G/STR/N/17/NZL  
 
15 May 2018 
(18-2891) Page: 1/6 
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  
NEW ZEALAND  
The following communication, dated 1 1 May 2018, 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, a nd 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 accordance with the recommendation adopted by t he Working Party on 11  November  2003 
New Zealand submits the fo llowing new and full notification.  
 G/STR/N/17/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 Austra lia. 
 
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 sta te trading enterprise.  
 
B. SPECIFICATION OF EXCLUSIVE OR SPECIAL RIGHTS OR PRIVILEGES ENJOYED BY THE 
STATE TRADING ENTERPRISE  
 
The promulgation of the Kiwifruit Export Regulations 1999 provides Zespri Group Limited with an 
automatic but not sole right to e xport kiwifruit.  
 
Zespri does not administer tariff rate quotas nor does it receive any trade -distorting subsidies, 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 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 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 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 c urrently 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/17/NZL  
 
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  Imports, if undertaken by Zespri Group Limi ted, 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 STAT E 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, growers and post harvest 
operators determi nes 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 betw een 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 whatsoever. 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 STRU CTURE  
 
There are around 2,600 kiwifruit growers (13,000 hectares of orchard) throughout New Zealand. 
New Zealand domestic kiwifruit production is around 500,000 tonnes per annum, with about 90 % 
exported. The domestic market is competitive, with growers hav ing 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/17/NZL  
 
- 4 - TABLE I  
STATE TRADING: ZESPR I GROUP LIMITED  
STATISTICAL INFORMAT ION, 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)        
2015-16 0.979  Nil Not applicable  2.45-6.27 Not applicable  511.0  
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  
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 average full year price. Average export price is the annual a verage export price of kiwifruit . 
                                                
1 Statistical Information is provided on a marketing year basis (April -March).   
  G/STR/N/17/NZL  
 
- 5 - TABLE II  
STATE TRADING: ZESPR I GROUP LIMITED  
STATISTICAL INFORMAT ION, 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)        
2015-16 461.056  451.84  2.53 2.45-6.27 3.17 511.0 
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  
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 a verage export price of ki wifruit . 
  
  G/STR/N/17/NZL  
 
- 6 - TABLE III  
STATE TRADING: ZESPR I GROUP LIMITED  
STATISTICAL INFORMAT ION, DOMESTIC ACTIVI TIES 
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)      
2015-16 450.68   511.0  Not applicable  10-15 
2016-17 510.8  567.1  Not applicable  10-15 
2017-18 429.6  465.5  Not applicable  10-15 
 
 
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