RESTRICTEDWORLD TRADE
ORGANIZATIONG/STR/M/10
27 April 1998
(98-1694)
Working Party on
State Trading Enterprises
MINUTES OF THE MEETING OF THE
WORKING PARTY HELD ON
2 APRIL 1998
Chairman:  Mr. Jacques Teyssier d'Orfeuil (France)
Page
A. Adoption of the Agenda 1
B. Review of notifications submitted by Members pursuant to the 1
requests for notifications in G/STR/N/1 and 3
C. Revision of the 1960 questionnaire on state trading enterprises (Job No. 1621) 4
D. Development of an illustrative list showing the kinds of relationships 4
between governments and enterprises and the kinds of activities engaged
in by these enterprises
- Progress report by the Chairman
E. Re-appointment of Chairman 5
A. Adoption of agenda
1. The Working Party adopted the age nda contained in WTO/AIR/810/Rev.1.
B. Review of notifications submitted by Members pursuant to the requests for notifications in
G/STR/N/1 and 3
2. The Chairman recalled that according to paragraph 5 of the Understanding on the
Interpretation of Article XVII ("the Understanding" ), the Working Party was tasked to review the
notifications and counter-notifications on state trading submitted by Members, and in the light of this
review, the Council for Trade in Goods may make recommendations with regard to the adequacy of
notifications and the need for further information.
3. He recalled that the Council for Trade in Goods, at its meeting on 20 February 1995, had
established a deadline of 30 June 1995 for new and full notifications by Members on their state
trading enterprises ("STEs"), and that subsequently the Working Party had agreed to maintain 30 June
as the date for further (updating) notifications.  On 10 May 1996 a request for updating notifications -which were to be based on the full notifications due in 1995 - had been circulated in document
G/STR/N/2.G/STR/M/10
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A further request for updating notifications covering the most recent 12-month period had been
circulated on 17 March 1997 in document G/STR/N/3.  These most recent updating notifications,
required of all WTO Members, had been due by 30 June 1997.
4. He said that as of the date of circulation of the airgram convening the present meeting
(25 March 1998), a total of 72 Members (counting each of the EU Member states individually) hadsubmitted a "new and full" notification in response to the 1995 request.  In the area of updating
notifications, 60 had been received for 1996 and only 27 for 1997.  He noted that of the 72 "new and
full" notifications, 23 had been considered also as updating notifications due to the lateness of their
submission.  While the number of new and full notifications had increased, the failure of a number of
Members to make timely updating notifications remained disappointing.  The Understanding provided
for the submission of counter-notifications where a Member felt that a notification by another
Member was either incomplete or incorrect;  however, no counter-notifications had been received thusfar.
(1) New and full notifications under G/STR/N/1
5. The Chairman noted that the airgram divided the review exercise into two sections:  one
dealing with new and full notifications made under G/STR/N/1, and the other with updating
notifications made under G/STR/N/3.  He suggested that the Working Party conduct the review in thesame manner as at previous meetings, i.e. with a focus on two main elements:  (1) whether the
notification responded adequately to the information requested in the questionnaire;  and (2) whether
more information was needed in order to permit - in the language of paragraph 2 of the
Understanding - "a clear appreciation of the manner of operation of the enterprises notified and the
effect of their operations on international trade".
(i) Haiti  (G/STR/N/1/HTI)
6. The representative of Canada said that as the notification indicated that Haiti did once
maintain state trading enterprises, his delegation would like to know what products had been involved
and when the STEs had been phased out.
(ii) Nigeria  (G/STR/N/1/NGA)
7. The representative of Canada said that as the notification indicated that Nigeria did once
maintain state trading enterprises, his delegation would like to know what products had been involved
and when the STEs had been phased out.
8. There were no comments on the notific ation from Gambia (G/STR/N/1/GMB)
(2) Updating notifications under G/STR/N/3
(i) Brazil  (G/STR/N/3/BRA)
9. The representative of Australia said that is delegation had given written questions to Brazil
concerning why certain previously notified STEs ha d not been notified, how the operations of some
STEs had changed since legislation had been introduced in 1997, and regarding CONAB's import
operations.1
                                                     
1 The written questions were subsequently circulated in document G/STR/Q1/BRA/5.G/STR/M/10
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10. The representative of Canada asked whether a private importer or exporter had to seek a
license from CONAB before it could import or export agricultural products.
11. The representative of Brazil said that he would forward the questions to the competent
authorities who would respond in writing in due course.12. The representative of the United States expressed appreciation for the additional information
supplied by Brazil, which went well beyond the minimum requirements for an updating notification.
13. The representatives of the European Communities and Colombia  expressed interest in the
answers to be supplied by Brazil.
(ii) Uruguay  (G/STR/N/3/URY)
14. The representative of the United States said  that this was a particularly complete and
comprehensive updating notification.
15. The representative of Canada asked for clarification regarding the National Administration for
Fuels, Alcohol and Portland Cement (ANCAP) a nd the National Institute of Wine Production
(INAVI).2
16. The representative of Uruguay said that his delegation had taken note of the question and
asked for it to be supplied in writing.
(iii) Venezuela  (G/STR/N/3/VEN)
17. The representative of Canada asked for clarification regarding a Venezuelan sugar distributor
which, according to Venezuela's 1996 Trade Policy Review. controlled all exports and imports of
sugar.3
18. The representative of Venezuela said that his delegation would respond in writing once the
questions were received in writing.
19. There were no comments or questions on the following notifications:
- Australia  (G/STR/N/3/AUS)
- Hong Kong, China  (G/STR/N/3/HKG)
- Hungary  (G/STR/N/3/HUN)
- Japan  (G/STR/N/3/JPN)
- Singapore  (G/STR/N/3/SGP)
20. The Chairman invited delegations having raised questions at the present meeting to submit
these in writing directly to the Member concerned, with a copy to the Secretariat for circulation.
Written answers to those questions should be submitted directly to the enquiring country, with a copy
to the Secretariat, as soon as possible.  He emphasized the need for Members to whom written
questions had been addressed to respond in writing to those questions without delay.
                                                     
2 The written questions were subsequently circulated in document G/STR/Q1/URY/2.
3 The written questions were subsequently circulated in document G/STR/Q1/VEN/1.G/STR/M/10
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C. Revision of the 1960 questionnaire on state trading enterprises (Job No. 1621)
21. The Chairman recalled that at the Working Party's meeting on 14 November 1997 he had
reported that efforts were underway in the info rmal consultations to resolve certain outstanding
differences with respect to the questionnaire.  These centered on the type of statistical information that
should be requested in Tables I and II.  Since November, there had been three informal meetings onthis matter, at which a fourth and fifth revision of the draft revised questionnaire had been considered.
Subsequent to the most recent informal meeting, a consensus had been reached on the statistical
information to be required in the notification.  This was reflected in the text of the revised
questionnaire dated 23.3.98 and contained in the document designated "Job No. 1621".
22. The representative of Canada proposed that the text of the draft revised questionnaire be
amended as follows:  (i) on page 6 under Section IV, add the words "on a calendar, fiscal or
marketing year basis" to the phrase "to be submitted annually";  (ii) in Section IV, delete the phrase"on a calendar year basis" from point 2 under Table I and from points 2 and 3 under Table II;  (iii) on
page 7 under point 3 of Table II, delete the word "directly".  He said that these changes would make
the text clearer and would take account of the differences in statistical reporting periods used by
Members.
23. The Chairman suggested that the amendments proposed by Canada be incorporated into the
text of the draft questionnaire contained in document Job No. 1621, and proposed that the Working
Party take the following action:
- agree on the text of the revised questionnaire contained in document
Job No. 1621 as amended;4
- recommend its adoption by the Council for Trade in Goods as the basis for
the state trading notifications starting with the new and full notifications due
in 1998;
- agree to continue its work, in a way consistent with its mandate, on possible
further information needed to enhance transparency, and agree to reconvene
as early as possible to this end;  and
- agree that the deadline for submission of the 1998 new and full notifications
be moved to 30 September from 30 June 1998, in order to take account of the
postponement in circulating the request for notifications necessitated by the
date of adoption of the revised questionnaire.
24. The Working Party so agreed.
D. Development of an illustrative list showing the kinds of relationships between governments
and enterprises and the kinds of activities engaged in by these enterprises
-  Progress report by the Chairman
25. The Chairman recalled that at the Working Party's meeting in November 1997, he had
reported that a Chairman's text would be prepared which would consolidate in a single text the various
elements for an illustrative list submitted thus far,  with a view to developing a working draft of an
illustrative list and thus advancing work on this important task.  Since then, three informal meetingshad been held, at which the Chairman's text had been discussed at length.  At the most recent of these
                                                     
4 The text was subsequently circulated in document G/STR/3.G/STR/M/10
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meetings, a first revision of this text had been considered, and participants had widely agreed that
work on this task was advancing well.  One area that had given rise to differing opinions was the
specific activities of state trading enterprises that should be included in the list.  He said that the next
informal meeting would provide a further opportun ity to continue the process of adjusting and
refining this text.
26. The Working Party took note of the statements and agreed  that the Chairman would continue
to hold informal consultations, open to any interested delegation on the development of an illustrative
list.
E. Re-appointment of Chairman
27. The Chairman noted that the Council for Trade in Goods, at its meeting on 4 March 1998, had
appointed him to continue to serve as Chairman of the Working Party.
28. The Working Party took note of the statement.
Date of next meeting
29. The Chairman proposed that the next meeting be held in June 1998.  A date would be fixed in
due course.
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