WORLD TRADE  
ORGANIZATION  G/STR/Q1/KOR/9 
20 October 2009 
 (09-5150) 
Working Party on 
State Trading Enterprises Original:   English 
 
 
 
STATE TRADING 
 
Questions Posed by the UNITED STATES Concerning the  
New and Full Article XVII Notification of KOREA1 
 
  The following communication, dated 16 October 2009, is being circulated at the request of the Delegation of the United States.    
_______________ 
 
 
Questions 
 
 We have a number of technical questi ons concerning Korea's notification for 
G/STR/N/7/KOR and G/STR/N/10/KOR.  We will highlig ht some of these questions today, but will 
submit our full list of questions in writing.    
MINISTRY OF AGRICULTURE & FORESTRY, MAF 
  In Section 1, Korea lists 16 affected products ;  however, Table I and III provide data on 
1006.20.1000.    
• Can Korea clarify why there is no data on other 14 products?   
  In Section F, Korea mentions "other economic  factors" that may influence domestic sales 
prices of rice.   
 
• What were these "other" economic fa ctors that came into play?   
  In Table I, for years 1998, 1999, and 2000, Average Representative Domestic Sales Price and Mark-up are not disclosed.    
• Can Korea explain the missing data?   
• Can Korea explain how the mark-up is calculated?   
 
AGRICULTURAL AND FISHERY MARKETING CORPORATION, AFMC 
 
 In Section 1, for garlic, Korea lists four products that are affected;  however, Table I does not provide data for 0703.20.0000.   
 
• Can Korea confirm that there was no activity for Garlic HS 0703.20.0000?   
                                                     
 
1 G/STR/N/7/KOR and G/STR/N/10/KOR.   G/STR/Q1/KOR/9 
Page 2  
 
   In Section C, Korea states that open bidding are allowed for sesamum seeds, ginger, 
buckwheat, and ground nuts.    
• Can Korea explain how this open bidding works?  Can Korea explain why open bidding is 
allowed for only these four products?   
 
 In Table I:    
• For Ginger, can Korea explain why data for 1999 and 2003 are missing?   
• For Ground Nuts, can Korea explain why 1999 and 2002 are missing?   
  For Table II:    
• For Small Red Beans, Genus Capsicum, Garlic, Onions, Ginger, and Sesamum Seeds?   
• For Ginger and Ground Nuts, data for only four y ears are published.  Can Korea explain this?   
 
• Can Korea explain how the mark-up is calculated?   
 
LIVESTOCK PRODUCTS MARKETING ORGANIZATION, LPMO 
 
• Can Korea explain why Korea provided data on only 1998, 1999, and 2000?   
 
• Can Korea explain how the mark-up is calculated?   
  In Section C, Korea states that the private importers known as SBS super group are able to purchase beef directly from overseas exporters within an annual quota amount.    
• Can Korea provide a schedule of past annual quota amounts?   
 
• Can Korea provide more details re this SBS s uper group (i.e. composition, guidelines, etc.)   
 
• Can Korea explain how the mark-up is calculated?   
  In Section H, Korea describes the market structure.    
• Can Korea explain in detail how the market struct ure differs for domestic and imported beef?   
 NATIONAL LIVESTOCK COOPERATIVES FEDERATION, NLCF 
 
 In Table III, Korea does not provide data on National Consumption.    
• Can Korea explain why there is no data for these years?   
 
 In Section H, Korea notes that imported products  are sold to consumers either directly or 
through bidding.    
• Can Korea explain what percentage is sold dir ectly through bidding?  If through direct sales, 
how is this coordinated?    
 
 In Section 6, NLCF was merged with NACF.   
 
• Since the merger, have there b een any significant changes?    G/STR/Q1/KOR/9 
 Page 3 
 
 
  • Can Korea explain how the mark-up is calculated?   
 
CHEJU CITRUS GROWER'S AGRICULTURAL COOPERATIVE, CCGAC 
 
In Tables I and III:   
 
• For Oranges, data for 2002 and 2003 are not published.  Can Korea explain this?   
• For Mandarins, data for only 1998 and 2000 are published.  Can Korea explain this?   
• Can Korea explain how the mark-up is calculated?   
 
KOREA GINSENG COOPERATIVE FEDERATION, KGCF 
 
 In Section 1, Korea lists 1211.20.9100;  however, no data is provided for this in either Table I 
or III.   
 
• Can Korea explain this?   
  In Table I, Korea lists 1211.20.1000;  howe ver, this is not under Section 1.   
 
• Can Korea explain this?   
 
 In both Tables I and III, Korea only provides data for two years.   
 
• Can Korea explain why only data for 1998 and 1999 are provided?   
  In Section F, Korea states that resale prices are determined through an open bidding system.    
• Can Korea explain the factors involved in calculating the resale prices?   
  In Section H, Korea states that products imported by NGCF are sold to consumers through 
wholesale markets.    
• Can Korea explain whether or not these customers are individual customers or retail 
(commercial) customers?   
 
• Can Korea explain how the mark-up is calculated?   
 
NATIONAL FORESTRY COOPERATIVES FEDERATION, NFCF 
 
 In Tables I and III, data for 2000 are not published.   
 
• Can Korea explain this?   
  In Section F, Korea states that resale pri ces are determined by operational costs.   
 
• Can Korea provide more detail regarding what these operational costs were for the past years?   
• Can Korea explain how the mark-up is calculated?   
 GENERAL 
 
 Regarding MAF, Korea states that this STE is set up to primarily address the difference between domestic and import prices due to "sudden influx of imported rice".  Recent trends depict G/STR/Q1/KOR/9 
Page 4  
 
  domestic consumption level playing a critical factor  in influencing prices.  Will Korea revise the 
"reason or purpose" to identify other key factors like domestic consumption, besides singling out 
imports?     We request that Korea please (1) provide speci fic information with regard to the number of 
sales outlets for imported beef as compared to those for domestic beef, and (2) explain the extent to 
which imported beef is required to  be retailed in shops that do not also sell domestic beef.   
   
__________