WORLD TRADE  
ORGANIZATION  G/STR/N/12/TTO 
G/STR/N/13/TTO 20 August 2010 
 
(10-4404) 
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  
 
TRINIDAD AND TOBAGO 
   The following communication, dated 17 August 2010,  is being circulated at the request of the 
Delegation of Trinidad and Tobago.   
 
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  I. ENUMERATION OF STATE TRADING ENTERPRISE 
A. I
DENTIFICATION OF THE STATE TRADING ENTERPRISE  
The state trading enterprise is the Cocoa and Co ffee Industry Board of Trinidad and Tobago.   
 
B. DESCRIPTION OF PRODUCTS AFFECTED  
The products affected are as follows:   
 
PRODUCT TARIFF NUMBERS 
COCOA 1801.00 
COFFEE 09.01 
 
II. REASON AND PURPOSE 
A. REASON OR PURPOSE FOR ESTABLISHING AND /OR MAINTAINING STATE TRADING ENTERPRISE  
The Cocoa and Coffee Industry Board (CCIB), is a government sponsored and financed 
organization, which was established in 1961 to "s ecure the most favourable arrangements for the 
purchase, sale, handling, grading, exportation and ma rketing of cocoa and coffee for the benefits of 
the cocoa and coffee industry." 
 B. S
UMMARY OF THE LEGAL BASIS FOR GRANTING THE RELEVANT EXCLUSIVE OR SPECIAL 
RIGHTS OR PRIVILEGES , INCLUDING LEGAL PROVISIONS AND SUMMARY OF STATUTORY OR 
CONSTITUTIONAL POWERS  
The Cocoa and Coffee Industry Board was established by an Act of Parliament by the 
Government of Trinidad and Tobago which is the Cocoa and Coffee Industry Act Chapter 64:20 
of 1961.  
III. DESCRIPTION OF THE FUNCTIONING OF THE COCOA AND COFFEE 
INDUSTRY BOARD 
A. S
UMMARY AND OVERVIEW OF THE OPERATIONS OF THIS COCOA AND COFFEE INDUSTRY 
BOARD  
The Cocoa and Coffee Industry Board facilitates  the purchase and sale of cocoa and coffee 
from farmers via private entrepreneurs and a coope rative organization.  The CCIB provides oversight, 
transparency, quality control and accountability for the produce of many small farmers as they sell to 
private entrepreneurs via public officials.  Therefor e, the intended function of the CCIB is to create an 
orderly export market facility especi ally for the small farmers.   
 
In this context, the Board is responsible for the following activities:   
 
1. Issue of permit for the purchase of  cocoa on behalf of the Board;   
2. Issue of licenses to export cocoa;   
3. Determining the interim price of cocoa;   4. All matters related to the grading and inspection of cocoa for export;  and 
5. Granting of permits for the secondary processing of cocoa.   
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  B. SPECIFICATION OF EXCLUSIVE OR SPECIAL RIGHT OR PRIVILEGES ENJOYED BY THE CCIB 
The CCIB has exclusive rights to grant licenses to  private entrepreneurs to buy on behalf of 
the Board from the farmers once they met the necessary prudential criteria.    
C. T
YPE OF ENTITIES OTHER THAN THE CCIB  ALLOWED ENGAGING IN IMPORTATION / 
EXPORTATION AND CONDITIONS  
Large producers who are able to produce in excess of 20,000 lbs in a crop year are granted a 
license to export cocoa/coffee.  The producers in ad dition to meeting the quantity for exports must 
demonstrate their ability to process cocoa and co ffee to the international standards which are 
monitored by the Board. 
 In 2009, the Board of Directors of the CCIB t ook a decision to liberalize the coffee market, 
due to the steady decline in coffee production.  Following a meeting with the coffee roasters, it was 
agreed that farmers would sell their produce at a minimum price, which today stands at $15.00/kg.  
Based on information from a large coffee roasting en terprise, it was stated that coffee beans are 
purchased from the local coffee producers, where the demand outstrips the supply;  also purchases are 
made through the Cocoa and Coffee Cooperative
1, and through importation of the coffee beans. 
 Due to the continued shortfall in the local co ffee production levels, local coffee roasters have 
become even more heavily dependent on importe d coffee beans and as such have collaborated 
extensively with the Plant Quarantine Division of  the Ministry of Food Production on issues of 
compliance with the requirements for importation of coffee beans.  D. H
OW IMPORT /EXPORT LEVELS ARE ESTABLISHED BY THE CCIB 
Export levels are established on the basis of productive capacity.  Whatever amount produced 
is allowed to be sold.   
 E. H
OW EXPORT PRICES ARE DETERMINED  
The CCIB sets the interim price of the beans for export at the start of harvest each year.  After 
the actual sale is concluded in the internationa l market, an additional payment is made to the 
producer.  If the price received in the international mark et is more than sufficient to cover all its costs 
of marketing, the farmer may receive a bonus payment.  The agents pay the price to the farmer upon 
purchase.  In the past, the price fetched on the intern ational market influenced the final payment to the 
farmer.  Farmers who do not consis tently utilise the export facility provided by the CCIB can sell their 
cocoa to the CCIB.  This is usually the case when  the price fetched on the international market is 
lower than that offered by the CCIB.   
 
The CCIB commits approximately 60 per cent of the crop in forward sale.  This strategy 
minimises down-side price risk but at the same time  prevents the full benefit of high prices from being 
captured.    F. H
OW THE RESALE PRICE OF IMPORTED PRODUCTS ARE DETERMINED  
The CCIB is unable to comments as it does not engage in imports.   
 
                                                      
1 The Cocoa and Coffee Cooperative, which falls under  the ambit of the CCIB, is involved in the 
purchasing of coffee from a few small local coffee producers.   G/STR/N/12/TTO 
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  G. W
HETHER LONG-TERM CONTRACTS ARE NEGOTIATED BY THE CCIB.   WHETHER THE CCIB  
IS USED TO FULFIL CONTRACTUAL OBLIGATIONS ENTERED INTO BY THE GOVERNMENT  
Long-term contracts are negotiated by the CCIB.   The CCIB is used to fulfil contractual 
obligations entered into by the government.   
 
H. BRIEF DESCRIPTION OF THE MARKET STRUCTURE  
The small producers sell their produce to private entrepreneurs who are licensed by the Board 
to make the purchases.  These private entrepreneurs are called buying agents.  The buying agents then 
sell to a privately operated cooperative which is also  licensed by the Board to conduct the export.  The 
farmer is paid by the buying agent, the exporte r pays the buying agent and the Board advances 
financial resources to the cooperative to facilitate purchases from the buying agents.  
IV. STATISTICAL INFORMATION ( SEE ATTACHED TABLES I - III)  
   
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 Page 5TABLE I 
 
STATE TRADING: Cocoa and Coffee Indus try Board of Trinidad and Tobago 
 
STATISTICAL INFORMATION, IMPORTS1 
  
Description of product(s) 
(including HS number(s)) Total quantity 
imported Quantity imported 
by state trading 
enterprise Average import 
price Average representative 
domestic sales price Mark-up National production 
n/a n/a n/a n/a n/a n/a - 
 
 
                                                      
1 See Section V for an explanation of why no trade has taken place.    
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STATE TRADING:  Cocoa and Coffee Industry Board of Trinidad and Tobago 
 
STATISTICAL INFORMATION, EXPORTS 
Reporting Period: Crop Year October 2007 – September 2008 
 
 
Description of 
product(s) 
(including HS 
number(s)) Total quantity 
exported 
(kgs) Quantity exported 
by state trading 
enterprise 
(kgs) Average 
procurement price 
(TT$/kg) Average 
representative 
domestic sales price
(TT$/kg) Average export 
price 
(USD/kg) National production
(kgs) 
HS 18.01 – Cocoa Beans, whole or broken, raw or 
roasted 526,147 338,110 2 
18 3 
15 (G2) 
15 (G3) 4.37 4 
526,076 
 
                                                      
2 The average procurement price is  representative of the price per kg of plantation Grade 1 cocoa. 
3 The average representative domestic sales pr ices are representative of the prices per kg  of estate Grade 2 (G2) and 3 (G3) coc oa. 
4 National production data, obtained from Trinidad and Tobago's Ce ntral Statistical Office, is not representative of production from private farmers who act on their own 
behalf.  
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 Page 7TABLE II 
 
STATE TRADING:  Cocoa and Coffee Industry Board of Trinidad and Tobago 
 
STATISTICAL INFORMATION, EXPORTS 
Reporting Period: Crop Year October 2008 – September 2009 
 
 
DESCRIPTION OF 
PRODUCT(S) 
(including HS 
number(s)) Total quantity 
exported 
(kgs) Quantity exported by 
state trading 
enterprise 
(kgs) Average procurement 
price 
(TT$/kg) Average 
representative 
domestic sales 
price 
(TT$/kg) Average export 
price 
(USD/kg) National production
(kgs) 
HS 18.01 – Cocoa Beans, whole or 
broken, raw or roasted 442,421 250,388 5 
18 6 
15 (G2) 
15 (G3) 4.42 7 
298,600 
 
 
                                                      
5 The average procurement price is  representative of the price per kg of plantation Grade 1 cocoa. 
6 The average representative domestic sales pr ices are representative of the prices per kg  of estate Grades 2 (G2) and 3 (G3) co coa. 
7 National production data, obtained from Trinidad and Tobago's Central Statistical Office, is available for the period October 2008 to March 2009 only, and does not 
represent production from private farm ers who act on their own behalf.    
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Page 8 TABLE II 
 
STATE TRADING:  Cocoa and Coffee Industry Board of Trinidad and Tobago 
 
STATISTICAL INFORMATION, EXPORTS 
Reporting Period: Crop Year October 2009 – March 2010 
 
 
DESCRIPTION OF 
PRODUCT(S) 
(including HS 
number(s)) Total quantity 
exported 
(kgs) Quantity exported 
by state trading 
enterprise 
(kgs) Average 
procurement price 
(TT$/kg) Average 
representative 
domestic sales price
(TT$/kg) Average export 
price 
(USD/kg) National production
(kgs) 
HS 18.01 – Cocoa Beans, whole or broken, raw or 
roasted  
354,711 
  
275,411  
18  
15 (G2) 
15 (G3)  
4.34 8 
N/A 
 
                                                      
8 N/A – Not Available.  
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 Page 9TABLE III 
 
STATE TRADING:  Cocoa and Coffee Industry Board of Trinidad and Tobago 
 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES 
Reporting Period: Crop Year July 2007 – September 2008 
 
 
Description of product(s) 
(including HS number(s)) Domestic purchases by 
state trading enterprise  
(tonnes) National production 
(tonnes) Domestic sales by  
state trading enterprise 
(tonnes) National consumption 
HS 18.01 -  Cocoa Beans, 
whole or broken, raw or roasted  
506.6 9 
564.1  
20.2  
N/A 
 
N/A – Not Available 
 
                                                      
9 National production data, obtained from Trinidad and Tobago's Ce ntral Statistical Office, is not representative of production from private farmers who act on their own 
behalf.  For purposes of continuity, this figure is inclusive of  the July – September 2007 quarter, since the notification subm itted previously provided data up to June 2007.  
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Page 10 TABLE III 
 
STATE TRADING:  Cocoa and Coffee Industry Board of Trinidad and Tobago 
 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES 
Reporting Period: Crop Year October 2008 – September 2009 
  
Description of product(s) 
(including HS number(s)) Domestic purchases by state 
trading enterprise  
(tonnes) National production 
(tonnes) Domestic sales by  
state trading enterprise  
(tonnes) National consumption 
HS 18.01 -  Cocoa Beans, 
whole or broken, raw or roasted  
414.9 10 
298.6  
21.9  
N/A 
 
N/A – Not Available 
 
                                                      
10 National production data, obtained from Trinidad and Tobago's Central Statistical Office, is available for the period October 2008 to March 2009 only, and does not 
represent production from private fa rmers who act on their own behalf.  
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 Page 11TABLE III 
 
STATE TRADING:  Cocoa and Coffee Industry Board of Trinidad and Tobago 
 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES 
Reporting Period: Crop Year October 2009 – March 2010 
 
 
Description of product(s) 
(including HS number(s)) Domestic purchases by  
state trading enterprise  
(tonnes) National production 
(tonnes) Domestic sales by  
state trading enterprise 
(tonnes) National consumption 
HS 18.01 -  Cocoa Beans, 
whole or broken, raw or roasted  
406.7  
N/A  
4.68  
N/A 
 
 
N/A – Not Available 
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  V. OBJECTIVE:  EXPLANATION OF WHY NO TRADE HAS TAKEN PLACE 
 
 The Cocoa and Coffee Industry Boar d is only involved in the purchase
, sale, handling, 
grading, exportation  and marketing of cocoa and coffee and th erefore does not engage in importation.  
Hence the absence of trade import figures in Section IV Table I. 
 
 
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