WORLD TRADE
ORGANIZATIONG/STR/N/4/CHL
G/STR/N/5/CHL
2 November 1999
(99-4734)
Working Party on
State Trading EnterprisesOriginal:  Spanish
STATE TRADING
New and Full and Updating Notification Pursuant to Article XVII:4(a) of the GATT 1994
and Paragraph 1 of the Understanding on the Interpretation of Article XVII
CHILE
The following communication, dated 19 October 1999, has been received from the Permanent
Mission of Chile.
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In accordance with Article XVII of GATT 1994 and paragraph 1 of the Understanding on the
Interpretation of that Article, the Government of Chile hereby notifies the entity " Comercializadora
de Trigo S.A . (COTRISA)" as a state trading enterprise.
The functioning of this enterprise has been based on exclusively commercial considerations
and its participation in the market has had no effect whatsoever on the level or direction of imports
and exports of the tradable goods within its sphere of operation.
To this end, replies to the questionnaire in document G/STR/3 are attached hereto.G/STR/N/4/CHL
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Replies to the Questionnaire on State Trading in Document G/STR/3
I. Enumeration of state trading enterprises
A. Identification of state trading enterprises
Chile has a state trading enterprise, Comercializadora de Trigo S.A . (COTRISA).
B. Description of products affected (including tariff item number(s) encompassed in product
description).
COTRISA is authorized to deal in the following products:- Wheat (HS No. 10)
1
- Maize (HS No. 10)2
- Rice (HS No. 10)3
- and other cerealsHowever, COTRISA has in practice dealt almost only in wheat and virtually none of the other
products.
II. Reason and purpose
A. Reason or purpose for establishing and/or maintaining state trading enterprise.
The purpose of introducing and maintaining COTRISA was to provide support for the
domestic marketing process for the tradable products within its sphere of business, primarily wheat,
by transmitting as directly and accurately as possible the alternative import prices for the products.
B. Summary of legal basis for granting the relevant exclusive or special rights or privileges,
including legal provisions and summary of statutory or constitutional powers.
COTRISA S.A. is a closed joint stock company governed by the provisions of
Law No.18.046 on joint stock companies, the Regulations on joint stock companies and by its Articles
of Incorporation.
Its purpose is to buy, sell, package, store, transport, distribute, deliver and trade, on its own
account or on behalf of others, all types and grades of wheat and other cereals, and in general, to carryout all transactions that may be necessary or conducive to its corporate purpose.
The company's duration is indefinite.
III. Description of the functioning of the state trading enterprise
A. Summary statement providing overview of the operations of the state trading enterprise.
                                                     
1 Including the following products: 1001.1000 (Durum wheat), and 1001.9000 (Others).
2 Including the following products: 1005.1000 (For sowing), and 1005.9000 (Others).
3 Including the following products: 1006.1000 (Paddy rice), 1006.2000 (Husked rice), 1006.3000
(Milled and semi-milled rice), and 1006.4000 (Broken rice).G/STR/N/4/CHL
G/STR/N/5/CHL
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COTRISA engages in the purchase, sale, packaging, storage, distribution, delivery and
trading of wheat and occasionally of other cereals.  COTRISA buys the goods concerned from private
parties, on a non-discriminatory basis.
COTRISA then sells those products on the domestic market at prices determined by free
competition.
B. Specification of exclusive or special rights or privileges enjoyed by the state trading
enterprise.
COTRISA enjoys no special privileges.  Its operations are governed by Law No. 18.046 on
Limited Companies and by the Regulations thereto.
C. Type of entities other than the state trading enterprise that are allowed to engage in
importation/exportation and conditions for participation.
The Constitution of the Republic lays down the right of citizens to engage in any type of
economic activity.  The institutional procedures governing the conduct of foreign trade are set out in
the Constitution, specifically in Organic Law No. 18.840 on the Central Bank.  There is also
Law No. 18.525 on Rules for the Import of Goods and the Compendium of International Exchange
Rules of the Central Bank.
Thus, any registered taxpayer may register with the Central Bank to become an exporter.  To
formalise the export process, the exporter must obtain an export document ( Informe de  Exportación )
from a commercial bank through which the Central Bank gives its permission.  This involves filling
out a standard form giving the details of the transaction, goods, price and general conditions ofpurchase.
The same applies to imports.  There are no import restrictions whatsoever.  For the purposes
of importation, an import document ( Informe de Importación ) must be obtained in order to gain
access to the formal foreign exchange market and to be able to operate through a commercial bank for
the payment of the purchase abroad.
D. How import/export levels are established by the state trading enterprise.
As a matter of policy, COTRISA acts as a purchaser from domestic producers and as such
does not handle export or import transactions.
E. How export prices are determined.
Under the present national legislation goods may be freely exported or imported to and from
the country, so that private traders make their own decisions freely.
More specifically, to date, COTRISA has exported on only one occasion, and, the export
prices were set by public tender.
F. How the resale prices of the imported products are determined.
See the answer to question E.  To date, COTRISA has conducted no import transactions.G/STR/N/4/CHL
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G. Whether long-term contracts are negotiated by the state trading enterprise.  Whether the state
trading enterprise is used to fulfill contractual obligations entered into by the government.
COTRISA does not negotiate long-term contracts or carry out transactions to fulfill
contractual obligations entered into by the government.
H. Brief description of market structure.Structure of the domestic market
The domestic market in which COTRISA operates is made up of some 87,000 wheat
producers of different sizes.  They deliver their products to the milling industry, where the industrial
products derived from this commodity are processed.
In addition, the milling industry imports wheat for subsequent processing and marketing.
Nature of competition
The market in which COTRISA operates is governed by the laws of free market competition.
IV. Statistical information
See tables I to III (attached).
V. Reasons why no foreign trade has taken place (as appropriate).
Although COTRISA has not been involved, there is foreign trade in the three products dealt
in by COTRISA.
VI. Additional information (as appropriate).
There is no additional information.G/STR/N/4/CHL
G/STR/N/5/CHL
Page 5Table I
State Trading: COTRISA
STATISTICAL INFORMATION, IMPORTS
Description of product(s)
(including HS No.)Crop year Total quantity
imported (tonnes)Quantity imported by state
trading enterpriseAverage import
price4Average representative
domestic sales price
(US$/tonnes)Mark-up5National production
(tonnes)
WHEAT - 10.01 (1)1995 650.889 0 --- 216 --- 1,372,166
1996 733,390 0 --- 246 --- 1,227,148
1997 308,111 0 --- 205 --- 1,563,733
1998 400,919 0 --- 201 --- 1,682,040
Description of product(s)
(including HS No.)Crop year Total quantity
imported (tonnes)Quantity imported by state
trading enterpriseAverage import
price4Average representative
domestic sales price
(US$/tonnes)Mark-up5National production
(tonnes)
MAIZE 10.05 (2)1995 554,102 0 --- 172 --- 942,223
1996 431,508 0 --- 212 --- 931,572
1997 791,106 0 --- 161 --- 783,268
1998 880,860 0 --- 148 --- 943,276
Description of product(s)
(including HS No.)Crop year Total quantity
imported (tonnes)Quantity imported by state
trading enterpriseAverage import
price4Average representative
domestic sales price
(US$/tonnes)Mark-up5National production
(tonnes)
RICE - 10.06 (3)1995 52,132 0 --- 211 --- 145,899
1996 51,307 0 --- 200 --- 152,795
1997 90,388 0 --- 211 --- 107,442
1998 71,286 0 --- 195 --- 104,345
(1) Including the following products: 1001.1000 Durum wheat
1001.9000 Others
(2) Including the following products: 1005.1000 For sowing
1005.9000 Others
(3) Including the following products: 1006.1000 Paddy rice
1006.2000 Husked rice
1006.3000 Milled and semi-milled rice
1006.4000 Broken rice
(4) Not applicable as the state trading enterprise does not engage in importation.
(5) See footnote 4
Source:  DECOEX, based on information from COTRISA, ODEPA and the Central Bank.G/STR/N/4/CHL
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Page 6Table II
State trading: COTRISA
STATISTICAL INFORMATION, EXPORTS
Description of product(s)
(including HS No.)Crop year Total quantity
exported (tonnes)Quantity exported by state
trading enterpriseAverage procurement
priceAverage representative
domestic price (US$/tonnes)Average export
price4National
production
(tonnes)
WHEAT - 10.01 (1)1995 86 0 188 216 --- 1,372,166
1996 334 0 223 246 --- 1,227,148
1997 144 0 196 205 --- 1,563,733
1998 31 0 180 201 --- 1,682,040
Description of product(s)
(including HS No.)Crop year Total quantity
exported (tonnes)Quantity exported by state
trading enterpriseAverage procurement
priceAverage representative
domestic price (US$/tonnes)Average export
price4National
production
(tonnes)
MAIZE - 10.05 (2)1995 21,406 0 151 172 --- 942,223
1996 29,165 0 ---- 212 --- 931,572
1997 36,156 0 ---- 161 --- 783,268
1998 59,395 0 ---- 148 --- 943,276
Description of product(s)
(including HS No.)Crop year Total quantity
exported (tonnes)Quantity exported by state
trading enterpriseAverage procurement
priceAverage representative
domestic price (US$/tonnes)Average export
price4National
production
(tonnes)
RICE  - 10.06 (3)1995 57 0 ---- 211 --- 145,899
1996 82 0 ---- 200 --- 152,795
1997 5 0 ---- 211 --- 107,442
1998 2,656 0 ---- 195 --- 104,345
(1) Including the following products: 1001.1000 Durum wheat
1001.9000 Others
(2) Including the following products: 1005.1000 For sowing
1005.9000 Others
(3) Including the following products: 1006.1000 Paddy rice
1006.2000 Husked rice
1006.3000 Milled and semi-milled rice
1006.4000 Broken rice
(4) Not applicable as the state trading enterprise does not engage in exportation.
(5) The state trading enterprise made no purchases during the period indicated.
Source:  DECOEX, based on information from COTRISA, ODEPA and the Central Bank.G/STR/N/4/CHL
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Page 7Table III
State Trading: COTRISA
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES
Description of product(s) (including
HS No.)Crop year Domestic purchases by state trading
enterpriseNational production Domestic sales by State trading
enterpriseNational
consumption4 (tonnes)
WHEAT - 10.01 (1)1995 25,524 1,372,166 25,524 2,022,969
1996 1,392 1,227,148 1,392 1,960,204
1997 51,093 1,563,733 24,899 1,871,700
1998 6,009 1,682,040 6,009 2,082,928
Description of product(s) (including
HS No.)Crop year Domestic purchases by state trading
enterpriseNational production Domestic sales by State trading
enterpriseNational
consumption4 (tonnes)
MAIZE - 10.05 (2)1995 40,166 942,223 40,166 1,474,919
1996 None 931,572 0 1,333,915
1997 None 783,268 0 1,538,218
1998 None 943,276 0 1,764,741
Description of product(s) (including
HS No.)Crop year Domestic purchases by state trading
enterpriseNational production Domestic sales by State trading
enterpriseNational
consumption4 (tonnes)
RICE  - 10.06 (3)1995 None 145,899 0 197,974
1996 None 152,795 0 204,020
1997 None 107,442 0 197,825
1998 None 104,345 0 172,975
(1) Including the following products: 1001.1000 Durum wheat
1001.9000 Others
(2) Including the following products: 1005.1000 For sowing
1005.9000 Others
(3) Including the following products: 1006.1000 Paddy rice
1006.2000 Husked rice
1006.3000 Milled and semi-milled rice
1006.4000 Broken rice
(4) This is the sum of national production and imports, minus exports.
(5) COTRISA made no purchases of rice during the period indicated, and was active on the maize market in 1995 only.
Source: DECOEX, based on information from COTRISA, ODEPA and the Central Bank.
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