WORLD TRADE
ORGANIZATIONG/AG/NG/W/104
23 January 2001
(01-0377)
Committee on Agriculture
Special SessionOriginal:  Spanish
STATE TRADING ENTERPRISES
Proposal by by Argentina, Brazil, Paraguay and Uruguay (MERCOSUR),
Chile and Colombia
Proposal
1. That, as part of the agricultural negotiations, Members agree to discipline the activities of
governmental and non-governmental enterprises and marketing boards which benefit from monopoly
import/export rights, with a view to avoiding distorting effects on the market.
Background2. Transparency in the activities of governmental and non-governmental enterprises which
benefit from monopoly import/export rights has been questioned in WTO.  Given their monopolistic
nature, these enterprises control a significant part of trade and/or production of certain agricultural
products, being thus in a position to influence the market in favor of its commercial interests.
Although enterprises of this nature can be found in both industrial and agricultural sectors, theirlargest concentration and the most important ones act in the agricultural market.  It is a cause for
concern that under the pretext that some form of agricultural production and trading management is
needed, monopolistic enterprises interfere in the free operation of the market, in ways which are
contrary to WTO rules and disciplines.
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