   
  
G/STR/Q1/ZAF/4  
 
28 March 2024 
(24-2737) Page: 1/2 
Working Party on State Trading Enterprises  Original: English  
 
STATE TRADING  
QUESTIONS FROM THE EUROPEAN UNION  
REGARDING SOUTH AFRICA 'S NEW AND FULL NOTIFICATION1 
The following communication, dated and received on 27 March  2024, is being circulated at the 
request of the delegation of the European Union . 
 
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The European Union thanks South Africa for its notification G/STR/N/18/ZAF  – G/STR/N/19 /ZAF – 
G/STR/N/20/ZAF  and would like to request some additional information.  
The South African Sugar Association (SASA) is governed by the Sugar Act 1978, the Sugar Industry 
Agreement, 2000, amended 2018 (SIA) and t he SASA Constitution, amended 2018, according to 
publicly available information ( https://sasa.org.za/sasa -at-a-glance/ ). The Powers of the Council of 
SASA, notably those  laid down in Nr. 5 (j) quoted below as well as (k) states : […] "purchase, sell or 
deal in any sugar industry products or form any companies or bodies to purchase, sell or deal in any 
sugar industry products and act as the agent of any company or body in t he purchase or sale of any 
sugar industry products; "[…]. 
Question 1  
In this regard could South Africa explain in what respect SASA differs from the entities covered by 
the WTO working definition of a state trading enterprise ( "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. ")? 
Question 2  
Point 5 (j) of the SASA Constitution indicates that SASA, among other functions, exercises power 
regarding   the quantity of sugar to be exported each year, and each mill 's  share of these quantities.  
As SASA  appears to have special rights and export monopoly and therefore seems to be a state 
trading enterprise within the meaning of the WTO working definition, could South Africa please 
provide further information of the operation of SASA ? 
Question 3  
The Powers  of the Council of SASA in (j) states : ''determine the quantity of sugar required for the 
local market, the quantity of carry -over stocks, the quantity of sugar to be exported each year, and 
each mill's share of these quantities, subject only to the provis ions of the Agreement and any 
regulation published under section 10 of the Act ". In this regard, the determination of the quantity 
of sugar to be exported each year, and each mill's share of these quantities, might a priori constitute  
an export restriction  in the sense of Article XI:1 GATT, and if so, would arguably have to be justified, 
e.g. by invoking the exceptions in Article XI:2 (a) or (b).  
 
 
1 G/STR/N/18/ZAF  – G/STR/N/19 /ZAF – G/STR/N/20/ZAF  G/STR/Q1/ZAF/4  
 
- 2 - 
 
  Could South Africa explain how they respect the relevant provisions of GATT (Article s XI:1 and XI:2) 
since the determination of the quantity of sugar for each year could constitute an export restriction?  
 
In this context, the t ext of the note Ad Article XI (Ad Articles XI, XII, XIII, XIV and XVIII) clarifies 
the following: "Throughout Art icles XI, XII, XIII, XIV and XVIII, the terms "import restrictions" or 
"export restrictions" include restrictions made effective through state -trading operations. " 
 
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