. /.   WORLD TRADE  
ORGANIZATION  G/STR/7 
18 June 2010 
 (10-3354) 
Working Party on  
State Trading Enterprises  
 
 
 
RECOMMENDATION ON THE FREQUENCY  
OF NOTIFICATIONS 
 
 
 On 16 June 2010 the Working Party adopted the following recommendation for action by the 
Council for Trade in Goods.    
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1. Article XVII:4 of GATT 1994, and paragraph 1 of  the Understanding on the Interpretation of 
Article XVII of GATT 1994 (the Understanding) re quire Members to notify their state trading 
enterprises to the Council for Trade in G oods.  GATT CONTRACTING PARTIES adopted on 
9 November 1962 a decision establishing the periodicity of state trading notifications.
1  This decision 
provides that new and full notifications of stat e trading enterprises are to be submitted every 
three years, with updating notifications to be submit ted in the intervening years.  Following the entry 
into force of the Marrakesh Agreement Establishi ng the WTO and the adoption of the Understanding, 
the Council for Trade in Goods decided to continue  the periodicity of notifications set forth in 
the 1962 decision.  In accordance with the Understandi ng, state trading notifications are reviewed by 
the Working Party on State Trading Enterprises on behalf of the Council for Trade in Goods.   
2. On 11 November 2003, the Working Party adopted a recommendation contained in document 
G/STR/5 regarding the frequency of notifications.  This recommendation, approved by the Council for 
Trade in Goods on 26 November 2003, modified th e frequency of notifications on state trading 
enterprises to new and full notifications on a bi annual basis only.  Previously, new and full 
notifications had been due every third year and upda ting notifications were required in the intervening 
years.  The new frequency of notifications was to be implemented for a trial phase of four years, 
commencing on 30 June 2004.   
3. Paragraph 4 of recommendation G/STR/5 directed the Working Party to review the situation 
in respect of compliance with the new notification obligation and the frequency of notifications at the 
end of the four year trial phase.  The objective of this review was to determine whether to extend the 
application of the recommendation, either as drafted or in a modified form, for a further period or an 
indefinite period.  Accordingly, the Working Part y conducted the review and observed that the period 
of application of the new notification requirement had been too short to provide the clarity needed to determine whether the new frequency of notifications  was an improvement.  The Working Party thus 
concluded that it would be desirable to exte nd the application of the recommendation for two 
additional years until 30 June 2010 .   
4. Paragraph 5 of the recommendation in document G/STR/6 directed the Working Party to 
review the situation with regard to compliance w ith the notification obligation and the frequency of 
notifications at the end of the two year extens ion period.  The objective of the review was to 
                                                     
 
1 BISD 11S/58.   G/STR/7 
Page 2  
 
  determine whether to extend the application of the recommendation, either as drafted in G/STR/6, 
referring to the original recommendation in G/STR/5 or  in a modified form, for a further period or for 
an indefinite period.  Accordingly the Working Party conducted the review  and concluded that a 
further two year trial period would be desirable. 
5. In light of the above considerations, the Work ing Party recommends to the Council for Trade 
in Goods that the application of the recommendati on contained in G/STR/6, referring to G/STR/5 be 
extended for two years as follows: 
(a) This extension shall enter into force as of the year 2010, with a new and full 
notification being due by 30 June 2012.   
(b) The guidelines for completing the questionnaire section of the Questionnaire on State 
Trading are those contained in G/STR/3/Rev.1. 
6. Before the expiry of this further trial period of two years, commencing on 30 June 2010, the 
Working Party shall review the situation with regard  to the frequency of notifications with a view to 
determining whether to extend the application of th is recommendation, either as presently drafted or 
in a modified form, for a further period or for an indefinite period.  Should there be no new 
recommendation the 1962 decision
2 as referred to in paragraph one would apply. 
 
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 2 i.e. New and full notifications to be submitted ever y three years, with updating notifications to be 
submitted in the intervening years.