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Gilbert Walker Lawyers PO Box '1595 Shortland St Auckland '1140 New Zealand DX CP20524 Level 35 Vero Centre 48 Shortland St Auckland New Zealand Ph +64 (0) 9 374 '1100 Fax +64 (0) 9 374 1111
www.qilbertwalker.com

Bye-mail and mail

3 September 2010

Hon Tim Groser Minister of Trade Parliament Buildings Wellington 6160 New Zealand t.gtoeeraminietere.goot.nz

Dear Sir, Notification by the New Zealand Delegation to the World Trading Organization: Working Party on State Trading Enterprises pursuant to Article XVII:4(a) of the GATT 1994 and Paragraph 1 of the Understanding on the Interpretation of Article XVII; G/STRfN/11/NZL; 12 May 2009
1.

We act for Turners & Growers Limited which, as you know, is a horticultural company seeking to export New Zealand-grown kiwifruit. We refer to the above-referenced notification, a copy of which is attached. Our client respectfully considers that the notification is incorrect and misleading. We bring this to your attention so that you can consider correcting and updating the notification. Ownership of Zespri Group Limited

2. 3.

4.

Under heading IILA on page 2, the notification records that shares in Zespri Group Limited were distributed "to kiwifruit growers". That is accurate in itself. However, left at that, the statement would convey to the reasonable reader that Zespri Group Limited is owned by kiwifruit growers, which in turn may convey that it is in the nature of a growers' co-operative. In fact, share holders who are no longer growers are entitled to retain their shares in Zespri Group Limited. Our client understands that 338 of the 2216 current shareholders are not kiwifruit growers, and that 495 current kiwifruit growers do not own shares in Zespri Group Limited. Further, there is no

5.

correlation required between share ownership and supply; a kiwifruit grower may acquire whatever portion of the shares he or she sees fit, irrespective of how much kiwifruit he or she produces. 6. The point is important because the WTO may take a different view of a company which operates for WTO purposes as a state trading enterprise but is owned by private citizens, has tradeable shares, and does not operate as a cooperative. Support provided by the New Zealand Government to Zespri Group Limited 7. Under heading nLB on page 2, the notification states that Zespri Group Limited does not receive "subsidies [".J or any other support provided by government" . This may have been an accurate statement at the time it was made. However, the Government subsequently announced on 8 November 2009 that the Government's Foundation for Research, Science & Technology would provide $15.2 million to help fund a partnership between Zespri and Plant & Food Research to develop new kiwifruit varieties, with Zespri contributing a further $20.5 million. The product of this research, in particular any new varietals developed, will be available only to Zespri and not to other exporters. This is a Government subsidy of Zespri which should be notified to the WTO. Independence of Kiwifruit New Zealand 9. Under heading m.e, the notification states: "Applications from other prospective exporters, to export kiwifruit in collaboration with Zespri, are assessed and decided on by Kiwifruit New Zealand, an independent regulatory body established under the provisions of the Kiwifruit Regulations 1999." 10. A reasonable reader of this statement would understand from it that Kiwifruit New Zealand was independent of Zespri, This is not the case. a. b. There is no requirement that members of Kiwifruit New Zealand be independent of Zespri. Three of the five current members of KNZ own shares in Zespri Group Limited. According to KNZ's Interests Register:
i.

8.

Mr Hendrik Pieters owns 60,387 shares in Zespri as a trustee of the Simise Trust; Ms Ruth Lee is a beneficiary of a trust which owns 10,100 shares in Zespri. Her husband, Ian Schultz, owns 14,876shares in Zespri. Mr John Allen owns 14,243shares in Zespri.

ii. iii.

c.

Regulation 36(b) of the Kiwifruit Export Regulations 1999 requires that one member of KNZ be appointed by New Zealand Kiwifruit Growers Incorporated or its successor. NZKGI is funded by Zespri Group Limited and is committed to preserving Zespri's single point of entry. Zespri's accounts show that it paid to NZKGI: c $326,000in the year to 31 March 2004; c $352,825in the year to 31 March 2005; c $464,000in the year to 31 March 2006; c $559,000 in the year to 31 March 2007i c $594,000 in the year to 31 March 2008; c $520,000 in the year to 31 March 2009i and c $664,000in the year to 31 March 2010; as well as unspecified additional amounts in "Industry-good funding" . KNZ is substantially funded by payments by Zespri Group Limited: reg 39(1)(a). KNZ operates from the same offices as Zespri Group Limited.

d. e. 11.

The statement that KNZ is independent would reassure the WTO that there is an independent regulatory check on Zespri's activity. In fact, the majority of KNZ's members own shares in Zespri, one of its members is appointed by a body funded by Zespri and committed to supporting Zespri, and most of KNZ's funding comes from Zespri. Our client respectfully suggests that the notification is misleading and should be corrected. Role of the collaborative marketing regime

12.

Under paragraph IlLB on page 2, the notification states that Zespri Group Limited has" an automatic right, but not the sole right, to export kiwifruit" . However, the collaborative marketing regime which this statement refers to is established by regulation under the power in s 26(1)(d) of the Kiwifruit Industry Restructuring Act 1999, which permits regulations providing for KNZ "to require Zespri Group to export kiwifruit in collaboration with other persons approved by the Board". The Act contemplates that Zespri will be the exporter under a collaborative marketing arrangement, although in collaboration with another party. Under paragraph Ill.C on page 2, the notification refers to the collaborative marketing regime. This paragraph, both in itself and read together with paragraph III.B, would give the WTO the impression that the collaborative marketing regime operates as a significant avenue for exports by parties other than Zespri. In fact, collaborative marketing has always been a marginal export regime. The quantities exported represent a small percentage of exports of New Zealandgrown kiwifruit.

13.

14.

15.

16.

The following table shows the quantity of kiwifruit collaborative marketing approvals, in tray equivalents, total crop. Year
2009 2008

exported pursuant to as a percentage of the

TE exported under CMAs
1,714,748 1,907,607

Total crop (TE) c. 102,000,000
c. 102,600,000

CMA fruit as percentage of total crop
1.68% 1.85%

2007 17.

1,656,867

c.95,400,OOO

1.74%

Moreover, a substantial percentage of the fruit exported under collaborative marketing approvals each year is in fact exported by Zespri in collaboration' with itself.
I

Year

TE exported under CMAs granted to Zespri International
402,269 570,504 625,000

Total TE exported underCMA
1,714,748 1,907,607 1,656,867

Zespri CMA fruit as percentage of total CMA fruit
23.69% 29.91% 37.72%

2009 2008 2007

18. 19.

The percentages

for 2006 and 2005 were, respectively, 41% and 46%.

Turners & Growers Limited considers that the notification should be amended to correct any misleading impression that the collaborative marketing regime in practice allows exports of material quantities of kiwifruit by persons other than Zespri. How export prices are determined

20.

Under paragraph Ill.E on page 3, the notification determined by the "world market".

states that export prices are

21.

For completeness, the notification should add that Zespri's monopsony allows it to extract monopoly rents and, to that extent, the 'world market' is distorted. We refer you to the October 2008 paper prepared for Zespri by Mark Roxburgh and Geoff Sinclair, entitled Market Power and the NZ Kiwifruit Industry, which Zespri has provided to the Government. Duration of contracts negotiated by Zespri Group Limited

22.

Under paragraph IILG on page 3, the notification states that Zespri's contracts are generally short-term, annual supply contracts".
/I

23.

This statement is misleading. addition to the annual supply

The notification does not disclose that, in contracts, Zespri Group Limited enters into

three-year "loyalty contracts" with growers, whereby Zespri pays a price premium in return for the grower's commitment to supply his or her fruit exclusively to Zespri. 24. These contracts are renewed on an evergreen basis, i.e., the grower has to give notice of termination to prevent automatic renewal each year for a further three-year term. There is a penalty for a grower who does give notice of termination; the grower remains bound to supply Zespri exclusively for the next two years but receives no loyalty payment. In practice, these operate as long-term supply contracts. Competition in domestic market 25. Under paragraph m.H on page 3, the notification states that the domestic market "is fully open to competition, with growers having the choice to supply fruit to the domestic or export markets" . To give a full and accurate picture, the notification should disclose that Zespri practically controls what varieties of kiwifruit are grown in the domestic market and has, in effect, a domestic monopoly on new kiwifruit cultivars. Zespri refuses to export kiwifruit from cultivars (other than Hayward) to which Zespri does not have the exclusive marketing rights. This means that a grower can only plant varieties other than Hayward or varieties controlled by Zespri for consumption in the domestic market or Australia, both of which produce returns materially lower than those from other foreign markets, unless he or she is able to obtain a collaborative marketing approval. It follows that the domestic market is not "fully open to competition, with growers having the choice to supply fruit to the domestic or export markets", as the notification states. Conclusion 27. No doubt you take very seriously New Zealand's obligations of disclosure to the WTO. It appears to our client that it is appropriate for the Government to make a new notification to address the points raised above. Please advise whether the Government will make a new notification. Thank you for your attention to this matter.

26.

28.

Yours faithfully,

Campbell Walker Partner
DDI: Email: +64 (0)9374 1102 campbell.walker@gilbertwall<er.com

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ORGANIZATION
Working Party on State Trading Enterprises

G/STRlN/lllNZL 12 May 2009
(09-2325)

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

NEW ZEALAND
The following communication, dated 6 May 2009, is being circulated at the request of the Delegation of New Zealand.

Pursuant to Article XVII:4(a) of the GATT 1994 and Paragraph 1 of the Understanding on the Interpretation of Article XVII, and in accordance with the following working definition of State Trading Enterprises: "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." and in accordance with the recommendation adopted by the Working Party on 11 November 20031 New Zealand submits the following new and full notification.

1 The Council for Trade in Goods approved this recommendation on26 November 2003, and agreed to implement it as of the year 2004.

G/STR/N/I1INZL Page 2

QUESTIONNAIRE2

ON STATE TRADING

I.

ENUMERATION A B Enterprise: Product:

OF STATE TRADING

ENTERPRISES

Zespri Group Limited Kiwifruit-HS 0810 50

n.

REASON A

AND PURPOSE

The New Zealand Government maintains a State Trading Enterprise for kiwifruit exports so as to obtain the best commercial return from world markets for producers in New Zealand. The Kiwifruit Industry Restructuring Act 1999 and Kiwifruit Export Regulations 1999 provide the legal basis for a special export authority for Zespri Group Limited which is not accorded to other exporters of kiwifruit destined for markets other than Australia. OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE

B

III.

DESCRIPTION

Zespri Group Limited A.
SUMMARY ENTERPRISE STATEMENT PROVIDING OVERVIEW OF OPERATIONS OF THE STATE TRADING

The Kiwifruit Industry Restructuring Act was enacted in September 1999. On 1 Apri12000 the Act converted the New Zealand Kiwifruit Marketing Board into a company, Zespri Group Limited and distributed shares in Zespri Group Limited to kiwifruit growers. For the purposes of this notification, Zespri is considered a state trading enterprise.

B.

SPECIFICATION OF EXCLUSIVE OR SPECIAL RIGHTS OR PRIVILEGES ENJOYED BY THE STATE TRADING ENTERPRISE

The promulgation of the Kiwifruit Export Regulations 1999 provides Zespri Group Limited with an automatic right, but not the sole right, to export kiwifruit, Zespri does not administer tariff rate quotas nor does it receive subsidies, tax advantages, special financing, preferential access to foreign exchange or any other support provided by government. C.
TYPE OF ENTITIES OTHER THAN THE STATE TRADING ENTERPRISE THAT ARE ALLOWED TO ENGAGE IN IMPORTATION/EXPORTATION AND CONDITIONS FOR PARTICIPATION

Applications from other prospective exporters, to export kiwifruit in collaboration with Zespri, are assessed and decided on by Kiwifruit New Zealand, an independent regulatory body established under the provisions of the Kiwifruit Regulations 1999. Private traders can export kiwifruit to Australia without prior permission of Kiwifruit New Zealand and independent of co1laboration with Zespri.

2

This questionnaire is to be filled out according to the Guidelines contained on pages 5-7.

G/STR/N/I1INZL Page 3.

Zespri has a minor involvement in the domestic market but the extent of that involvement is restricted under the terms of the Kiwifruit Regulations and must be no more than "incidental" to its principal activity, that of exporting kiwifruit. Zespri is not involved in the import of fruit. There are no restrictions product into New Zealand and currently the tariff on kiwifruit imports is zero. on who may import

D.

How IMPORT/EXPORT LEVELS ARE ESTABLISHED BY THE STATE TRADING ENTERPRISE
Zespri Group Limited has total discretion over the quantities it decides to export.

Imports, considerations.

if undertaken

by Zespri Group Limited,

would be based solely on commercial

E.

How EXPORT PRICES ARE DETERMINED
The world market determines export prices.

F.

How THE RESALE PRICES OF IMPORTED PRODUCTS ARE DETERMINED

Zespri Group Limited has no special rights or privileges in regard to importing product. If Zespri Group Limited were to import product, the resale price would be determined by commercial considerations. G. WHETHER LONG-TERM CONTRACTS ARE NEGOTIATED BY THE STATE TRADING ENTERPRISE. WHETHER THE STATE TRADING ENTERPRISE IS USED TO FULFIL CONTRACTUAL OBLIGATIONS ENTERED INTO BY THE GOVERNMENT

Procurement
Zespri with its suppliers determine the period for which each set of tenns and conditions for the purchase of kiwifruit is applicable. This period would generally be short-term, annual supply contracts. Under the Kiwifruit Export Regulations 1999, Zespri is prohibited from discriminating between suppliers or potential suppliers other than on purely commercial grounds. This prohibition is monitored and enforced by the independent industry regulator. Government does not enter into contractual obligations regarding these products.

Sales/Exports
All of Zespri's contracts for sale/export of kiwifruit are negotiated between Zespri and its customers with no Government involvement whatsoever. These contracts are therefore driven solely by commercial considerations and world market prices and are generally of a short term (season-byseason) nature. H. BRIEF DESCRIPTION OF MARKET STRUCTURE

There are around 2,750 kiwifruit growers throughout New Zealand. Kiwifruit production averages lit around 305,000 tonnes, About 90 per cent of the 1<:iwifruitproduction is exported. The domestic market is fully open to competition, with growers having the choice to supply fruit to the domestic or export markets. There is duty free access for imports of kiwifruit.

G/STRlN/l1/NZL Page 4

IV. V. VI.

STATISTICAL INFORMATION (SEE ATTACHED TABLES I-III) REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE (NOT APPLICABLE) ADDITIONAL INFORMATION

All other state trading enterprises (STEs) notified in New Zealand's 2001 notification (G/STRIN/7/NZL dated 27 July 2001) are no longer STEs due to legislative changes since the time of that notification. See the 2004 notification (G/STRIN/I0/NZL) for further details.

G/STRlN/11INZL
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Office of Hon Tim Groser
Minister of Trade Minister Responsible for International Climate Change Negotiations Associate Minister of Foreign Affairs

Ref: 10/304

16 September 2010

Mr Campbell Walker Gilbert Walker PO Box 1595 Shortland St Auckland 1140

Dear Mr Walker

Thank you for your letter of 3 September 2010 in relation to New Zealand's State Trading Enterprise notification to the World Trade Organisation. Your letter has been passed to the Minister and he has noted your views.

Yours sincerely

Fleur Thompson Senior Private Secretary Minister of Trade

2447172v1

Private Bag 18041, Parliament Buildings, Wellington

6160, New Zealand. Telephone 64 4 817 6811 Facsimile 64 4 8176511

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Bye-mail and mail

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Gilbert Walker Lawyers PO Box 1595 Shortland St Auckland 1140 New Zealand OX CP20524 Level 35 Vero Centre 48 Shortland St Auckland New Zealand Ph +64 (0) 9 374 1100 Fax +64 (0) 9 374 1111 www.gilbertwalker.com

30 September 2010

Hon Tim Groser Minister of Trade Parliament Buildings Wellington 6160 New Zealand

i.groeeresminieiere.goot.nz

Dear Sir, Notification by the New Zealand Delegation to the World Trading Organization: W orking Party on State Trading Enterprises pursuant to Article XVII:4(a) of the GATT 1994 and Paragraph 1 of the Understanding on the Interpretation of Article XVIIi G/STRIN/ll/NZLi 12 May 2009 1, I refer to Fleur Thompson's letter of 16 September 2010, responding to you of 3 September 2010. to our letter

2.

Our letter set out particular respects in which we consider that New Zealand's notification is misleading and asked you to advise whether the Government would make a new notification. With respect, it is not a sufficient response to note our views. Please advise: a. whether you agree or disagree that New Zealand's current State Trading Enterprises notification is misleading in any of the respects identified at paragraphs 4-5, 7-8, 9-10, 12-13, 14-18,20-21,22-24, and 2,5-26 of our letter of 3 September 2010 or in any other material respects; and in any respect, whether New Zealand will make a new or correcting notification.

3.

b.

if you agree that the notification is misleading

4.

Please treat this as a request pursuant to s 12 of the Official Information Act 1982, extending to any internal or external analysis which you or your advisers may have undertaken, or advice which you or your department may have received, as to the accuracy of the notification and the appropriateness of making a new or correcting notification,

5,

Thank you very much for your attention to this matter.

Yours faithfully,

~

~

Campbell Walker Partner
DDI: Email: +64 (0)9 374 1102

~~---~
..

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campbell.walker@gilbertwalker.com

Office of Hon Tim Groser
Minister of Trade Minister Responsible for International Climate Change Negotiation~ Associate Minister of Foreign Affairs

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20 October 2010 Campbell Walker Partner Gilbert Walker PO Box 1596 Auckland 1140 Dear Campbell Walker

In response to your Official Information Act request of 30 September I instructed
officials at the, Ministry of Foreign Affairs and Trade to review their records relating to New Zealand's STE notification of 12 May 2009 to the WTO. I have been advised that there are no documents that pertain to your specific request. There is, however, over 40 years of negotiations, discussions, working party reports, GATT and WTO jurisprudence that bear on issues pertaining to Article XVII of GATT 1947. I am completely confident that New Zealand's notification is consistent with these sources and authorities. Yours sincerely

Hon Tim Groser Minister of Trade

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Gilbert Walker Lawyers PO Box 1595 Shortland St Auckland 1140 New Zealand OX CP20524 Level 35 Vero Centre 48 Shortland St Auckland New Zealand Ph +64 (0) 9 374 '1100 Fax +64 (0) 9 374 1111 www.gilbertwalker.com

Bye-mail and mail

11 November 2010

Han Tim Groser Minister of Trade Parliament Buildings Wellmgton 6160 New Zealand

t.groser@ministers.govt.nz

Dear Sir,

Notification by the New Zealand Delegation to the World Trading Organization: Worldng Party on State Trading Enterprises pursuant to Article XVII:4(a) of the GATT 1994 and Paragraph 1 of the Understanding on the Interpretation of Article XVIIi G/STRlN/ll/NZL; 12 May 2009
1. 2. I refer to your letter dated 20 October 2010 received on 28 October 2010.
1

With great respect, your letter fails to answer the question posed in our letter of 30 September 2010. The issue is not whether the notification is consistent with GAIT and WTO jurisprudence. The issue is whether the notification is misleading in fact. Our client would appreciate receiving answers to the following questions. a. Does the Government agree that the statement in section IILA of the notification that shares in Zespri Group Limited were distributed "io kiwifruit growers" is misleading because it could convey to a reasonable reader: (i) that all shares in Zespri Group Limited ("Zespri") are owned by kiwifruit growers; and/or (ii) that Zespri is a growers' co-operative? Does the Government agree that the statement in section lILB that Zespri does not "receive subsidies [... ] 01' any other support provided by government" is no longer correct, given that the Government announced on 8 November 2009 that its Foundation for Research, Science & Technology would provide $15.2 million to help fund a partnership between Zespri and Plant & Food Research to develop new kiwifruit varieties, the product of which would be available only to Zespri and not other exporters? If so, does the Government agree that allowing this statement to remain uncorrected is misleading?

3.

b.

c.

Does the Government agree that the description in section IILe of Kiwifruit New Zealand ("KNZ") as an "independent regulatory body" is incorrect and misleading, given that there is no requirement either in the Kiwifruit Industry Restructuring Act 1999 or the Kiwifruit Export Regulations 1999that members of KNZ be independent of Zespri? Does the Government agree that the description of KNZ as an "independent regulatory body" is incorrect and misleading, given that three of the five current members of KNZ own shares in Zespri? Does the Govenunent agree that the description of KNZ as an "independent regulatory body" is incorrect and misleading, given that: (i) regulation 36(b) of the Kiwifruit Export Regulations 1999 requires that one member of KNZ be appointed by New Zealand Kiwifruit Growers Incorporated ("NZKGI") or its successor: and (ii) NZKGI is funded by Zespri and committed to supporting Zespri's single point of entry? Does the Government agree that the description in section lILC of KNZ as an "independent regulatory body" is incorrect and misleading, given that KNZ is substantially funded by payments from Zespri? See regulation 39(1)(a). Does the Government agree that the description in section lILC of KNZ as an "independent regulatory body" is incorrect and misleading, given that KNZ operates from the same premises as Zespri and subleases its offices from Zespri? Does the Government agree that the statement in section m.B that Zespri "has an automatic right, but not the sole right, to export kiwifruit" is incorrect and misleading, given that s 26(1)(e) of the Kiwifruit Industry Restructuring Act 1999 contemplates that even in collaborative marketing arrangements Zespri will be the exporter, in collaboration with the approved person? Does the Government agree that the statement in section IlI.B that Zespri "has an automatic right, but not the sole right, to export kiwifruit" is incorrect and misleading because: (i) it would convey to a reasonable reader that the regulatory scheme permits a material amount of kiwifruit exports by persons other than Zespri: whereas (ii) collaborative marketing exports by persons other than Zespri have not exceeded 1.5% of the crop? Does the Government agree that the statement in section m.E that export prices are determined by the "world market" is incorrect and misleading because Zespri's monopsony allows it to extract monopoly rents in export markets? See Roxburgh and Sinclair, Market Power and the NZ Kiwifruit Industry, October 2008, a copy of which was provided by Zespri to the Government.

d.

e.

f.

g.

h.

i.

j.

k.

Does the Government agree that the statement hi. section III.G that Zespri's contracts are generally short-term, annual supply contracts" is incorrect and misleading, given that Zespri enters into three-year 'loyalty contracts' with growers which are renewed annually, automatically, on an evergreen basis?
/I

1.

Does the Government agree that the statement in section IILH that the domestic market is 'fully open to competition, with growers having the choice to supply fruit to the domestic or export markets" is incorrect and misleading, given that Zespri refuses to accept fruit of kiwifruit cultivars to which it does not have the exclusivemarketing rights? Does the Government intend to correct or amend the notification in any respect?

m. 4.

Furthermore, it appears likely to our client that there should be relevant documents created since 12 May 2009. At the very least, our client would expect that documents would have been obtained or created in the course of considering and giving advice in relation to our letters of 3 and 30 September 2010. For the avoidance of doubt, all requests for information in this letter are made pursuant to the Official Information Act 1982. Given that the requests have already been made in previous correspondence of 3 and 30 September 2010, time should not run afresh under that Act. Therefore, our client would appreciate receiving a substantive response to this letter within five working days. That should be sufficient time, given that your officials must have formed views on the matters raised in responding to our earlier letters. Thank you very much for your attention to this matter.

5.

6.

7.

Yours sincerely,

Campbell Walker Partner
DDI: Email: +64 (0)9 374 1102 campbell.walker@gilbertwalker.com

Office of Hon Tim Groser
Minister of Trade Minister Responsible for International Climate Change Negotiations Associate Minister of Foreign Affairs

19 November 2010

LGUCS/OIAlREQ

Campbell Walker Gilbert Walker Lawyers P.O. Box 1595 Shortland St Auckland 1140

Dear Mr Walker Re: the Notification by the New Zealand Delegation to the World Trading Organization: Working Party on State Trading Enterprises pursuant to Article XVII:4(a) of the GATT 1994 and Paragraph 1 of the Understanding on the Interpretation of Article XVII; G/STRlN/11/NZL; 12 May 2009 I advised you in my letter of 20 October 2010 that the Ministry of Foreign Affairs and Trade did not hold documents pertaining to the request in your letter of 30 September 2010 for "internal or external analysis which you or your advisers may have undertaken, or advice which you or your department may have received, as to the accuracy or the notification and the appropriateness of making a new or correcting notification." Your letter of 11 November 2010 makes further requests in paragraphs 3(a) through (m) relating to whether aspects of the above notification are "incorrect and misleading" or "no longer correct". Given these requests also concern the accuracy of the notification, I wish to reiterate that the Ministry of Foreign Affairs and Trade does not hold information relevant to your request. New Zealand is obliged to make notifications to the Working Party on State Trading Enterprises every two years, and to make updating notifications in alternate years. Your comments will be taken into account in the preparation of New Zealand's next notification. Yours sincerely

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Hon Tim Graser Minister of Trade

2483171v2
Private Bag '18041, Parliament Buildings, Wellington 6160, New Zealand, Telephone 64 48'176811 Facsimile 64 4 8176511

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