RESTRICTED
WORLD TRADE G/STR/Q1/CAN/2
25September 1996
ORGANIZATION(96-3810)
Original: English Working Party onState Trading Enterprises
Questions Posed byNEW ZEALAND Concerning
theArticle XVII Notification ofCANADA1
Thefollowing communication, dated 20September 1996, hasbeenreceived fromthePermanent
Mission ofNewZealand.
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1. Withreference tothestatement thattheCanadian Dairy Commission wastheimporter ofrecord
during the1995-96 dairy year, canCanada advise astowhether theCDC willretain thisexclusive
privilege forthecurrent year? Canada willbeaware ofNewZealand 'sviewthattheimport monopoly
enjoyed bytheCDC prior totheimplementation oftheUruguay Round outcome hasbeenretained,
contrary toCanada 'sobligations under Article 4.2oftheWTO Agreement onAgriculture.
2. Thenotification states that"Dairy products maybeexported bytheCDC aswellasbyprivate
trade. TheCDC doesnothaveanexport monopoly foranydairy product." Could Canada provide
clarification astowhether alldairy product exports aremade from special classmilk? Ifso,could
Canada confirm thatthespecial classes scheme isoperated bytheCDC, andthatanyfurther processor
orexporter wishing toaccess special classmilkisrequired tosecure apermit from theCDC? Ifall
Canadian dairy exports areeither solddirectly bytheCDC, orthrough ascheme managed bytheCDC,
doesthisnotinpractice constitute anexport monopoly?
3. CanCanada explain further onwhatbasisitsellsbutter toCanadian private traders forexport?
Forexample, whatdoes"when supplies permit" mean? Does thebutter come fromtheCDC's"offer
topurchase" programme? Does thebutter havetobeexported? What price doestheprivate trader
havetopay? How doesthiscompare tothepurchase price paidforthebutter bytheCDC? What
isthequantity ofbutter soldtoprivate traders?
4. Could Canada confirm thatskimmed milkpowder exports arestillfinanced byaproducer levy,
andthatthesupport programme isadministered bytheCDC?
5. Could Canada explain howitsdairy export prices compare withdomestic prices?
6. Could Canada clarify why,inregard tothestatistical dataprovided, exports ofbutter in1991-92
and1993-94 bytheArticle XVII enterprise exceeded totalexports?
1G/STR/N/1/CAN.