. /.  WORLD TRADE  
ORGANIZATION   
G/STR/Q1/JPN/19 
31 October 2012 
 (12-5932) 
Working Party on 
State Trading Enterprises Original:   English 
 
 
 
STATE TRADING 
 
Questions Posed by AUSTRALIA Concerning the 
New and Full Article XVII Notification of JAPAN1 
  
 The following communication, dated 30 October 2012, is being circulated at the request of the Delegation of Australia.   
 
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Dairy 
 
1. Previously, Japan stated that it was "considering a reform of its state-trading activities [for 
dairy products] based on [the] 'Suppl emental Policy for Regulatory and Structural Reform' decided by 
the cabinet on 22 July 2011" (G/STR/Q1/JPN/18, 21 November 2011, at p. 1).  Japanese Cabinet 
Office documents state that, according to this Supple mentary Policy, reform of Japan's state trading 
arrangements for dairy products would be  carried out "in the course of 2011".
2  
 
 Australia would appreciate Japan's elaboration on the current state of these reforms in 
state traded dairy products, including what  reforms are being considered and what 
time frame is being suggested for their implementation. 
 
2. In its previous response to Australia on em ergency imports of butter (G/STR/Q1/JPN/17, 
21 November 2011, at p. 4), Japan stated that SBS tenders for dairy products were "used in limited 
occasions, when the supply of a certain dairy product is seriously in short [sic] that is apparent that the 
imports are urgently needed." Australia notes that four of the five tenders which the STE has carried 
out for butter in 2012 (7,729 tonnes or 82 per cent of  a total of 9,459 tonnes) have been SBS tenders.  
 
 Australia would like to know the reason(s) for an increasing number of tenders for 
butter being carried out under SBS (despite the claim that these imports are only on 
an ad hoc basis); 
 
 If these tenders are a response to a "serious  shortage" or "emergency", Australia 
would appreciate Japan's explanation on wh y the STE still continues to extract mark-
ups as high as 247 per cent3 on butter tenders during times of emergency; 
 
                                                      
1 G/STR/N/14/JPN and G/ST R/N/14/JPN/Add.1.   
2 See http://www.cao.go.jp/sasshin/kisei-sei do/publication/230722/item230722_03.pdf  at p. 23. 
3 For example, in the SBS butter tender of 23 March 2012, the average import price was 
348,333 yen/tonne, compared to the av erage government resale price of 1, 208,688 yen/tonne. This means the 
applied mark-up was 860,355 yen/tonne or 247%. See http://www.alic.go.jp/c ontent/000083113.pdf.  G/STR/Q1/JPN/19 
Page 2 
 
 
   Australia would appreciate Japan's ela boration on its previous explanation 
(G/STR/Q1/JPN/18, 21 November 2011, at p. 2)  that ALIC's imports of products such 
as butter "have been contributing to th e stabilization of the supply-demand and 
mitigation of price volatilities".  
Wheat 
 
1. In October 2009, the MAFF's "Study Group to Review the Pricing Mechanism for Imported 
Wheat" reported that an expansion of the classes e ligible for SBS tenders was "necessary" and would 
be carried out after a three year preparation or "grace period".4  
 
 Australia would appreciate Japan's elaboration on the status of these preparations, 
given that three years have elapsed since the Study Group issued its report, including the extent of the reforms being considered; 
 
 Australia would like to know whether they will cover expansion of  SBS tenders to all 
wheat classes, or only a few to be selected. 
 
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4 See http://www.maff.go.jp/j/study/yunyu_migirule/12/pdf/data2.pdf.