G/STR/N/16/AUS/Su ppl.1  
 
1 August  2017 
(17-4195) Page: 1/7 
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  
AUSTRALIA  
Supplement  
The following communication, dated 2 0 July 201 7, is being circulated at the request of the 
Delegation of Australia.  
 
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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 of the General Agreement on Tariffs and Trade, Australia makes the 
following new and full interim notification of its state trading enterprise for the year 201 5/16. 
 G/STR/N/16/AUS/Suppl.1  
 
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  I.   ENUMERATION OF STATE  TRADING ENTERPRISES  
A.   IDENTIFICATION OF STATE TRADING ENTERPRISES  
 
The Rice Marketing Board for the State of New South Wales.  
 
B. DESCRIPTION OF PRODUCTS AFFECTED (INCLUDING TARIFF ITEM NUMBER(S) 
ENCOMPASSED IN PRODUCT DESCRIPTION)  
 
Rice grown i n the State of New South Wales ( HS 1006) . 
 
II.   REASON AND PURPOSE  
A.   REASON OR PURPOSE FOR ESTABLISHING AND/OR MAINTAINING STATE TRADING 
ENTERPRISE  
 
The objectives of the Rice Marketing Board for the State of New South Wales are:  
 
 to encourage the development of a competitive domestic market for rice.  
 to ensure the best possible returns from rice sold outside Australia based on the quality 
differentials or attributes of Australian grown rice.  
 to liaise with and represent the interest  of all NSW rice growers in relation to the Board’s 
functions and objects.  
B.   SUMMARY OF LEGAL BASIS FOR GRANTING THE RELEVANT EXCLUSIVE OR SPECIAL RIGHTS 
OR P RIVILEGES, INCLUDING LEGAL PROVISIONS AND SUMMARY OF STATUTORY OR 
CONSTITUTIONAL POWERS  
 
The legal basis for the Rice Marketing Board (the Board) for the State of New South Wales is 
provided by the State of New South Wales Rice Marketing Act 1983.  Effecti vely, all rice produced 
in NSW and not sold on the domestic market is vested in the Board.  A single export license has 
been issued by the board to Ricegrowers Limited (trading as SunRice) . 
 
III.   DESCRIPTION OF THE F UNCTIONING OF THE ST ATE TRADING ENTERP RISE  
A.   SUMMARY STATEMENT PROVIDING OVERVIEW OF OPERATIONS OF THE STATE TRADING 
ENTERPRISE  
 
All rice grown in the State of New South Wales is divested from producers and becomes the 
property of the Rice Marketing Board for the State of New South Wales un der a vesting 
proclamation.  Since the deregulation of the domestic rice industry in 2006, the Board must 
automatically exempt from vesting all rice sold on the domestic market. However, the Board 
exercises its rights as the legal owner of all rice produce d in NSW to determine who is allowed to 
export NSW rice.  
 
Authorised Buyers are appointed by the Board and all applicants are eligible to become Authorised 
Buyers, subject to the Board's discretion to refuse an application where it has reason to believe 
that the applicant will breach the conditions of appointment.  The Board has presently chosen to 
issue only one export licence, to Ricegrowers Limited, trading as SunRice Australia. The Board has 
also entered into a related but separate Sole and Exclusive Ex port Licence (SEEL) Agreement with 
SunRice that it will not issue any other export licences.  
 
The Rice Marketing Board for the State of New South Wales does not negotiate contracts for the 
sale of rice.  All rice trading is conducted on behalf of the Rice Marketing Board for the State of 
New South Wales by Authorised Buyers.  Authorised Buyers are able to freely buy and sell rice 
grown in New South Wales on the domestic market in Australia.  All sales contracts are entered 
into on a commercial basis.  
 
The R ice Marketing Board for the State of New South Wales has appointed Ricegrowers Limited 
(trading as SunRice) as its sole exporter.  As part of its obligations under this agreement SunRice G/STR/N/16/AUS/Suppl.1  
 
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  is obliged to act as a buyer of last resort if other Authorised Buyer s do not purchase the rice.  
SunRice has no obligation to set a benchmark price and has not done so. Ricegrowers Limited, 
which is a public company, is also an Authorised Buyer.    
 
It is the Board's responsibility to ensure that these arrangements generate  the maximum 
monetary returns on behalf of all New South Wales rice growers.   
B. SPECIFICATION OF EXCLUSIVE OR SPECIAL RIGHTS OR PRIVILEGES ENJOYED BY THE 
STATE TRADING ENTERPRISE  
 
The State of New South Wales Rice Marketing Act 1983  entitles the Rice Mar keting Board for the 
State of New South Wales to award an Authorised Buyer with the exclusive, or non -exclusive, right 
to export rice grown in the State of New South Wales . 
 
C. TYPE OF ENTITIES OTHER THAN THE STATE TRADING ENTERPRISE THAT ARE ALLOWED TO 
ENGAGE IN IMPORTATION/EXPORTATION AND CONDITIONS FOR PARTICIPATION  
 
Rice can be imported into Australia by any entity.   
 
Ricegrowers Limited (trading as SunRice) is the sole exporter of rice grown in New South Wales.  
The Board does not have special or excl usive privileges to import rice.   
 
There are no statutory restrictions on the export of rice grown in other Australian states.   
 
D. HOW IMPORT/EXPORT LEVELS ARE ESTABLISHED BY THE STATE TRADING ENTERPRISE  
 
Australian rice import and export levels are det ermined by market forces on a commercial basis.  
There are no tariffs or quantitative restrictions applied on the import of rice (HS 1006) into 
Australia. The Rice Marketing Board for the State of New South Wales has no role in regulating 
imports of rice i nto Australia.   
 
E. HOW EXPORT PRICES ARE DETERMINED  
 
Export prices are determined by the market for Australian rice at levels influenced by the quality of 
the rice and prevailing world prices.   
 
F. HOW THE RESALE PRICES OF IMPORTED PRODUCTS ARE DETERMIN ED 
 
Not applicable. The arrangements for rice grown in New South Wales do not cover imports.   
 
G. WHETHER LONG -TERM CONTRACTS ARE NEGOTIATED BY THE STATE TRADING 
ENTERPRISE. WHETHER THE STATE TRADING ENTERPRISE IS USED TO FULFIL 
CONTRACTUAL OBLIGATIONS EN TERED INTO BY THE GOVERNMENT  
 
All sales contracts are entered into on a commercial basis.  The Rice Marketing Board for the State 
of New South Wales is not used to fulfil contractual obligations entere d into by the government nor 
does the government enter into any obligations on behalf of the Rice Marketing Board for the State 
of New South Wales.   
 
H.   BRIEF DESCRIPTION OF MARKET STRUCTURE  
 
The Australian market is open to competition from imports and significant quantities of rice are 
imported.  There ar e no tariffs or quantitative restrictions applied on the import of rice (HS 1006) 
into Australia.  
 
About 99 % of total rice grown in Australia is grown in  the State of New South Wales.  
 
Effective from 1 July 2006, the domestic marketing arrangements for ric e grown in New South 
Wales were deregulated and replaced with a system of multiple authorised buyer permits for sales 
within Australia.  Entities wanting to participate in the domestic market for rice grown in New 
South Wales must apply to the Rice Marketi ng Board for the State of New South Wales to become 
an Authorised Buyer.  G/STR/N/16/AUS/Suppl.1  
 
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Authorised Buyers are able to buy and sell rice grown in New South Wales on the domestic market 
in Australia.  
 
IV.   STATISTICAL INFORMAT ION (SEE ATTACHED TA BLES I - III) 
The data co ntained in the attached tables is not available on a consistent basis and figures in 
different columns are generally not comparable.  In particular, no adjustments may have been 
made for factors such as quality, transport terms, and different time periods (e.g. marketing year 
versus fiscal year).  Differing sources may have been used, also resulting in non -comparability.  
In addition, some portions of the data are not collected or are otherwise not available.  
 
 Key to notes:  
 
 NA Not available.  
 N/A Not app licable.  
 
V.   REASON WHY NO FOREIG N TRADE HAS TAKEN PL ACE ( AS APPROPRIATE ) 
Not applicable. The Australian market is open to competition from imports and significant 
quantities of rice are imported. There are no tariffs or quantitative restrictions applied  on the 
import of rice (HS 1006) into Australia.  
 
VI.   ADDITIONAL INFORMATI ON ( AS APPROPRIATE ) 
On 21 December 2016 the New South Wales Minister for Primary Industries announced that the 
NSW Government was renewing the vesting powers of the NSW Rice Market ing Board, with vesting 
in the Rice Marketing Board extended until 30 June 2022.  A review of vesting policy will 
commence in 2020.   
  G/STR/N/16/AUS/Suppl.1  
 
- 5 - TABLE I  
STATISTICAL INFORMATION, IMPORTS  
Description of 
product(s)  
(including HS 
number(s))  Unit Year Total quantity 
import ed1 Quantity 
imported by  
state trading 
enterprise  Average import 
price2 Average 
representative  
domestic sales 
price  Mark -up National 
production3 
1   2 3 4 5 6 7 
Rice (HS 1006)  '000 tonnes  2015/2016 160 Nil A$1,248/t N/A N/A 250 
 
                                                
1 DFAT ST ARS Database, March 2017. 
2 As above . 
3 ABARES estimate, ABARES Agricultural C ommodities Statistics June 2017 .  
  G/STR/N/16/AUS/Suppl.1  
 
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TABLE II  
STATISTICAL I NFORMATION, EXPORTS  
 
Description of 
product(s)  
(including HS 
number(s))  Unit Year Total quantity 
exported1 Quantity 
exported by 
state trading 
enterprises2 Average 
procurement 
price  Average 
representative 
domestic sales 
price  Average export 
price3 National 
production4 
1   2 3 4 5 6 7 
Rice (HS 1006)  '000 tonnes  2015/2016 314 NA NA NA A$1,312/t 250 
 
                                                
1 ABARES Agricultural Commodities  June 201 7. Fiscal year (July -June). Milled equivalent. Includes the milled grain equivalent of rice flour. Includes ABARES estimation for 
confidential data.  
2 The Rice Marketing Board for t he State of New South Wales has vested exclusive exporting powers in Ricegrowers Limited (trading as SunRice), which is the s ole exporter 
of rice grown in New South Wales.  
3 ABARES Agricultural Commodities  June 201 7. Fiscal year (July -June). Milled equival ent. Includes the milled grain equivalent of rice flour. Includes ABARES estimation for 
confidential data.  
4 ABARES estimate, ABARES Agricultural Commodities Statistics June 2017 .   
  G/STR/N/16/AUS/Suppl.1  
 
- 7 - TABLE III  
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES  
Description of 
product(s)  (including 
HS number(s))  Unit Year Domestic purchases 
by state trading 
enterp rise National 
production1 Domestic sales by 
state trading 
enterprise  National 
consumption2 
1   2 3 4 5 
Rice (HS 1006)  '000 tonnes  2015/2016 NA 250 NA 96 
 
 
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1 ABARES Agricultural Commodities  Statistics June 201 7.  
2 ABARES. National  consumption refers to apparent consumption, production plus imports less exports less any observed or assumed change in stock s.