WORLD TRADE
ORGANIZATIONG/STR/N/7/MLT
13 July 2001
(01-3487)
Working Party on
State Trading EnterprisesOriginal:  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
MALTA
The following communication, dated 5 July 2001, has been received from the Permanent
Mission of Malta.
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Malta wishes to notify, under the above-mentioned WTO Agreements, the following two state
trading enterprises as specified in the questionnaire on state trading reproduced in the Annex of WTO
document G/STR/N/7 of 26 February 2001.
PART 1: STATE TRADING ACTIVITIES IN CERTAIN CEREALS
I. ENUMERATION OF STATE TRADING ENTERPRISES
A.IDENTIFICATION OF STATE TRADING ENTERPRISES
Medigrain Company Limited
A 32 Industrial EstateMarsa  HMR 15
Malta
Tel: 356 233260/245190
Fax: 356 245099
B. DESCRIPTION OF PRODUCTS AFFECTED (INCLUDING TARIFF ITEM
NUMBER(S) ENCOMPASSED IN PRODUCT DESCRIPTION)
1.  Hard Milling Wheat (HS Code No. 100 190 9100)
2.  Soft Milling Wheat (HS Code No. 100 190 9100)$3.  Animal Feed Barley (HS Code No. 100 300 9000)
4.  Animal Feed Maize (HS Code No. 100 590 0000)G/STR/N/7/MLT
Page 2
II. REASON AND PURPOSE
A. REASON OR PURPOSE FOR ESTABLISHING AND/OR MAINTAINING STATE
TRADING ENTERPRISE
The reason on setting up Medigrain Limited was to keep stable the selling prices of bread and
animal feeds to the consumer.
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
Exclusive or special rights or privileges are granted through the import licensing procedures
in terms of the Importation (Control) Regulations 1969, which are issued in exercise of the powers
conferred by section 3 of the Supplies and Services Act (Chapter 117 of the Laws of Malta).
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE
A. SUMMARY STATEMENT PROVIDING OVERVIEW OF OPERATIONS OF THE
STATE TRADING ENTERPRISE
Medigrain Limited was set up in January 1980 and since then has been the exclusive importer
of milling wheat and major feed grains to cater for Malta’s domestic consumption.  Medigrain then
sells all grains generally at a subsidised price to the local flour mill in the case of wheat and to the two
major provender mills and a few small processors in the case of barley and maize .
B. SPECIFICATION OF EXCLUSIVE OR SPECIAL RIGHTS OR PRIVILEGES
ENJOYED BY THE STATE TRADING ENTERPRISE
Medigrain Limited has a monopoly in the importation of the above grains into Malta.  All
other grains imported for other uses are freely brought into Malta once these do not fall into the same
category as Medigrain’s imports.
C. TYPE OF ENTITIES OTHER THAN THE STATE TRADING ENTERPRISE
THAT ARE ALLOWED TO ENGAGE IN IMPORTATION/EXPORTATION AND
CONDITIONS FOR PARTICIPATION
No other organisations are allowed to import above mentioned grains.  Export of these grains
from Malta is non-existent.
D. HOW IMPORT/EXPORT LEVELS ARE ESTABLISHED BY THE STATE
TRADING ENTERPRISE
Import levels are established based on the level of sales which have been fairly stable
throughout the past two decades at about 160,000 metric tonnes per year.
E. HOW EXPORT PRICES ARE DETERMINEDMalta does not have any grain exports and therefore no export prices for these commodities.G/STR/N/7/MLT
Page 3
F. HOW THE RESALE PRICES OF IMPORTED PRODUCTS ARE DETERMINED
Medigrain’s imports are sold at prices established by Price Regulation Orders issued by the
Maltese Government as follows:
1. Milling Wheat at Lm62.224 per tonne as per Price Order No. 40 of 1993.
2. Animal Feed Barley at Lm56.00 per tonne as per Price Order No. 177 of 1987.
3. Animal Feed Maize at Lm56.00 per tonne as per Price Order No. 179 of 1987.
G. WHETHER LONG-TERM CONTRACTS ARE NEGOTIATED BY THE STATE
TRADING ENTERPRISE.
WHETHER THE STATE TRADING ENTERPRISE IS USED TO FULFILCONTRACTUAL OBLIGATIONS ENTERED INTO BY THE GOVERNMENT
No long-term contracts on purchase of grains from international grain trading houses are
negotiated.  Medigrain Limited issues on a regular (monthly) basis invitations to tender to numerous
grain-trading houses.  Tenders are awarded to the best priced offer (within specification) and aregoverned by Gafta rules and Medigrain’s own General Tender Terms drawn up on an UNCTAD
model.
Medigrain operates as directed by the Maltese Government.  Payment of grain purchases is
made on delivery of documents as is customary in the trade.  Documents are delivered directly toMedigrain offices and to the bank showing the confidence that Medigrain enjoys amongst the
international grain trading houses.
H. BRIEF DESCRIPTION OF MARKET STRUCTURE
Medigrain imports on an annual basis, 60000 metric tonnes animal feed maize, 55,000 metric
tonnes animal feed barley, 35000 metric tonnes hard milling wheat and 15,000 metric tonnes soft
milling wheat.  Shipment size varies from 3,000 metric tonnes to 9,000 metric tonnes.  On the other
hand sales are of above 1,000 metric tonnes per week each for wheat, barley and maize.
The main players in the sector apart from Medigrain as the sole importer, are two grain
storage service providers (one government-owned and one privately-owned), two provender mills(one privately-owned operating under a foreign trade name and one owned by the milk-producers
cooperative) and one privately owned flour mill (which was formed by the amalgamation of several
small flour mills).
IV. STATISTICAL INFORMATION
See Annex 1
V. REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE
Not applicable in this case.
VI. ADDITIONAL INFORMATION
No additional information is being provided.G/STR/N/7/MLT
Page 4
Annex 1
TABLE I
STATE TRADING:  MEDIGRAIN LIMITED
STATISTICAL INFORMATION, IMPORTS
Product HS Code Imports
mtAvg Import
Price US$Dom. Sales
Price US$Mark-Up
US$National
Production
Year ending 30/09/98
Milling Wheat 100 1 90 9100 48370 151.39 158.67 7.28 Nil
Animal Feed Barley 100 300 9000 56800 95.13 142.80 47.67 NilAnimal Feed Maize 100 590 0000 60586 113.03 142.80 29.77 Nil
Year ending 30/9/99
Milling Wheat 100 1 90 9100 43144 149.05 158.67 9.62 Nil
Animal Feed Barley 100 300 9000 60536 86.88 142.80 55.92 NilAnimal Feed Maize 100 590 0000 60335 108.62 142.80 34.18 Nil
Year ending 30/09/00
Milling Wheat 100 1 90 9100 54193 139.48 142.84 3.36 Nil
Animal Feed Barley 100 300 9000 33770 111.34 127.47 16.13 NilAnimal Feed Maize 100 590 0000 72990 107.63 127.47 19.84 NilG/STR/N/7/MLT
Page 5
TABLE II
STATE TRADING:  MEDIGRAIN LIMITED
STATISTICAL INFORMATION, EXPORTS
Product HS Code Exports
mtAvg purch.
Price US$Dom. Sales
Price US$Avg.Exp.
Price US$National
Production
Year ending 30/09/98
Milling Wheat 100 190 9100 Nil Nil Nil Nil Nil
Animal Feed Barley 100 300 9000 Nil Nil Nil Nil Nil
Animal Feed Maize 100 590 0000 Nil Nil Nil Nil Nil
Year ending 30/09/99
Milling Wheat 100 190 9100 Nil Nil Nil Nil NilAnimal Feed Barley 100 300 9000 Nil Nil Nil Nil Nil
Animal Feed Maize 100 590 0000 Nil Nil Nil Nil Nil
Year ending 30/09/00
Milling Wheat 100 190 9100 Nil Nil Nil Nil NilAnimal Feed Barley 100 300 9000 Nil Nil Nil Nil NilAnimal Feed Maize 100 590 0000 Nil Nil Nil Nil NilG/STR/N/7/MLT
Page 6
TABLE III
STATE TRADING: MEDIGRAIN LIMITED
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES
Product HS Code Domestic
PurchasesNational
ProductionDomestic
Sales mtNational Consump.
mt
Year ending 30/09/98
Milling Wheat 100 190 9100 Nil Nil 48370 48370
Animal Feed Barley 100 300 9000 Nil Nil 56800 56800
Animal Feed Maize 100 590 0000 Nil Nil 60586 60586
Year ending 30/09/99Milling Wheat 100 190 9100 Nil Nil
48514 48514
Animal Feed Barley 100 300 9000 Nil Nil 54844 54844
Animal Feed Maize 100 590 0000 Nil Nil 60615 60615
Year ending 30/09/00Milling Wheat 100 190 9100 Nil Nil
54193 54193
Animal Feed Barley 100 300 9000 Nil Nil 33770 33770
Animal Feed Maize 100 590 0000 Nil Nil 72990 72990
Source:  Medigrain Company LimitedG/STR/N/7/MLT
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PART 2: STATE TRADING ACTIVITIES IN CERTAIN PETROLEUM PRODUCTS
I. ENUMERATION OF STATE TRADING ENTERPRISES
A. IDENTIFICATION OF STATE TRADING ENTERPRISES
Enemalta Corporation
Central Administration Building
Church Wharf, Marsa  HMR 01
Malta
Tel:  356 223601 - 221907 - 220462Fax:  356 243055
Telegrams:  ELPEGA MALTA
Telex: 1735  ENECOR MW
B. DESCRIPTION OF PRODUCTS AFFECTED (INCLUDING TARIFF ITEM
NUMBER (S) ENCOMPASSED IN PRODUCT DESCRIPTION)
1. Unleaded (HS Code No. 2710002700)
2. Premium  (HS Code No. 2710003600)
3. AV Gas   (HS Code No. 2710003600)4. Jet AI (HS Code No. 2710005100)
5. Kerosene (HS Code No. 2710005100)
6.  Gas Oil (HS Code No. 2710006900)
7.  Fuel Oil (HS Code No. 2710007800)
8.  LP Gas (HS Code No. 2711129800)
II. REASON AND PURPOSE
A. REASON AND PURPOSE FOR ESTABLISHING AND FOR MAINTAINING
STATE TRADING ENTERPRISE
Geographical considerations and the small size of the market in Malta pose constraints for full
competition in the sector.  Other logistical difficulties also arise in view of the limited space available.
B. SUMMARY OF LEGAL BASIS FOR GRANTING THE RELEVANT
EXCLUSIVE OR SPECIAL RIGHTS OR PRIVILEGES, INCLUDING LEGAL
PROVISIONS AND SUMMARY OF STATUTORY OR CONSTITUTIONALPOWERS
The relevant exclusive or special rights or privileges are granted in terms of the provisions of
the Enemalta Act 1977 (Chapter 272 of the Laws of Malta).
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE
A. SUMMARY STATEMENT PROVIDING OVERVIEW OF OPERATIONS OF THE
STATE TRADING ENTERPRISE
Enemalta Corporation is a body corporate established with exclusive rights in importation of
certain petroleum products intended for local consum ption.  These petroleum products include fuel oil
for power stations (electricity generation), gas oil, kerosene, jet AI for refuelling of all aircrafts
landing in Malta, premium leaded and unleaded, and LP gas.G/STR/N/7/MLT
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Sales of jet AI are made by the Corporation, whereas retailing of gas oil, kerosene, premium
leaded and unleaded is done through petrol stations owned by the private sector.  Distribution of LP
gas is carried out through private distributors.
Electricity is generated, transmitted and distributed through systems owned by Enemalta
Corporation.
B. SPECIFICATION OF EXCLUSIVE OR SPECIAL RIGHTS OR PRIVILEGES
ENJOYED BY THE STATE TRADING ENTERPRISE
Special rights are given to the Corporation by the Act of Parliament establishing Enemalta.C. TYPE OF ENTITIES OTHER THAN THE STATE TRADING ENTERPRISE
THAT ARE ALLOWED TO ENGAGE IN IMPORTATION/EXPORTATION AND
CONDITIONS FOR PARTICIPATION
Bunkering companies are allowed to import and sell fuel oil and gas oil to vessels.  Oil
tanking which forms part of the Malta Freeport Corp oration Terminal is also allowed to import and
store products on behalf of third parties.  Still, these products are not to be used for local consumption.
D. HOW IMPORT/EXPORT LEVELS ARE ESTABLISHED BY THE STATE
TRADING ENTERPRISE
The criteria on imports depends on the local consumption.  The only re-exports the
Corporation makes are at the Airport.
E. HOW EXPORT PRICES ARE DETERMINED
Sales of jet AI are market-oriented plus an acceptable variation to cover local expenses.F. HOW THE RESALE PRICES OF IMPORTED PRODUCTS ARE DETERMINEDResale prices of imported products are determined after calculating all the costs involved,
adding excise duty and then establishing the retail prices.
G. WHETHER LONG-TERM CONTRACTS ARE NEGOTIATED BY THE STATE
TRADING ENTERPRISE
WHETHER THE STATE TRADING ENTERPRISE IS USED TO FULFILCONTRACTUAL OBLIGATIONS ENTERED INTO BY THE GOVERNMENT
Yes.H. BRIEF DESCRIPTION OF MARKET STRUCTUREEnemalta Corporation is the sole importer of main petroleum products (listed in Part 2/IB)
marketed in Malta.
IV. STATISTICAL INFORMATION
See Annex 2G/STR/N/7/MLT
Page 9
V. REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE
Not applicable in this case.
VI. ADDITIONAL INFORMATION
No additional information is being provided.G/STR/N/7/MLT
Page 10TABLE I
STATE TRADING:  ENEMALTA CORPORATION
STATISTICAL INFORMATION, IMPORTS
Year Description of products(s)
(including HS number(s)Total quantity
importedQuantity imported by
state trading
enterpriseAverage import
priceAverage
representative
domestic sales priceMark up National
production
mt mt Lm/mt (inc. duty) Lm/mt Lm/mt
Unleaded HS 2710 002700 21,268 21,268 238 354 116 NIL
Premium HS 2710 003600 64,215 64,215 251 384 133 NIL
Avgas HS 2710 003600 108 108 558 745 187 NIL
Jet/Kero HS 2710 005100 112,332 112,332 66 160 94 NIL
Gas oil HS 2710 007800 182,553 182,553 110 131 21 NIL
Fuel Oil HS 2710 007800 522,152 522,152 30 30 0 NIL
L.P.G. HS 2711 129800 14,852 14,852 122 180 58 NIL1998
L.C.O. HS 2710 001100 9496 9496 57 80 31 NIL
Unleaded HS 2710 002700 25,282 25,282 321.05 443.24 122.19 NIL
Premium HS 2710 003600 52,404 52,404 302.69 443.24 140.55 NIL
Avgas HS 2710 003600 159 159 416.35 767.66 351.31 NIL
Jet/Kero HS 2710 005100 115,673 115,673 114.66 159.11 44.45 NIL
Gas oil HS 2710 007800 246,275 246,275 142.12 210.82 68.70 NIL
Fuel Oil HS 2710 007800 516,994 516,994 37.62 37.62 0 NIL1999
L.P.G. HS 2711 129800 17,017 17,017 146.93 146.93 0 NIL
Unleaded HS 2710 002700 27,220 27,220 380.26 443.23 62.97 NIL
Premium HS 2710 003600 42,692 42,692 351.48 443.23 91.75 NIL
Avgas HS 2710 003600 135 135 494.38 703.70 209.32 NIL
Jet/Kero HS 2710 005100 123,417 123,417 161.83 183.48 21.65 NIL
Gas oil HS 2710 007800 170,721 170,721 191.55 210.82 19.27 NIL
Fuel Oil HS 2710 007800 434,318 434,318 59.95 59.95 0 NIL2000
L.P.G. HS 2711 129800 16,360 16,360 137.06 137.06 0 NILG/STR/N/7/MLT
Page 11(Lm1 = USD 2.5)
TABLE II
STATE TRADING: ENEMALTA CORPORATION
STATISTICAL INFORMATION, EXPORTS*
Year Description of
product(s) including
HS number(s)Total quantity
exportedQuantity exported by
state trading enterpriseAverage procurement
priceAverage
representative
domestic sales priceAverage
export priceNational
production
mt mt USD (exc. duty) USD (inc. duty) USD
1998Jet AI
HS 2710 0051 00Avgas
HS 2710 0036 00108886
     119108886
     119 165
919 400
1875 215
1472NIL
NIL
1999Jet AI
HS 2710 0051 00
AvgasHS 2710 0036 00113,216
132113,216
132169
427302
1,804209
1,589NIL
NIL
2000Jet AI
HS 2710 0051 00Avgas
HS 2710 0036 00113,725
135113,725
135273
634362
2,091323
1,600NIL
NIL
*Consists of re-exports onlyG/STR/N/7/MLT
Page 12TABLE III
STATE TRADING:  ENEMALTA CORPORATION
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES
Year Description of product(s)
(including HS number(s)Domestic
purchases by state
trading enterpriseNational
productionDomestic sales by state trading
enterpriseNational
consumption
mt mt
Unleaded HS 2710
002700NIL NIL 20899 20899
Premium HS 27100
003600NIL NIL 53918 53918
Avgas HS 2710 003600 NIL NIL 119 119
1998Jet HS 2710 005100
Kerosene HS 2710
005100NIL
NILNIL
NIL113994 113994
Gasoil HS 2710 006900 NIL NIL 168467 168467
Fuel Oil HS 2710
007800NIL NIL 533966 533966
L.P.G. HS 2711 129800 NIL NIL 14845 14845
L.C.O. HS 2710 001100 NIL NIL 6512 6512
Unleaded HS 2710
002700NIL NIL 24,148 24,148
Premium HS 27100
003600NIL NIL 50,299 50,299
Avgas HS 2710 003600 NIL NIL 132 132
Jet HS 2710 005100 NIL NIL 113,216 113,216G/STR/N/7/MLT
Page 131999 Kerosene HS 2710
005100NIL NIL 9,230 9,230
Gasoil HS 2710 006900 NIL NIL 246,275 246,275
Fuel Oil HS 2710
007800NIL NIL 527,742 527,742
L.P.G. HS 2711 129800 NIL NIL 16,822 16,822
Unleaded HS 2710
002700NIL NIL 26,549 26,549
Premium HS 27100
003600NIL NIL 44,550 44,550
Avgas HS 2710 003600 NIL NIL 135 135
Jet HS 2710 005100 NIL NIL 113,725 113,725
2000 Kerosene HS 2710
005100NIL NIL 9,692 9,230
Gasoil HS 2710 006900 NIL NIL 155,156 155,156
Fuel Oil HS 2710
007800NIL NIL 451,992 451,992
L.P.G. HS 2711 129800 NIL NIL 16,360 16,360
Source:  Enemalta Corporation
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