WORLD TRADE  
ORGANIZATION  G/STR/N/13/GRD 
24 August 2010 
 (10-4428) 
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  
 
GRENADA 
   The following communication, dated 5 July 2010,  is being circulated at the request of the 
Delegation of Grenada.   
 
_______________ 
 
 
I. ENUMERATION OF STATE TRADING ENTERPRISES 
 
A. Identification of state trading enterprises. 
 
 The state trading enterprise is the Grenada Cocoa Association (GCA).   
 B. Description of products affected (includi ng tariff item number(s) encompassed in product 
description).  
 
 Cocoa Beans.    
II. REASON AND PURPOSE 
 
A. Reason or purpose for establishing and/or maintaining state trading enterprise. 
 
 The GCA is a Statutory Organization which was established in 1964 to provide for the future 
regulation and control of the production, processi ng and marketing of cocoa in Grenada.   
 B. Summary of legal basis for granting the relevant  exclusive or special rights or privileges, 
including legal provisions and summary of statutory or constitutional powers.  
 
 The Grenada Cocoa Association was established by an Act of Parliament by the Government 
of Grenada which is the Grenada Cocoa Industry Ordinance Act 30 0f 1964 which was superseded by 
the Grenada Cocoa Industry Act No.4 of 1989.   G/STR/N/13/GRD 
Page 2  
 
  III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE 
(GCA) 
 
A. Summary statement providing overview of op erations of the state trading enterprise. 
 
 The GCA is responsible for marketing, plant protection, and post harvest handling including 
fermenting, drying and quality control, plant propa gation, cocoa extension services and over site of 
cocoa husbandry on farmers’ fields;  also the GC A guarantees the purchase of all cocoa produced by 
farmers in Grenada.    B. Specification of exclusive or special right s or privileges enjoyed by the state trading 
enterprise. 
 
 GCA is the sole exporter of cocoa and determines prices paid to farmers.   
 
 GCA has exclusive rights to grant licences to  local Agents to purchase cocoa beans from 
farmers.    
 
C. Type of entities other than the state trading enterprise that are allowed to engage in 
importation/exportation and c onditions for participation. 
 
 N/A.   
 
D. How import/export levels are established by the state trading enterprise.  
 GCA forecast the crop using a custom made crop forecasting model in the prior year.  The projected production is then offered to the market.   
 
E. How export prices are determined. 
 
 GCA established a farm gate price on a per metric ton basis and includes the administrative cost per ton.  Once these figures are established, we engage our clients in price negotiation.    
 F. How the resale prices of imported products are determined. 
 
 N/A.   
 
G. Whether long-term contracts are negotiated by the state trading enterprise.  Whether the state 
trading enterprise is used to fulfil contractual obligations entered in to by the government. 
 
 Long term contracts are rarely negotiated. Gove rnment does not enter into contract for or on 
behalf of GCA   
 
H. Brief description of market structure.  
 
 GCA has approximately 7,000 registered cocoa farmers.  These farmers sell to three strategically located Agents or directly to the GCA.   The Agents operate by way of their own funding 
and are responsible for fermenting and drying wet cocoa beans into dry cocoa beans.   
 
 The Agents sell their dry cocoa beans throug h the GCA;  GCA then grade and bag the dry 
cocoa beans and export to cont racted customers abroad.    G/STR/N/13/GRD 
 Page 3 
 
 
  IV. STATISTICAL INFORMATION ( SEE ATTACHED TABLES I - III)  
 
V. REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE ( AS APPROPRIATE)  
 
VI. ADDITIONAL INFORMATION ( AS APPROPRIATE) 
 
  
  G/STR/N/13/GRD 
Page 4 TABLE I 
 
STATE TRADING:  Grenada Cocoa Association 
 
STATISTICAL INFORMATION, IMPORTS 
 
 
Description of 
product Total quantity 
imported1 Quantity imported 
by 
state trading 
enterprise1 Average import 
price Average 
representative 
domestic sales price Mark-up2 National production 
n/a n/a n/a n/a n/a n/a n/a 
 
 
 
     
                                                     
 
1 In cases where no imports have taken place under columns 2 or 3, provide an explanation under Section V of this questionnaire.  
2 Members may report either under columns 4 and 5 or under column 6.  
   G/STR/N/13/GRD
 Page 5TABLE II 
 
STATE TRADING:  Grenada Cocoa Association  
 
STATISTICAL INFORMATION, EXPORTS 
For the Crop Year 01 October 2007 – 30 September 2008 
 
 
Description of 
product(s) 
(including HS 
number(s)) Total quantity 
exported1 
lbs Quantity exported 
by 
state trading 
enterprise1 
lbs Average 
procurement price2 
USD/lbs Average 
representative 
domestic sales price 
USD/lbs Average export 
price 
USD/lbs National production 
lbs 
Cocoa Beans 755,287 755,287 1.32 0.40 1.80/lb 783,989 
 
 
 
  
 
  
                                                     
 
1 In cases where no exports have taken place under columns 2 or 3, provide an explanation under Section V of this questionnaire.  
2 In cases where the initial procurement price is augmented by other payments, additional paymen ts should also be reported.  
  G/STR/N/13/GRD 
Page 6 TABLE II 
 
STATE TRADING:  Grenada Cocoa Association  
 
STATISTICAL INFORMATION, EXPORTS 
For the Crop Year 01 October 2006 – 30 September 2007 
 
 
Description of 
product(s) 
(including HS 
number(s)) Total quantity 
exported1 
lbs Quantity exported 
by 
state trading 
enterprise1 
lbs Average 
procurement price2 
USD/lbs 
 Average 
representative 
domestic sales price 
USD/lbs Average export 
price 
USD/lbs National production 
lbs 
Cocoa Beans 479,128 479,128 1.26 0.40 2.06 484,581 
 
 
  
 
   
                                                     
 
1 In cases where no exports have taken place under columns 2 or 3, provide an explanation under Section V of this questionnaire.  
2 In cases where the initial procurement price is augmented by other payments, additional paymen ts should also be reported.  
   G/STR/N/13/GRD
 Page 7 
TABLE II 
 
STATE TRADING:  Grenada Cocoa Association  
 
STATISTICAL INFORMATION, EXPORTS 
For the Crop Year 01 October 2005 – 30 September 2006 
 
 
Description of 
product(s) 
(including HS 
number(s)) Total quantity 
exported1 
lbs Quantity exported 
by 
state trading 
enterprise1 
lbs Average 
procurement price2 
USD/lbs Average 
representative 
domestic sales price 
USD/lbs Average export 
price 
USD/lbs National production 
lbs 
Cocoa Beans 188,877 187,819 1.08 0.40 1.51 169,724 
 
 
 
                                                      
1 In cases where no exports have taken place under columns 2 or 3, provide an explanation under Section V of this questionnaire.  
2 In cases where the initial procurement price is augmented by other payments, additional paymen ts should also be reported.  
  G/STR/N/13/GRD 
Page 8 TABLE III 
 
STATE TRADING:  Grenada Cocoa Association  
 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES 
For Crop Year 01 October 2007 – 30 September 2008 
 
 
Description of product(s) 
(including HS number(s)) Domestic purchases by 
state trading enterprise 
lbs National production 
lbs Domestic sales by 
state trading enterprise 
lbs National consumption 
Cocoa Beans 783,989 783,989 6,249 n/a 
 
  
Information on National Consumption not available.    
   G/STR/N/13/GRD
 Page 9TABLE III 
 
STATE TRADING:  Grenada Cocoa Association 
 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES 
For Crop Year 01 October 2006 – 30 September 2007 
 
 
Description of product(s) 
(including HS number(s)) Domestic purchases by 
state trading enterprise 
lbs National production 
lbs Domestic sales by 
state trading enterprise 
lbs National consumption 
Cocoa Beans 484,581 484,581 4,374 n/a 
 
  
 
Information on National Consumption not available.    
  G/STR/N/13/GRD 
Page 10 TABLE III 
 
STATE TRADING:  Grenada Cocoa Association  
 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES 
For Crop Year 01 October 2005 – 30 September 2006 
 
 
Description of product(s) 
(including HS number(s)) Domestic purchases by 
state trading enterprise 
lbs National production 
lbs Domestic sales by 
state trading enterprise 
lbs National consumption 
Cocoa Beans 169,724 169,724 0.00 n/a 
 
 
Information on National Consumption not available.   
 
  
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