. /.WORLD TRADE
ORGANIZATIONG/SG/N/7/CHL/2
10 November 1999
(99-4860)
Committee on Safeguards Original:  Spanish
NOTIFICATION UNDER ARTICLE 12.4 OF THE AGREEMENT ON
SAFEGUARDS BEFORE TAKING A PROVISIONAL SAFEGUARDS
MEASURE REFERED TO IN ARTICLE 6
CHILE
The following communication, dated 2 November 1999, has been received from the
Permanent Mission of Chile.
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Pursuant to Article 12.4 of the Agreement on Safeguards, the Government of Chile hereby
notifies that, at its 185th meeting, the investigating authority (National Commission Responsible for
Investigating the Existence of Distortions in the Price of Imported Goods) decided to recommend the
application of a provisional safeguard measure on imports of wheat, wheat flour, sugar and ediblevegetable oils, in the context of the investigation initiated on 9 September last.
1. Specification of the products subject to the provisional safeguard envisaged:
*Wheat:  1001.9000* Wheat flour:  1101.0000* Sugar:  1701.1100;  1701.1200;  1701.9100;  1701.9900*Edible vegetable oils:  1507.1000;  1507.9000;  1508.1000;  1508.9000;
1509.1000;  1509.9000;  1510.0000;  1511.1000;1511.9000;  1512.1110;  1512.1120;  1512.1910;
1512.1920;  1512.2100;  1512.2900;  1513.1100;
1513.1900;  1513.2100;  1513.2900;  1514.1000;
1514.9000;  1515.2100;  1515.2900;  1515.500;  and
1515.9000
2. Provisional safeguard measure envisaged:
The safeguard measure recommended by the Commission is an ad valorem  variable tariff
surcharge.  For each transaction, the level of the provisional measure to be applied will be determinedby the difference between the general tariff added to the tariff determined by the mechanism set out in
Article 12 of Law No. 18.525 – and  its relevant annual implementing decrees – and the level bound
in the WTO for these products.  The surcharge may not exceed the levels thus calculated.G/SG/N/7/CHL/2
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3. Date set for the introduction of the provisional safeguard measure:
It is expected that it will be applied this week.
4. Bases for the preliminary determination of an increase in imports that has caused or threatens
to cause serious injury:
There was an increase in imports during the 1999-2000 season on the assumption that a bound
tariff limit of 31.5 per cent would be applied to imports instead of the duties under the current price
bands.  On the basis of the information provided in the request, the Commission considered that the
increase in imports, as a minimum, corresponded to  the volume needed to cover the deficit in
production – caused by the decrease in production under the headings concerned.
5. Bases for determining the existence of critical circumstances where delay would cause
damage which it would be difficult to repair:
In the light of the information provided by th e applicant, it was considered that failure to
apply a provisional safeguard measure would lead to damage which it would be difficult to repair.
For each product or agricultural branch concerned, these circumstances included the following:
- Wheat:  reduction of the area under cultivation from 370,000 hectares to
244,000 hectares, decrease of 388,000 tonnes (-28 per cent) in production;  decrease
from 89,700 to 64,200 farms;  and loss of jobs.
- Sugar:  reduction of the area under beet cultivation from 50,000 hectares to
7,000 hectares;  decrease of 2.7 million tonnes (-83 per cent) in production;  decreasein the number of farms from 8,000 to 800;  and loss of jobs.
- Oils:  reduction of the area under colza cultivation, from 22,000 hectares to
8,600 hectares;  decrease of 35,640 tonnes (-54 per cent) in production;  decrease in
the number of farms from 400 to 147;  and loss of jobs.
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