   
  
G/STR/N/19/AUS  
 
2 May  2021 
(22-3441) Page: 1/6 
Working Party on State Trading Enterpris es Original: 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  
AUSTRALIA  
The following communication, dated and received on 29 April 2022, is being circulated at the request 
of the delegation of Australia.  
 
_______________  
 
 
Pursuant to Article XVII:4(a) of the General Agreement on Tariffs and Trade 1994 ( GATT 1994 ) and 
paragraph 1 of the Understanding on the Interpretation of Article X VII of the GATT 1994 , Australia 
makes the following new and full notification of its state trading enterprise for the years 2019/20 
and 2020/21.  
I. ENUMERATION OF STATE TRADING ENTERPRISES  
A. IDENTIFICATION OF STATE TRADING ENTERPRISES  
The Rice Marketing Board for the State of New South Wales (NSW).  
B. DESCRIPTION OF PRODUCTS AFFECTED (INCLUDING TARIFF ITEM NUMBER(S) 
ENCOMPASSED IN PRODUCT DESCRIPTION)  
Rice grown in the State of New South Wales (HS 1006) . Rice grown in other Australian S tates or 
Territories is not affected.  
II. REASON AND PURPOSE  
A. REASON OR PURPOSE FOR ESTABLISHING AND/OR MAINTAINING STATE TRADING ENTERPRISE  
The objectives of the Rice Marketing Board for the State of New South Wales are:  
• to encourage the development of a competitive domestic market for rice ; 
• to ensure the best possible returns from rice sold outside Australia based on the quality 
differentials or attributes of Australian grown rice ; 
• to liaise with and represent the interest of all NSW rice  growers in relation to the Board's 
functions and objects.  
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  
The legal basis for the R ice Marketing Board (the Board) for the State of New South Wales is provided 
by the State of New South Wales Rice Marketing Act 1983. Rice produced in NSW is vested in the 
Board, however rice can be traded on the domestic market pursuant to the issuance of  an G/STR/N/19/AUS  
 
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  Authorised  Buyer's license by the Rice Marketing Board. A single export license has been issued by 
the Board to Ricegrowers Limited (trading as SunRice).  
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE  
A. SUMMARY STATEMENT PROVIDING  OVERVIEW OF OPERATIONS OF THE STATE TRADING 
ENTERPRISE  
All rice grown in the State of New South Wales is divested from producers and becomes the property 
of the Rice Marketing Board for the State of New South Wales under a vesting proclamation. The 
Board exercises its rights as the legal owner of all rice produced in NSW to determine who is allowed 
to trade NSW rice on the domestic and export markets, pursuant to the issuance of an Authorised 
Buyer's license. Authorised Buyers are appointed by the Board an d all applicants are eligible to 
become Authorised Buyers, subject to the Board's discretion to refuse an application where it has 
reason to believe that the applicant will breach the conditions of appointment. Authorised Buyers 
have a condition of appoint ment prohibiting the exporting of rice where another Authorised Buyer 
has already been granted permission to export. The Board is therefore restricted to issuing a single 
export licence, which is currently issued to Ricegrowers Limited, trading as SunRice Australia. The 
Board has also entered into a related but separate Sole and Exclusive Export Licence (SEEL) 
Agreement with SunRice that it will not issue any other export licences.  
The Rice Marketing Board for the State of New South Wales does not negotiate  contracts for the sale 
of rice. All rice trading is conducted on behalf of the Rice Marketing Board for the State of 
New South  Wales by Authorised Buyers. Authorised Buyers are able to freely buy and sell rice grown 
in New South Wales on the domestic mark et in Australia. All sales contracts are entered into on a 
commercial basis.  
The Rice Marketing Board for the State of New South Wales has appointed Ricegrowers Limited 
(trading as SunRice) as its sole exporter. SunRice has no obligation to set a benchmark  price and 
has not done so.  
It is the Board's responsibility to ensure that these export arrangements generate the best possible 
returns based on quality differentials or attributes on behalf of all New South Wales rice growers.  
B. SPECIFICATION OF EXCLUSI VE OR SPECIAL RIGHTS OR PRIVILEGES ENJOYED BY THE STATE 
TRADING ENTERPRISE  
The State of New South Wales Rice Marketing Act 1983  entitles the Rice Marketing Board for the 
State of New South Wales to award an Authorised Buyer with the exclusive right to expo rt rice grown 
in the State of New South Wales.  
C. TYPE OF ENTITIES OTHER THAN THE STATE TRADING ENTERPRISE THAT ARE ALLOWED TO 
ENGAGE IN IMPORTATION/EXPORTATION AND CONDITIONS FOR PARTICIPATION  
Rice can be imported into Australia by any entity.  
Ricegrowers  Limited (trading as SunRice) is the sole exporter of rice grown in New South Wales. The 
Board does not have special or exclusive privileges to import rice.  
There are no statutory restrictions on the export of rice grown in other Australian states.  
D. HOW IMPORT/EXPORT LEVELS ARE ESTABLISHED BY THE STATE TRADING ENTERPRISE  
Australian rice import and export levels are determined by market forces on a commercial basis. 
There are no tariffs or quantitative restrictions applied on the import of rice (HS 1006) i nto Australia. 
The Rice Marketing Board for the State of New South Wales has no role in regulating imports of rice 
into Australia.  G/STR/N/19/AUS  
 
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  E. HOW EXPORT PRICES ARE DETERMINED  
Export prices are determined by the market for Australian rice at levels influenced by the quality of 
the rice and prevailing world prices.  
F. HOW THE RESALE PRICES OF IMPORTED PRODUCTS ARE DETERMINED  
Not applicable. The arrangements for rice grown in New South Wales do not cover imports.  
G. WHETHER LONG -TERM CONTRACTS ARE NEGO TIATED BY THE STATE TRADING ENTERPRISE. 
WHETHER THE STATE TRADING ENTERPRISE IS USED TO FULFIL CONTRACTUAL OBLIGATIONS 
ENTERED INTO BY THE GOVERNMENT  
All sales contracts are entered into on a commercial basis. The Rice Marketing Board for the State  of 
New South Wales is not used to fulfil contractual obligations entered into by the government nor 
does the government enter into any obligations on behalf of the Rice Marketing Board for the State  of 
New South Wales.  
H. BRIEF DESCRIPTION OF MARKET STRUCTURE  
The Australian market is open to competition from imports and significant quantities of rice are 
imported. There are no tariffs or quantitative restrictions applied on the import of rice (HS 1006) 
into Australia.  
About 9 9% of total rice grown in Australia is grown in the State of New South Wales.  
Effective from 1 July 2006, the domestic marketing arrangements for rice grown in New South Wales 
were changed so that multiple Authorised Buyer permits could be issued for sales of NSW rice within 
Austra lia. Entities wanting to participate in the domestic market for rice grown in New South Wales 
must apply to the Rice Marketing Board for the State of New South Wales to become an 
Authorised  Buyer.  
Authorised Buyers are able to buy and sell rice grown in Ne w South Wales on the domestic market 
in Australia.  
IV. STATISTICAL INFORMATION (SEE ATTACHED TABLES I - III) 
The data contained in the attached tables is not available on a consistent basis and figures in different 
columns are generally not comparable. In particular, no adjustments may have been made for 
factors such as quality, transport terms, and different time periods (e.g., marketing year versus 
fiscal year). Differing sources may have been used, also resulting in non -comparability. In addition, 
some p ortions of the data are not collected or are otherwise not available.  
Key to notes:   
N/A Not applicable.  
V. REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE (AS APPROPRIATE)  
Not applicable. The Australian market is open to competition from imports and significa nt quantities 
of rice are imported. There are no tariffs or quantitative restrictions applied on the import of rice 
(HS 1006) into Australia.  
VI. ADDITIONAL INFORMATION (AS APPROPRIATE)  
On 20 April 2022 the New South Wales Minister for Agriculture, and the  Deputy Premier, jointly 
announced that the NSW Government was extending the vesting powers of the NSW Rice Marketing 
Board, with vesting in the Rice Marketing Board extended until 30 June 2027.  
   
  G/STR/N/19/AUS  
 
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STATISTICAL INFORMATION, IMPORTS  
Description of 
product(s)  
(including HS 
number(s))  Unit Year  Total quantity 
imported1 Quantity 
imported by 
state trading 
enterprise  Average import 
price2 Average 
representative 
domestic sales 
price  Mark -up National 
production3 
1   2 3 4 5 6 7 
Rice (HS 1006)  '000 tonnes  2017/2018  165.2  Nil 1.23 $A per kilo  N/A N/A 635 
Rice (HS 1006)  '000 tonnes  2018/2019  183.9  Nil 1.40 $A per kilo  N/A N/A 66.8 
Rice (HS 1006)  '000 tonnes  2019/2020 234.4  Nil 1.39 $A per kilo  N/A N/A 50.2 
Rice (HS 1006)  '000 tonnes  2020/20214 289 Nil 1.33 $A per kilo  N/A N/A 457.8  
 
 
1 ABARES Agricultural Commodity Statistics 202 1. Marketing year (April to March) basis.  
2 As above.  
3 As above.  
4 Figures for 2020/2021 are ABARES estimates.    
  G/STR/N/19/AUS  
 
- 5 - TABLE II  
STATISTICAL INFORMATION, EXPORTS  
Description of 
product(s)  
(including HS 
number(s))  Unit Year  Total quantity 
exported5 Quantity 
exported by 
state trading 
enterprises6 Average 
procurement 
price  Average 
representative 
domestic sales 
price  Average export 
price7 National 
production8 
1   2 3 4 5 6 7 
Rice (HS 1006)  '000 tonnes  2017/2018  372 N/A N/A N/A 0.95 $A per kilo  635 
Rice (HS 1006)  '000 tonnes  2018/2019  287 N/A N/A N/A 1.22 $A per kilo  66.8 
Rice (HS 1006)  '000 tonnes  2019/2020  114 N/A N/A N/A 1.23 $A per kilo  50.2 
Rice (HS 1006)  '000 tonnes  2020/2021  31 N/A N/A N/A 1.42 A$ per kilo  457.8  
 
 
5 ABARES Agricultural Commodity Statistics 202 1. Marketing year (April to March) basis.  
6 The Rice Marketing Board for the State of New South Wales has vested exclusive exporting powers in Ricegrowers Limited (t rading as SunRice), which is the sole exporter 
of rice grown in New South Wales.  
7 ABARES Agricultural Commodity Statistics 202 1. Marketing year (April to March) basis.  
8 As above.    
  G/STR/N/19/AUS  
 
- 6 - TABLE III  
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES  
Description of 
product(s) (including 
HS number(s))  Unit Year  Domestic purchases 
by state trading 
enterprise  National 
production9 Domestic sales by 
state trading 
enterprise  National  
consumption10 
1   2 3 4 5 
Rice (HS 1006)  '000 tonnes  2017/2018  N/A 635 N/A 329 
Rice (HS 1006)  '000 tonnes  2018/2019  N/A 66.8 N/A 335 
Rice (HS 1006)  '000 tonnes  2019/2020  N/A 50.2 N/A 340 
Rice (HS 1006)  '000 tonnes  2020/2021  N/A 457.8  N/A 345 
 
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9 ABARES Agricultural Commodity Statistics 202 1. Marketing year (April to March) basis.  
10 ABARES Agricultural Commodity Statistics 202 1. Financial year (July to June) basis.  