. /.RESTRICTEDWORLD TRADE
ORGANIZATIONG/SG/Q2/CHL/1
4 May 2000
(00-1818)
Committee on Safeguards Original:  Spanish
NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON
SAFEGUARDS ON FINDING A SERIOUS INJURY OR THREAT
THEREOF CAUSED BY INCREASED IMPORTS
NOTIFICATION PURSUANT TO ARTICLE 12.1(C)
OF THE AGREEMENT ON SAFEGUARDS
Questions Posed by GUATEMALA Regarding
the Notification of CHILE1
The following communication, dated 19 April 2000, has been received from the Permanent
Mission of Guatemala.
_______________
1. Does Chile intend to extend the safeguard measure?
2. If so, how long does Chile intend to extend it by?
3. If Chile does not intend to extend the measure, what does it intend to do once that measure
has expired?
4. In what form is the measure being applied?
5. How much sugar and oil (in US dollars and metric tonnes) has entered since the measure was
introduced?
6. Has Chile considered the possibility of either lifting the measure or reducing it in some way
before the established expiry date?
7. Has compensation been granted to all the countries affected by the measure?
8. If so, to which countries has it been given, what form has it taken, and what negotiation
procedure was used?
9. If the answer to question 7 is no, why has no form of compensation been granted?
10. How much has injury to the domestic industry diminished since Chile started applying the
measure?
11. How long does Chile think it will take before its domestic industries recover the conditions
which existed prior to the threat of injury?
                                                     
1 G/SG/N/8/CHL/1-G/SG/N/10/CHL/1 & Suppl.1.G/SG/Q2/CHL/1
Page 2
12. If injury to the domestic industry has diminished, to what extent is this true, in terms of
increased production or area under cultivation?
13. What measures will be taken by Chile to improve the competitiveness of its domestic industry
once the safeguard measure has expired?
14. Does Chile intend to apply safeguard measures to any other products?
15. If so, to which products?
16. On what grounds has the measure been applied, given that in 1998 there was a 25 per cent
decrease in total sugar imports compared to the previous year?
17. What was the time-period used to indicate that there had been an increase in imports in
absolute terms?
18. Under which Article of the Agreement on Safeguards is Chile applying a variable safeguard
measure (with tariff)?
19. On what legal basis is Chile using Law No. 18.525 (Price Band) as a safeguard measure?
20. What were the base period and calculation method used by Chile in claiming that there was a
substantial reduction in production and area under cultivation for sugar (83 per cent and
76 per cent respectively) and oil (54 per cent and 60 per cent respectively)?
21. What is the relationship between the application of the safeguard measure and the expiry of
the exemption from application of the price band?
22. If Chile established the measure on the basis of threat of injury, why did it not apply quotas
on the basis of Article V of the Agreement on Safeguards, which would maintain normal
access?
23. Why was the investigation initiated ex officio and not supported by a major proportion of the
domestic industry?
__________