WORLD TRADE  
ORGANIZATION  G/STR/N/10/TTO 
G/STR/N/11/TTO 26 March 2008 
 
(08-1326) 
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 21 January 2 008, 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 estab lished 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 to th e 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.   
 D. H
OW IMPORT /EXPORT LEVELS ARE ESTABLISHED BY THE CCIB 
Export levels are established on the basis of productive capacity.  Whatever produced is 
allowed to be sold.   
 
E. HOW 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.   
 
G. WHETHER 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 exporter pays the buying agent and the Board 
advances financial resources to the cooperative to  facilitate purchases from the buying agents.   
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  IV. OBJECTIVE:  EXPLANATION OF WHY NO TRADE HAS TAKEN PLACE 
The Cocoa and Coffee Industry Board is only involved in the purchase
, sale, handling, 
grading, exportation  and marketing of cocoa and coffee and therefore does not engage in importation.   
 
Hence the absence of trade import figures in Section IV Table 1.   
   
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 Page 5TABLE I 
  
STATE TRADING:  Cocoa and Coffee Industry Board of Trinidad and Tobago 
 
STATISTICAL INFORMATION, IMPORTS
1 
  
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 IV for an explanation of why no trade has taken place.   
   
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Page 6 TABLE II 
  
STATE TRADING:  Cocoa and Coffee Industry Board of Trinidad and Tobago 
 
STATISTICAL INFORMATION, EXPORTS 
Reporting Period:  Crop Year October 2004 - September 2005 
 
 
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 915,1381 915,138 232 143 4.404 915,1385 
 
1 Total quantity exported is representative of  exports from the CCIB only.  The export data from private shippers was not availa ble for that period.   
2 The average procurement price is representative of the price per kg of plantation Grade 1 cocoa.   
3 The average representative domestic sales price is repres entative of the price per kg of estate Grade 2 cocoa.  
4 The average export price fluctuated between $4.20 to $4.70 USD over the period 2005-2007.   
5 National production data for 2004-2005 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 2005 - September 2006  
  
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 731,229 571,015 23 14 4.40 731,229 
 
   
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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 2006 - September 2007  
 
 
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 869,288 648,288 23 14 4.40 869,288 
  
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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 October 2004 - September 2005  
  
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 2,888.2 2,888.2 1,924.4 - 
  
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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 2005 -  September 2006  
 
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 1,615.6 1,615.6 1,136.5 - 
  
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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 2006 - June 2007  
 
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 1,105.2 8001 785.4 - 
 
 1 Forecasted figure provided by the CCIB, which would be adjusted at the end of the crop year 2007.  To be 
                                                  used on a provisional basis.   
  
 
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