purchase of kiwifruit. Zespri has three -year rolling 
contracts with supply entities and these supply entities have contracts with growers. Under the 
Kiwifruit Export Regulations 1999, Zespri is  prohibited from discriminating between suppliers or 
potential suppliers other than on purely commercial grounds. This prohibition is monitored and 
enforced by the independent industry regulator. Government does not enter into contractual 
obligations regar ding these products.  
Sales/Exports  
All of Zespri's contracts for sale/export of kiwifruit are negotiated between Zespri and its customers 
with no Government involvement whatsoever. These contracts are therefore driven solely by 
commercial considerations an d world market prices and are generally of a short term (season -by-
season) nature.  
H. BRIEF DESCRIPTION OF MARKET STRUCTURE  
There are around 2,600 kiwifruit growers (14,000 hectares of orchard) throughout New Zealand. 
New Zealand domestic kiwifruit product ion is around 500,000 tonnes per annum, with about 90  
per cent exported. The domestic market is competitive, with growers having the choice of supplying 
fruit to the domestic or export markets. There is duty free access for imported kiwifruit.  
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) notified in New Zealand's 2001 notification  
(G/STR/N/7/NZL  dated  27 JULY 2001) are no longer STEs due to legislative changes since the time 
of that notification. See the 2004 notification  (G/STR/N/10/NZL ) for further details . 
    
  G/STR/N/18/NZL  
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TABLE I  
STATE TRADING: ZESPRI GROUP LIMITED  
STATISTICAL INFORMATION, IMPORTS1 
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)3 Mark -up2 National 
production  
(thousand tonnes)  
Kiwifruit  
(HS 081050)        
2016-17 0.897  Nil 2.13 2.10 - 6.26 Not applicable  567.1  
2017-18 0.678  Nil 3.31 2.55 - 6.87 Not applicable  465.5  
2018-19 0.693  Nil 2.24 2.37 - 6.34 Not applicable  643.6  
 
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.  
3 Average domestic sales prices are average peak season pri ce and average full year price. Average export price is the annual average export price of kiwifruit.  
 
 
1 Statistical Information is provided on a marketing year basis (April -March) .   
  G/STR/N/18/NZL  
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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)3 Average export price  
(NZ$/kg)  National production  
(thousand tonnes)  
Kiwifruit  
(HS 081050)        
2016-17 519.018  501.461  2.56 2.10 - 6.26 3.28 567.1  
2017-18 455.831  442.299  3.33 2.55 - 6.87 3.63 465.5  
2018-19 550.514  535.564  3.20 2.37 - 6.34 4.10 643.6  
 
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.  
3 Average domestic sales prices are average peak season price and average full year price. Average export price is the annual ave rage export price of kiwifruit.    
  G/STR/N/18/NZL  
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TABLE 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  
(HS 081050)      
2016-17 510.8  567.1  Not applicable  10-15 
2017-18 429.6  465.5  Not applicable  10-15 
2018-19 554.6  643.6  Not applicable  10-30 
 
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