G/STR/Q1/AUS/10  
 
24 October 2016 
(16-5788) Page: 1/2 
Working Party on State Trading Enterprise s Original: English  
 
 STATE TRADING  
REPLIES TO QUESTIONS1 POSED BY THE  EUROPEAN UNION REGAR DING  
THE NEW AND FULL NOT IFICATION OF AUSTRAL IA2 
The following communication, dated 21 October 2016, is being circulated at the request of the 
Delegation of Australia . 
 
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Question 1  
 
The Rice Marketing Board for the State of New South Wales is the sole State Trading 
Enterprise (STE) notified by Australia.  
 
Could Australia explain what distinguishes it from the six other STEs3 notified in 2004 
whose monopoly powers have sinc e been removed?  
 
Reply  
 
The Australian Federal Government as well as Australian states and territories have from time to 
time operated State Trading Enterprises (STE).  As the EU notes, the only remaining STE with 
export marketing powers left in Australia i s the Rice Marketing Board for the State of New South 
Wales (NSW RMB).  Historically, STEs in Australia have reflected different industry conditions and 
make up, different climatic conditions under which the industry operates, as well as different 
competiti ve pressures.   
 
The legal basis for the NSW RMB is provided by the State of NSW Rice Marketing Act 1983.  
Effectively, all rice produced in NSW and not sold on the domestic market is vested in the 
NSW RMB. A single export licence has been issued by the NSW RMB to Ricegrowers Limited 
(trading as SunRice).  See G/STR/N/9/AUS which covers the NSW RMB and older notifications for 
Australia 's historical STEs.  
 
Question 2 
 
The Department of Foreign Affairs and Trade made a submission to the Government of 
New South W ales' 2012 review of rice vesting by the Rice Marketing Board which noted 
that the continuation of rice vesting is inconsistent with Australia's foreign trade policy.4 
 
Has Australia again made this point to the New South Wales Government as part of its 
current review of the rice vesting proclamation?  
 
                                                
1 G/STR/Q1/AUS/9.  
2 G/STR/N/16/AUS.  
3 AWB (International) Limited; New South Wales Grains Board; Grain Pool Pt y Ltd; ABB Grain Export 
Limited; Queensland Sugar Limited (QSL); and Australian Dairy Corporation (ADC).  
4 http://www.dpi.nsw.gov.au/__data/assets/pdf_file/0009/449847/Review -of-Rice-Vesting -Final-
Report.pdf  (p 13). G/STR/Q1/AUS/10  
 
- 2 - 
 
  Reply  
 
Pursuant to the NSW Rice Marketing Act 1983 and a Proclamation signed by the Governor of New 
South Wales (NSW) on 16 January 2013, all rice produced in NSW is vested in and is the property 
of the Rice Marketing Board for the State of New South Wales.  This current vesting arrangement is 
due to expire on 30 June 2017.   
 
Before making a decision on the future of rice vesting, the NSW Minister for Primary Industries has 
requested that a review be undertaken  to determine whether vesting continues to be in the best 
interests of the NSW rice industry.  The NSW Government sought submissions in relation to the 
review, and these were due on 14 September 2016.  The NSW Department of Primary Industries 
are currently u ndertaking the review and its findings will be published publicly in late 
December  2016.  
 
Question 3  
 
Australia's Competition Policy Review's final report of March 20155 and Productivity 
Commission's July 2016 draft report of its inquiry into the regulatio n of Australian 
agriculture6 have highlighted the need to address restrictions applying to the export of 
rice in New South Wales.  
 
With the Productivity Commission questioning the export market price premium 
generated by the statutory marketing of rice in New South Wales and recommending the 
repeal of the Rice Marketing Act 1983, what are the reasons for maintaining the Rice 
Marketing Board for the State of New South Wales?  
 
Reply  
 
As described in G/STR/N/16/AUS, the reasons for maintaining the Rice Marketi ng Board for the 
State of New South Wales are that it:  
 
 encourages the development of a competitive domestic market for rice;  
 ensures the best possible returns from rice sold outside Australia based on the quality 
differentials or attributes of Australian  rice; and  
 liaises with and represents the interests of all NSW rice growers in relation to the 
Board 's functions and objects.  
Australian rice is exported at a competitive international price that reflects world markets and 
conditions.  See in particular G /STR/N/16/AUS which demonstrates that the average price for rice 
imported into Australia was higher than the average price of Australian rice that was exported 
during 2014 -15. The Australian market is open to competition from imports and significant 
quanti ties of rice are imported.  There are no tariffs or quantitative restrictions applied on the 
import of rice (HS 1006) into Australia.  
 
 
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5 http://competitionpolicyreview.gov.au/final -report/  (pp 152-154). 
6 http://www.pc.gov.au/inquiries/current/agriculture/draft  (pp 412 -416).