WORLD TRADE  
ORGANIZATION  RESTRICTED 
WT/ACC/SYC/13 
6 October 2011 
 (11-4860) 
Working Party on the 
Accession of Seychelles Original:   English 
 
 
 
ACCESSION OF SEYCHELLES 
 
Questionnaire on State Trading 
 
 The following submission, dated 19 September 2011, is being circulated at the request of the 
Delegation of the Republic of Seychelles.  
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 WT/ACC/SYC/13 
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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 Agr eement on Tariffs and Trad e, Seychelles makes the 
following new and full notification of  its State trading enterprises. 
I. ENUMERATION OF STATE TRADING ENTERPRISES 
 A. Identification of State trading enterprises. 
  Indian Ocean Tuna (Ltd). 
 B. Description of products affected (inc luding tariff item number(s) encompassed in 
product description).  
  Exports of canned tuna and tuna loins (HS 1604 1400). 
II. REASON AND PURPOSE 
A. Reason or purpose for establishing and/or maintaining State trading enterprise. 
  The Indian Ocean Tuna (Ltd) (IOT) previously operated under the name of 
Conserverie de l'Ocean Indien, which was 100 per cent owned by the Government of 
Seychelles.  In 1995, the Government sold 60 per cent of its shares to H. J. Heinz.  The H.J. 
Heinz Company, in 2006, sold its 60 per cent stake to MW Brands (SAS) of France.  
  The Government of Seychelles has mainta ined its stake in IOT over years, with a 
view to acquire a secondary source of income  for the Seychelles' annual budget.  Dividends 
received from IOT compliment revenue from the collection of taxes.  Secondly, IOT over the years has become one of the largest employer in Seychelles, as of 2010 the company employed 2,400 workers.  The establishment and maintenance of the IOT as a State Trading Enterprise (STE) allows the Government to  promote and protect its socio-economic 
objectives in the tuna canning industry. 
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 exclusive rights for the export of canne d tuna lie in the Shareholder's Agreement 
between the Government of Seychelles and MW Brands (SAS) of France. 
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE  A. Summary statement providing overview of operations of the State trading enterprise. 
  The IOT Company is a joint venture between MW Brands (SAS) of France and the 
Government of Seychelles, whereby the shareholding is divided into 60 per cent and 40 per cent respectively. 
The MW Brands exercises control on the da y-to-day operations of the company.  WT/ACC/SYC/13 
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   B. Specification of exclusive or special right s or privileges enjoyed by the State trading 
enterprise. 
  The IOT Company has exclusive rights to export canned tuna from the Seychelles. 
C. Type of entities other than the State tradi ng enterprise that are allowed to engage in 
importation/exportation and c onditions for participation. 
The IOT Company has the sole right to export canned tuna and tuna loins. 
D. How import/export levels are established by the State trading enterprise. 
The export levels are determined by th e production capacity of the IOT Company. 
 E. How export prices are determined. 
  The pricing decisions of the exports (i .e. canned tuna) are ma de based on commercial 
considerations, which are primarily based on costs of inputs. 
 F. How the resale prices of imported products are determined. 
  Not applicable. 
 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. 
  Long-term contracts are negotiated by the IOT Company in relation to the export of 
canned tuna. 
  No, the IOT Company is not used in any way to fulfil contractual obligations entered 
into by the Government. 
 H. Brief description of market structure. 
  This is not applicable to the IOT Comp any as it is only involved in the export of 
canned tuna and tuna loins and the expor t markets would differ from each other. 
IV. STATISTICAL INFORMATION 
 See Tables 1 and 2 in the Annex. 
V. REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE (AS APPROPRIATE ). 
Not applicable. 
    
  WT/ACC/SYC/13 
Page 4 ANNEX 
Table 1:  Canned Tuna 
Year National Production Export (tonnes) Average export price (US$ per kg) 
2008 5,885 43,869 7.42 
2009 6,959 42,189 7.74 
2010 7,023 41,601 6.82 
 
Source:  Figures provided by the Indian Ocean Tuna Ltd. 
 
Table 2:  Tuna Loins 
Years National Production Export (tonnes) Average export price (US$ per kg) 
2008 0 0 - 
2009 0 0 - 
2010 0 0 - 
 
Source:  Figures provided by the Indian Ocean Tuna Ltd. 
 
Table 3:  Fish Meal* 
Years National Production Export (tonnes) Average export price (US$ per kg) 
2008 - 5,106 - 
2009 - 6,803 - 
2010 - 6,976 - 
 
Source:  Figures provided by the Indian Ocean Tuna Ltd. 
*Please note that Indian Ocean Tuna  Ltd. does not have an exclusive right to import or export fish meal. 
 
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