. /.WORLD TRADE
ORGANIZATIONWT/DS220/1
G/L/433
G/AG/GEN/47
G/SG/D13/1
10 January 2001
(01-0108)
Original:  Spanish
CHILE - PRICE BAND SYSTEM AND SAFEGUARD MEASURES
RELATING TO CERTAIN AGRICULTURAL PRODUCTS
Request for Consultations by Guatemala
The following communication, dated 5 January 2001, from the Permanent Mission of
Guatemala to the Permanent Mission of Chile and to the Chairman of the Dispute Settlement Body, is
circulated in accordance with Article 4.4 of the DSU.
_______________
I wish to inform you that I have received instructions from the authorities of my country to
request consultations with the Government of Chile under Article 4 of the Understanding on Rules
and Procedures Governing the Settlement of Disputes, Article XXIII of the General Agreement on
Tariffs and Trade 1994 (GATT 1994), Article 19 of the Agreement on Agriculture and Article 14 ofthe Agreement on Safeguards, concerning the following:
(a) The Chilean legislation on safeguards and the price band system contained in
Law 18,525, as amended by Law 18,591 and subsequently by Law 19,546, as well as
the regulations and supplementary provisions and/or amendments establishing the
said system, since they would appear to be inconsistent with various provisions of the
GATT, inter alia  but not exclusively with the following provisions of the WTO
Agreements:  Article II of the GATT 1994 and Article 4 of the Agreement on
Agriculture.
(b) With respect to safeguards, the initiation of the investigation concerning products
subject to the price band system contained in notification G/SG/N/6/CHL/2, the
conduct of the investigation, the preliminary determination contained innotification G/SG/N/7/CHL/2 /Suppl.1, and the final determination contained in
notifications G/SG/N/8/CHL/1, G/SG/N/10/CHL/1, G/SG/N/8/CHL/1/Suppl.1 and
G/SG/N/10/CHL/1/Suppl.1.  The Government of Guatemala considers that in these
determinations the Government of Chile has made errors that have resulted in
erroneous findings and flawed conclusions, inter alia , by grouping four products in a
single procedure, in the findings of serious injury, increased imports and causal link,
as well as the determination to apply safeguard measures, and their imposition,
calculation and levying, which are inconsistent with the Government of Chile's
obligations under the provisions of the Agreement on Safeguards and Article XIX of
the GATT 1994, in particular but not necessarily exclusively Articles 2, 3, 4, 5, 6 and12 of the Agreement on Safeguards and Article XIX.1 of the GATT 1994.WT/DS220/1, G/L/433,
G/AG/GEN/47, G/SG/D13/1
Page 2
(c) The request for the extension of these measures contained in notifications
G/SG/N/10/CHL/1/Suppl.2 a nd G/SG/N/10/CHL/1/Suppl.2/ Corr.1 would appear to
be inconsistent, inter alia , because they do not comply with the time-limits, no
evidence has been given of the plan for the adjustment of the domestic industry, andbecause it does not appear to be well-founded in accordance with the criteria of the
Agreement on Safeguards.  The Government of Guatemala considers that the request
for an extension, including the latter, infringe Chile's obligations under the provisions
of GATT 1994 and the Agreement on Safeguards in particular but not necessarily
exclusively Articles 2, 3, 4, 5, 6, 8 and 12 of the Agreement on Safeguards.
The Government of Guatemala reserves the right to raise other factual or legal claims in the
course of the consultations.
We look forward to the reply by the authorities of Chile to this request and the setting of a
mutually convenient date and place for initiating the consultations.
__________