G/STR/Q1/NZL/10
17 October 2014
(14-5939)  Page: 1/3
Working Party on State Trading Enterprises  Original: English
 
STATE TRADING 
REPLIES TO QUESTIONS FROM CHILE1 REGARDING THE NEW AND FULL ARTICLE XVII 
NOTIFICATION OF NEW ZEALAND2 
The following communication, dated 9 October 2014, is being circulated at the request of the 
delegation of New Zealand.  
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  Regarding section II.B of Notification G/STR/N/15/NZL 
 
According to the notification, Zespri's purpos e is to "obtain the best commercial return 
from world markets" for kiwifruit produc ers. The arrangements set up under the 
Restructuring Act 1999 and the Kiwifruit Expo rt Regulations 1999, which gave rise to 
Zespri, maintained the historical exclusion from the single kiwifruit export system 
(since 1977) of kiwifruit exports for cons umption in the Australian market (which 
exports are subject to special regulations under the New Zealand Horticulture 
Export Authority Act 1987).  Question 1 
 
Bearing in mind the evolution of New Zeal and's kiwifruit exports over the past few 
decades, what is the purpose today of main taining a different arrangement for exports 
destined for Australia? How does this exclusio n contribute to the pu rpose stated by the 
New Zealand Government as a justification for maintaining Zespri?  
Reply 
 
New Zealand and Australia enjoy a special and close trading relationship, as reflected in the comprehensive Australia and New Zealand Closer Economic Relations Trade Agreement 1983, and 
in the historical exclusion of Australia from th e single kiwifruit export system (since 1977). The 
ability for private traders to freely export to Australia reflects that close relationship.  
Regarding section III.C of No tification G/STR/N/15/NZL 
 The notification states that Kiwifruit New Ze aland is tasked with assessing applications 
from "other" prospective exporters to export  kiwifruit in collaboration with Zespri. 
According to paragraph 24 of Part 4 of the Kiwifruit Export Regulations 1999, 
"[t]he purpose of this Part (Collaborative ma rketing) is to enable the Board to require 
ZGL (Zespri) to enter into collaborative marketing arrangements for the purpose of 
increasing the overall wealth of New Zealand kiwifruit suppliers". 
 Question 2 
 
In examining an application from a non-Zesp ri exporter, what specific criteria does 
Kiwifruit New Zealand use to evaluate the in crease in "overall wealth of New Zealand 
kiwifruit suppliers"? 
                                               
1 G/STR/Q1/NZL/8.   
2 G/STR/N/15/NZL. G/STR/Q1/NZL/10 
 
- 2 - 
 
  Reply 
 
The criterion applied to assess each application for a collaborative marketing arrangement is how well that arrangement will contribute to the purpose of increasing the overall wealth of 
New Zealand kiwifruit suppliers. 
 Question 3 
 
What criteria other than those mentioned in the previous question does Kiwifruit 
New Zealand use in assessing applicat ions from non-Zespri exporters? 
 
Reply 
 
The only requirement in addition to contributi ng to an increase in the overall wealth of 
New Zealand kiwifruit suppliers is that the proposal must be a collaborative marketing 
arrangement with Zespri.  
Question 4 
 Although Zespri's declared purpose is to benefit New Zealand's kiwifruit "producers",  
the Regulations 1999 mention the wealth of Ze spri "suppliers". Are the interests of 
kiwifruit producers that are not Zespri supp liers taken into account in assessing an 
application to export under a collaborative arrangement? How does this work in practice? 
 
Reply 
 
The purpose of Part 4 is to increase the wealth of all New Zealand kiwifruit suppliers, not only 
those supplying Zespri. 
 Question 5 
 
Could New Zealand provide statistics on the number of applications received, the 
number of applications approved and the number  of applications declined over the last 
five seasons? 
 Reply 
 Over the last five seasons Kiwifruit New Zealand has received 144 applications for collaborative marketing arrangements. 134 applications have been approved, 10 applications have been declined.   
 
Question 6  
Could New Zealand provide examples of the reasons for declining export applications, 
for example, over the last five seasons (a s referred to in paragraph 28(c)(i) of the 
Kiwifruit Export Regulations 1999)? 
 
Reply 
 The reason applications were declined was that they could not demonstrate that they met the 
criterion for approval as outlined in our response to Questions 2 & 3. 
 Paragraph 26 of Part 4 of the Kiwifruit Export  Regulations 1999 ("Allocation of part of 
kiwifruit crop for collaborative marketing") st ates that Kiwifruit New Zealand may (after 
the commencement of each season) "direct ZG L to make a certain volume of kiwifruit 
available for collaborative marketing arrangements in that current season". 
 
Question 7  Has Kiwifruit New Zealand exercised that  authority over the past few years? 
 G/STR/Q1/NZL/10 
 
- 3 - 
 
  Reply 
 
No.   
Question 8 
 If it has not exercised the auth ority to designate a certain vo lume of kiwifruit production 
for collaborative arrangements, could New Zealand explain why? 
 Reply 
 
Kiwifruit New Zealand has not considered it necessary to exercise this power to achieve the 
purpose of increasing the overall weal th of New Zealand kiwifruit suppliers. 
 
Regarding Table II of Noti fication G/STR/N/15/NZL 
 Question 9 
 
Could New Zealand confirm whether or not the figures in Table II include the quantities 
exported to Australia? If they do, could New Zealand provide figures for Zespri's exports 
and those under collaborative arrangements, leaving out those destined for Australia? 
 
Reply 
 
The figures included in table II column 2 are for total exports, including to Australia and column 3 
are total Zespri exports, including to Australia.    
We do not hold figures for Zespri exports excluding Australia, however total exports excluding 
Australia are:  
2008-09  368.649 (thousand tonnes) 
2009-10  349.432 
2010-11  343.960 2011-12  381.650 
2012-13  348.155 
  
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