WORLD TRADE
ORGANIZATIONG/SG/N/10/CHL/2
10 November 2000
(00-4767)
Committee on Safeguards Original:  Spanish
NOTIFICATION PURSUANT TO ARTICLE 12.1(C)
OF THE AGREEMENT ON SAFEGUARDS
CHILE
The following communication, dated 7 November 2000, has been received from the
Permanent Mission of Chile.
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Pursuant to Article 12.1(c) of the WTO Agreem ent on Safeguards, and in connection with the
notifications contained in documents G/SG/N/6/CHL/3 and G/SG/N/7/CHL/4, Chile wishes to notify
the recommendation of the Chilean investigating authority to apply a definitive safeguard measure to
socks of synthetic fibres.G/SG/N/10/CHL/2
Page 2
The investigation was initiated on 9 February 2000 and was notified in conformity with
Article 12.1(a) of the WTO Agreement on Safeguar ds (G/SG/N/6/CHL/3).  It was subsequently
decided to apply a provisional safeguard measure to socks of synthetic fibres and this was notified in
conformity with Article 12.4 of the abov e-mentioned Agreement (G/SG/N/7/CHL/4).
On 5 May, at its session No. 209, the investigating authority decided to recommend the
application of a definitive safeguard measure to imports of socks of synthetic fibres.  The safeguard
measure recommended was an ad valorem  surcharge of 13 per cent.
The tariff in force in Chile is 9 per cent.  If the safeguard measure recommended (13 per cent)
were to be introduced, the tariff applying to the imports of socks of synthetic fibres would be 22 per
cent.  It should be noted that Chile's bound tariff within the WTO is 25 per cent.  It should also bepointed out that under Chilean legislation a safeguard measure cannot last longer than one year and
may only be renewed for one additional year at the most.
1. Provide evidence of serious injury or th reat thereof caused by increased imports
In 1999, there was a decrease in production and domestic sales in comparison with 1998,
when these two variables remained relatively unchanged.
Domestic prices of the product fell by 11.7 per cent in 1999 in comparison with 1998, an even
greater decrease than the drop of 7.1 per cent in 1998 in comparison with 1997.
There was also a fall of 12.3 per cent in the utilization of capacity in the period 1997/1998, a
continuation of the trend in 1996/1997 when the decrease in utilization was 15 per cent.  There were
slight increases in installed capacity and employment.  The unit profit of the product showed a fall of
68 per cent in 1999 as compared with the previous year.
Although apparent consumption of socks of synthetic fibres showed an increase of 17.8 per
cent in 1999 in comparison with 1998, the share of imports in apparent consumption of socks of
synthetic fibres gradually increased from 32 per cent in 1997 to 45 per cent in 1998 and 62 per cent in
1999.
2. Provide information on whether there is an absolute increase in imports or an increase
in imports relative to domestic production (Article 2.1)
The investigating authority took account of the fact that imports increased in 1998 and 1999.
In 1999, as compared with the previous year, imports increased by 61.9 per cent, whereas in 1998 the
figure had been 70.3 per cent.  Similarly, the imports/domestic production ratio has shown a sustainedincrease in recent years, rising to 151.2 per cent in 1999, almost twice the figure for 1998 (77.8 per
cent), which in turn was higher than in 1997 (44.5 per cent).  The trend in the moving averages of
monthly imports for the period 1991-1999  rose throughout the period, although it has been even more
marked since the beginning of 1998.  During four of the last five years, there were also positive
annual growth rates.
3. Provide a precise description of the product involved
Socks of synthetic fibres, tariff heading 6115.9300.G/SG/N/10/CHL/2
Page 3
4. Provide a precise description of the proposed measure
An ad valorem  tariff surcharge of 13 per cent.
5. Provide the proposed date of introduction of the measure
It is expected that the definitive measure, if adopted, will come into effect in the middle of
November 2000.
6. Provide the expected duration of the measure
The safeguard measure, if adopted, will remain in force for one year at the most, including the
period of application of the provisional measure.  This definitive measure may be extended for afurther period not exceeding one year.
7. For a measure with a duration of more than three years, provide the proposed date for
the review (under Article 7.4) to be held not later than the mid-term of the measure, if
such a date for the review has already been scheduled
Not applicable.
8. If the expected duration is over one year, provide expected timetable for progressive
liberalization of the measure
Not applicable.
9. If the measure is being extended, also provid e:  (i) evidence that the industry concerned
is adjusting and that the safeguard measure continues to be necessary to prevent orremedy serious injury
Not applicable.G/SG/N/10/CHL/2
Page 4Tab1e 1
Imports of Socks
Cotton socks Socks of synthetic fibres
Heading 6115.9200 Heading 6115.9300 Total
Period Tonnes US$'000 c.i.f. M.A. c.i.f. Tonnes US$'000 c.i.f. M.A. c.i.f. Total tonnes US$'000 c.i.f.
1990 6.6 160 24.2 17.4 406 23.3 24.0 566
1991 31.6 702 22.2 34.5 477 13.8 66.1 1,179
1992 87.3 1,549 17.7 67.5 936 13.9 154.8 2,485
1993 97.6 1,563 16.0 142.9 1,967 13.8 240.5 3,530
1994 118.9 1,789 15.0 126.3 1,445 11.4 245.2 3,234
1995 174.3 2,213 12.7 196.0 1,783 9.1 370.3 3,996
1996 206.2 2,848 13.8 198.5 1,941 9.8 404.7 4,789
1997 205.7 3,146 15.3 159.8 1,569 9.8 365.5 4,715
1998 188.8 3,038 16.1 272.1 1,942 7.1 460.9 4,980
1999 164.8 2,705 16.4 440.5 2,460 5.6 605.3 5,165
Jan-March 1999
Jan-March 200047.6
26.3825
40717.3
15.573.9
109.3400
8095.4
7.4121.5
135.61,225
1,216
Rates of Variation in Imports of Socks
Cotton socks Socks of synthetic fibres
Heading 6115.9200 Heading 6115.9300 Total
Period Tonnes US$'000 c.i.f. M.A. c.i.f. Tonnes US$'000 c.i.f. M.A. c.i.f. Total tonnes US$'000 c.i.f.
1991 378.8% 338.8% -8.4% 98.3% 17.5% -40.7% 175.4% 108.3%
1992 176.3% 120.7% -20.1% 95.7% 96.2% 0.3% 134.2% 110.8%
1993 11.8% 0.9% -9.7% 111.7% 110.1% -0.7% 55.4% 42.1%
1994 21.8% 14.5% -6.0% -11.6% -26.5% -16.9% 2.0% -8.4%
1995 46.6% 23.7% -15.6% 55.2% 23.4% -20.5% 51.0% 23.6%
1996 18.3% 28.7% 8.8% 1.3% 8.9% 7.5% 9.3% 19.8%
1997 -0.2% 10.5% 10.7% -19.5% -19.2% 0.4% -9.7% -1.5%
1998 -8.2% -3.4% 5.2% 70.3% 23.8% -27.3% 26.1% 5.6%
1999 -12.7% -11.0% 2.0% 61.9% 26.7% -21.8% 31.3% 3.7%
Jan-March 00/99 -44.7% -69.5% 5.6% 47.9% -83.7% -3.1% 11.6% -0.7%
Average 91/99
Simple
Interannual70.3%
43.0%58.1%
36.9%-3.7%
-4.2%51.5%
43.2%29.0%
22.2%-13.3%
-14.7%52.8%
43.1%33.8%
27.8%
Simple average
1991/95
1995/99127.1%
8.7%99.7%
9.7%-12.0%
2.2%69.8%
33.8%44.1%
12.7%-15.7%
-12.3%83.6%
21.6%55.3%
10.2%
Source:  Import declarations.G/SG/N/10/CHL/2
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Table 2
Imports/Domestic Production Ratio
Cotton Socks (6115.9200)
YearImports (M)
(Tonnes)Production (P)
(Tonnes)Ratio (M/P)Variation (as a
percentage) of
M/P
1996 206.2 376.1 54.8%
1997 205.7 401.6 51.2% -3.6
1998 188.8 486.5 38.8% -12.4
1999 164.8 442.3 37.3% -1.5
Socks of Synthetic Fibres (6115.9300)
YearImports (M)
(Tonnes)Production (P)
(Tonnes)Ratio (M/P)Variation (as a
percentage) of
M/P
1996 198.5 314.4 63.1%
1997 159.8 359.3 44.5% -18.7
1998 272.1 349.8 77.8% 33.3
1999 440.5 291.4 151.2% 73.4
Source: Import declarations for the import figures, and tables provided by the applicants in the case
of the figures for domestic production.G/SG/N/10/CHL/2
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Table 3
Apparent Domestic Consumption
(Tonnes)
Cotton Socks (6115.9200)
Year Production Exports Imports Apparent
consumptionShare imports
total/apparent
consumption
1996 376.1 26.3 206.2 556.0 37%
1997 401.6 35.4 205.7 571.9 36%
1998 486.5 30.6 188.8 644.7 29%
1999 442.3 34.7 164.8 572.4 29%
Source: The production figures are based on those provided by the applicants;  those for exports
and imports are provided by the customs authority.
Socks of Synthetic Fibres (6115.9300)
Year Production Exports Imports Apparent
consumptionShare imports
total/apparent
consumption
1996 314.4 23.0 198.5 489.9 41%
1997 359.3 25.7 159.8 493.4 32%
1998 349.8 23.5 272.1 598.5 45%
1999 291.4 26.9 440.5 705.0 62%
Source: The production figures are based on those provided by the applicants;  those for exports and
imports are provided by the customs authority.
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