WORLD TRADE
ORGANIZATIONG/SG/N/8/CHL/2
G/SG/N/10/CHL/3
22 January 2001
(01-0328)
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
CHILE
The following communication, dated 12 January 2001, has been received from the Permanent
Mission of Chile.
_______________
Pursuant to Article 12.1(b) and 12.1(c) of the Agreement on Safeguards, I have the pleasure
to submit herewith Chile's notification stating that the Chilean investigating authority has decided to
recommend the application of a definitive safeguard measure on imports of powdered milk andUHT milk.  On 10 January 2001, the decree establishing a 12 per cent surcharge as a definitive
safeguard measure  on the said products was published in the Official Journal.G/SG/N/8/CHL/2
G/SG/N/10/CHL/3
Page 2
At its sessions 220 and 227 of 17 October and 6 December 2000, the Chilean investigating
authority decided to terminate the investigation and to recommend the application of a definitive
safeguard measure on imports of powdered milk and liquid milk as described below.  In the second of
these two sessions, the investigating authority considered the questions raised during the consultation
meeting with Argentina, Australia, Canada, the European Communities, New Zealand, Poland, theUnited States and Uruguay held on 22 November 2000 under Article 12.4 of the Agreement on
Safeguards.
The definitive measure recommended consists in a 12 per cent ad valorem  surcharge,
4 per cent lower than the provisional measure of 16 per cent.  The analysis focused in particular on the
evolution of c.i.f. import prices of powdered milk and domestic prices of farm-gate milk.  At the same
time, the Commission agreed to re-examine, by the first half of March 2001 at the latest, the evolutionof both price series.
Under Chilean law, the investigating authority may recommend the application of a measure,
and submit the matter for consideration to the Pres ident of the Republic who takes the final decision
on whether or not to impose the measure by a decree issued through the Ministry of Finance.
On 10 January 2001, the Official Journal publis hed Ministry of Finance Decree No. 418
of 2000 establishing a definitive measure on powdered milk and liquid UHT milk consisting of a
12 per cent ad valorem  tariff surcharge.  The Decree is annexed hereto.
The tariff currently in force in Chile is 8 per cent.  Implementation of the definitive safeguard
of 12 per cent will bring the tariff applied to imports of the said products to 20 per cent.  It should be
noted that Chile's bound tariff under the WTO for dairy products is 31.5 per cent.
As specified in the annexed Decree, imports of dairy products from Canada, Mexico and Peru
are excluded from the 12 per cent surcharge under their trade agreements with Chile, as are imports
from developing country WTO Members under Article 9.1 of the Agreement on Safeguards.
Determination of the increase in imports
A. Powdered milk
From January to June 2000, imports increased 37 per cent compared with the same period in
the previous year.  Similarly, between the period January–June 1997 and January–June 2000, imports
increased from 4,437 tonnes to 9,999 tonnes, in other words by more than 125 per cent (Table 1).
In 1999, the volume of imports fell by 23 per cent compared with the previous year, while in
1998 it increased by 51 per cent with respect to 1997 (Table 2).
In 1999, weighted c.i.f. import prices fell 13 per cent for skimmed milk and 14 per cent for
whole milk compared with the previous year (Table  1).  During the period January to June 2000, these
prices increased 18 per cent and 11 per cent respectively over the previous years, not enough to
compensate for the fall recorded over the previous years (Table 2).
B. Liquid UHT milk
Liquid UHT milk has been imported since 1998.  During the period January to June 2000,
505,000 litres were imported, more than 12 times the total amount imported in 1999.  In 1999, there
was a 19 per cent fall in the volume imported compared with the previous year (Table 3).G/SG/N/8/CHL/2
G/SG/N/10/CHL/3
Page 3
The ratio of total imports of liquid UHT milk to domestic production of the same product was
0.018 per cent in 1998 and 0.014 per cent in 1999.  It reached 0.358 per cent in the first half of 2000
(Table 4).
Determination of serious injury
A. Farm-gate milk
In the course of 1999, reversing the positive trend that had prevailed since 1985, domestic
production of farm-gate milk dropped by 1.4 per cent to a total of 2,050 million litres.  In the same
year, the industry's sales fell by 4.2 per cent compared with the previous year, from 1,530 to
1,465 million litres (Table 5).
The series of domestic prices, in terms of UF ( unidades de fomento - promotion units)
registered a drop of 4.7 per cent in 1999 compared with the previous year.  This same variation in
nominal dollar terms amounts to –10.5 per cent.  The decrease is related to the drop in international
prices and would seem to be aggravated by lower apparent consumption.  In 1998, the domestic pricevariation compared with 1997 was –4.9 per cent in UF terms and –9 per cent in nominal dollar
terms (Table 6).
The investigating authority took account of the high degree of correlation between the
domestic farm-gate milk price and the import prices of powdered milks (87 per cent for skimmed milkand 75 per cent for whole milk during the period from January 1995 to December 1999).
The complainants have estimated average production costs for the 1998–1999 season to be
approximately $93.6 per litre and the average price for that period to be approximately $98.3.
It should also be stressed that the average effective price in 1999 was $94.7 per litre (Table 7).
With respect to investment, there has been an increase in the slaughter rate of dairy cattle
from 35 per cent during the period 1990 to 1995 to 42 per cent over the past three years (1996–1998),
apparently accompanied by the closure of 2,500 dairies since 1996.  The estimated capital cost for the
sector is approximately US$77 million over the past three years in terms of liquidated dairy cattle
alone.
With respect to employment, the complainants have estimated the number of unemployed
during the period 1996–1998 as a result of the closure of dairies alone at 12,500.
In the case of the dairy farm sector, owing to the fragmentation of the market, variables such
as productivity, capacity utilization, profits and losses, and so forth, are not measured regularly, sothat it is difficult to obtain any statistically significant updated figures.
The share of imports in apparent consumption fell from 7.2 per cent in 1998 to 6.1 per cent in
1999.  In 1997, the share was 5 per cent (Table 8).
B. Liquid UHT milk
It has been estimated that to maintain UHT milk production at its current level, the domestic
industry would have to suffer a loss of income of US$33.8 million as a result of the price decrease
that would be needed to match the level of import prices.  Similarly, with the farm-gate milk pricesthat companies currently have to pay producers and the sales prices they can obtain, certain
companies will be unable to cover total costs, so that  if the situation persists, they will have to close
those lines of production.G/SG/N/8/CHL/2
G/SG/N/10/CHL/3
Page 4
Meanwhile, between 1992 and 1997, national production of liquid milk grew, and after an
interruption in 1998, when it fell 0.7 per cent, registered a 4 per cent increase in 1999, reaching a total
of 279 million litres.  In the first half of 2000, production registered a slight increase of 0.5 per cent
compared with the same period in 1999 (Table 9).
The domestic price series, in real terms (UF), shows an increase of 1.3 per cent in 1999 with
respect to the previous year, and a decrease of 1 per cent in 1998 compared with 1997.  During the
period January-July 2000, prices increased 5.6 per cent compared with the same period in
1999 (Table 10).
Apparent consumption of UHT milk increased by 4.8 per cent in 1999 and 2.4 per cent in
1998.  This growth trend continued over the period January-June 2000 compared to the same period in1999, with a growth of 1.4 per cent (Table 11).
The share of imports in apparent consumption fell by 0.01 per cent in 1999, increasing during
the first half of 2000 to 0.36 per cent.  In 1998, no imports were recorded (Table 11).
Products affected by the recommendation
Powdered milk , classified under tariff headings 0402.1000, 0402.2110, 0402.2120,
0402.2130, 0402.2140, 0402.2150, 0402.2160, 0402.2170, 0402.2180, 0402.2910, 0402.2920,
0402.2930, 0402.2940, 0402.2950, 0402.2960, 0402.2970 and 0402.2980.
Liquid UHT milk , classified under tariff headings 0401.1000, 0401.2000 and 0401.3000.
Description of the proposed measure
Application of an ad valorem  tariff surcharge of 12 per cent.
Proposed date of introduction of the measure
10 January 2001, the date of its publication in the Official Journal.
Expected duration of the measure
The duration of the measure will be governed by Article 9 of Law 18.525 (see notification
G/SG/N/1/CHL/2), which stipulates that:
"The surcharges referred to in this Article shall not be applied for more than one year,
including the period of provisional application of the measure."
In the case at issue, a provisional measure was applied to the said products beginning
on 13 June 2000, the date of publication in the Official Journal of Decree No. 231
("exempt procedure") of the Ministry of Fi nance (see notification G/SG/N/7/CHL/3/Suppl.1).
Proposed date for the review, if the dur ation of the measure exceeds three years
Does not apply.
Progressive liberalization of the measure, if its duration exceeds one year
Does not apply.G/SG/N/8/CHL/2
G/SG/N/10/CHL/3
Page 5
Table 1
Imports of Powdered Milk.  January-June 1997-2000
Volume Imported
4021000 4022180 04021000 and 04022180
Description Skimmed milk powder Whole milk powder TOTAL powdered milk
Tonnes Variation Tonnes Variation Tonnes Variation
Jan-June/1997 2,127 2,309 4,437
Jan-June/1998 4,155 95% 4,446 92% 8,601 94%
Jan-June/1999 5,672 36% 1,646 -63% 7,317 -15%
Jan-June/2000 6,007 6% 3,992 143% 9,999 37%
Import Prices
4021000 4022180
Description Skimmed milk powder Whole milk powder
Av. price CIF Variation Av. price CIF Variation
Jan-June/1997 1,927 1,927
Jan-June/1998 1,716 -11% 1,866 -3%
Jan-June/1999 1,447 -16% 1,639 -12%
Jan-June/2000 1,706 18% 1,820 11%
Source:  Import declarations.G/SG/N/8/CHL/2
G/SG/N/10/CHL/3
Page 6Table 2
Imports of Powdered Milk under Headings 0402.1000 and 0402.2180 *
4021000 4022180 4021000 and 4022180
Period Thousands of US$ CIF Tonnes Av. Price CIF Thousands of US$ CIF Tonnes Av. Price CIF Thousands of US$ CIF Tonnes
1990 6,997 5,143 1,360 6,813 4,283 1,591 13,810 9,426
1991 6,749 5,176 1,304 10,036 6,625 1,515 16,785 11,801
1992 16,950 9,662 1,754 22,324 12,921 1,728 39,274 22,583
1993 17,893 10,020 1,786 28,910 16,912 1,709 46,803 26,932
1994 11,050 6,958 1,588 16,111 10,361 1,555 27,161 17,319
1995 16,555 8,419 1,966 19,161 9,715 1,972 35,716 18,134
1996 22,123 10,304 2,147 27,633 12,550 2,202 49,756 22,854
1997 11,123 5,976 1,861 8,436 4,463 1,890 19,559 10,438
1998 15,079 9,176 1,643 12,317 6,587 1,870 27,396 15,763
1999 13,427 9,428 1,424 4,387 2,743 1,599 17,814 12,171
Jan-June 99 8,206 5,672 1,447 2,697 1,645 1,640 10,903 7,317
Jan-June 00 10,249 6,007 1,706 7,265 3,992 1,820 17,514 9,999
% Variation in Imports of Powdered Milk
4021000 4022180 (4021000 and 4022180)
Period Thousands of US$ CIF Tonnes Average Price Thousands of US$ CIF Tonnes Average Price Thousands of US$ CIF Tonnes
1991 -4 1 -4 47 55 -5 22 25
1992 151 87 35 122 95 14 134 91
1993 6 4 2 30 31 -1 19 19
1994 -38 -31 -11 -44 -39 -9 -42 -36
1995 50 21 24 19 -6 27 31 5
1996 34 22 9 44 29 12 39 26
1997 -50 -42 -13 -69 -64 -14 -61 -54
1998 36 54 -12 46 48 -1 40 51
1999 -11 3 -13 -64 -58 -14 -35 -23
Average 91/99
- Simple 19 13 2 14 10 1 16 12
- Year-on-year 8 7 1 -5 -5 0 3 3
Jan-June 00/99 25 6 18 169 143 11 61 37
     * The two headings selected together represent more than 97% of total imports of powdered milk as from 1992.
Source:  Import declarations.G/SG/N/8/CHL/2
G/SG/N/10/CHL/3
Page 7Table 3
Imports of Liquid UHT Milk under Headings 0401.1000 and 0401.2000 *
0401.1000 0401.2000 (0401.1000 and 0401.2000)
Period Thousands of US$ CIF Thousands of litres Av. Price CIF Thousands of US$ CIF Thousands of litres Av. Price CIF Thousands of US$ CIF Thousands of litres
1 9 9 0 0 00 00 0
1 9 9 1 0 00 00 0
1 9 9 2 0 00 00 0
1 9 9 3 0 00 00 0
1 9 9 4 0 00 00 0
1 9 9 5 0 00 00 0
1 9 9 6 0 00 00 0
1 9 9 7 0 00 00 0
1998 80 48 1.660 0 0 80 48
1999 12 30 0.398 4 9 0.433 16 39
Jan-June/1999 0 0 0 0 0 0
Jan-June/2000 75 176 0.426 145 329 0.442 220 505
Variation in Imports of Liquid UHT Milk
0401.1000 0401.2000 (0401.1000 and 0401.2000)
Period Thousands of US$ CIF Thousands of litres Av. Price CIF Thousands of US$ CIF Thousands of litres Av. Price CIF Thousands of US$ CIF Thousands of litres
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999 -85 -37 -76 -80 -19
Jan-June 00/99
     * No imports under heading 0401.3000 recorded.
Source:  Import declarations.G/SG/N/8/CHL/2
G/SG/N/10/CHL/3
Page 8
Table 4
Ratio of Imports to Domestic Production
Thousands of Litres
Imports * Production ** Ratio Variation
Period (M) (P) (M/P) (%)
1995 0 225,180 0.000%
1996 0 239,888 0.000% 0,000
1997 0 270,662 0.000% 0,000
1998 48 268,758 0.018% 0,018
1999 39 279,481 0.014% -0,004
Jan-June 1999 0 140,177 0.000%
Jan-June 2000 505 140,889 0.358% 0,358
        * Covers headings 0401.1000, 0401.2000 and 0401.3000
      ** Domestic production of liquid milk according to ODEPA classification.
Includes essentially UHT milk (90 per cent) and pasteurised milk (10 per cent)
Source:  Import declarations and ODEPA.G/SG/N/8/CHL/2
G/SG/N/10/CHL/3
Page 9
Table 5
Domestic Milk Production and Sales by the Industry
(Millions of litres)
Year Production Variation (%) Sales by the Industry Variation (%)
1979 953 519
1980 1,080 13.3% 592 14.1%
1981 1,200 11.1% 663 12.0%
1982 1,056 -12.0% 567 -14.5%
1983 900 -14.8% 502 -11.5%
1984 880 -2.2% 492 -2.1%
1985 1,012 15.0% 588 19.7%
1986 1,093 8.0% 666 13.2%
1987 1,100 0.6% 667 0.0%
1988 1,120 1.8% 681 2.2%
1989 1,230 9.8% 771 13.1%
1990 1,380 12.2% 890 15.5%
1991 1,450 5.1% 948 6.4%
1992 1,540 6.2% 1,021 7.7%
1993 1,650 7.1% 1,121 9.8%
1994 1,750 6.1% 1,236 10.2%
1995 1,850 5.7% 1,358 9.9%
1996 1,924 4.0% 1,406 3.6%
1997 2,050 6.5% 1,497 6.4%
1998 2,080 1.5% 1,530 2.2%
1999 2,050 -1.4% 1,465 -4.2%
Source:  ODEPA.G/SG/N/8/CHL/2
G/SG/N/10/CHL/3
Page 10
Table 6
Domestic Farm-Gate Milk Prices
Prices paid to the producer Year
$/Litre (1)US$/Litre (2)UF/Litre (3)
1996
Jan 90.80 0.222 0.0073
Feb 93.90 0.228 0.0075
Mar 97.30 0.236 0.0077
Apr 99.40 0.243 0.0078
May 104.10 0.256 0.0081
Jun 104.90 0.256 0.0081
Jul 105.23 0.256 0.0081
Aug 104.88 0.255 0.0081
Sep 100.29 0.244 0.0077
Oct 94.03 0.226 0.0072
Nov 90.93 0.216 0.0069
Dec 90.06 0.213 0.0068
Av. 97.99 0.238 0.0076
1997
Jan 90.87 0.214 0.0068
Feb 93.49 0.225 0.0070
Mar 95.68 0.231 0.0071
Apr 98.63 0.236 0.0073
May 102.27 0.244 0.0075
Jun 102.98 0.247 0.0076
Jul 102.44 0.246 0.0075
Aug 102.11 0.246 0.0074
Sep 97.03 0.234 0.0070
Oct 91.13 0.220 0.0066
Nov 88.3 0.208 0.0063
Dec 87.29 0.199 0.0062
Av. 96.02 0.229 0.0070
1998
Jan 88.76 0.196 0.0063
Feb 93.64 0.209 0.0066
Mar 95.92 0.212 0.0068
Apr 98.19 0.216 0.0069
May 101.87 0.225 0.0071
Jun 102.23 0.224 0.0071
Jul 103.08 0.222 0.0072
Aug 102.04 0.217 0.0071
Sep 97.69 0.208 0.0067
Oct 91.77 0.198 0.0063
Nov 88.26 0.191 0.0060
Dec 88.21 0.187 0.0060
Av. 95.97 0.209 0.0067G/SG/N/8/CHL/2
G/SG/N/10/CHL/3
Page 11
Prices paid to the producer Year
$/Litre (1)US$/Litre (2)UF/Litre (3)
1999
Jan 90.70 0.191 0.0062
Feb 94.12 0.191 0.0064
Mar 96.80 0.197 0.0066
Apr 97.55 0.202 0.0066
May 101.70 0.210 0.0068
Jun 102.10 0.203 0.0069
Jul 101.37 0.196 0.0068
Aug 100.20 0.195 0.0067
Sep 92.69 0.177 0.0062
Oct 86.67 0.161 0.0058
Nov 86.30 0.159 0.0057
Dec 86.14 0.160 0.0057
Av. 94.70 0.187 0.0064
2000
Jan 88.52 0.170 0.0059
Feb 91.73 0.179 0.0061
Mar 93.67 0.186 0.0062
Apr 95.88 0.189 0.0063
May 102.85 0.197 0.0067
Jun 106.24 0.201 0.0069
% Var. 97/96 -2.0% -3.6% -7.6%
% Var. 98/97 0.0% -9.0% -4.9%
% Var. 99/98 -1.3% -10.5% -4.7%
% Var. Jan-June 00/
Jan-Jul 99-0.7% -6.0% -3.8%
(1)  Average sales price without VAT (nominal).
(2)  UF for the last day of each year.
(3)  Average dollar rate for each month.
Source: Prepared by the Technical Secretariat on th e basis of its own data and information from the
complainant.G/SG/N/8/CHL/2
G/SG/N/10/CHL/3
Page 12
Table 7
Information Compiled by Fedeleche (Milk Federation), 1998-1999 Season (1)
Income/expenditure
(thousands of $)Average % share Maximum % share Minimum % share
INCOME 138,825 353,644 7,566
Direct costs 105,499 83 287,019 86 8,426 83
Feed 41,055 32 126,834 38 183 2
Permanent pastures 9,164 7 25,398 8 0 0
Extra pastures 15,302 12 39,584 12 0 0
Labour 14,220 11 58,379 17 1,933 19
Drugs 5,320 4 19,509 6 393 4
Machinery 7,184 6 19,571 6 167 2
Other 13,254 10 33,448 10 378 4
Direct cost ($/litre) 74.2 99.0 43.1
Indirect costs 22,042 17 52,239 16 1,698 17
TOTAL COST 127,541 100 335,549 100 10,124 100
Total cost ($/litre) 93.6 115.7 75.4
GROSS MARGIN 11,284 8 62,650 18 (26,823) -355
($/litres produced) 7.5 24.5 (9.5)
Memorandum
Production (litres) 1,326,366 3,313,760 89,385
Price obtained ($/litre) 98.3 107.8 79.1
(1)  Approximate figures, subject to review.
Source:  Fedeleche.G/SG/N/8/CHL/2
G/SG/N/10/CHL/3
Page 13Table 8
Domestic Apparent Consumption of Milk
(Millions of litres)
Production * Exports ** Imports ** Apparent
consumptionShare of total
imports/apparent
consumption
1996 1,924 54 217 2,087 10.4%
1997 2,050 63 104 2,091 5.0%
1998 2,080 50 157 2,187 7.2%
1999 2,050 65 130 2,115 6.1%
% Var. 97/96 6.5% 16.7% -52.% 0.2% -52.2%
% Var. 98/97 1.5% -20.6% 51.0% 4.6% 44.3%
% Var. 99/98 -1.4% 30.0% -17.2% -3.3% -14.4%
     * National production of farm-gate milk.
   ** Includes total imports or exports of powdered milk under headings 0402.1000 and 0402.2180 in litres.
Source:  Prepared by the Technical Secretariat on the basis of information from ODEPA and the National Customs Service.G/SG/N/8/CHL/2
G/SG/N/10/CHL/3
Page 14
Table 9
Domestic Production of Liquid Milk *
Millions of litres
Year UHT Milk Variation (%)
1979 132.9
1980 127.2 -4.3%
1981 137.6 8.2%
1982 122.5 -11.0%
1983 117.1 -4.4%
1984 115.5 -1.4%
1985 119.7 3.6%
1986 115.5 -3.5%
1987 110.0 -4.8%
1988 125.2 13.8%
1989 133.8 6.9%
1990 138.0 3.1%
1991 135.0 -2.2%
1992 155.5 15.2%
1993 177.7 14.3%
1994 188.9 6.3%
1995 225.1 19.2%
1996 239.8 6.5%
1997 270.6 12.8%
1998 268.7 -0.7%
1999 279.4 4.0%
Jan-June 1999 140.2
Jan-June 2000 140.9 0.5%
    * 90% liquid UHT milk and 10% pasteurised milk.
Source:  ODEPA.G/SG/N/8/CHL/2
G/SG/N/10/CHL/3
Page 15
Table 10
Nominal Consumer Prices (Base:  Santiago)
Consumer price Period
$/Litre (1)US$/Litre (2)UF/Litre (3)
Jan-96 235.01 0.575 0.0188
Feb-96 240.88 0.586 0.0192
Mar-96 252.66 0.614 0.0200
Apr-96 260.80 0.639 0.0206
May-96 269.06 0.662 0.0210
Jun-96 275.42 0.672 0.0213
Jul-96 275.89 0.672 0.0213
Aug-96 270.64 0.658 0.0208
Sep-96 268.46 0.652 0.0205
Oct-96 268.17 0.645 0.0204
Nov-96 267.47 0.637 0.0202
Dec-96 265.48 0.628 0.0200
Average 1996 262.50 0.637 0.0203
Jan-97 265.16 0.626 0.0199
Feb-97 263.60 0.633 0.0197
Mar-97 263.41 0.636 0.0195
Apr-97 262.98 0.630 0.0194
May-97 263.36 0.629 0.0194
Jun-97 263.12 0.630 0.0193
Jul-97 258.96 0.622 0.0190
Aug-97 256.36 0.618 0.0187
Sep-97 253.72 0.612 0.0184
Oct-97 251.71 0.607 0.0181
Nov-97 249.66 0.587 0.0178
Dec-97 250.86 0.572 0.0178
Average 1997 258.58 0.617 0.0189
Jan-98 256.33 0.565 0.0182
Feb-98 260.90 0.582 0.0184
Mar-98 263.96 0.583 0.0186
Apr-98 265.49 0.585 0.0186
May-98 267.78 0.591 0.0187
Jun-98 273.25 0.599 0.0191
Jul-98 270.54 0.582 0.0188
Aug-98 273.92 0.581 0.0190
Sep-98 274.77 0.584 0.0190
Oct-98 277.06 0.598 0.0191
Nov-98 277.08 0.598 0.0189
Dec-98 270.82 0.573 0.0184
Average 1998 269.33 0.585 0.0187
Jan-99 271.36 0.570 0.0184
Feb-99 269.00 0.545 0.0183
Mar-99 270.65 0.550 0.0184
Apr-99 272.52 0.565 0.0184
May-99 271.98 0.561 0.0183
Jun-99 277.85 0.553 0.0187G/SG/N/8/CHL/2
G/SG/N/10/CHL/3
Page 16
Consumer price Period
$/Litre (1)US$/Litre (2)UF/Litre (3)
Jul-99 288.47 0.558 0.0194
Aug-99 294.52 0.574 0.0197
Sep-99 296.97 0.566 0.0199
Oct-99 294.58 0.548 0.0197
Nov-99 290.62 0.535 0.0193
Dec-99 292.16 0.543 0.0194
Average 1999 282.56 0.556 0.0190
Jan-00 290.38 0.558 0.0192
Feb-00 294.25 0.574 0.0195
Mar-00 297.66 0.590 0.0197
Apr-00 297.28 0.585 0.0194
May-00 304.30 0.583 0.0198
Jun-00 303.42 0.573 0.0196
Jul-00 307.00 0.566 0.0198
% Var. 97/96 -1.5% -3.1% -7.0%
% Var. 98/97 4.2% -5.1% -1.0%
% Var. 99/98 4.9% -5.0% 1.3%
% Var. Jan-Jul 00/Jan-Jul 99 9.0% 3.2% 5.6%
(1)  Nominal consumer price (base:  Santiago).
(2)  Average dollar rate for each month
(3)  Average dollar rate for each month
Source:  Prepared by the Technical Secretariat on request using its own data and ODEPA – INE information.G/SG/N/8/CHL/2
G/SG/N/10/CHL/3
Page 17
Table 11
Domestic Apparent Consumption of Liquid UHT Milk
(Thousands of Litres)
Production * Export ** Import ** Apparent
consumptionShare of total imports/
apparent consumption
1996 239,888 14,888 225,000 0.00%
1997 270,662 13,867 0 256,795 0.00%
1998 268,758 5,953 0 262,805 0.00%
1999 279,481 4,029 39 275,491 0.01%
Jan-Jun 1999 140,177 2,046 0 138,131 0.00%
Jan-Jun 2000 140,889 1,287 505 140,107 0.36%
% Var. 97/96 12.8% -6.9% 14.1%
% Var. 98/97 -0.7% -57.1% 2.3%
% Var. 99/98 4.0% -32.3% 4.8%
% Var. Jan-Jun 00/99 0.5% -37.1% 1.4%
      * Domestic production of liquid milk based on ODEPA classification.
    ** Includes total imports and exports of liquid UHT Milk under headings 0401.1000, 0401.2000 and 0401.3000.Source: Prepared by the Technical Secretariat on the basis of information provided by ODEPA and the National Customs
Service.G/SG/N/8/CHL/2
G/SG/N/10/CHL/3
Page 18
General Provisions
THE EXECUTIVE
Ministry of Finance
ESTABLISHMENT OF A TARIFF SURCHARGE ON IMPORTS OF PRODUCTS AS
INDICATED
No. 418 ("exempt procedure") - Santiago, 29 December 2000.  Having regard to Official
Communication No. CD 56 of 6 November 2000 of the President of the National Commission
responsible for investigating the existence of distor tions in the price of imported goods and the facts
therefor;  and
Taking into account the provisions of the first paragraph of Article 9 of Law No. 18.525;
Supreme Decree No. 909 of 1999 of the Ministry of Finance;  Article 1, paragraph 31, of Supreme
Decree No. 654 of 1994 of the Ministry of the Interior, and Resolution No. 520 of 1996 of the Office
of the Comptroller General of the Republic,
I hereby decree:
1. A safeguard measure shall be established in the form of a definitive ad valorem  tariff
surcharge of 12 per cent on imports of products classified under the following tariff headings:
Liquid UHT milk
0-401.1000
0-401.2000
0-401.3000
Powdered milk
0-402.1000
0-402.2110
0-402.21200-402.2130
0-402.2140
0-402.2150
0-402.2160
0-402.21700-402.2180
0-402.2910
0-402.2920
0-402.2930
0-402.29400-402.2950
0-402.2960
0-402.2970
0-402.2980G/SG/N/8/CHL/2
G/SG/N/10/CHL/3
Page 19
2. The surcharge established in the preceding paragraph shall not apply to imports of the said
products originating in Canada, Mexico and Peru pursuant to the trade agreements signed with those
countries, nor to developing countries Members of the World Trade Organization (WTO) whoseaverage individual share during the last 24 months, i.e. from September 1998 to August 2000, was
less than 3 per cent of total imports, and collectively accounted for not more than 9 per cent, in
accordance with the provisions of Article 9.1 of the WTO Agreement on Safeguards.
3. The provisional tariff surcharge established by Decree No. 231 of the Ministry of Finance
("exempt procedure") dated 12 July 2000, published in the Official Journal dated 13 July 2000, shall
cease to have effect in accordance with the provisions of Article 15 of Supreme Decree 909 of the
Ministry of Finance of 1999.
4. In accordance with Article 21 of Supreme Decree No. 909 of the Ministry of Finance of 1999,
the duration of the tariff surcharge established under paragraph 1 of this Decree shall not exceed the
term of one year as of 13 July 2000, date of publication of the Decree which established the
provisional surcharge on the same goods.
5. The National Customs Service shall be responsible for adopting the measures to ensure the
proper application of the safeguard measure established by this Decree.
For registration, communication and publication.  By order H.E. the President of the
Republic.  Nicolás Eyzaguirre Guzmán, Minister of Finance.
Transcribed for your information, María Eugenia Wagner Brizzi, Under-Secretary for
Finance.
__________