STATE trading

questions from Australia

regarding Brazil’s notification[1]

The following communication, dated and received on 6 November 2024, is being circulated at the request of the delegation of Australia.

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Australia thanks Brazil for its notification _G/STR/N/20/BRA and would like to request some additional information.

Brazil has notified in _G/STR/N/20/BRA the Companhia Nacional de Abastecimento (Conab – National Company for Food Supply). For the years 2022-2023, Conab did not perform any activities related to export or import. In point III, Description of the functioning of the state trading enterprise, it is noted that:

The Social Statute of Conab, in its object and social goals, provides for the following initiatives:

·_        formation of regulatory and strategic stocks to absorb surpluses and correct imbalances resulting from speculation;

·_        planning, regulating and executing the Federal Government's Policy for Ensurance of Minimum Prices;

·_        implementing other instruments for support of prices in agriculture and livestock;

·_        developing actions of foreign trade, according to directives from the Ministry of Agriculture, Livestock and Food Supply (MAPA) and to legislation related to the Chamber of Foreign Trade (Camex);

·_        under normal circumstances, the private sector is in charge of imports and exports of agricultural products. Conab's commercial activities related to stock moving are conditioned to authorization from MAPA and, when required, from Camex. All these activities, when authorized, are conducted by means of electronic tenders with market prices and, therefore, no distortion is caused.

Question 1:

Could Brazil provide information on what circumstances trigger minimum price intervention by Conab?

Question 2:

Could Brazil also provide information on what actions Conab takes to support minimum prices?

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