WORLD TRADE  
ORGANIZATION  G/STR/Q1/AUS/8 
19 November 2008 
 (08-5647) 
Working Party on  
State Trading Enterprises Original:   English 
 
 
STATE TRADING  
 
Replies to Questions posed by JAPAN1 concerning the  
New and Full Article XVII Notification of AUSTRALIA2 
 
 
 The following communication, dated 14 November 2008, is being circulated at the request of 
the Delegation of Australia.  
_______________ 
 
 
1. ABB Grain Export Limited 
 
Question 1 
 
 You stated that all exporters who obtain an export license are allowed to export barley 
from Australia except Western Australia (WA).   We believe that management of export licen ses functions practically to restrict export 
and that a registration system is more favoura ble in terms of promotion of free trade and 
increase in transparency.  Coul d Australia explain why the ex port license system has been 
adopted? 
 
Reply
 
 
In Australia, only the State of Western Aust ralia imposes regulatory arrangements on barley 
exports.  In accordance with the Western Australia Grain Marketing Act 2002  (available at 
www.gla.wa.gov.au ) exporters are required to obtain export licences from the Grain Licensing 
Authority to export barely in bulk quantities from West ern Australia.  Exports of barley in bags or 
containers are not subject to these export licensing arrangements.  
 Western Australia authorities advise that the export marketing arrangements for barley in 
Western Australia aim to provide an integrated supply chain, provide greater customer focus for 
growers and buyers, support grain quality, and provide higher grower returns (refer to section II:A on 
page 10 of Australia's notification).  The marke ting arrangements are a matter for the government of 
Western Australia to determine.  
Question 2 
 
How many business entities have obtain ed the export licences so far? 
 
                                                     
 
1 G/STR/Q1/AUS/7. 
2 G/STR/N/12/AUS.   G/STR/Q1/AUS/8 
Page 2  
 
  Reply
 
 
According to the latest Grain Licensing Authorit y statistics, a total of 18 export licences were 
granted for barley for the 2008-09 season in addition to the main export licence granted to Grain Pool 
Pty Ltd.  Further information about the number of en tities in Western Australia that have been issued 
export licences is detailed in the Grain Licensing Authority's annual reports.  These reports are 
available on the Grain Licensing Authority's website (www.gla.wa.gov.au). 
 
Question 3 
  Could Australia explain why the export of barley from Western Australia has remained 
based on the monopoly system?  
Reply
 
 
As stated in Australia's STE notification (refer to Section III:C page 10) , Grain Pool Pty Ltd. 
holds the main export licence to export bulk barley , lupins and canola from the State of Western 
Australia.  It does not  have a monopoly over the export of these commodities. 
 
Within the State of Western Australia, an i ndependent statutory body, the Grain Licensing 
Authority, assesses applications and issues export li cences for the bulk export of barley, lupins and 
canola.  These licenses are available to entities other than Grain Pool Pty Ltd.  According to Grain 
Licensing Authority statistics, a total of 27 licences were granted in 2008-09 for those commodities, 
in addition to the Grain Pool Pty Ltd licence.     2. AWB (International) Limited 
 
Question 4 
 
You stated that the veto right against applications for export of wheat has been 
transferred from AWB to the ministry of Agricu lture.  Could Australia explain why the export 
restriction system has been kept?  We would also like further clarification on the reason 
Australia has adopted an approval system rather than a registration system for exporting wheat 
from Australia.  We believe that the approval system functions practically as a measure by 
which the ministry of Agriculture can control the export of wheat. 
 Reply
 
 
Changes to Australia's wheat export marketing arrangements, which came into effect from 
1 July 2008, have removed most of the previous regulatory arrangements for wheat exports (refer to 
Section VI on page 8 of Australia's notification).  
The Minister for Agriculture, Fisheries and Fo restry no longer holds the veto right against 
applications for the export of bulk wheat.  Prior to the deregulation of Australia's wheat export 
marketing arrangements, the power to veto bulk wheat export applications was temporarily
 transferred 
to the Minister on 9 December 2006.  This temporary arrangement ceased when the Wheat Export 
Marketing Act 1989  was repealed on 1 July 2008. 
 
As part of the deregulation of Australia's wh eat export marketing arrangements, which took 
effect from 1 July 2008, the Wheat Export Marketing Act 2008  established a new independent 
regulator, Wheat Exports Australia (WEA).  WEA ad ministers an accreditation scheme for bulk wheat 
exports (called the Wheat Export Accreditation Sche me).  Australia chose an approval process over a 
registration system as we wanted to ensure that an exporter was a fit and proper company to export  G/STR/Q1/AUS/8 
 Page 3 
 
 
  bulk wheat from Australia.  Companies wanting to export bulk wheat must meet strict probity and 
performance tests to gain accreditation.  The Minister  for Agriculture, Fisheries and Forestry and the 
Department for Agriculture Fisheries and Forestry have no role  in determining the accreditation of a 
company.  Each application for accreditation is  assessed on its merits by the board of WEA. 
Accreditation is available for a period of up to three years and is renewable, that is it does not apply 
on a per shipment basis.  However, for the first 18 months of the operation of the scheme (July 2008 
to December 2009), WEA will grant accreditations for varying periods betw een 12 and 24 months.  
 
As of 28 October 2008, 19 companies had been accredited to export bulk wheat from 
Australia.  Further information regarding the accr editation process and which companies have been 
accredited can be found on the WEA website (www.wea.gov.au).  
 
The previous arrangements where Australia had a single exporter of bulk wheat (AWB 
International) with veto arrangements on other bulk wheat exports no longer exist. 
 Question 5 
 
We also request that the future notification s by Australia following the organizational 
restructuring are going to be based on data by individual enterprise for the sake of 
transparency.  Could Australia clarify in detail how it plans to handle its future notifications? 
 Reply
 
 
On 1 July 2008, Australia's export monopoly arra ngements for bulk wheat were terminated. 
Now, a range of commercial entities, including in ternational grain traders, can export bulk wheat 
provided they have received accreditation from Whea t Exports Australia.  Accredited entities are not 
STEs and therefore will not be included in Australia 's future STE notifications to the World Trade 
Organization. 
 
3. Grain Pool Pty Ltd. 
 
Question 6 
 
 You stated in the paragraph III H on page 11 of the notification that export regulatory 
arrangements exist for canola in the State of Western Australia.  Could Australia provide us 
with the detail if it maintains export regulator y arrangements for cano la other than export 
license system? 
 Reply
 
 
Australia does not maintain export regulatory a rrangements for canola other than the export 
licensing system in Western Australia. 
 
4. Queensland Sugar Limited (QSL) 
 
Question 7 
 
 You stated in the paragraph II A. on page 13 of the notification that (o)ther entities are 
now able to freely purchase and export raw sugar  from Queensland, on the same basis that 
purchases and sales of refined sugar are conducted.   Could Australia clarify what "the same 
basis" means? 
 
 G/STR/Q1/AUS/8 
Page 4  
 
  Reply
 
 
There are no regulations on the sale of refined sugar in Australia and therefore any entity can 
purchase and sell refined sugar.  Therefore the term 'the same basis' means that, as with the sale of 
refined sugar there are no regulations on the sale of raw sugar.   
5. The Rice Marketing Board for the State of New South Wales 
 
Question 8 
 
 Could Australia explain the conditions and procedures that all agents are required to 
apply to the RMB (the Rice Marketing Board) fo r the State of New South Wales in order to 
become "authorised buyers/sellers" of rice? 
 Reply
 
 
Sections 51 and 51A of the New South Wales Rice Marketing Act 1983  (the Act) contain the 
conditions for the appointment of Authorised Buyers of rice produced in New South Wales.  
 
Under the Act, the Rice Marketing Board for the State of New South Wales (Rice Marketing 
Board) may appoint any person to be an Authorised Buyer provided they meet the Board's regulations. 
 
 The Rice Marketing Board may refuse to appoint a person as an Authorised Buyer if: 
 
- An earlier order appointing the person as an Authorised Buyer has been revoked 
during the previous two years (otherwise  than at the person's request):  or 
 
- The Board reasonably believes that the person would not comply with the conditions 
to which the Authorised Buyer would be subject if the appointment were made. 
 
The Rice Marketing Act 1983  can be accessed at:  
 http://www.austlii.edu.au/au/legis/nsw/consol_act/rma1983141/ 
 
 
__________