WORLD TRADE  
ORGANIZATION  G/STR/N/13/NZL 
16 March 2011 
 (11-1291) 
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 Paragra ph 1 of the Understanding on  
the Interpretation of Article XVII  
 
NEW ZEALAND 
  
 The following communication, dated 14 March 2011, is being circulated at the request of the 
Delegation of New Zealand.  
_______________ 
 
 
 Pursuant to Article XVII:4(a) of the GATT 1994 and Paragraph 1 of the Understanding on the 
Interpretation of Article XVII, and in accordance w ith the following working definition of State Trading 
Enterprises:  
"Governmental and non-governmental enterp rises, including marketing boards, which 
have been granted exclusive or special rights or privileges, including statutory or 
constitutional powers, in the exercise of which they influence through their purchases 
or sales the level or direction of imports or exports." 
and in accordance with the recommendation adopted by the Working Party on 11 November 2003
1 
New Zealand submits the following new and full notification.  
 
 
                                                     
 
1 The Council for Trade in Goods approved this recommendation on 26 November 2003, and agreed to 
implement it as of the year 2004. G/STR/N/13/NZL 
Page 2  
 
  QUESTIONNAIRE
2 ON STATE TRADING  
  
I. ENUMERATION OF STATE TRADING ENTERPRISES 
 A Enterprise: Zespri Group Limited 
 B Product: Kiwifruit – HS 08 10 50 
 
II. REASON AND PURPOSE 
A The New Zealand Government maintains a State Trading Enterprise for kiwifruit 
exports so as to obtain the best commercia l return from world markets for producers 
in New Zealand. 
  B The Kiwifruit Industry Restructuring Act 1999 and Kiwifruit Export Regulations 
1999 provide the legal basis for a special export authority for Zespri Group Limited 
which is not accorded to other exporters of kiwifruit destined for markets other than 
Australia. 
 
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE 
Zespri Group Limited 
 
A. S
UMMARY STATEMENT PROVIDING  OVERVIEW OF OPERATIONS OF THE STATE TRADING 
ENTERPRISE  
 The Kiwifruit Industry Restructuring Act was enacted in September 1999.  On 1 April 2000 
the Act converted the New Zealand Kiwifruit Marketi ng Board into a company, Zespri Group Limited 
and distributed shares in Zespri Group Limited to kiwifruit growers.  
 For the purposes of this notification, Zespri  is considered a state trading enterprise. 
 B. S
PECIFICATION OF EXCLUSIVE OR SPECIAL RI GHTS OR PRIVILEGES ENJOYED BY THE STATE 
TRADING ENTERPRISE  
 The promulgation of the Kiwifruit Export Regulations 1999 provides Zespri Group Limited 
with an automatic right, but not the sole right, to export kiwifruit. 
 
 Zespri does not administer tariff rate quotas nor does it receive any trade-distorting subsidies, tax advantages, special financing or preferential ac cess to foreign exchange.  It does not receive any 
specific support from the government based on its status as a State Trading Enterprise.  
C. T
YPE OF ENTITIES OTHER THAN THE STATE TRADING ENTERPRISE THAT ARE ALLOWED TO 
ENGAGE IN IMPORTATION /EXPORTATION AND CONDITIONS FOR PARTICIPATION  
 Applications from other prospective exporte rs, to export kiwifruit in collaboration with 
Zespri, are assessed and decided on by Kiwifruit New Zealand, an independent regulatory body 
established under the provisions of the Kiwifruit Expor t Regulations 1999.  Private traders can export 
kiwifruit to Australia without prior permission of Kiwifruit New Zealand and independent of 
collaboration with Zespri. 
 
                                                      
2 This questionnaire is to be filled out according to the Guidelines contained on pages 5-7.  G/STR/N/13/NZL 
 Page 3 
 
 
   Zespri has a minor involvement in the domestic market but the extent of that involvement is 
restricted under the terms of the Kiwifruit Regulations  and must be no more than "incidental" to its 
principal activity, that of exporting kiwifruit.   Zespri is not involved in the import of fruit.  There are no restrictions on who may import 
product into New Zealand and currently the tariff on kiwifruit imports is zero. 
 D. H
OW IMPORT /EXPORT LEVELS ARE ESTABLISHED BY THE STATE TRADING ENTERPRISE  
 Zespri Group Limited has total discretion over the quantities it decides to export. 
 
 Imports, if undertaken by Zespri Group Limited, would be based solely on commercial 
considerations.  E. H
OW EXPORT PRICES ARE DETERMINED  
 The world market determines export prices. 
 
F. HOW THE RESALE PRICES OF IMPO RTED PRODUCTS ARE DETERMINED  
 Zespri Group Limited has no special rights or privileges in regard to importing product.  If 
Zespri Group Limited were to import product, the resale price would be determined by commercial 
considerations.  
G. W
HETHER LONG -TERM CONTRACTS ARE NEGOTIATED BY  THE STATE TRADING ENTERPRISE .  
WHETHER THE STATE TRADING ENTERPRISE IS US ED TO FULFIL CONTRACTUAL OBLIGATIONS 
ENTERED INTO BY THE GOVERNMENT  
Procurement 
  The Industry Advisory Council, which has repre sentations of Zespri, growers and post harvest 
operators determines the conditions for the purchase of kiwifruit.  Zespri has three-year rolling 
average contracts with supply entities and these suppl y entities have contracts with growers.  Under 
the Kiwifruit Export Regulations 1999, Zespri is pr ohibited from discriminating between suppliers or 
potential suppliers other than on purely commerci al grounds.  This prohibition is monitored and 
enforced by the independent industry regulator.  Government does not enter into contractual 
obligations regarding these products. 
 
Sales/Exports  
 
 All of Zespri's contracts for sale/export of kiwifruit are negotiated between Zespri and its 
customers with no Government involvement whatsoever .  These contracts are therefore driven solely 
by commercial considerations and world market prices and are generally of a short term (season-by-season) nature.  H. B
RIEF DESCRIPTION OF MARKET STRUCTURE  
 There are around 2,700 kiwifruit growers (13,250 hectares of orchards) throughout New 
Zealand.  Kiwifruit production averages at around 390,000 tonnes.  About 90 per cent of the kiwifruit 
production is exported.  The domestic  market is fully open to competition, with growers having the 
choice to supply fruit to the domestic or export markets.  There is duty free access for imports of kiwifruit.  G/STR/N/13/NZL 
Page 4  
 
  IV. STATISTICAL INFORMATION (SEE ATTACHED TABLES I-III) 
V. REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE (NOT APPLICABLE ) 
VI. ADDITIONAL INFORMATION 
 All other state trading enterprises (STEs) notified in New Zealand's 2001 notification 
(G/STR/N/7/NZL dated 27 July 2001) are no longer STEs  due to legislative changes since the time of 
that notification.  See the 2004 notifica tion (G/STR/N/10/NZL) for further details. 
  
   G/STR/N/13/NZL
 Page 5TABLE I 
 
STATE TRADING:  ZESPRI GROUP LIMITED 
 
STATISTICAL INFORMATION, IMPORTS 
 
 
Description of 
product(s) 
 Total quantity 
imported1 
(thousand tonnes) Quantity imported by 
state trading enterprise1Average import price Average representative
domestic sales price 
(estimate-NZ$/Kg) Mark-up2 National production 
(thousand tonnes) 
Kiwifruit       
2007-08 0.697 Nil Not applicable 1.50-2.50 Not applicable 378.0 
2008-09 0.776 Nil Not applicable 1.65-3.50 Not applicable 398.0 
2009-10 1.007 Nil Not applicable 1.49-3.50 Not applicable 386.5 
 
1 In cases where no imports have taken place under columns 2 or 3,  provide an explanation under Section V of this questionnaire. 
 2 Members may report either under columns 4 and 5 or under column 6. 
 
 Data to year ending March.  
 
 
  
  G/STR/N/13/NZL 
Page 6 TABLE II 
 
STATE TRADING:  ZESPRI GROUP LIMITED 
 
STATISTICAL INFORMATION, EXPORTS 
 
Description of 
product(s) 
 Total quantity 
exported1 
(thousand tonnes) Quantity exported by 
state trading enterprise1
(thousand tonnes) Average procurement 
price2 
(NZ$/kg) Average representative
domestic sales price 
(estimated NZ$/kg) Average export price 
(NZ$/kg) National production 
(thousand tonnes) 
Kiwifruit       
2007-08 348.041 340.155 1.92 1.50-2.50 3.15 378.0 
2008-09 383.395 366.305 1.98 1.65-3.50 3.70 398.0 
2009-10 364.217 362.593 2.11 1.49-3.50 3.84 386.5 
 
1 In cases where no exports have taken place under columns 2 or 3,  provide an explanation under Section V of this questionnaire. 
2 In cases where the initial procurement price is augmented by other payments, additional payments should also be reported. 
  Data to year ending March.  
   G/STR/N/13/NZL
 Page 7TABLE III 
 
STATE TRADING:  ZESPRI GROUP LIMITED 
 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES 
 
 
Description of product(s) 
 Domestic purchases by 
state trading enterprise 
(thousand tonnes) National production 
(thousand tonnes) Domestic sales by 
state trading enterprise (thousand 
tonnes) National consumption 
(estimated thousand tonnes) 
Kiwifruit     
2007-08 343.310 378.0 2.112 9 – 12 
2008-09 369.518 398.0 1.405 10 – 15 
2009-10 367.236 386.5 1.021 10 – 15 
 
 Data to year ending March. 
 
__________