G/STR/Q1/IND/18  
 
16 October 2018  
(18-6458) Page: 1/2 
Working Party on State Trading Enterprises  Original: English  
 
  
STATE TRADING  
QUESTION S FROM THE EUROPEAN U NION  
REGARDING INDIA 'S NEW AND FULL NOTIFIC ATION1 
The following communication, dated 15 October 2018, is being circulated at the request of the 
Delegation of the European Union . 
 
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Question 1  
 
The EU would like to reiterate its request of clarification on the export operations of FCI as per 
G/STR/Q1/IND/12 and again invite India to provide the relevant and up -to-date statistics on food 
grains as per the questionnaire form on STE G/STR/3/R ev.1.  
 
Question 2  
 
The EU notes that, in the Working Party of 31 May 2018, India indicated in response to Canada's 
first question that it was in the process of updating its STE notification. In relation to the second 
question, the representative of India indicat ed that there had been no exports of pulses from the 
public stockholding. In response to question 4, India indicated that these agencies had no role in 
import quotas since there were no procedures notified by the office of DGFT. On the remaining 
questions,  written replies would be submitted in due course. The EU urges India to provide detail ed 
replies to all the questions raised and is looking forward to receiving India's written clarifications.  
 
Question 3  
 
The EU has also previously asked for information  about Tamil Nadu State Marketing Limited 
(TASMAC). India has responded that it does not consider TASMAC to fall under the definition of a 
State Trading Enterprise as defined in the Foreign Trade Policy (FTP) of India. The EU does not 
consider this conditi on sufficient for exempting India from the notification's obligation of TASMAC, 
in accordance with Article XVII of the GATT. Furthermore, the EU notes that despite India's 
confirmation that TASMAC is a governmental entity benefitting of special privileges,  India still 
considers that it is not subject to notification as those privileges are not exclusive and therefore the 
third criterion of the WTO definition of the STE (that is an STE must influence, through purchases or 
sales, on the level or direction of imports or exports) is not met.  
 
Question 4  
 
The EU disagrees with India's position and underlines that the level of imports of beverages and 
spirits to Tamil Nadu is in reality influenced by the activities of TASMAC. Indeed, TASMAC is 
mandated to undertak e several commercial activities in Tamil Nadu, such as off -trade retail sale 
(vending) and purchases of Imported Foreign Liquor brands from the local manufacturing/bottling 
units, for example. These TASMAC activities considerably influence imports of bever ages and spirits 
to Tamil Nadu. Therefore, the EU would like to reiterate its position that TASMAC seems to qualify 
as an STE to be notified to the WTO.  
 
                                                
1 G/STR/N/12 /IND. G/STR/Q1/IND/18  
 
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  Question 5  
 
India has stated previously that that its authorities are carrying on internal consultations to reply to 
the EU's detailed questions on TASMAC. The EU would like to understand whether India has 
concluded its internal consultations as referred to in its replies and can today substantiate its 
position. The EU would also like to underli ne its interest in receiving detailed written replies and 
would like to hear from India when these replies are forthcoming.  
 
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