RESTRICTED
WORLD TRADE G/STR/N/1/BRB
29May1996
ORGANIZATION(96-2021)
Original: English Working Party onState Trading Enterprises
STATE TRADING
Notification Pursuant toArticle XVII:4(a) oftheGATT andParagraph 1
oftheUnderstanding ontheInterpretation ofArticle XVII
BARBADOS
Thefollowing communication, dated 21March 1996, hasbeenreceived fromthePermanent
Mission ofBarbados.
_______________
STATE TRADING ENTERPRISE
1. Enumeration ofState Trading Enterprises
BarbadosmaintainstwostatetradingenterprisesnamelytheBarbadosAgriculturalDevelopment
Corporation(BADMC)andBarbadosDairyIndustriesLimited(BDIL).TheBADMCholdsamonopoly
ontheimportation ofthefollowing items:
(i) poultry products
(ii) sugar (raw/refined)
(iii) onions
TheBDIL holds amonopoly onboththeimports andexports ofdairy products.
2. Reason andpurposes forintroducing andmaintaining State Trading Enterprises
Poultry products
(i) Regulation ofprices onthedomestic market;
(ii) Protect domestic producers bythecontrol ofimports;
(iii) Domestic distribution ofimports; and
(iv) Cheap source ofprotein forlowincome earners.
Sugar (raw/refined)
(i) Regulate price onthedomestic market; andG/STR/N/1/BRB
Page2
(ii) Domestic distribution ofimports
Onions
(i) Domestic distribution ofnational production;
(ii) Domestic distribution ofimports,
(iii) Purchase ofdomestic production;
(iv) Administration ofmarketing arrangements; and
(v) Regulate price onthedomestic market.
Dairy products
(i) Protection ofthelocaldairy industry while theBDIL isbeing restructured sothatit
cancompete effectively withdairy products fromregional andextra-regional sources;
(ii) Income support fordomestic producers; and
(iii) Controls allofthedomestic production oftheproduct aswellasdomestic andexport
marketing.
3. Description ofthefunctioning ofthestate-trading enterprises
TheBADMC isoperated asaStatutory Marketing Corporation. Itsfunctions include:
(i) thecontrol overimports ofagricultural produce intoBarbados;
(ii) regulation ofmarkets andcontrol ofprices and;
(iii) thecontrol ofdistribution ofproducts andpromotion ofexports.
Poultry products
- Theenterprise imports poultry products.
- Private traders arenotallowed toimport thiscommodity.
- Poultry products, particularly chicken andturkey wings arenotproduced insufficient
quantities tomeet domestic requirements. Asaconsequence, thisshortfall is
compensated byimports. Thelevelofimports issuchthatitdoesnotimpact onthe
salesoflocalproducts.
- Poultry products arepricecontrolled. Mark-up isdetermined bythedifference between
thec.i.f.price andthedomestic price. Asaconsequence, returns willdiminish ifthe
c.i.f. price increases.
- Long-term contracts arenegotiated bytheenterprise. Atendering system isusedwhere
overseas suppliers areinvited totender forvarious commodities.G/STR/N/1/BRB
Page3
Sugar
- Since1992,theenterpriseimportedrawsugarduetotheshortfallinnationalproduction.
However, imports ofsugar maycease after1997 when output isexpected toreach
alevelatwhich domestic requirements aremet.Refined orgranulated sugar isimported
forthemanufacture ofsoftdrinks.
- Private traders arenotallowed toimport orexport thiscommodity.
- Having mettheEUquota requirements, thequantity ofimported sugar isdetermined
bytheamount ofsugar required tosatisfy domestic demand.
- Themark-up onimported prices isdetermined onthebasisofprice support levels set
forthedomestic product.
- Atendering system isusedwhere overseas suppliers areinvited totender forthis
commodity.
Onions
- Thestatetrading enterprise onlyimports thiscommodity during theoff-season when
there isashortfall innational production.
- Private traders arenotallowed toimport thiscommodity.
- Thequantities imported aredetermined bythedomestic market requirements soas
tocompensate foranyshortfall innational production.
- Export prices aredetermined bythecharacteristics oftheproduct andthemarket in
question.
- Theimported product issoldatthesame price asthelocalproduct.
- Atendering system isusedwhere overseas suppliers areinvited totender forthis
commodity.
TheBDIL which isaprivate company wasdesignated asthesoleimporter ofdairy products.
Itsfunctions include:
(i) domestic purchases andsales;
(ii) domestic distribution; and
(iii) imports andexports aswellasrelated functions suchasprocessing andstorage.
Dairy products
- Theenterprise deals withbothimports andexports;
- Private traders arenotallowed toimport dairy products;G/STR/N/1/BRB
Page4
- Thequantities tobeimported aredetermined onthebasis ofdomestic demand and
supply;
- Export prices arebased onthespecific characteristics oftheproducts andthemarket
inquestion;
- Theprices ofdairy products (fresh, evaporated andcondensed milk) arecontrolled.
Themark-up onimported prices isdetermined onthebasisofprice support levels set
forthedomestic products; and
- Long-term contracts arenegotiated bytheenterprise.
4. Statistical information
Chicken wings
Imports
Year Quantity (kg) Value National Prod. (kg) Exports
1992 1,057,241 $2,620,617 - -
1993 1,293,928 $2,286,050 - -
1994 1,057,241 $2,620,617 - -
Turkey wings
Imports
Year Quantity (kg) Value
1992 214,524 $220,957
1993 260,103 $267,906
1994 205,801 $211,975
Chicken backs andnecks
Imports
Year Quantity (kg) Value
1992 161,432 $217,445
1993 153,197 $194,137
1994 20,025 $39,289G/STR/N/1/BRB
Page5
Onions
Imports Exports
Year Quantity (kg) Value National Prod. (kg) Quantity (kg) Value
1992 1,155,642 $843,847 744,600 348,394.7 $1,079,549
1993 1,834,054 $1,198,638 555,900 - -
1994 1,426,500 $1,276,842 726,400 - -
Sugar (refined)
Imports Exports
Year Quantity
(tonnes)Value National Prod.
(tonnes)Quantity
(tonnes)Value
1993 6,232.2 $5,114,249 - - -
1994 4,359.0 $4,292,483 - - -
1995 8,336.0 $8,242,957 - - -
Sugar (raw)
Imports
Year Quantity (tonnes) Value National Prod. (tonnes)
1993 6,953.3 $4,607,326 48,446
1994 6,920.0 $4,472,393 51,903
1995 6,000.0 $4,344,764 38,474
Sugar (raw)
Exports
Year Quantity (kg) Value
1992 52,283,400 $63,874,706
1993 48,500,000 $56,800,000
1994 30,862,757 $54,983,040G/STR/N/1/BRB
Page6
Fresh milk
Year National Production (kg)
1992 14,813,600
1993 7,668,100
1994 7,296,900