WORLD TRADE  
ORGANIZATION   
G/L/1007 
2 November 2012 
 (12-6047) 
  
  
 
REPORT (2012) OF THE WORKING PARTY ON 
STATE TRADING ENTERPRISES  
 
 
I. ORGANIZATION OF THE WORK OF THE WORKING PARTY 
1. The Working Party on State Trading Enterprises was established by the Council for Trade in 
Goods at its meeting of 20 February 1995, pursu ant to paragraph 5 of the Understanding on the 
Interpretation of Article XVII of the General Agre ement on Tariffs and Trade 1994 (hereinafter "the 
Understanding"). Membership of the Working Party is open to all Members indicating their wish to 
serve on it. Observer governments in the General C ouncil of the WTO have observer status in the 
Working Party. During the period under review (27 October 2011 to 30 October 2012), the Working 
Party was presided by two Chairpersons. Mr Ngoni Francis SENGWE (Zimbabwe) chaired the 
Working Party from 17 April 2012 to 7 June 2012 , and Mr Paul BATIBONAK (Cameroon) assumed 
the Chairpersonship as of 8 June 2012. 
2. The mandate of the Working Party is set out  in paragraph 5 of the Understanding. The 
Working Party completed its mandate to develop an illustrative list of state trading relationships and 
activities with the adoption of the Illustrativ e List by the Council for Trade in Goods on 
15 October 1999 (G/STR/4). Having also complete d the mandated revision of the questionnaire on 
state trading, the Working Party now reviews notifications in light of the revised questionnaire adopted on 14 November 2003 (G/STR/3/Rev.1). 
3. This Report is submitted under paragraph 5 of the Understanding. It sets out the activities of 
the Working Party during the period under review. 
4. Following the regular meeting held on 27 October 2011, the Working Party held two informal 
and two formal meetings during the period under re view. The informal meetings were held on 
6 June 2012 and 11 October 2012, and the form al meetings were he ld on 8 June 2012 and 
30 October 2012. The minutes of the formal meeti ng held on 8 June 2012 were circulated as 
document G/STR/M/23. The minutes of the formal meeting held on 30 October 2012, which was the 
regular meeting of the Working Party for 2012,  will be circulated as document G/STR/M/24. 
5. The next regular meeting of the Workin g Party is scheduled for October 2013. 
II. NOTIFICATION AND REVIEW OF MEMBERS' STATE TRADING ACTIVITIES 
6. Article XVII:4 of the GATT 1994 and paragraph 1 of the Understanding require Members to 
notify their state trading enterprises to the Counc il for Trade in Goods. New and full notifications 
were first required in 1995 and, subsequently, ever y third year thereafter, while updating notifications 
were to be made in the intervening years. On  11 November 2003, the Working Party adopted the 
recommendation contained in document G/STR/5 re garding the frequency of notifications. This 
recommendation, approved by the Council for Tr ade in Goods on 26 November 2003, modified the 
frequency of notifications on state trading enterpri ses to new and full notifications on a biannual basis 
only. The new frequency of notifications was to be implemented for a trial phase of four years, G/L/1007 
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  commencing on 30 June 2004. On 3 October 2008 an d 16 June 2010, the Working Party respectively 
adopted the recommendations contained in documen ts G/STR/6 and G/STR7, each time concluding 
that it would be desirable to extend the new freque ncy of notifications for two additional years. 
7. Paragraph 6 of the recommendation in document G/STR/7 directed the Working Party to 
review the situation with regard to compliance w ith the notification obligation and the frequency of 
notifications at the end of the two year extens ion period. Informal b ilateral and small-group 
consultations were held by the Chair throughout 2012 to determine whether to further extend the 
current frequency of notifications. At its inform al meeting on 6 June 2012, the Working Party 
conducted a review of the current situation relating to the frequency of notification. At its formal 
meeting on 8 June 2012, the Working Party a dopted the recommendation contained in document 
G/STR/8 to extend the current frequency of notification on an indefinite basis. 
8. In the period under review, 59 new and full notif ications and 12 updating notifications were 
received. The Working Party reviewed all of these notifications at its regular meeting on 30 October 2012. The new and full notifications revi ewed were as follows: (a) the 2012 notifications 
from Argentina; Australia; Canada; Chile; Colombia ; Croatia; El Salvador; the European Union; 
Georgia; Guatemala; Honduras; Hong Kong, China; Japan; the Republic of Korea; the State of 
Kuwait; Macao, China; New Zealand; Nigeria;  Norway; Panama; Switzerland; Chinese Taipei; 
Turkey; Ukraine; United States; Uruguay; and Za mbia; (b) the 2010 notifications from Argentina; 
Croatia; the European Union; Georgia; Guatemal a; India; the State of Kuwait; Liechtenstein; 
Pakistan; Panama; and Zambia; (c) the 2008 notificati ons from Georgia; Guatemala; India; the State 
of Kuwait; Pakistan; Panama; and Zambia; (d) the 2006 notifications from Georgia; Guatemala; the 
State of Kuwait; Nigeria; Pakistan; and Panama; (e ) the 2004 notifications from Georgia; Guatemala; 
the State of Kuwait; Nigeria; and Pakistan; a nd (f) the 2001, 1998 and 1995 notifications from the 
State of Kuwait. The updating notifications reviewed  were as follows: (a) the 2003 notifications from 
Georgia; Guatemala; the State of Kuwait; and Ni geria; (b) the 2002 and 1999 notifications from the 
State of Kuwait; and (c) the 2000, 1997 and 1996 noti fications from the State of Kuwait; and Zambia. 
9. At the regular meeting of the Working Party, Australia posed written questions relating to 
Japan's new and full notification s ubmitted in document G/STR/N/14/JPN
1. 
10. The Working Party adopted its Annual Report to the Council for Trade in Goods for the 
year 2012. 
III. COMPLIANCE WITH THE NOTIFICATION OBLIGATION  
11. As of 30 October 2012, 27 new and full notif ications have been received for the 2012 
notification period (G/STR/N/14), as listed in pa ragraph 8 above. The following Members have not 
submitted any notification for the current period: Albania, Angola, Antigua and Barbuda, Armenia, 
the Kingdom of Bahrain, Bangladesh, Barbados, Beli ze, Benin, the Plurinational State of Bolivia, 
Botswana, Brazil, Brunei Darussalam, Burkina Fa so, Burundi, Cambodia, Cameroon, Cape Verde, 
Central African Republic, Chad, China, Congo, Cost a Rica, Côte d'Ivoire, Cuba, the Democratic 
Republic of the Congo, Djibouti, Dominica, the Dominican Republic, Ecuador, Egypt, Fiji, Gabon, 
The Gambia, Ghana, Grenada, Guinea, Guinea-Bis sau, Guyana, Haiti, Iceland, India, Indonesia, 
Israel, Jamaica, Jordan, Kenya, the Kyrgyz Repub lic, Lesotho, Liechtenstein, Madagascar, Malawi, 
Malaysia, Maldives, Mali, Mauritania, Mauritiu s, Mexico, the Republic of Moldova, Mongolia, 
Morocco, Mozambique Myanmar, Namibia, Nepal, Nicaragua, Niger, Oman, Pakistan, Papua New Guinea, Paraguay, Peru, Philippines, Qatar, Rwanda, Saint Kitts and Nevis, Saint Lucia, Saint Vincent 
and the Grenadines, the Kingdom of Saudi Arabia , Senegal, Sierra Leone, Singapore, Solomon 
Islands, South Africa, Sri Lanka, Suriname, Swaz iland, Tanzania, Thailand, the former Yugoslav 
                                                      
1 G/STR/Q1/JPN/19.  G/L/1007 
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  Republic of Macedonia, Togo, Tonga, Trinidad and Tobago, Tunisia, Uganda, United Arab Emirates, 
the Bolivarian Republic of Venezu ela, Viet Nam, and Zimbabwe. 
12. Information on the status of state trading notifications since 1995 is set out in document 
G/STR/9. 
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