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
New Zealand
The
following communication, dated and received on 18 July 2024, is being
circulated at the request of the delegation of New Zealand.
_______________
Pursuant
to Article XVII:4(a) of the GATT 1994 and paragraph 1 of the Understanding on
the Interpretation of Article XVII, and in accordance with the following
working definition of State Trading Enterprises:
"Governmental and non-governmental
enterprises, including marketing boards, which have been granted exclusive or
special rights or privileges. including statutory or constitutional powers, in
the exercise of which they influence through their purchases or sales the level
or direction of imports or exports."
and
in response to the call for notifications set forth in document G/STR/N/20,
New Zealand submits the following new and full notification for 2022-2023.
I. Enumeration of state
trading enterprises
A Enterprise: Zespri Group Limited
B Product: Kiwifruit – HS 08 10 50
II. Reason and
purpose
A The
New Zealand Government maintains a state trading enterprise for kiwifruit
exports so as to obtain the best commercial return from world markets for
producers in New Zealand.
B The
Kiwifruit Industry Restructuring Act 1999 and Kiwifruit Export Regulations 1999
provide the legal basis for a special export authority for Zespri Group Limited
which is not accorded to other exporters of kiwifruit destined for markets
other than Australia.
III. Description of
the functioning of the state trading enterprise
Zespri Group Limited
A. Summary
statement providing overview of operations of the state trading enterprise
The Kiwifruit Industry Restructuring Act was
enacted in September 1999. On 1 April 2000 the Act converted the New Zealand
Kiwifruit Marketing Board into a private company, Zespri Group Limited and
distributed shares in Zespri Group Limited to kiwifruit growers.
For the purposes of this notification, Zespri
is considered a state trading enterprise.
B. Specification
of exclusive or special rights or privileges enjoyed by the state trading
enterprise
The promulgation of the Kiwifruit Export
Regulations 1999 provides Zespri Group Limited with an automatic but not sole
right to export kiwifruit.
Zespri does not administer tariff rate quotas
nor does it receive any trade-distorting subsidies, tax advantages, special
financing, or preferential access to foreign exchange. It does not receive any
specific support from the government based on its status as a state trading enterprise.
C. Type
of entities other than the state trading enterprise that are allowed to engage
in importation/exportation and conditions for participation
Applications from other prospective
exporters, to export kiwifruit in collaboration with Zespri, are assessed and
decided on by Kiwifruit New Zealand, an independent regulatory body established
under the provisions of the Kiwifruit Export Regulations 1999. Private traders
can export kiwifruit to Australia without prior permission of Kiwifruit New
Zealand and independent of collaboration with Zespri.
Zespri has a minor involvement in the
domestic market but the extent of that involvement is restricted under the
terms of the Kiwifruit Regulations and must be no more than
"incidental" to its principal activity, that of exporting kiwifruit.
Zespri is not involved in the import of
fruit. There are no restrictions on who may import product into New Zealand and
currently the tariff on kiwifruit imports is zero.
D. How import/export levels are established by
the state trading enterprise
Zespri Group Limited has total discretion
over the quantities it decides to export.
Imports, if undertaken by Zespri Group
Limited, would be based solely on commercial considerations.
E. How export prices are determined
The world market determines export prices.
F. How the resale prices of imported products
are determined
Zespri Group Limited has no special rights or
privileges in regard to importing product. If Zespri Group Limited were to
import product, the resale price would be determined by commercial
considerations.
G. Whether
long-term contracts are negotiated by the state trading enterprise. Whether the
state trading enterprise is used to fulfil contractual obligations entered into
by the government
Procurement
The Industry Advisory Council, which has
representatives of Zespri, growers and post harvest operators, determines the
conditions for the purchase of kiwifruit. Zespri has three–year rolling
contracts with supply entities and these supply entities have contracts with
growers. Under the Kiwifruit Export Regulations 1999, Zespri is prohibited from
discriminating between suppliers or potential suppliers other than on purely
commercial grounds. This prohibition is monitored and enforced by the
independent industry regulator. Government does not enter into contractual
obligations regarding these products.
Sales/Exports
All of Zespri's contracts for sale/export of
kiwifruit are negotiated between Zespri and its customers with no Government
involvement whatsoever. These contracts are therefore driven solely by
commercial considerations and world market prices and are generally of a short
term (season‑by‑season) nature.
H. Brief description of market structure
There are around 2,800 kiwifruit growers
(14,000 hectares of orchard) throughout New Zealand. New Zealand domestic
kiwifruit production is around 500,000 tonnes per annum, with about 90%
exported. The domestic market is competitive, with growers having the choice of
supplying fruit to the domestic or export markets. There is duty free access
for imported kiwifruit.
IV. Statistical
information (see attached
tables I - III)
V. Reason why no foreign trade
has taken place (not applicable)
VI. Additional
information
All
other state trading enterprises notified in New Zealand's 2001 notification (G/STR/N/7/NZL dated 27 July 2001) are no longer STEs due to legislative
changes since the time of that notification. See the 2004 notification (G/STR/N/10/NZL) for
further details.