WORLD TRADE G/STR/N/1/NAM
14March 1997
ORGANIZATION(97-1046)
Original: English Working Party onState Trading Enterprises
STATE TRADING
Notification Pursuant toArticle XVII:4(a) oftheGATT 1994 and
Paragraph 1oftheUnderstanding ontheInterpretation ofArticle XVII
NAMIBIA
Thefollowing communication, dated 28February 1997, hasbeenreceived fromtheMinistry
ofTrade andIndustry inNamibia.
_______________
TheSecretariat isadvised thatstatistical information onstatetrading enterprises isnotavailable
atthistime, butwillbefurnished totheSecretariat assoonasitisavailable.
I. ENUMERATION OFSTATE TRADING ENTERPRISES
Enterprises falling within theprovisions ofArticle XVII arecontrol boards concerned with
themarketing arrangements forcertain agricultural products.
Control boards existforthefollowing products:
1. Agronomic crops -maize, wheat andsunflower seed
2. Livestock andmeat
3. Karakul skins andwool
II. REASONSANDPURPOSEFORINTRODUCINGANDMAINTAININGSTATETRADING
ENTERPRISES
Namibia isasemi-arid country withpoorsoilsandthusithaslowagricultural production
potential. Atthesame timeover70%ofitspopulation aredependent ontheagriculture sector for
alivelihood.
Thecontrol boards forthecommodities referred towereestablished under separate legislative
instruments forthepurpose ofpromoting domestic production soastocontribute tohousehold food
security andemployment.
Thecontrol boards arecurrently undergoing aprocess ofchange inlinewiththegeneral market
liberalization taking place internationally. Review committees havebeenestablished withaviewto
planning afuture strategy forinvolvement oftheboards intheirrespective areas ofactivity. Infuture,
itisforeseen thatboards willactasfacilitators ofagricultural production andmarketing rather than
having adirect involvement inmarketing.G/STR/N/1/NAM
Page2
III. DESCRIPTION OFTHE FUNCTIONS OFTHE STATE TRADING ENTERPRISES
A. Specific schemes
1. Namibian Agronomic Board
TheBoard wasestablished under theprovisions oftheAgronomic Industry Act,1992 (Act
No.20of1992). ThesaidActprovides forthedesignation bytheMinister ofAgriculture ofagronomic
crops ascontrolled crops. Thus, three crops namely maize, wheat andsunflower seedhavebeenso
designated byGovernment Notice No.45of1993. While theprovisions oftheActempowered the
Board topurchase thewhole ofcrops inquestion ataprice approved bytheMinister, it(theBoard)
isnolonger involved inpurchasing thecrops except inasituation ofthemarket price falling below
afloor price. Insuchcircumstances theBoard maypurchase thecrops atthefloor price.
TheBoard issues licences toprocessors ofcontrolled products, issues permits forthe
importation/exportation ofcontrolled products andcarries outquality controls oftherawgrain/seed
andprocessed products.
2. TheMeat Board ofNamibia
TheBoard isastatutory bodyestablished under theprovisions oftheMeat Industry Act,1981
(ActNo.12of1981) asamended. TheBoard 'sprimary function isoneofmarket facilitator oflive
animals (cattle, sheep andgoats) andmeatandmeatproducts derived therefrom. Itisthusnotinvolved
inthedirectpurchasingorsellingoflivestockormeat.Itmonitorsthemovementoflivestocktoabattoirs
andtotheon-the-hoof trade toSouth Africa through theoperation ofapermit system.
TheBoard engages inthepromotion ofbeefonNamibia 'smain export markets andassists
meat exporters intheidentification ofalternative markets. Itissues permits forthe
exportation/importation ofliveanimals aswellasmeatandmeatproducts. Thepurpose ofthislatter
control isprimarily formonitoring andstatistical purposes.
3. Meatco
MeatcoisacorporationestablishedundertheprovisionsoftheSwameatCorporationOrdinance,
1986, forthepurposes ofoperating abattoirs andmeat processing. Although established bylegal
instrument, itfunctions inacommercial environment without Government involvement initsdayto
dayoperations. Meatco operates theonlyabattoirs approved forexport ofredmeat. There isno
restriction ontheestablishment ofcompeting private abattoirs.
4. Karakul Board
TheBoard wasestablished under theprovisions oftheKarakul PeltsandWool Act,1982(Act
No.14,1982). Themainfunction oftheBoard isthemarketing ofkarakul peltsonbehalf ofproducers
ontheinternational market. Inaddition, theBoard isengaged inajointventure withaprivate concern
withtheaimofachieving value-added processing ofpelts. Given thedifficult marketing environment
inthefurtrade, there arenoimmediate changes foreseen inthecurrent functions oftheBoard.G/STR/N/1/NAM
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B. Handling ofimports
Thefollowing boards, withtheapproval oftheMinister ofAgriculture, havepowers toissue
permits tothetrade fortheimportation ofthefollowing commodities:
- Namibian Agronomic Board: wheat, maize, sunflower seedandthemain products
derived therefrom;
- TheMeat Board ofNamibia: meatandmeatproducts ofcattle, sheep andgoats.
C. Handling ofexports
(a) Meatco undertakes exports onitsownaccount.
(b) TheKarakul Board undertakes exports onbehalf ofproducers.
D. Determination ofquantities exported orimported
Thequantities aredetermined byvolume ofdomestic production andmarket forces. Inthe
caseofcontrolled crops (maize, wheat andsunflower seed) import requirements areprocured bythe
trade onafreemarket basis.
E. Export prices
Price ontheexport markets isthesoledeterminant ofprice realized.
F. Mark-up onimported products
Theboards arenotinvolved inimporting products. However, asmall levyiscollected on
theimports ofcontrolled agronomic crops which isroughly equal toalevypayable bydomestic
producers. Theproceeds ofthelevyareutilized tofundtheactivities oftheBoard.
G. Contracts
Thecontrol boards arenotinvolved oncontractual arrangements.
IV. STATISTICAL INFORMATION
Notavailable.
V. REASONS WHY NOFOREIGN TRADE HAS TAKEN PLACE (IFTHIS ISTHE CASE)
INPRODUCTS AFFECTED
Notapplicable.
VI. ADDITIONAL INFORMATION
None.