G/STR/N/17/AUS  
 
1 August  2019 
(19-5035) Page: 1/7 
Working Party on State Trading Enterprises  Original: English  
 
STATE TRADING  
NEW AND FULL NOTIFIC ATION PURSUANT TO AR TICLE XVII:4(A) OF T HE  
GATT 1994 AND PARAGR APH 1 OF THE UNDERST ANDING ON  
THE INTERPRETATION O F ARTICLE XVII  
AUSTRALIA  
The following communication, dated 30 July  2019, 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 
Interpretation of Article XVII  of the General Agreement on Tariffs and Trade, Australia makes the 
following new and full interim notification of its state trading enterprise for the years 2016/17 and 
2017/18 . 
  G/STR/N/17/AUS  
 
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  I. ENUMERATION OF STATE  TRADING ENTERPRISES  
A. IDENTIFICATION OF STATE TRAD ING 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 intere st of all NSW rice growers in relation to the Board’s 
functions and objects.  
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 le gal 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 pursuant  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 F UNCTIONING OF THE ST ATE TRADING ENTERPRI SE 
A. SUMMARY  STATEMENT 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 pro clamation. 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 appo inted 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 issued 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 Wa les 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 rice grown in New 
South Wale s on the domestic market in Australia. All sales contracts are entered into on a 
commercial basis.  
 G/STR/N/17/AUS  
 
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  The Rice Marketing Board for the State of New South Wales has appointed Ricegrowers Limited 
(trading as SunRice) as its sole exporter. SunRice has no obliga tion 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 Authorised 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 exc lusive 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 dete rmined by market forces on a commercial basis. 
There are no tariffs or quantitative restrictions 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 Australian 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 ENTERE D 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 MARKET STRUCTURE  
 
The Australian market is open to competition from imports and significant quantities of rice are 
imported. There are no tari ffs or quantitative restrictions applied on the import of rice (HS 1006) 
into Australia.  
 
About 99 % 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 i n 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.  G/STR/N/17/AUS  
 
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Authorised Buyers are able to buy and sell rice grown in New South Wales on the domestic market 
in Australia.  
 
IV. STATISTICAL INFORMAT ION (SEE ATTACHED TA BLES I - III) 
The da ta 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 peri ods (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:  
 
 NA Not available.  
 N/A Not a pplicable.  
 
V. REASON WHY NO FOREIG N TRADE HAS TAKEN PL ACE ( AS APPROPRIATE ) 
Not applicable. The Australian market is open to competition from imports and significant qu antities 
of rice are imported. There are no tariffs or quantitative restrictions applied on the import of rice 
(HS 1006) into Australia.  
 
VI. ADDITIONAL INFORMATI ON ( 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 t he NSW Rice Marketing Board, with vesting 
in the Rice Marketing Board extended until 30 June 2022. A review of vesting policy will commence 
in 2020.   
  G/STR/N/17/AUS  
 
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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  2015/2016  164 Nil A$1,280/t  N/A N/A 274 
Rice (HS 1006)  '000 tonnes  2016/2017  174 Nil A$1,105/t  N/A N/A 807 
Rice (HS 1006)  '000 tonnes  2017/2018  165 Nil A$972/t  N/A N/A 630 
 
                                                
1 ABARES Agricult ural Commodities Statistics 2018. Milled; marketing year (April –March) basis . fob; Includes ABARES estimates from 2000 as confidentiality restrictions 
apply.  
2 As above . 
3 As above .  
  G/STR/N/17/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  2015/2016  366 NA NA NA A$1,281 /t 274 
Rice (HS 1006)  '000 tonnes  2016/2017  218 NA NA NA A$838/t 807 
Rice (HS 1006)  '000 tonnes  2017/2018  316 NA NA NA A$947/t 630 
 
                                                
1 ABARES Agricult ural Commodities Statistics 2018. Milled; marketing year (April –March) basis . fob; Includes ABARES estimates from 2000 as confidentiali ty restrictions 
apply.  
2 The Rice Marketing Board for the State of New South Wales has vested exclusive exporting powers in Ricegrowers Limited (tradi ng as SunRice), which is the sole exporter 
of rice grown in New South Wales.  
3 ABARES Agricult ural Commodi ties Statistics 2018. Milled; marketing year (April –March) basis . fob; Includes ABARES estimates from 2000 as confidentiality restrictions 
apply.  
4 ABARES Agricult ural Commodities Statistics 2018. Milled; marketing year (April –March) basis . fob; Includes A BARES estimates from 2000 as confidentiality restrictions 
apply.   
  G/STR/N/17/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  2015/2016  NA 274 NA 311 
Rice (HS 1006)  '000 tonnes  2016/2017  NA 807 NA 324 
Rice (HS 1006)  '000 tonnes  2017/2018  NA 630 NA 329 
 
 
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1 ABARES Agricultural Commodities  Statistics 2018.  
2 ABARES. National consumption  refers to apparent consumption, i.e.  production plus imports less exports less any observed or assumed change in stocks.