. /.WORLD TRADE
ORGANIZATIONG/SG/20
10 January 2000
(00-0082)
Committee on Safeguards Original:  Spanish
PROVISIONAL SAFEGUARD MEASURES IMPOSED BY CHILE
ON WHEAT, WHEAT FLOUR, SUGAR AND EDIBLE
VEGETABLE OILS
Request for Consultations under Article 12.4
of the Agreement on Safeguards
The following communication, dated 28 December 1999, has been received from the
Permanent Mission of Argentina.
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I have been instructed by my Government to request consultations with Chile under
Article 12.4 of the Agreement on Safeguards.  This request is made in connection with the imposition
by the Chilean Government of a provisional safeguard measure on imports of wheat, wheat flour,
sugar and edible vegetable oils.
On 25 October 1999, Chile notified the WTO that its Distortions Commission had initiated an
investigation on products covered by the price band system.  On 29 October Argentina became an
interested party in these proceedings and presented a first written submission.  On 25 November,
Argentina participated in the public hearing, at whic h it stated that the investigation did not meet the
requirements of the Agreement on Safeguards and requested the revocation of the decision to apply
the safeguard measure as recommended by the investigating authority.
On 19 November, by Decree No. 339 of the Minist ry of Finance, published in the Official
Journal of 26 November, Chile adopted the provisional safeguard measure on imports of wheat, wheat
flour, sugar and edible vegetable oils.  In accordance with the notification circulated
(G/SG/N/7/CHL/2/Suppl.1), the safeguard consists of an ad valorem  tariff surcharge corresponding to
the difference between the general tariff plus the ad valorem  equivalent of the specific duty
determined by the price band mechanism set out in Article 12 of Law No. 18,525 – and its relevant
annual implementing decrees – and the level bound in the WTO.
Argentina is seriously concerned about the consistency of this measure with the Agreement
on Safeguards.
From the scant information available so far, it would appear that it was not verified that the
products were being imported in such increased quantities, absolute or relative to domestic
production, nor was it demonstrated that there was serious injury, nor was it verified that there werecritical circumstances where delay would cause da mage which would be difficult to repair.  In
addition, there are shortcomings in the notification, which fails to bring out the evidence of the causal
relationship between the rise in imports and the situation of the domestic industry.  Furthermore, weG/SG/20
Page 2
regret that we did not receive an offer of cons ultations from the Chilean Government in accordance
with Article 12.4 of the Agreement on Safeguards.
In these circumstances, and pursuant to Article 12.4 of the Agreement on Safeguards,
Argentina hereby requests consultations with a view to reviewing the information provided and
obtaining further information on the safeguard measure.
Accordingly, it is proposed that consultations be held forthwith at a mutually agreed date and
place.  I have also been instructed to inform you that my Government reserves all it rights under the
Agreement on Safeguards, in particular Article 14, as well as under the Dispute Settlement
Understanding.
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