WORLD TRADE  
ORGANIZATION  G/STR/Q1/KOR/7 
1 October 2009 
 (09-4678) 
Working Party on 
State Trading Enterprises Original:   English 
 
 
 
STATE TRADING 
 
Questions Posed by AUSTRALIA Concerning  
the New and Full Article XVII Notification of KOREA1 
 
  The following communication, dated 28 September 2009, is being circulated at the request of the Delegation of Australia.    
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  Korea's STE notifications G/STR/N/7/KOR & G/STR/N/10/KOR submitted together as a single document on 27 August 2009 is not clear.  Some of the STEs notified only have data up 
to 2000, but there is no explicit explanation as to why some data has been omitted.   
 
Questions 
 
I. MINISTRY OF AGRICULTURE AND FORESTRY 
 In section 3F Korea states that the domestic sales prices of rice are determined by the MAF 
based on "import prices, management costs, domestic  consumer prices and other economic factors".   
 
• Can Korea provide further details regarding wh at activities the difference between the import 
price and the representative domestic sales price is designed to cover?  For example, record 
keeping or storage etc.   
 
II. AGRICULTURAL AND FISHERY MARKETING CORPORATION 
 Section 1 of the Agricultural and Fishery Marketing Corporation (AFMC), "description of 
products affected", covers nine product groups.  However, Section 3.C indicates that only sesamum 
seeds, ginger, buckwheat and ground nuts can be import ed by private companies.  For soybeans, small 
red beans, capsicum, garlic and onions, the data in the supporting table indicates that these products 
were imported into Korea than by importers ot her than the AFMC:  the AFMC's supporting table 
(Table I) shows systemic discrepancies between co lumn 2 "Total Quantity Imported" and column 3 
"Quantity Imported by the STE".   
 
• Could Korea explain this discrepancy betwee n the import data in the two columns for 
capsicum, garlic, onions, soyabeans and small red beans?   
 
• Can Korea explain who imports the balance of these five commodities?   
                                                     
 
1 G/STR/N/7/KOR & G/STR/N/10/KOR.   G/STR/Q1/KOR/7 
Page 2  
 
  • Where Korea allows for the private importation,  can Korea explain how private importers are 
able to operate?   
  Section 1 of the AFMC "description of products a ffected," covers four HS10 lines for garlic 
(HS0703.20.0000, HS0703.20.1000, HS0703.20.9000 and HS012.90.1000) but data for only three 
HS10 lines have been included in the relevant supporting tables (both Table I and Table II).   
 
• Can Korea clarify whether imports of garlic HS0703.20.0000 actually occurred, 
 
- If so, could Korea provide the data.   
  In the supporting table showing statistical inform ation:  imports (Table I), there are data gaps 
in several columns and much of the data showing the average representative domestic sales price is 
missing (column 5), and the data on the mark up (column 6) is absent altogether for the years that are 
reported.  Data is also missing in Ta ble III regarding domestic activities.   
 
• Can Korea explain the data gaps in Tables I and III?   
 
• Could Korea provide this data? 
  Section 2A states that the AFMC is designated to  administer tariff quotas on relevant items.   
 
• Could Korea provide further details on how AFMC allocates tariff quotas? 
  Section 3F states that the resale prices of imported products are determined at the open auction at 70 per cent of the wholesale prices on garlic, onions, pine nuts, sesame, ground nuts, 
buckwheat, peppers, mung beans/red beans and soybeans.   
 
• Can Korea explain how the mark-up for each product is calculated?  
 
• Could Korea explain how the allocations, coupled  with the mark-ups, do not impede imports?  
 
III. LIVESTOCK PRODUCTS MARKETING ORGANISATION 
 For the Livestock Products Marketing Organisa tion (LPMO), data has not been provided for 
beef beyond 2000.    
• Can Korea clarify why no data beyond 2000 has been submitted for beef?  
  In Section 3H Korea states that "the products imported by the LPMO are sold either by auction to wholesalers or through imported beef sales outlets to consumers".   
 
• Could Korea explain whether this means that  there are different market structures for 
imported and like domestic product?  
 
• Can Korea also provide further details on wh at activities the difference between the import 
price and the representative domestic sales price is designed to cover?   
  G/STR/Q1/KOR/7 
 Page 3 
 
 
  IV. NATIONAL LIVESTOCK COOPERATIVES FEDERATION AND VI. NATIONAL 
AGRICULTURAL COOPERATIVE FEDERATION 
 Korea has noted that the two STEs administering the importation of honey (National 
Livestock Cooperatives Federation) and ginseng (Korea Ginseng Cooperative Federation) merged 
with the National Agricultural Coope rative Federation (NACF) in 2000.   
 
• Can Korea clarify why no data beyond 1999 has been submitted for ginseng? 
 
• Can Korea clarify why no data beyo nd 2000 has been submitted for honey? 
 
• Can Korea explain the role of the National Agricultural Cooperative Federation, including, 
amongst other things, information on:   
 
- products whose sales are admi nistered by this entity 
- its role in the importation of not only ho ney and ginseng but also other agricultural 
products?   
 
• In respect of the question of the National Ag ricultural Cooperative Federation being granted 
special privileges within the meaning of GATT:XVII:   
 
- Could Korea explain why it has not notified the National Agricultural Cooperative 
Federation to the Working Party on STEs?   
 V. CHEJU CITRUS GROWERS AGRICULTURAL COOPERATIVE 
 For the Cheju Citrus Growers Agricultural C ooperative (CCGAC) data has not been provided 
for citrus beyond 2000.  In the supporting table showi ng statistical information:  imports (Table I), 
much of the data showing the average representative domestic sales price is missing (column 5), and the data on the mark up (column 6) is absent a ltogether for the years that are reported.   
 
• Can Korea clarify why no data beyond 2000  has been submitted for citrus?   
 
• Can Korea explain the data gaps in Table I fo r those years that have been included in the 
notification?   
 
VI. SEE IV 
VII. NATIONAL FORESTRY COOPERATIVE FEDERATION 
 Australia understands that the National Forest ry Cooperative Federation (NFCF) administers 
the tariff quotas for the imports of pine nuts. In th e supporting table showing statistical information:  
imports (Table I), there are systemic discrepancie s between column 2 "Total Quantity Imported" and 
column 3 "Quantity Imported by the STE" for pine nut imports.  Furthermore, much of the data 
showing the average representative domestic sales price is missing (column 5), and the data on the mark up (column 6) is absent altogether for the year s that are reported.  Data is also missing in 
Table III.   
 
• Could Korea explain the discrepancy in Table I between the import data in the two columns 
for pine nuts?   
 
• Can Korea explain who imports the balance of pine nuts?   G/STR/Q1/KOR/7 
Page 4  
 
  • Where private importation may be permitted, can  Korea explain how private importers of 
pine nuts would be able to operate? 
 
• Can Korea explain the other data gaps in Ta bles I and III for those years that have been 
included in the notification? 
 
• Can Korea also explain what activities the difference between the import price and the 
representative domestic sales price is designed to cover? 
 
General 
  Given that Australia seeks information about missi ng data sets, particularly data relevant to 
G/STR/N/10/KOR, and clarification on a number of statements made in the notification Australia 
invites/requests that Korea submit revised notif ications which would include a complete and 
comprehensive data set which would include an swers to Australia's and other WTO members' 
questions.  Australia would also invite/request th at Korea separate these two notifications to clearly 
set out which questionnaires (and relevant suppor ting tables) apply to what notification.   
 
 Can Korea also indicate when it will provide Members with an opportunity to review its outstanding STE notifications for th e period covering 2004 to date.   
  
 
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