. /.   WORLD TRADE  
ORGANIZATION  G/STR/6 
6 October 2008 
 (08-4743) 
Working Party on  
State Trading Enterprises  
 
 
 
RECOMMENDATION ON THE FREQUENCY OF NOTIFICATIONS 
 
 
 On 3 October 2008 the Working Party adopted th e 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 the frequency of state trading notifications so that new and full notifications on state trading are now due every two years instead of every three years.  It also eliminated the requirement of updating notificati ons in the intervening years.  The new frequency 
of notifications was to be implemented for a tria l phase of four years, commencing on 30 June 2004.   
3. Paragraph 4 of the recommendation directed the Working Party to review the situation in 
respect of compliance with the new notification obligation 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 in G/STR/5 or in a modified fo rm, for a further period.  Accordingly, the Working 
Party conducted the review and observed that the period of application of the new notification 
requirement had been too short to provide the clar ity needed to determine whether the new frequency 
of notifications had improved compliance with the notification obligation.  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. In light of the above considerations, the Work ing Party recommends to the Council for Trade 
in Goods that the application of the recommendation contained in G/STR/5 be extended, for a further 
period of 2 years, as follows:   
                                                     
 
1 BISD 11S/58.   G/STR/6 
Page 2  
 
  (a) This extension shall enter into force as of the year 2008, with a new and full 
notification being due on 30 June 2010.   
(b) The guidelines for completing the questionnaire section of the Questionnaire on State 
Trading are those contained in G/STR/3/Rev.1. 
5. After a trial period of two years, commenci ng on 30 June 2008, the Working Party shall 
review the situation, with regard to compliance with the notification obligation and the frequency of 
notifications, with a view to determining whether to extend the application of this recommendation, 
either as presently drafted or in a modified form, for a further period.   
 
 
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