WORLD TRADE  
ORGANIZATION  G/STR/N/12/AUS 
2 July 2008 
 (08-3162) 
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 Paragraph 1 of  the Understanding on  
the Interpretation of Article XVII  
 
AUSTRALIA 
  
 The following communication, dated 30 June 2008,  is being circulated at the request of the 
Delegation of Australia.   
 
_______________ 
 
  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 Trade, Australia makes the 
following new and full notification.    G/STR/N/12/AUS 
Page 2  
 
  I. ENUMERATION OF STATE TRADING ENTERPRISES 
A. Identification of State Trading Enterprises
 
 ABB Grain Export Limited.   
 
B. Description of Products Affected (including tariff item number(s) encompassed in product 
description)  
 Barley grown in the state of South Australia exported in bulk shipments [HS 1003].   
 
II. REASON AND PURPOSE 
A. Reason or Purpose for Establishing and/or Maintaining State Trading Enterprise  
 Until 30 June 2007, ABB Grain Export Limited was the sole exporter, in bulk, of barley 
grown in the state of South Australia.  ABB Grai n Export Limited's purpose was to supply effective 
and efficient marketing services to South Australian ba rley growers, and to maximise the net returns 
to South Australian barley growers by securing, de veloping and maintaining markets for barley and 
by minimising costs as far as practicable.   
 
 These arrangements were terminated with effect from 1 July 2007.    B. Summary of Legal Basis for Granting the Releva nt Exclusive or Special Rights or Privileges, 
including Legal Provisions and Summary of Statutory or Constitutional Powers  
 The statutory acquisition powers of ABB Grain Export Limited for the export, in bulk, of 
barley produced in South Australia were contained in the state of South Australia Barley Marketing 
Act 1993  (as amended).  These powers were terminated w ith effect from 1 July 2007 through the state 
of South Australia Barley Exporting Act 2007 .   
 
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE 
A. Summary Statement Providing Overview of Operations of the State Trading Enterprise  
 Prior to 1 July 2007, ABB Grain Export Limite d was the sole exporter, in bulk, of barley 
grown in the state of South Australia.  The state of South Australia Barley Exporting Act 2007 , 
removed the restrictions on bulk export barley ship ment from South Australia.  A contestable market 
has been introduced via a three-year transition period (2007-08 to 2009-10) whereby entities wishing to export barley in bulk must obtain an export license.  The Essential Services Commission of South 
Australia (ESCOSA) is responsible for administeri ng licenses for new barley exporters in the three-
year transition period.   
  ABB Grain Export Limited is a wholly-owned s ubsidiary of the majority grower owned and 
controlled publicly listed company, ABB Grain Li mited.  ABB Grain Limi ted became a grower 
owned and controlled company on 1 July 1999, re placing the former statutory Australian Barley 
Board.  In July 2002, ABB Grain Limited listed on the Australian Stock Exchange.     G/STR/N/12/AUS 
 Page 3 
 
 
  B. Specification of Exclusive or Special Right s or Privileges enjoyed by the State Trading 
Enterprise  
 ABB Grain Export Limited's statutory acquisition powers over barley produced in the state of 
South Australia for export in bulk were provided for in the state of South Australia Barley Marketing 
Act 1993  (as amended).  These arrangements were terminated with effect from 1 July 2007.   
 
C. Type of Entities other than the State Trading Enterprise that are Allowed to Engage in 
Importation/Exportation and Conditions for Participation  
 Barley can be imported into Australia by any entity.   
 
 ABB Grain Export Limited was the sole exporter, in bulk, of barley grown in the state of 
South Australia.  This arrangement was terminated wi th effect from 1 July 2007.  Exports in bulk can 
now be undertaken by any entity in the state of S outh Australia provided they have been granted an 
export license by the Essential Services Commission of South Australia (ESCOSA).  ESCOSA is responsible for administering licenses for new barl ey exporters over a three-year transition period 
(2007-08 to 2009-10) after which, entities do not require licenses to export barley in bulk.  In other 
Australian States, except for in th e state of Western Australia, exports of barley are undertaken by 
private traders.  In Western Australia, the state trad ing enterprise, Grain Pool Pty Ltd, is the holder of 
the main export license to export bulk barley.   
 
D. How Import/Export Levels are Established by the State Trading Enterprise
 
 Australian barley import and export levels are determined by market forces on a commercial 
basis.  ABB Grain Export Limited had no role in regulating imports of barley into Australia.  There are no tariffs or quantitative restrictions applied on the import of barley (HS 1003) into Australia.   
 
E. How Export Prices are Determined
 
 Export prices are determined by prevailing world prices.   
 
F. How the Resale Prices of Imported Products are Determined  
 Not applicable.  These arrangements did not cover imports.   
 
G. Whether Long-Term Contracts are Negotiated by  the State Trading Enterprise.  Whether the 
State Trading Enterprise is Used to Fulfil C ontractual Obligations Entered into by the 
Government  
 All sales contracts were entered into on a co mmercial basis.  ABB Grain Export Limited was 
not used to fulfil contractual obligations entered into by the government nor did the government enter 
into any obligations on behalf of ABB Grain Export Limited.   
 
H. Brief Description of Market Structure  
 Around 70 per cent to 80 per cent of Australian barley production is exported annually.  
Barley is subject to specific export marketing arrang ements in the state of Western Australia (Grain 
Pool Pty Ltd) only.  Export marketing has been deregulated in the states of South Australia (2007), New South Wales (2005), Queensland (2002) and Vict oria (2001).  There are no restrictions on the 
domestic marketing of barley in Australia.  Domest ic prices are influenced by returns from barley 
export markets and domestic availability of feed a nd malting barley, and alternative feed grains.   
 G/STR/N/12/AUS 
Page 4  
 
  IV. STATISTICAL INFORMATION (SEE ATTACHED TABLES I - III)  
The data contained in the attached tables is not available on a consistent basis and figures in 
different columns are generally not comparable.  In  particular, no adjustments have been made for 
factors such as quality, transport, terms, and different  time periods (e.g. marketing year versus fiscal 
year).  Differing sources have had to be used, also  resulting in non-comparability.  In addition, much 
of the data is not collected or is otherwise not available.   
 
Key to notes:   
 
NA Not available.   
N/A Not applicable.   
 V. REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE (AS APPROPRIATE)  
 Not applicable.   
 
VI. ADDITIONAL INFORMATION (AS APPROPRIATE)  
 None.    G/STR/N/12/AUS 
 Page 5 
 
 
  I. ENUMERATION OF STATE TRADING ENTERPRISES 
A. Identification of State Trading Enterprises  
 AWB (International) Limited.   
 B. Description of products affected (includi ng tariff item number(s) encompassed in product 
description)  
 Wheat [HS 1001] exported in bulk shipments.   
 
II. REASON AND PURPOSE 
A. Reason or purpose for establishing and/or maintaining state trading enterprise  
 From 1 July 2008, Australia's export m onopoly arrangements for bulk wheat will be 
terminated (refer to Section VI).     WB (International) Limited is a wholly-own ed subsidiary of the publicly listed company 
AWB Limited, and during the reporting peri od (calendar years 2006 and 2007) operated the 
commercial functions of the wheat export "single d esk" arrangements.  AWB (International) Limited 
undertakes the export marketing of bulk wheat .  Under the company's constitution AWB 
(International) Limited is required to maximize net returns to Australian wheat growers who choose to 
deliver their wheat to the National Pool by secu ring, developing and main taining international 
markets for wheat and by minimising costs as far as practicable.   
 
B. Summary of legal basis for granting the releva nt exclusive or special rights or privileges, 
including legal provisions and summary of statutory or constitutional powers  
 During the reporting period (calendar years 2006 and 2007), the Wheat Marketing Act 1989 
(as amended) provided for AWB (International) Limite d to be exempt from the export controls of the 
Export Wheat Commission (previously the Wheat Expor t Authority).  This enabled it to operate the 
commercial functions of the wheat export 's ingle desk' arrangement for bulk wheat.   
 
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE 
A. Summary statement providing overview of operations of the state trading enterprise  
 During the reporting period (calendar years 2006 and 2007), AWB (International) Limited 
was responsible for managing the wheat export "s ingle desk" arrangements through international 
wheat marketing and pooling services.  AWB (Internati onal) Limited is a wholly  owned subsidiary of 
AWB Limited.  AWB Limited is listed on the Au stralian Stock Exchange, and operates under the 
Corporations Act 2001  and Stock Exchange listing rules.   
 
 During the reporting period (calendar year s 2006 and 2007), the regulatory and commercial 
functions of wheat marketing operated separatel y.  The Export Wheat Commission (which replaced 
the Wheat Export Authority on 1 October 2007) exercised regulatory functions, while AWB (International) Limited operated the commercia l aspects of the wheat export "single desk" 
arrangements.    
 Under the Wheat Marketing Act 1989 , AWB (International) Limited must purchase all wheat 
offered to it for pooling which meet its classificat ion and other standards.  AWB (International) 
Limited does not need to apply to the Export Wh eat Commission for consent to export wheat.   G/STR/N/12/AUS 
Page 6  
 
   AWB (International) Limited and its pare nt, AWB Limited, do not receive from the 
Australian Government any special financing privil eges, such as government grants, loans, loan 
guarantees, or underwriting of operational costs.  Since privatisation in 1999, AWB Limited has 
directly financed all pooling and commercial activitie s using its own capital.  The company is subject 
to normal obligations under the Corporations Act  2001  with no guarantees, either actual or implied, 
and no government financial exposure.   
 
B. Specification of exclusive or special right s or privileges enjoyed by the state trading 
enterprise  
 From 1 July 2008, Australia's export m onopoly arrangements for bulk wheat will be 
terminated (refer to Section VI).   
  During the reporting period (calendar years 2006 and 2007), AWB (International) Limited 
was responsible for managing the wheat export "s ingle desk" arrangement for bulk wheat through 
international wheat marketing and pooling services.  AWB (International) Limited had to purchase all 
wheat offered to it for pooling which met its standards.   
  The Wheat Marketing Act 1989  provided that AWB (International) Limited did not need to 
apply to the Export Wheat Commission (previously the Wheat Export Authority) for consent to export 
wheat.  In addition, the Export Wheat Commission also had to consult AWB (International) Ltd on applications from third parties to export wheat in bulk.   
 
 The power to veto bulk wheat export applicati ons previously held by AWB (International) 
Ltd was transferred to the Minister for Agriculture, Fisheries and Forestry on 9 December 2006.  The Minister will no longer hold this power as of 1 Ju ly 2008 after which new arrangements will be in 
place (refer to Section VI).   
 
C. Type of entities other than the state trad ing enterprise that are allowed to engage in 
importation/exportation and c onditions for participation  
 Wheat can be imported into Australia by any entity.   
  Australian wheat is exported in bulk shipments, containers or in bags.  The following 
information applies to the reporting period (calendar years 2006 and 2007) only.   
 Bulk shipments
 
  Apart from AWB (International) Limited, an y entity can export bulk wheat from Australia 
provided it obtains consent from the Export Wheat Commission (previously the Wheat Export 
Authority).  As manager of the wheat export "sin gle desk" arrangement, AWB (International) Limited 
is entitled to export wheat without obtaining prio r consent from the Export Wheat Commission.   
  In considering requests to export bulk wheat by non-AWB (International) Limited entities, the 
Export Wheat Commission is required to assess them  against published guidelines and consult with 
AWB (International) Limited (there are limits on the information provided to AWB (International) 
Limited to ensure the confidentiality of the app licant is preserved).  The Export Wheat Commission 
assesses the applications in accordance with the Wheat Marketing Act 1989  and its guidelines and 
makes a recommendation to the Minister for Agri culture, Fisheries and Forestry whether the 
application should be approve d or rejected.  Under the Wheat Marketing Act 1989 , the Export Wheat 
Commission cannot make a decision on applications without the written agreement of the Minister.  
The Minister must consider each application, having regard to the public interest, and decide whether  G/STR/N/12/AUS 
 Page 7 
 
 
  he agrees with the Export Wheat Commission's reco mmendations.  Where the Minister does not agree 
with the Export Wheat Commission's recommendation he can direct it to comply with his decision.   
 Non-bulk shipments
 
 
 The export of wheat in containers or bags  was deregulated effective from 27 August 2007.  
Exporters no longer require consent from the Export Wheat Commission (previously the Wheat 
Export Authority) to export wheat in bags or contai ners.  However, exporters must comply with the 
Non-bulk Wheat Quality Assurance Scheme administered by the Export Wheat Commission.    
 The scheme was developed by the Export Wheat  Commission in consultation with industry, 
to ensure each wheat export consignment meets the specifications in its sales contract.    D. How import/export levels are established by the state trading enterprise
 
 Australian wheat import levels are determined by market forces on a commercial basis.  There 
are no tariffs or quantitative restric tions applied to imports of wheat (HS 1001) into Australia.  Neither 
AWB (International) Limited nor the Export Wheat Commission (previously the Wheat Export Authority) have any role in regulati ng imports of wheat into Australia.   
  Export levels are determined by the level of  production in each year, the amount delivered to 
the National Pool and international and domestic  market factors.  During the reporting period 
(calendar years 2006 and 2007) AWB (International) Limited was required by legislation to purchase 
all wheat offered to it for pooling which met its  standards.  In marketing this wheat AWB 
(International) Limited had a constitutional obligati on to maximise net returns to Australian growers 
who chose to deliver their wheat to AWB (International) Limited.    
E. How export prices are determined
 
 Export prices are determined by prevailing world prices.  During the reporting period 
(calendar years 2006 and 2007) AWB (International) Limited export contracts for Australian wheat 
were established through three methods:  direct ne gotiation with importers;  participation in open 
tenders;  and through third party traders.  Expor t revenue and any other revenue from each pool 
established for a specific category (type and quality) of  wheat was returned to pool participants after 
deduction of marketing, finance and other costs associated with that pool.   
 F. How the resale prices of imported products are determined
 
 Not applicable.  These arrangements do not cover imports.   
 
G. Whether long-term contracts are negotiated by the state trading enterprise.  Whether the state 
trading enterprise is used to fulfil contractua l obligations entered into by the government  
 During the reporting period (calendar years 2006 and 2007), all sales contracts were entered 
into on a commercial basis.  AWB (International)  Limited was not used to fulfil contractual 
obligations entered into by the government nor did the government enter into any obligations on 
behalf of the AWB (International) Limited.   G/STR/N/12/AUS 
Page 8  
 
  H. Brief description of market structure
 
 The Australian domestic market for wheat h as been deregulated since 1989.  Commercial 
grain traders and users have full access to the domestic market and growers have the choice of a wide range of marketing options.  The domestic market fo r wheat for milling (flour and industrial uses) or 
stock feed purposes accounts for approximately a th ird of Australian wheat production, with exports 
and stocks accounting for the balance of production.   While AWB (International) Limited's pools are 
predominantly export oriented, sales of National Pool  wheat from AWB (International) Limited to the 
domestic market are conducted either through di rect negotiation or an open tender system.   
  From 1 July 2008, Australia's export m onopoly arrangements for bulk wheat will be 
terminated (refer to Section VI).   
 
IV. STATISTICAL INFORMATION (SEE ATTACHED TABLES I - III) 
 The data contained in the attached tables is not available on a consistent basis and figures in 
different columns are generally not comparable.  In  particular, no adjustments have been made for 
factors such as quality, transport terms, and different  time periods (e.g. marketing year versus fiscal 
year).  Differing sources have had to be used, also  resulting in non-comparability.  In addition, much 
of the data is not collected or is otherwise not available.     Key to notes:   
 
 NA Not available.   
N/A Not applicable.   
 V. REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE ( AS APPROPRIATE)  
 Not applicable.   
 
VI. ADDITIONAL INFORMATION ( AS APPROPRIATE)  
 The Wheat Export Marketing Act 2008,  which implements the Australian Government's 
reform of wheat export marketing arrangements, wi ll come into effect on 1 July 2008.  Under the 
legislation, the "single desk" will be replaced by a wheat export accreditation scheme.  AWB 
(International) Limited's export monopoly for bulk wheat will be terminated and any commercial 
entity, provided they have been accredited , will be able to export bulk wheat.   
  A new regulator, Wheat Exports Australia will be established to accredit exporters of bulk 
wheat under the scheme.  Accreditation will be base d on probity and performance tests.  Successful 
applicants will also be required to adhere to st rict reporting requirements.  Foreign companies will 
have the same opportunity as Australian companies to apply for accreditation, provided that the 
applicant is a registered Australian company under the Corporations Act 2001 .   
  The temporary arrangements whereby AWB (Intern ational) Limited's power of veto over bulk 
wheat export applications have been transferred to the Minister for Agriculture, Fisheries and 
Forestry, will expire on 1 July 2008.     The changes will end AWB (International) Li mited's export monopoly powers for bulk wheat 
exports.    G/STR/N/12/AUS 
 Page 9 
 
 
   Exports of wheat in bags and containers will remain deregulated.  Under the legislation, the 
quality assurance scheme administered by the Ex port Wheat Commission will be removed.   
  The arrangements will be reviewed in 2010.    
 The Wheat Marketing Act 1989  will be repealed with effect on 1 July 2008.   
 Note:  AWB (International) Limited will continue to  hold the "single desk" rights to market the 2007-
08 harvest until 1 October 2008.    G/STR/N/12/AUS 
Page 10  
 
  I. ENUMERATION OF STATE TRADING ENTERPRISES 
A. Identification of state trading enterprises
 
 Grain Pool Pty Ltd.   
 
B. Description of products affected (includi ng tariff item number(s) encompassed in product 
description)  
 Barley [HS 1003], Lupins [HS 0713.90], Canola [HS 1205] grown in the state of Western 
Australia and exported in bulk shipments.   
 
II. REASON AND PURPOSE 
A. Reason or purpose for establishing and/or maintaining state trading enterprise  
 Grain Pool Pty Ltd holds the main export li cence to export bulk barley, lupins and canola 
from the state of Western Australia.  The purpose is to provide an integrated supply chain, provide 
greater customer focus for growers and buyers, support grain quality, a nd provide higher grower 
returns.    
B. Summary of legal basis for granting the releva nt exclusive or special rights or privileges, 
including legal provisions and summary of statutory or constitutional powers  
 Under the state of Western Australia Grain Marketing Act (2002) , Grain Pool Pty Ltd holds 
the main export licence to export bulk barley, lupins and canola from the state of Western Australia.  
The relevant provisions of the Grain Marketing Act (2002)  cover barley, lupins and canola in bulk 
shipments, but not export shipments in containe rs or bags nor exports of processed grain.   
 
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE 
A. Summary statement providing overview of operations of the state trading enterprise  
 Grain Pool Pty Ltd is a wholly-owned subsidiary of the grower-owned company Co-operative 
Bulk Handling Ltd. Grain Pool Pty Ltd holds the ma in export licence to export bulk barley, lupins and 
canola from the state of Western Australia.  Within the state of Western Australia, an independent statutory body, the Grain Licensing Authority (GLA ), assesses applications and issues export licences 
for the bulk export of barley, lupins and canola by companies other than Grain Pool Pty Ltd.   
 B. Specification of exclusive or special right s or privileges enjoyed by the state trading 
enterprise  
 Grain Pool Pty Ltd holds the main export li cence to export bulk barley, lupins and canola 
from the state of Western Australia.   
 
C. Type of entities other than the state trad ing enterprise that are allowed to engage in 
importation/exportation and c onditions for participation  
 Barley, lupins and canola can be imported into Australia by any entity.   
  Grain Pool Pty Ltd holds the main export li cence to export bulk barley, lupins and canola 
from the state of Western Australia.  Grain Pool Pty Ltd is not the sole West Australian or Australian  G/STR/N/12/AUS 
 Page 11 
 
 
  exporter of these products.  It does not have any co ntrol over the export of these commodities in other 
Australian states.     In Western Australia, the GL A assesses applications and i ssues export licences for the bulk 
export from the state of Western Australia of barley, lupins and canola by companies other than Grain 
Pool Pty Ltd.  The GLA has no control over export shipments in containers or bags or exports of 
processed grain as these were deregulated in November 2002.   
 
D. How import/export levels are established by the state trading enterprise
 
 Import and export levels are determined by market forces on a commercial basis.  Grain Pool 
Pty Ltd does not establish export levels, nor does it import barley, lupins or canola.  There are no 
tariffs or quantitative restrictions applied on the import of barley (HS 1003), lupins (ex HS 0713.90) 
and canola (ex HS 1205) into Australia.   
 
E. How export prices are determined  
 Export prices are determined by prevailing world prices.   
 
F. How the resale prices of imported products are determined  
 Not applicable.  These arrangements do not cover imports.   
 
G. Whether long-term contracts are negotiated by the state trading enterprise.  Whether the state 
trading enterprise is used to fulfil contractua l obligations entered into by the government  
 All sales contracts are entered into on a commercia l basis.  Grain Pool Pty Ltd was not used to 
fulfil contractual obligations entered into by the government nor did the government enter into any 
obligations on behalf of Grain Pool Pty Ltd.   
 
H. Brief description of market structure  
 Around 70 per cent to 80 per cent of national barley production is exported annually.  Barley 
is subject to specific export marketing arrangements in  the state of Western Australia (Grain Pool Pty 
Ltd) only.  Export marketing has been deregulated in the states of South Australia (2007), New South Wales (2005), Queensland (2002) and Victoria (2001) .  There are no restri ctions on the domestic 
marketing of barley in Australia.  Domestic pric es are influenced by returns from barley export 
markets and domestic availability of feed and ma lting barley, and alternative feed grains.   
  Canola is the major oilseed crop in Australia and is produced mainly in the states of New 
South Wales, South Australia, Victoria and Western Australia.  Domestic trading is deregulated for 
oilseeds, although export regulatory arrangements exis t for canola in the state of Western Australia.  
Export regulatory arrangements in the state of New South Wales were terminated with effect from 
1 October 2005.     Lupin production occurs in the states of New South Wales, South Australia, Victoria and Western Australia.  Export regulatory arrangements ex ist for lupins in Western Australia only.   
 IV. STATISTICAL INFORMATION ( SEE ATTACHED TABLES I - III)  
 The data contained in the attached tables is not available on a consistent basis and figures in 
different columns are generally not comparable.  In  particular, no adjustments have been made for 
factors such as quality, transport terms, and different  time periods (e.g. marketing year versus fiscal G/STR/N/12/AUS 
Page 12  
 
  year).  Differing sources have had to be used, also  resulting in non-comparability.  In addition, much 
of the data is not collected or is otherwise not available.     Key to notes:    
 NA Not available.   
N/A Not applicable.   
 
V. REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE ( AS APPROPRIATE)  
 Not applicable.   
 
VI. ADDITIONAL INFORMATION ( AS APPROPRIATE)  
 In November 2007, an inquiry into the opera tion and effectiveness of grain marketing in 
Western Australia, as prescribed by the Grain Marketing Act 2002,  commenced.  A draft report was 
released in April 2008 and the final report is sch eduled for completion in June 2008 and public release 
in July 2008.   
  The Grain Marketing Act 2002  contains a provision for expiry following the removal of 
restrictions under Commonwealth legislation on the export of wheat.  Under this provision, the West 
Australian Minister for Agriculture and Food may move  to allow the Act to expire, thereby removing 
the current restrictions on the bulk export of barley, canola and lupins.    G/STR/N/12/AUS 
 Page 13 
 
 
  I. ENUMERATION OF STATE TRADING ENTERPRISES 
A. Identification of state trading enterprises  
 Queensland Sugar Limited (QSL).1   
 
B. Description of products affected (includi ng tariff item number(s) encompassed in product 
description)  
 Raw cane sugar grown in the state of Queensland [HS 1701.11].   
 
II. REASON AND PURPOSE 
A. Reason or purpose for establishing and/or maintaining state trading enterprise  
 On 1 January 2006, the export monopoly arrangements for raw sugar produced in 
Queensland, together with the acquisition powers in re gard to raw sugar produced in that state, were 
terminated.  QSL no longer enjoys any exclusiv e or special purchasing or selling rights in the 
domestic and export markets.  Other 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.   
 
 To the extent that QSL needs to negotiate commercial export contractual arrangements with 
milling companies and cooperatives, and that such arrangements involve agre ement between parties 
for the collective selling and uniform (pool) pricin g, which might otherwise be actionable under the 
Commonwealth's Trade Practices Act 1974 , QSL has been authorised to do so until 
30 September 2009.   
 
 Prior to 1 January 2006, QSL operated in a regulated environment in which it compulsory 
acquired and exclusively exporte d raw sugar produced in Queensland.  The purpose of this 
arrangement was to allow QSL to maximise the net returns to Queensland sugar producers.   
 
B. Summary of legal basis for granting the releva nt exclusive or special rights or privileges, 
including legal provisions and summary of statutory or constitutional powers  
 Under the state of Queensland's Sugar Industry Act 1999 , prior to 1 January 2006 QSL had 
exclusive rights on behalf of growers and mill owners to acquire and market all raw sugar produced in 
Queensland.  (Note:  raw sugar produced in the state of New South Wales, the only other Australian state that grows sugar, is not subject to the Queensland legislation.) 
 
 The Queensland Sugar Industry Amendment Act 2005  amended the Sugar Industry Act 1999 
to implement new arrangements whereby QSL's stat utory acquisition export marketing rights were 
removed with effect from 1 January 2006.  With th ese changes, other entities are now able to export 
raw sugar from Queensland.   
                                                     
 
1 The notification in regard to QSL is without prej udice to Australia's view on the categorization of 
QSL for the purposes of Article XVII of GATT 1994 and the working definition of Article 1 of the Uruguay Round Understanding on the Interpretation of Article XVII of the General Agreement on Tariffs and 
Trade 1994 .  Following the changes introduced in 2006, the sole reason for the continuing inclusion of QSL in 
the present notification relates to an authority to estab lish an arrangement with mills to contract for collective 
selling and uniform pricing, arrangements which might otherwise be actionable under the Commonwealth Trade 
Practices Act 1974 .  In Australia's view, that authorisation is na rrower than the exempti ons accorded by certain 
other WTO Members from anti-trust or competition laws in  the territory of those Members.  Australia further 
notes that those Members have not notified enterprises benefiting from such exemptions, including exemptions 
granted to exporters to fix export prices between themselves (G/STR/Q1/USA/ 11, G/STR/Q1/USA/8).   G/STR/N/12/AUS 
Page 14  
 
   The amended Sugar Industry Act 1999  provides authority for QSL to negotiate, if required, an 
agreement with the Queensland mills it has estab lished commercial contracts with to allow for 
collective selling and uniform (pool) pricing arrangements.   
 
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE 
A. Summary statement providing overview of operations of the state trading enterprise
 
 Prior to 1 January 2006, the state of Queensland Government, through the Sugar Industry 
Act 1999 and subsequent amendments, vested all raw sugar produced in the state of Queensland 
in QSL.    
 Key activities of QSL included acquiring and marketing Queensland's raw sugar, negotiating 
arrangements for the shipment of raw sugar, mana ging sugar price and foreign exchange exposure, 
distributing pool returns to mill owners, encourag ing overall industry efficiency, and promoting the 
Queensland raw sugar industry.    
 On 1 January 2006, the state of Queensland Government amended the Sugar Industry 
Act 1999 .  This legislation repealed the statutory a rrangements under which ownership of Queensland 
sugar was vested in QSL.  With these changes, other entities are now able to export raw sugar from 
Queensland.     Under the new arrangements, a three-year transition period was established whereby 
commercially negotiated contractual marketing a rrangements between QSL and its clients were 
introduced.  Under the Sugar Industry Act 1999 , an agreement between QSL and Queensland mills 
can be established to allow coll ective selling and uniform (pool) pr icing arrangements for the export 
of raw sugar produced in Queensland.    
B. Specification of exclusive or special right s or privileges enjoyed by the state trading 
enterprise  
 On 1 January 2006, a three-year transiti on period was established whereby commercially 
negotiated contractual marke ting arrangements between QSL and Queensland-based milling 
companies and Queensland-based cooperatives were introduced.  To ensure compliance with the 
Commonwealth's Trade Practices Act 1974 , the Sugar Industry Act 1999  provides authority for QSL 
to establish an agreement between the mills it has contracts with for collective selling and uniform 
(pool) pricing, if required.     The authorisation will apply until 30 Septembe r 2009, or until a later gazetted date when 
dealings under contracts for the 2008-09 fi nancial year have been completed.   
 
 The exemption from the Trade Practices Act 1974  contained in the Sugar Industry Act 1999  
is provided exclusively to QSL.     Prior to 1 January 2006, QSL had exclusive ri ghts to acquire and export raw sugar produced 
in the state of Queensland, however these right s were terminated on 31 December 2005 and other 
entities are now able to export raw sugar from Queens land.  (Note:  raw sugar from the 2005 crop that 
had been vested but not sold before 1 January  2006, remained the legal property of QSL.) 
 
C. Type of entities other than the state trad ing enterprise that are allowed to engage in 
importation/exportation and c onditions for participation  
Sugar can be imported into Australia by any entity.    G/STR/N/12/AUS 
 Page 15 
 
 
   Prior to 1 January 2006, QSL had exclusive ri ghts to acquire and export raw sugar produced 
in the state of Queensland, however these right s were terminated on 31 December 2005.  Other 
entities are now able to export raw sugar from Queensland.  There are no statutory restrictions on the marketing or export of raw sugar in other Australian states.   
 
D. How import/export levels are established by the state trading enterprise
 
 Australian raw sugar import a nd export levels are determin ed by market forces on a 
commercial basis.  There are no tariffs or quant itative restrictions imposed on the import of raw 
sugar (HS 1701) into Australia.  QSL has no role in  regulating imports of sugar into Australia.   
 
E. How export prices are determined  
 Export prices are determined by prevailing world prices.   
 
F. How the resale prices of imported products are determined  
 Not applicable.  These arrangements do not cover imports.   
 
G. Whether long-term contracts are negotiated by the state trading enterprise.  Whether the state 
trading enterprise is used to fulfil contractua l obligations entered into by the government  
 All sales contracts are entered into on a comme rcial basis.  QSL was not used to fulfil 
contractual obligations entered into by the g overnment nor did the government enter into any 
obligations on behalf of QSL.    
H. Brief description of market structure
 
 The Australian sugar market is open to competition from imports.  Approximately 95 per cent 
of Australia's sugar is produced in the state of Queensland with the remaining 5 per cent produced in 
the state of New South Wales and the state of Western Australia.   
 
 Prior to 1 January 2006, QSL acquired all ra w sugar produced in the Queensland.  QSL was 
responsible for overseeing the export marketin g of all Queensland raw sugar, negotiating 
arrangements for the shipment of raw sugar, dist ributing the proceeds to producers and coordinating 
production regulations.  While QSL is able to continue to purchase and export raw sugar, its statutory 
vesting rights were terminated with effect on 1 January 2006.  Other en tities can export raw sugar 
produced in Queensland.  In other Australian States, sugar marketing is undertaken by the mill owner.   
 
IV. STATISTICAL INFORMATION ( SEE ATTACHED TABLES I - III)  
 The data contained in the attached tables is not available on a consistent basis and figures in 
different columns are generally not comparable.  In  particular, no adjustments have been made for 
factors such as quality, transport terms, and different  time periods (e.g. marketing year versus fiscal 
year).  Differing sources have had to be used, also  resulting in non-comparability.  In addition, much 
of the data is not collected or is otherwise not available.     Key to notes:    
 NA Not available.   
N/A Not applicable.   G/STR/N/12/AUS 
Page 16  
 
  V. REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE ( AS APPROPRIATE)  
 Not applicable.   
 
VI. ADDITIONAL INFORMATION ( AS APPROPRIATE)  
Nil.   
  G/STR/N/12/AUS 
 Page 17 
 
 
  I. ENUMERATION OF STATE TRADING ENTERPRISES 
A. Identification of state trading enterprises  
 The Rice Marketing Board for the State of New South Wales.   
 
B. Description of products affected (includi ng tariff item number(s) encompassed in product 
description)  
 Rice grown in the state of New South Wales for export [HS 1006].   
 
II. REASON AND PURPOSE 
A. Reason or purpose for establishing and/or maintaining state trading enterprise  
 The Rice Marketing Board for the State of Ne w South Wales' primary purpose is to ensure 
that rice grown in the state of New South Wales is  marketed, particularly through the operation of an 
export "single desk", so as to optimise grower returns.   
 
B. Summary of legal basis for granting the releva nt exclusive or special rights or privileges, 
including legal provisions and summary of statutory or constitutional powers  
 The Rice Marketing Board for the State of New South Wales' operating authority is provided 
by the state of New South Wales Rice Marketing Act 1983  (previously the Marketing of Primary 
Products Act 1983) .  A vesting proclamation has been enacted, vesting all rice produced in the state of 
New South Wales in the Board.  This provides the Board with power to operate a "single desk" for 
exports of rice grown in NSW.   
 III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE 
A. Summary statement providing overview of operations of the state trading enterprise
 
 All paddy rice grown in the state of New South Wales is divested from producers and 
becomes the sole property of the Rice Marketi ng Board for the State of New South Wales under a 
vesting proclamation.  However, the Board has give n exemption from vesting if the rice is delivered 
to an Authorised Buyer appointed by the Board.  All applicants in good business standing are eligible 
to become Authorised Buyers.     Consequently, all paddy rice must be delivered to an Authorised Buyer.  Authorised Buyers 
are able to freely buy and sell rice grown in New S outh Wales on the domestic market in Australia.   
 
 The Rice Marketing Board for the State of  New South Wales has appointed Ricegrowers 
Limited (trading as SunRice) as its Sole and Ex clusive Export Licence holder for exports of rice 
grown in New South Wales (Ricegrowers Lim ited is also an Authorised Buyer).   
  Under the vesting rules, all rice must be deliv ered to an Authorised Buyer.  The Sole and 
Exclusive Export Licence holder is obliged to act as a buyer of last resort if other Authorised Buyers 
do not purchase the paddy.     It is the Board's responsibility to ensure that these arrangements generate the maximum 
monetary returns on behalf of all New South Wales rice growers.   
 G/STR/N/12/AUS 
Page 18  
 
  B. Specification of exclusive or special right s or privileges enjoyed by the state trading 
enterprise  
 The state of New South Wales Rice Marketing Act 1983  (previously the Marketing of 
Primary Products Act 1983)  entitles the Rice Marketing Board for the State of New South Wales to 
exclusive rights to export rice grown in New South Wales.   
 
C. Type of entities other than the state trad ing enterprise that are allowed to engage in 
importation/exportation and c onditions for participation  
 Rice can be imported into Australia by any entity.   
 
 The Rice Marketing Board for the State of Ne w South Wales is the sole exporter of rice 
grown in New South Wales.  The Board does not have  special or exclusive privileges to import rice.  
There are no statutory restrictions on the export of rice in other Australian States.   
 
D. How import/export levels are established by the state trading enterprise  
 Australian rice import and export levels are determined by ma rket forces on a commercial 
basis.  There are no tariffs or quantitative restric tions applied on the import of rice (HS 1006) into 
Australia.  The Rice Marketing Board for the Stat e of New South Wales has no role in regulating 
imports of rice into Australia.   
 E. How export prices are determined
 
 Export prices are determined by prevailing world prices.   
 
F. How the resale prices of imported products are determined  
Not applicable.  These arrangements do not cover imports.   
 
G. Whether long-term contracts are negotiated by the state trading enterprise.  Whether the state  
trading enterprise is used to fulfil contractua l obligations entered into by the government  
 All sales contracts are entered into on a commerc ial basis.  The Rice Marketing Board for the 
State of New South Wales was not used to fulf il contractual obligations entered into by the 
government nor did the government enter into any obligations on behalf of the Rice Marketing Board 
for the State of New South Wales.   
 
H. Brief description of market structure  
 The Australian market is open to competiti on from imports and significant quantities of rice 
are imported.  About 99 per cent of total rice grown in Australia occurs in the state of New South Wales.   
 
 Effective from 1 July 2006, the domestic marketing arrangements for rice grown in New South Wales was deregulated and a system of mu ltiple authorised buyer permits for sales within 
Australia was introduced.  Entities wanting to partic ipate in the domestic market for rice grown in 
New South Wales must apply to the Rice Marketi ng Board for the State of New South Wales to 
become an Authorised Buyer.   
 
 Authorised Buyers are able to buy and sell rice grown in New South Wales on the domestic 
market in Australia.    G/STR/N/12/AUS 
 Page 19 
 
 
  IV. STATISTICAL INFORMATION ( SEE ATTACHED TABLES I - III)  
 The data contained in the attached tables is not available on a consistent basis and figures in 
different columns are generally not comparable.  In  particular, no adjustments have been made for 
factors such as quality, transport terms, and different  time periods (e.g. marketing year versus fiscal 
year).  Differing sources have had to be used, also  resulting in non-comparability.  In addition, much 
of the data is not collected or is otherwise not available.   
  Key to notes:     NA Not available.   
 N/A Not applicable.   
 
V. REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE ( AS APPROPRIATE)  
 Not applicable.   
 VI. ADDITIONAL INFORMATION ( AS APPROPRIATE)  
 Under the Rice Marketing Act 1983 , the New South Wales Minister for Primary Industries is 
required to review the Act to determine whether its policy objectives remain valid and whether the 
terms of the Act remain appropriate for securing those objectives.  The review is to be undertaken as 
soon as possible after the period of two years follo wing the commencement of the 2007 amendments.  
A report on the outcome of the review needs to be  tabled in the each house of the New South Wales 
Parliament by December 2010.   
   
  G/STR/N/12/AUS 
Page 20 
TABLE I  
 
STATISTICAL INFORMATION, IMPORTS 
 
Description of 
product(s) 
(including HS 
number(s)) Unit Year Total 
quantity 
imported Quantity 
imported by 
state trading 
enterprise Average 
import price Average 
representative 
domestic sales 
price Mark-up National 
production 
1   2 3 4 5 6 7 
Barley (HS 1003) — ABB 
Grain Export Limited '000 tonnes  2005/2006 
2006/2007  0.031 
0.04 Nil Nil A$1,913/t
1 
A$2,149/t  A$182/t2 
A$297/t  N/A 
N/A 9,4823 
4,257  
Wheat (HS 1001) — AWB 
(International) Limited  '000 tonnes 2005/2006 
2006/2007 0.021 
0.01 NA 
NA A$816/t1 
A$757/t A$192/t4 
A$289/t NA 
NA 25,1503 
10,822 
Barley (HS 1003) — Grain 
Pool Pty Ltd) '000 tonnes 2005/2006 
2006/2007 0.031 
0.04 NA 
NA A$1,913/t1 
A$2,149/t A$182/t2 
A$297/t NA 
NA 9,4823 
4,257  
Lupins (HS 0713.90) — Grain Pool Pty Ltd '000 tonnes 2005/2006 
2006/2007 NA 
NA NA 
NA NA 
NA A$158/t
5 
A$184/t NA 
NA 1,2853 
470 
Canola (HS 1205) — 
Grain Pool Pty Ltd  '000 tonnes 2005/2006 
2006/2007 0.141 
57 NA 
NA A$2,407/t1 
A$422/t A$356/t5 
A$492/t NA 
NA 1,4193 
573 
Raw Cane Sugar 
(HS 1701.11) — 
Queensland Sugar Limited  '000 tonnes 2005/2006 
2006/2007 11 
1 NA 
NA A$987/t1 
A$886/t A$322/t6 
A$368/t NA 
NA 5,1083 
4,722 
Rice (HS 1006) — The 
Rice Marketing Board for the State of NSW
 '000 tonnes 2005/2006 
2006/2007 1037 
107 Nil 
Nil A$670/t8 
A$729/t A$404/t9 
A$408/t N/A 
N/A 1,00210 
161 
 
1 Australian Bureau of Statistics (unpublished data).   
2 Australian Bureau of Agricultural and Resource Economics (ABARE), Australian Crop Report , various issues (average 2 row feed;  Sydney).   
3 ABARE, Australian Commodities , Vol 15 No 2, June 2008.   
4 ABARE, Australian Crop Report , various issues (feed ex Sydney).   
5 ABARE, Australian Crop Report , various issues.   
6 ABARE, Australian Commodity Statistics 2007  (No 1 pool price).   
7 ABARE, Australian Commodity Statistics 2007  (milled).   
8 ABARE, Australian Commodity Statistics 2007  (average price is based on milled equivalent).   
9 ABARE, Australian Commodity Statistics 2007  (Australian indicator price;  milled).   
10 ABARE, Australian Commodities , Vol 15 No 1, March 2008 (paddy rice).   
  
   G/STR/N/12/AUS
 Page 21
 TABLE II  
 
STATISTICAL INFORMATION, EXPORTS 
 
Description of 
product(s) 
(including HS 
number(s)) Unit Year Total 
quantity 
exported Quantity 
exported by 
state trading 
enterprises Average 
procurement 
price Average 
representative 
domestic sales 
price Average 
export 
price National 
production 
1   2 3 4 5 6 7 
Barley (HS 1003) — ABB 
Grain Export Limited '000 tonnes 2005/2006 
2006/2007 5,3151 
3,135 2,4132 
256 NA 
NA A$182/t3 
A$297/t  A$209/t1 
A$266/t  9,4821 
4,257  
Wheat (HS 1001) — AWB 
(International) Limited  '000 tonnes 2005/2006 
2006/2007 15,1681 
11,196 15,3144 
7,549 A$205/t5 
A$254/t A$192/t6 
A$289/t A$217/t1 
A$247/t  25,1501 
10,822 
Barley (HS 1003) — Grain 
Pool Pty Ltd  '000 tonnes 2005/2006 
2006/2007 5,3151 
3,135 NA 
NA NA 
NA A$182/t3 
A$297/t A$209/t1 
A$266/t  9,4821 
4,257  
Lupins (HS 0713.90) — 
Grain Pool Pty Ltd  '000 tonnes 2005/2006 
2006/2007 4691 
174 NA 
NA NA 
NA A$158/t7 
A$184/t A$211/t1 
A$218/t  1,2851 
470 
Canola (HS 1205) — 
Grain Pool Pty Ltd  '000 tonnes 2005/2006 
2006/2007 8841 
238 NA 
NA NA 
NA A$356/t7 
A$492/t A$374/t1 
A$454/t  1,4191 
573 
Raw Cane Sugar 
(HS 1701.11) — 
Queensland Sugar Limited  '000 tonnes 2005/2006 
2006/2007 3,8831 
3,714 NA 
NA NA 
NA A$322/t8 
A$368/t A$375/t1 
A$407/t 5,1081 
4,722 
Rice (HS 1006) — The 
Rice Marketing Board for 
the State of NSW  '000 tonnes 2005/2006 
2006/2007 2589 
492 NA 
NA A$265/t10 
A$320/t A$404/t11 
A$408/t A$663/t9 
A$705/t 1,00212 
161 
 
1 Australian Bureau of Agricultural and Resource Economics (ABARE), Australian Commodities , Vol 15 No 2, June 2008.   
2 ABB Grain Export Limited (unpublished).   
3 ABARE, Australian Crop Report , various issues (average 2 row feed;  Sydney).    
4 AWB (International) Limited (unpublished data).   
5 AWB (International) Limited (unpublished data) (fob Australian Prim e Wheat (estimated pool return ;  also includes average quali ty increments)).   
6 ABARE, Australian Crop Report , various issues (feed ex Sydney).   
7 ABARE, Australian Crop Report , various issues.   
8 ABARE, Australian Commodity Statistics 2007  (No 1 pool price).   
9 ABARE, Australian Commodities , Vol 15 No 2, June 2008 (milled).   
10 Ricegrowers Limited (unpublished data) (paddy rice).   
11 ABARE, Australian Commodity Statistics 2007  (Australian indicator price;  milled).   
12 ABARE, Australian Commodities , Vol 15 No 1, March 2008 (paddy rice).   
   
  G/STR/N/12/AUS 
Page 22 TABLE III  
 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES 
 
Description of product(s) 
(including HS number(s)) Unit Year Domestic purchases 
by state trading 
enterprise National 
production Domestic sales 
by state trading 
enterprise National 
consumption 
1   2 3 4 5 
Barley (HS 1003) — ABB Grain 
Export Limited '000 tonnes 2005/2006 
2006/2007  1,7691 
609 9,4822 
4,257  1,1571 
543 2,7603 
3,153  
Wheat (HS 1001) — AWB 
(International) Limited '000 tonnes  2005/2006 
2006/2007  1,6814 
1,447  25,1502 
10,822 1,4885 
207 6,5403 
7,381  
Barley (HS 1003) — Grain Pool 
Pty Ltd  '000 tonnes  2005/2006 2006/2007 NA 
NA 9,482
2 
4,257 NA 
NA 2,7603 
3,153  
Lupins (HS 0713.90) — Grain 
Pool Pty Ltd  '000 tonnes 2005/2006 
2006/2007 NA 
NA 1,2852 
470 NA 
NA 5553 
437 
Canola (HS 1205) — Grain Pool 
Pty Ltd  '000 tonnes 2005/2006 
2006/2007 NA 
NA 1,4192 
573 NA 
NA 5253 
592 
Raw Cane Sugar (HS 1701.11) — 
Queensland Sugar Limited  '000 tonnes 2005/2006 
2006/2007 NA 
NA 5,1082 
4,722 NA 
NA 1,0356 
1,040 
Rice (HS 1006) — The Rice 
Marketing Board for the State of 
NSW  '000 tonnes 2005/2006 
2006/2007 NA 
NA 1,0027 
161 NA 
NA 1608 
153 
 
1 ABB Grain Export Limited (unpublished).   
2 Australian Bureau of Agricultural and Resource Economics (ABARE), Australian Commodities , Vol 15 No 2, June 2008.   
3 ABARE, Australian Crop Report , No 146, June 2008.   
4 AWB (International) Limited (unpublished data) — represents flat  price acquisitions including sell forward between pools but ex cluding swap purchases.   
5 AWB (International) limited (unpublished data) — excludes swap sales.   
6 International Sugar Organisation, Quarterly Market Report , February 2008 (raw equivalent).   
7 ABARE, Australian Commodities , Vol 15 No 1, March 2008 (paddy rice).   
8 ABARE, Australian Commodity Statistics 2007  (milled/table rice only (excludes rice used for feed, breakfas t cereals and other purposes);  includes imports).   
 
  
__________