G/STR/N/16/NZL  
 
8 June 2016  
(16-3094)  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 1 June 2016, is being circulated at the request of the 
Delegation of New Zealand. 
 
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Pursuant to Article XVII:4(a) of the GATT 1994  and Paragraph 1 of the Understanding on the 
Interpretation of Article XVII, and in accordan ce 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 accordance with the recommendation adopted by the Working Party on 11 November 2003 
New Zealand submits the followin g new and full notification. G/STR/N/16/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 Industry Restructuring Act 1999 and Kiwifruit Export Regulations 1999 provide 
the legal basis for a special 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 Group 
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 SPECIA L RIGHTS OR PRIVILEGES ENJOYED BY THE 
STATE TRADING ENTERPRISE 
 
The promulgation of the Kiwifruit Export Regulati ons 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 subsidies, tax 
advantages, special financing, or preferential a ccess 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 THAT 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 regulatory body established 
under the provisions of the Kiwifruit Export Regu lations 1999. Private traders can export kiwifruit 
to Australia without prior permission of Kiwifr uit New Zealand and independent of collaboration 
with Zespri.   Zespri has a minor involvement 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 of 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/16/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 IMPO RTED 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 CO NTRACTS ARE NEGOTIATED BY THE STATE TRADING 
ENTERPRISE. WHETHER THE STATE TRADIN G ENTERPRISE IS USED TO FULFIL 
CONTRACTUAL OBLIGATIONS ENTERED INTO BY THE GOVERNMENT 
 
Procurement 
 The Industry Advisory Council, which has representatives of Zespri, growers and post harvest operators determines the conditions for the purcha se 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 proh ibited 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 regarding 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 what soever. These contracts are therefore driven 
solely by commercial considerations and world market prices and are generally of a short term 
(season-by-season) nature.  
H. BRIEF DESCRIPTION OF MARKET STRUCTURE 
  There are around 2,540 kiwifruit growers (12,080 he ctares of orchard) throughout New Zealand. 
New Zealand domestic kiwifruit production 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 (S EE 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/16/NZL  
 
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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)       
2013-14 0.860 Nil Not applicable 1.90-5.87 Not applicable 357.0 
2014-15 0.918 Nil Not applicable 2.01-6.68 Not applicable 384.4 
2015-16 0.979 Nil Not applicable 2.45-6.27 Not applicable 511.0 
 
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 price and av erage full year price. Average export price is the annual ave rage export price of kiwifruit. 
 
  .
 
                                               
1 Statistical Information is provided on a marketing year basis (April-March).  
  G/STR/N/16/NZL  
 
- 5 - 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)       
2013-14 321.299 309.96  2.57 1.90-5.87 2.52 357.0 
2014-15 345.899 342.72 2.73 2.01-6.68 2.89 384.4 
2015-16 461.056 451.84  2.53 2.45-6.27 3.17 511.0 
 
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 ot her payments, additional payments should also be reported.  
3 Average domestic sales prices are average peak season price and av erage full year price. Average export price is the annual ave rage export price of kiwifruit.  
  
  G/STR/N/16/NZL  
 
- 6 - 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)     
2013-14 309.96  357.0 Not applicable 10-15 
2014-15 342.72  384.4 Not applicable 10-15 
2015-16 450.68  511.0 Not applicable 10-15 
 
 
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