RESTRICTEDWORLD TRADE
ORGANIZATIONWT/REG38/4/Add.1
9 April 1999
(99-1426)
Committee on Regional Trade Agreement Original:  English/
Spanish
CANADA-CHILE FREE TRADE AGREEMENT
Questions and Replies
Addendum
This document reproduces additional questions addressed to the Parties and the joint responses
provided by them, organized in accordance with document WT/REG38/2.
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I. BACKGROUND INFORMATION ON THE AGREEMENT
3. Scope
The response by the Parties to the first question on "Scope" contained in document
WT/REG38/4 indicates that there are four produc ts on which Chile will dismantle its tariffs
over a period longer than ten years.  The products and transitional periods concerned are
Beef (15 years), Wheat and wheat meal (18 years), Meat sausages (15 years) andSugar (16 years).
Could the Parties explain the apparent inconsistency with the information given in
Annex III, Table 13 of the same document, which contains a different list of products subject to
a phase-out longer than 10 years?
Could the Parties please also indicate what tr ansitional period will be applied in the case
of the products listed in Annex III and, wher e such periods exceed ten years, indicate the
rationale for this exceptional treatment?
These four products represent the major and broad categories of products for which
phase-outs are beyond 10 years.  For transparency, the complete list of products subject to a phase-outlonger than 10 years is attached (see Annex A).
In respect to Annex III of document WT/REG38/4, this list reflects only the products with
phase-outs longer than 10 years which were actua lly imported from Canada during 1997.  The title
should have read "Chile:  1997 Imports from Canada  of Products Subject to Phase-out of 10 Years or
More".  The transition period for each of the products listed in Annex III to document WT/REG38/4
is outlined in the attached Annex B.WT/REG38/4/Add.1
Page 2
It is also noted that the Understanding on the Interpretation of Article XXIV of General
Agreement on Tariffs and Trade 1994  does contemplate longer phase-outs but that these “…should
exceed 10 years only in exceptional cases”.
The justification for the exceptional treatment of these products by Chile has already been
outlined in document WT/REG38/4 which is here reproduced:
"These products are very sensitive given the high distortions created in the international
market by subsidies granted by other countries.  Despite their sensitivity, the Parties agreed it
was preferable to have these products included in the Canada-Chile Free Trade
Agreement (CCFTA) disciplines and subject to a longer phase-out period, rather than
excluded from coverage altogether."WT/REG38/4/Add.1
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ANNEX A*
Chile:  Tariff Items with a Phase-out of over 10 Years
SACH 95 GLOSA PLAZO
(años)
02011000 CARNE DE BOVINOS EN CANALES O MEDIOS CANALES, FRESCA O
REFRIGERADA.15
02012000 CARNE DE BOVINOS EN TROZOS SIN DESHUESAR, FRESCA O
REFRIGERADA.15
02013000 CARNE DE BOVINOS DESHUESADA, FRESCA O REFRIGERADA. 15
02021000 CARNE DE BOVINOS EN CANALES O MEDIOS CANALES, CONGELADA. 1502022000 CARNE DE BOVINOS EN TROZOS SIN DESHUESAR, CONGELADA. 1502023000 CARNE DE BOVINOS DESHUESADA, CONGELADA. 15
10019000 LOS DEMAS TRIGOS Y MORCAJO Y TRANQUILLON; EXCEPTO TRIGO DURO. 17
11010000 HARINA DE TRIGO Y DE MORCAJO O TRANQUILLON. 1716023200 PREPARACIONES Y CONSERVAS DE GALLO, EXCEPTO SI NO CUMPLEN CON
LA NOTA SUPL. 5 DEL CAP. 16 DEL S.A. DE CANADA.15
16023900 PREPARACIONES Y CONSERVAS DE AVES DE LA PDA. 0105., EXCEPTO DE
PAVO.15
17011100 AZUCAR DE CAÑA EN BRUTO SIN AROMATIZAR NI COLOREAR, EN ESTADO
SOLIDO, QUIMICAMENTE PURA.16
17011200 AZUCAR DE REMOLACHA EN BRUTO SIN AROMATIZAR NI COLOREAR, EN
ESTADO SOLIDO, QUIMICAMENTE PURA.16
17019100 AZUCAR DE CANA O REMOLACHA Y SACAROSA QUIM. PURA, ESTADO
SOLIDO, CON ADICION DE COLORANTES O AROMATIZANTES.16
17019900 LAS DEMAS AZUCAR Y SACAROSA QUIMICAMENTE PURA, EXCEPTO
AROMATIZ.16
                                                     
*Spanish only.WT/REG38/4/Add.1
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ANNEX B
Chile:  1997 Imports from Canada of Product s Subject to Phase-out of 10 Years or More
HS Code Transitional
Period*Description Imports from
Canada
($US thousands)% of Total
Imports from
Canada
0407.00.00 C Bird's eggs, in shell, fresh,
preserved or cooked416 0.10%
0710.10.00 C Potatoes, frozen,
uncooked/steamed boiled in
water16 0.00%
0713.10.00 C Dried leguminous vegetables,
shelled, whether or notskinned or split1,697 0.39%
1105.20.00 C Potato Flakes 95 0.02%
1601.00.00 C Sausages and similar products,
except those containing meat123 0.03%
2004.10.00 C Potatoes, prepared or
preserved o/t by vinegar oracetic acid, frozen3,245 0.75%
0203.22.00 C- Hams, shoulders and cuts
thereof; of swine, bone-in
frozen99 0.02%
0203.29.00 C- Swine spare ribs, frozen 999 0.23%
0209.00.00 C- Pig fat lean meat free &
poultry fat unrendered, fresh,chilled, frozen or cured269 0.06%
2710.00.10 C- Motor gasoline (including
aviation spirits16 0.00%
2710.00.63 C- Finished lubricated oil 152 0.04%
2710.00.64 C- Lubricated oil 120 0.03%
4012.20.00 C- Used, pneumatic tires 5 0.00%
1001.90.00 C-18 Wheat nes and meslin 40,335 9.33%
*TRANSITIONAL PERIOD
List C-:   Customs duties on the goods in the tariff headings in this reduction category will be
eliminated on the basis of the following tim etable, and said good will be duty free as of
1 January 2007:
(i) Entry in effect: 8 per cent
(ii) 1 January 1998 8 per cent(iii) 1 January 1999 8 per cent
(iv) 1 January 2000 7 per cent
(v) 1 January 2001 6 per cent
(vi) 1 January 2002 5 per cent
(vii) 1 January 2003 4 per cent(viii) 1 January 2004 3 per cent
(ix) 1 January 2005 2 per cent
(x) 1 January 2006 1 per cent
(xi) 1 January 2007 0 per centWT/REG38/4/Add.1
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List C:   Customs duties on the goods in the tariff headings in this reduction category will be
eliminated on the basis of the following timetable, and said goods will be duty free as of
1 January 2007:
(i) Entry in effect 10 per cent
(ii) 1 January 1998  9 per cent
(iii) 1 January 1999  8 per cent
(iv) 1 January 2000  7 per cent
(v) 1 January 2001  6 per cent
(vi) 1 January 2002  5 per cent
(vii) 1 January 2003  4 per cent
(viii) 1 January 2004  3 per cent(ix) 1 January 2005  2 per cent
(x) 1 January 2006  1 per cent
(xi) 1 January 2007  0 per cent
List C-18:   The goods in the tariff headings in this category will be duty free as of 1 January 2014.
The tariff reductions in this list will be reviewed prior to 1 January 2004
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