WORLD TRADE  
ORGANIZATION   
G/STR/N/14/AUS 
12 September 2012  
 
(12-4878) 
Working Party on State Trading Enterprises Original:   English 
  
 
STATE TRADING 
 
New and Full Notification Pursuant to Article XVII:4(a) of the  
GATT 1994 and Paragraph 1 of  the Understanding on  
the Interpretation of Article XVII 
 
AUSTRALIA 
   The following communication, dated 4 September 2012, is being circulated at the request of 
the Delegation of Australia.   
 
_______________ 
 
  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 Agr eement on Tariffs and Trade, Australia makes the 
following new and full notification of its state trading enterprises for the years 2009/2010 and 
2010/2011. G/STR/N/14/AUS 
Page 2  
 
  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 in 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 Objects of the Rice Marketing Board for the State of New South Wales' are: 
 
 to encourage the development of a co mpetitive 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. 
 
B. SUMMARY  OF LEGAL  BASIS  FOR  GRANTING  THE  RELEVANT  EXCLUSIVE  OR 
SPECIAL  RIGHTS  OR PRIVILEGES,  INCLUDING  LEGAL  PROVISIONS  AND  
SUMMARY  OF STATUTORY  OR CONSTITUTIONAL  POWERS 
 The Rice Marketing Board for the State of New South Wales' operating authority is provided 
by the State of New South Wales Rice Marketing Act 1983  (previously the Marketing of Primary 
Products Act 1983) .  A vesting proclamation has been enacted, vesting all rice produced in the State 
of New South Wales in the Board.  This provides th e Board with power to operate a "single desk" for 
exports of rice grown in NSW, by granting Sole Ex clusive Export Licence (SEEL) to a single trader, 
presently Ricegrowers Limited (trading as SunRice).  
 
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE 
A. SUMMARY  STATEMENT  PROVIDING  OVERVIEW  OF OPERATIONS  OF THE  STATE  
TRADING  ENTERPRISE 
 All paddy rice grown in the State of New South Wales is divested from producers and 
becomes the sole property of the Rice Marketi ng Board for the State of New South Wales under a 
vesting proclamation.  However, the Board has give n exemption from vesting if the rice is delivered 
for trading on the domestic market to an Authorised  Buyer appointed by the Board.  All applicants are 
eligible to become Authorised Buyers, subject only to the Board's discretion to refuse an application 
where it has reason to believe that the applican t will breach the conditions of appointment, which 
primarily relate to not exporting the rice.  
  Consequently, all paddy rice must be delivered to an Authorised Buyer.  Authorised Buyers 
are able to freely buy and sell rice grown in New S outh Wales on the domestic market in Australia.   
  The Rice Marketing Board for the State of  New South Wales has appointed Ricegrowers 
Limited (trading as SunRice) as its Sole and Ex clusive Export Licence holder for exports of rice 
grown in New South Wales (Ricegrowers Lim ited is also an Authorised Buyer).   
  G/STR/N/14/AUS 
 Page 3 
 
 
   The Sole and Exclusive Export Licence holder is obliged to act as a buyer of last resort if 
other Authorised Buyers do not purchase the paddy rice.     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  (previously the Marketing of 
Primary Products Act 1983 ) entitles the Rice Marketing Board for the State of New South Wales to 
exclusive rights 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 under a sole and exclusive licence issued by  the Rice Marketing Board.  The Board does not 
have special or exclusive 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 determined by ma rket forces on a commercial 
basis.  There are no tariffs or quantitative restric tions applied on the import of rice (HS 1006) into 
Australia.  The Rice Marketing Board for the Stat e of New South Wales has no role in regulating 
imports of rice into 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  DETERMINED 
Not applicable.  These arrangements 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  ENTERED  INTO  BY THE  GOVERNMENT 
 All sales contracts are entered into on a commerc ial basis.  The Rice Marketing Board for the 
State of New South Wales was not used to fulf il contractual obligations entered into by the 
government nor did the government enter into any obligations on behalf of the Rice Marketing Board 
for the State of New South Wales.   
 G/STR/N/14/AUS 
Page 4  
 
  H. BRIEF
 DESCRIPTION  OF MARKET  STRUCTURE 
 The Australian market is open to competiti on from imports and significant quantities of rice 
are imported.  About 99 per cent 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 rice grown in New 
South Wales were deregulated and a system of mu ltiple authorised buyer permits for sales within 
Australia was introduced.  Entities wanting to partic ipate 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. 
 
 Authorised Buyers are able to buy and sell rice grown in New South Wales on the domestic 
market in Australia.  
IV. STATISTICAL INFORMATION ( SEE ATTACHED TABLES I - III ) 
 The data contained in the attached tables is not available on a consistent basis and figures in 
different columns are generally not comparable.  In  particular, no adjustments have been made for 
factors such as quality, transport terms, and different  time periods (e.g. marketing year versus fiscal 
year).  Differing sources have had to be used, also  resulting in non-comparability.  In addition, much 
of the data is not collected or is otherwise not available.  
 Key to notes: 
  NA Not available.  N/A Not applicable. 
 
V. REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE ( AS APPROPRIATE ) 
 Not applicable.  
 
VI. ADDITIONAL INFORMATION ( AS APPROPRIATE ) 
 Under the Rice Marketing Act 1983 , the New South Wales Minister for Primary Industries 
was required to review the Act to determine whet her its policy objectives re main valid and whether 
the terms of the Act remain appropriate for securing those objectives.  The review report was tabled in 
each house of the New South Wales Parliament on 7 September 2011 (searchable at www.parliament.nsw.gov.au).     
   G/STR/N/14/AUS
 Page 5TABLE I 
 
STATISTICAL INFORMATION, IMPORTS 
 
 
Description of product(s) 
(including HS number(s)) Unit Year Total 
quantity 
imported Quantity 
imported by 
state trading 
enterprise Average 
import price Average 
representative 
domestic sales 
price Mark-up National 
production 
1   2 3 4 5 6 7 
Rice (HS 1006) — The Rice Marketing Board for the State of NSW '000 tonnes 2009/2010 
2010/2011 202
1 
179 Nil 
Nil A$1080/t 
A$976/t NA 
NA NA 
NA 1972 
726 
 
                                                      
1 The New South Wales Depa rtment of Trade and Investment, Re gional Infrastructu re and Services.  
2 The New South Wales Depa rtment of Trade and Investment, Re gional Infrastructu re and Services.   
  G/STR/N/14/AUS 
Page 6 TABLE II 
 
STATISTICAL INFORMATION, EXPORTS 
 
 
Description of product(s) 
(including HS number(s)) Unit Year Total 
quantity 
exported Quantity 
exported by state 
trading 
enterprises Average 
procurement 
price Average 
representative 
domestic sales 
price Average 
export 
price National 
production 
1   2 3 4 5 6 7 
Rice (HS 1006) — The Rice Marketing Board for the State of NSW '000 tonnes 2009/2010 
2010/2011 19
1 
132 NA 
NA NA 
NA NA 
NA A$1558/t 
A$943/t 1972 
726 
 
 
                                                      
1 The New South Wales Depa rtment of Trade and Investment, Re gional Infrastructu re and Services.  
2 The New South Wales Depa rtment of Trade and Investment, Re gional Infrastructu re and Services.   
   G/STR/N/14/AUS
 Page 7TABLE III 
 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES 
 
 
Description of product(s) 
(including HS number(s)) Unit Year Domestic purchases 
by state trading 
enterprise National 
production Domestic sales by 
state trading 
enterprise National 
consumption 
1   2 3 4 5 
Rice (HS 1006) — The Rice Marketing Board for the State of NSW
 '000 tonnes 2009/2010 
2010/2011 NA 
NA 1971 
726 N/A 
N/A 2012 
204 
 
 
__________  
                                                      
1 The New South Wales Depa rtment of Trade and Investment, Re gional Infrastructu re and Services.  
2 Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES).