WORLD TRADE
ORGANIZATIONG/SG/N/8/CHL/1
G/SG/N/10/CHL/1
7 February 2000
(00-0450)
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 18 January 2000, has been received from the Permanent
Mission of Chile.
_______________
1. Threat of injury
Even with a price band, there has been an in crease in imports, therefore, limiting import
duties to 31.5 per cent at a time when international prices for these products have fallen obviously
constitutes a threat of serious injury to the domestic industry.  It should be noted that the c.i.f. prices
of Chilean imports are closely linked to international prices and domestic prices also shadow trends in
import prices.  The imminent threat of injury can be summarized as follows:
(i) In the case of wheat, a decrease of 34 per cent in the area under cultivation is
expected (from 370,000 hectares to 244,000 hectares);  a decrease of 28 per cent in
production (less than the reduction in the area cultivated as crop yields continue to
improve);  a 10 per cent fall in prices;  a decrease of 35 per cent in direct
employment;  and a drop of 20 to 90 per cent in net profit margins depending on the
level of production.  This means that around one third of approximately90,000 producers will cease this activity.  As is the case for sugar beet and colza, the
capacity utilization indicator has not been estimated because it is not relevant to
agricultural crops.
(ii) For sugar (sugar beet), the foregoing i ndicators used to assess injury are even more
significant, showing a reduction of around 80 per cent in production, area under
cultivation and employment, and a 28 per cent decrease in prices, meaning that 90 per
cent of producers will cease this activity.  Very high losses are expected in the sugar
industry, with a 28 per cent reduction in the value of output and related losses
amounting to US$10 million.
(iii) In the case of oils, (colza), indicators show a drop of 54 per cent in production and a
decrease of around 60 per cent in employment (direct and indirect), marginalizing
over 63 per cent of producers.  Losses in the oil industry are estimated to include an
8 per cent fall in the value of output, a US$3.2 million reduction in production.  Itshould also be noted that a decrease in colza cultivation will have an impact on wheatG/SG/N/8/CHL/1
G/SG/N/10/CHL/1
Page 2
yields because colza is sown in rotation with wheat (30,000 hectares of colza allow
the rotation of around 100,000 hectares of wheat).
(iv) If the mechanism applied to wheat is not also applied to imports of wheat flour, a
large increase in imports of wheat flour could cause injury similar to that caused to
wheat production by imports of wheat.
Wheat, colza and sugar beet account for over half the surface area and production of annual
crops in Chile and represent around 30 per cent of employment.
This negative impact is felt particularly at the regional level, as three regions (VIII, IX and X)
account for the majority of domestic production (79 per cent of wheat, 99.7 per cent of colza and
59.2 per cent of sugar beet), with similar figures for areas under cultivation.  In these regions, the
importance of the agricultural sector in producti on, rural population and employment is significantly
higher than at the national level:  the proportion of agricultural GDP is three times higher than the
national figure;  the rural population figure is 2.5 times higher and the figure for agriculturalemployment is similar.
2. Increased imports
When analysing imports, the fact that the normal operation of price bands has been a decisive
element in preventing a greater increase in imports has been taken into account and consequently the
trend in imports cannot be considered without bearing this factor in mind.  Even so, there has been an
increase in imports in absolute terms which threatens to cause injury to the production sectors
concerned.
- Imports of wheat (in tonnes) increased by 6 per cent in 1998 in comparison with the
previous year.  Over the first 10 months of 1999, imports rose by 281 per cent
compared with the same period in 1998.  There was an increase in imports from
1993-1996, with a drop in 1997.  Imports of wheat flour fluctuated, but this can be
explained by their low volume.  Nevertheless, the Commission notes that wheat flour
represents an alternative way of importing wheat if direct imports prove to be more
costly or are subject to a higher tariff, so it is necessary to apply a treatment similar to
that applicable to wheat.
- Even though imports of refined sugar (almost 100 per cent of total sugar imports) fell
by 27 per cent in 1998 in comparison with the previous year, over the first ten months
of 1999 they increased by 14 per cent, once again showing the upward trendregistered since 1994.
- Imports of the two main edible vegetable oils increased by 23 per cent in 1998
compared with the previous year
, a similar figure to that recorded for all vegetable
oils.  Over the first ten months of 1998 , imports fell by 24 per cent , but this was due to
a large extent to the abnormal situation in the behaviour of importers as a result of the
tariff disputes concerning the tariff headings for oil imports.  From 1993 to 1997 , the
level of imports was similar.
There were noticeable differences between recent import prices resulting from full application
of the band and prices resulting from imposition of a tariff ceiling of 31.5 per cent.  This substantiates
the forecast of a greatly accelerated increase in imports that would occur (or has already occurred)
unless the full duties specified in the bands are applied.  The increase in imports , and the potential for
further substantial increases . has occurred at a time when international prices of the products
investigated have been subject to sizeable and rapid decreases.G/SG/N/8/CHL/1
G/SG/N/10/CHL/1
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3. Specification of the products subject to the safeguard envisaged
The following are the products concerned and their corresponding tariff classification:
- 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; 1515.5000; and 515.9000.
4. Measure envisaged
For each transaction
, the level of the definitive safeguard will be determined by the difference
between the general tariff added to the ad valorem  equivalent of the specific duty 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.
5. Date set for application of the measure
The recommendation on application of the measure has been sent to the President of the
Republic, who will decide whether to apply it and set a date.
6. Expected duration of the measure
One year.G/SG/N/8/CHL/1
G/SG/N/10/CHL/1
Page 4TABLE 3.1.2
Tonnes imported by origin
Other wheat  (1001.9000)
1997 1998 Jan-Oct/1998 Jan-Oct/1999 % variation
Origin Tonnes % share Tonnes % share Tonnes % share Tonnes % share 1998/1997Jan-Oct
(99/98)
Argentina 20,935 8 149,744 55 88,488 67 128,928 26 615 46
Canada 236,993 92 72,753 27 35,689 27 60,081 12 -69 68
United States 0 0 38,395 14 5,023 4 312,557 62 17,211.807 6,123
Uruguay 0 11,311 4 2,675 2 122 0 -95
New Zealand 0 0 15 0 15 0 0 0 -100
Lesotho 0 0 0 0 0 0 872 0
Brazil 0 0 0 0 0 0 505 0
France 0 0 0 0 0 0 20 0
Total 257,929 100 272,217 100 131,890 100 503,084 100 6 281
Source:  Prepared by the Technical Secretariat.
TABLE 3.2.2
Tonnes imported by origin
Wheat flour (1101.0000)
1997 1998 Jan-Oct/1998 Jan-Oct/1999 % variation
Origin Tonnes % share Tonnes % share Tonnes % share Tonnes % share 1998/1997Jan-Oct
(99/98)
Argentina 2,352 56 2,959 89 2,808 92 2,026 82 26 -28
Spain 126 3 294 9 252 8 210 8 133 -17
ZOFRI 0 0 60 2 0 0 64 3
G e r m a n y 0 0 1 01000 - 1 0 0
Netherlands 1 0 0 0 0 0 152 6 -64
Venezuela 0 0 0 0 0 0 21 1
Belgium 1,700 41 0 0 0 0 0 0 -100
Total 4,179 100 3,315 100 3,062 100 2,474 100 -21 -19
Source:  Prepared by the Technical Secretariat.G/SG/N/8/CHL/1
G/SG/N/10/CHL/1
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Chilean Imports of Sugar
1997 1998 Var. 98/97 Jan-Nov 98 Jan-Nov 99 Var. Jan-Nov 99
Jan-Nov 98
Country Tonnes Tonnes % Tonnes Tonnes %
1701.11.00 Raw sugar cane not containing flavouring or colouring
Mauritius 0.0 0.0 0.0 0.0 21.0 100.0
Peru 39.0 0.0 -100.0 0.0 0.0 0.0
Brazil 0.0 0.0 0.0 0.0 733.6 100.0
Bolivia 45.0 46.0 2.2 46.0 23.0 -50.0
Argentina 607.0 465.0 -23.4 305.0 0.0 -100.0
Colombia 250.0 0.0 -100.0 0.0 0.0 0.0
United States 0.0 1.0 8,233.3 1.0 0.0 -95.8
Spain 0.0 0.0 0.0 0.0 17.9 100.0
UnitedKingdom0.0 0.0 0.0 0.0 3.3 100.0
Germany 0.0 0.0 0.0 0.0 150.5 100.0
Z. F. Iquique 0.0 0.0 0.0 0.0 14.8 100.0
Total 941.0 512.0 -45.6 352.0 964.1 173.9
1701.12.00 Raw beet sugar not containing flavouring or colouring
Argentina 192.0 0.0 -100.0 0.0 0.0 0.0
United States 0 0.1 0.0 0.1 0.0 -100.0
Netherlands 0 0.0 0.0 0.0 0.0 0.0
Germany 0 0.0 0.0 0.0 0.0 0.0
Z.F. Iquique 0 0.0 0.0 0.0 6.8 0.0
Total 192.0 0.1 -100.0 0.1 6.8 6,704.0
1701.91.00 Other cane sugar containing flavouring or colouring
Argentina 0.0 0.0 0.0 0.0 0.0 0.0
France 0.0 0.0 0.0 0.0 0.0 0.0
Germany 0.3 0.4 33.3 0.4 0.0 -100.0
United States 0.1 1.4 1,694.9 1.4 0.0 -98.9
Z.F. Iquique 0.0 0.0 0.00 0.0 0.7 100.0
Total 0.4 1.8 376.2 1.8 0.7 -60.2
1701.99.00 Other cane sugar
Mauritius 0.0 42.0 0.0 41.8 0.0 -100.0
Colombia 27,364.0 5,169.0 -81.1 4,660.6 23,490.0 404.0
Guatemala 94,855.0 31,934.0 -66.3 31,933.5 53,187.0 66.6
Mexico 30,913.0 29,773.0 -3.7 29,772.6 0.0 -100.0
Brazil 12,982.0 37,507.0 188.9 36,412.2 52,292.0 43.6
Bolivia 54.0 0.0 -100.0 0.0 1,222.0 100.0
Argentina 72,709.0 77,760.0 6.9 66,134.1 64,490.0 -2.5
United States 3,189.0 0.0 -100.0 0.0 0.0 0.0
Sri Lanka 0.0 0.0 0.0 0.0 0.0 0.0
Switzerland 0.0 0.0 0.0 0.0 0.0 0.0
Italy 0.0 0.4 0.0 0.4 0.1 -75.0
Belgium 1.0 4.0 300.0 3.1 3.2 3.2
France 0.0 0.0 0.0 0.0 1,010.5 100.0
Germany 0.1 0.0 -100.0 0.0 0.2 100.0
Nicaragua 21,558.0 17,423.0 -19.2 17,423.0 0.0 -100.0
El Salvador 10,002.0 0.0 -100.0 0.0 14,625.0 100.0
United
Kingdom5.0 0.0 -100.0 0.0 450.0 100.0
Portugal 0.0 0.0 0.0 0.0 108.0 100.0
Z.F. Iquique 0.0 0.0 0.0 0.0 12.6 100.0
Total 273,632.1 199,612.0 -27.1 186,381.3 210,890. 6 13.2
Source:  Market access, DIRECON.G/SG/N/8/CHL/1
G/SG/N/10/CHL/1
Page 6
Chilean Imports of Oils under
the Price Band
1997 1998 Var. 98/97 Jan-Nov 98 Jan-Nov 99 Var. Jan-Nov 99
Jan-Nov 98
Country Tonnes Tonnes % Tonnes Tonnes %
1507.10.00 Crude soya-bean oil
Argentina 57,213.0 77,109.1 34.8 70,412.4 53,423.8 -24.1
Bolivia 168.0 0.0 -100.0 0.0 0.0 0.0
United States 0.0 0.0 0.0 0.0 0.4 100.0
Paraguay 0.0 25.0 100.0 25.0 0.0 -100.0
Total 57,381.0 77,134.1 34.4 70,437.4 53,424.2 -24.2
1507.90.00 Refined soya-bean oil
Argentina 7,428.0 1,662.4 -77.6 1,581.4 4,886.9 209.0
Bolivia 4,261.0 8,097.7 90.0 7,966.3 2,413.8 -69.7
Brazil 81.0 0.0 -100.0 0.0 0.0 0.0
United States 5.0 28.3 466.0 28.3 20.0 -29.3
Japan 0.0 0.1 100.0 0.1 0.0 -100.0
Total 11,775.0 9,788.5 -16.9 9,576.1 7,320.7 -23.6
1508.90.00 Other groundnut oil
France 0.2 0.2 0.0 0.1 0.1 0.0
United Kingdom 0.6 0.0 -100.0 0.0 0.2 100.0
Italy 10.0 0.0 -100.0 0.0 0.0 0.0
Total 10.8 0.2 -98.1 0.1 0.3 200.0
1509.10.00 Virgin olive oil
Germany 0.0 0.0 0.0 0.0 0.1 100.0
Argentina 139.0 26.1 -81.2 26.1 9.2 -64.8
Bolivia 0.0 0.0 0.0 0.0 36.8 100.0
United States 0.1 0.1 0.0 0.1 0.1 0.0
Spain 201.0 347.4 72.8 308.4 309.7 0.4
France 0.2 0.3 50.0 0.3 0.1 -66.7
Greece 14.0 13.8 -1.4 13.8 6.9 -50.0
Israel 118.0 0.0 -100.0 0.0 0.1 100.0
Italy 0.0 186.7 100.0 178.2 155.6 -12.7
Lebanon 0.0 0.1 100.0 0.0 0.7 100.0
Morocco 0.0 9.5 100.0 9.5 0.0 -100.0
Portugal 0.0 15.7 100.0 14.4 32.7 127.1
Syria 0.0 0.0 0.0 0.0 5.4 100.0
Turkey 0.0 0.0 0.0 0.0 17.1 100.0
Total 472.3 599.7 27.0 550.8 574.5 4.3
1509.90.00 Other olive oils
Germany 0.1 0.0 -100.0 0.0 0.0 0.0
Argentina 80.0 182.3 127.9 172.1 92.1 -46.5
United States 0.7 0.5 -28.6 0.5 0.6 20.0
Spain 306.0 274.3 -10.4 259.3 219.1 -15.5
France 0.0 0.3 100.0 0.3 0.0 -100.0
Netherlands 1.0 0.0 -100.0 0.0 0.0 0.0
United Kingdom 1.0 0.1 -90.0 0.1 0.6 500.0
Italy 8.0 47.6 495.0 47.6 19.8 -58.4
Portugal 0.0 8.5 100.0 6.2 10.9 75.8
Total 396.8 513.6 29.4 486.1 343.1 -29.4
1510.00.00 Other oils obtained solely from olives
Spain 0.0 0.4 100.0 0.4 4.4 1,000.0
1511.10.00 Crude palm oil
Colombia 0.0 83.8 100.0 83.8 0.0 -100
1511.90.00 Other palm oils
Ecuador 44.0 208.2 373.2 186.8 0.0 -100.0
United States 0.4 496.4 124,000.0 0.0 0.0 0.0
Italy 2.0 0.0 -100.0 0.0 0.0 0.0
Total 46.4 704.6 1,418.5 186.8 0.0 -100.0G/SG/N/8/CHL/1
G/SG/N/10/CHL/1
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1997 1998 Var. 98/97 Jan-Nov 98 Jan-Nov 99 Var. Jan-Nov 99
Jan-Nov 98
Country Tonnes Tonnes % Tonnes Tonnes %
1512.11.10 Crude sunflower-seed oil
Argentina 66,459.0 75,684.8 13.9 70,667.3 53,740.4 -24.0
United States 0.0 0.5 100.0 0.4 1.0 150.0
Spain 0.2 0.0 -100.0 0.0 0.0 0.0
Total 66,459.2 75,685.3 13.9 70,667.7 53,741.4 -24.0
1512.19.10 Other sunflower-seed oils
Argentina 11,214.0 13,878.8 23.8 12,630.7 9,745.7 -22.8
Bolivia 672.0 894.7 33.1 889.2 415.9 -53.2
United States 3.0 0.0 -100.0 0.0 0.0 0.0
France 0.0 0.0 0.0 0.0 1.4 100.0
Italy 0.0 0.6 100.0 0.6 0.0 -100.0
Mexico 1.0 0.0 -100.0 0.0 0.0 0.0
Uruguay 0.0 0.0 0.0 0.0 0.9 100.0
Total 11,890.0 14,774.11 24.3 13,520.5 10,163.9 -24.8
1512.21.00 Crude cotton-seed oil, without gossypol
Argentina 54.0 0.0 -100.0 0.0 0.0 0.0
Paraguay 0.0 0.0 0.0 0.0 210.0 100.0
Total 54.0 0.0 -100.0 0.0 210.0 100.0
1512.29.00 Other cotton-seed oils
Argentina 1,008.0 349.2 -65.4 138.6 211.3 52.5
Paraguay 125.0 225.0 80.0 225.0 0.0 -100.0
Total 1,133.0 574.2 -49.3 363.6 211.3 -41.9
1513.11.00 Crude coconut oil
Germany 0.4 0.4 0.0 0.4 0.6 50.0
Argentina 0.4 0.0 -100.0 0.0 0.2 100.0
United States 1,048.0 574.3 -45.2 574.3 0.0 -100.0
Philippines 150.0 0.0 -100.0 0.0 0.0 0.0
Indonesia 345.0 0.0 -100.0 0.0 0.0 0.0
Malaysia 36.0 18.2 -49.4 18.2 0.0 -100.0
Paraguay 100.0 725.0 625.0 600.0 406.0 -32.3
Total 1,679.8 1,317.9 -21.5 1,192.9 406.8 -65.9
1513.19.00 Other coconut oils
Germany 0.0 9.3 100.0 4.3 6.1 41.9
Argentina 0.2 0.8 300.0 0.6 0.0 -100.0
United States 4.0 20.2 405.0 20.2 21.1 4.5
India 0.3 0.0 -100.0 0.0 0.0 0.0
Israel 0.0 0.0 0.0 0.0 0.6 100.0
Italy 1.5 0.0 -100.0 0.0 0.0 0.0
Malaysia 0.0 18.2 100.0 0.0 18.2 100.0
Total 6.0 48.5 708.3 25.1 46.0 83.3
1513.21.00 Crude palm kernel oil
Germany 0.0 0.0 0.0 0.0 0.2 100.0
Paraguay 50.0 0.0 -100.0 0.0 0.0 0.0
Singapore 91.0 0.0 -100.0 0.0 0.0 0.0
Total 141.0 0.0 -100.0 0.0 0.2 100.0
1513.29.00 Other palm kernel oils
Germany 0.0 1.5 100.0 1.5 0.0 -100.0
Colombia 0.0 43.1 -100.0 43.1 0.0 -100.0
Ecuador 1,329.0 771.8 -41.9 505.4 1,537.1 204.2
United States 0.2 500.4 250,100.0 500.4 0.0 -100.0
France 0.7 0.0 -100.0 0.0 0.0 0.0
Indonesia 0.0 46.5 100.0 46.5 0.0 -100.0
Malaysia 205.0 1,962.8 857.5 1,962.8 0.0 -100.0
Singapore 255.0 0.0 -100.0 0.0 0.0 0.0
Total 1,789.9 3,326.1 85.8 3,059.7 1,537.6 -49.7G/SG/N/8/CHL/1
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Page 8
1997 1998 Var. 98/97 Jan-Nov 98 Jan-Nov 99 Var. Jan-Nov 99
Jan-Nov 98
Country Tonnes Tonnes % Tonnes Tonnes %
1514.10.00 Crude rape oil
Canada 0.0 1,998.9 100.0 1.5 0.0 -100.0
France 0.0 0.0 0.0 0.0 0.2 100.0
Total 0.0 1,998.9 100.0 1,998.9 0.2 -100.0
1515.21.00 Crude maize oil
Argentina 3.0 0.0 -100.00 0.0 25.3 100.0
1515.29.00 Other maize oils
Argentina 42.0 141.1 236.0 134.0 113.0 -15.7
Brazil 0.0 3.0 100.0 0.0 82.4 100.0
United States 343.0 545.2 59.0 432.8 90.1 -79.2
Total 385.0 689.3 79.0 566.8 285.5 -49.6
1515.50.00 Sesame oil
China 0.6 1.0 66.7 1.0 0.0 -100.0
Korea 0.3 0.0 -100.0 0.0 0.0 0.0
United States 1.0 1.4 40.0 1.3 1.0 -23.1
France 0.0 0.1 100.0 0.1 0.0 -100.0
United Kingdom 1.0 0.0 -100.0 0.0 0.8 100.0
Mexico 0.1 0.0 -100.0 0.0 0.0 0.0
Switzerland 0.0 0.2 100.0 0.2 0.0 -100.0
Thailand 0.7 0.0 -100.0 0.0 0.0 0.0
Taiwan 0.4 0.0 -100.0 0.0 0.0 0.0
Total 4.1 2.7 -34.1 2.6 1.8 -30.8
1515.90.00 Other vegetable fats and oils
Germany 3.0 0.4 -86.7 0.4 0.4 0.0
Argentina 1,718.0 927.0 -46.0 898.2 879.9 2.0
Brazil 0.0 1.1 100.0 1.1 0.0 -100.0
United States 2.0 5.9 195.0 5.9 11.4 93.2
Spain 0.0 0.1 100.0 0.1 0.2 100.0
France 2.0 0.8 -60.0 0.7 0.5 -28.6
United Kingdom 2.0 0.0 -100.0 0.0 0.7 100.0
Paraguay 525.0 0.0 -100.0 0.0 125.0 100.0
Syria 0.0 0.0 0.0 0.0 1.8 100.0
Thailand 0.0 0.0 0.0 0.0 0.1 100.0
Uruguay 0.0 0.0 0.0 0.0 0.6 100.0
Venezuela 0.0 0.1 100.0 0.1 0.0 -100.0
Total 2,252.0 935.4 -58.5 906.5 1,020.4 12.6
Source:  Market access, DIRECON.G/SG/N/8/CHL/1
G/SG/N/10/CHL/1
Page 9Tonnes Imported by Origin
Oils (1507.1000 and 1512.1110)
Soya-Bean Oil (1507.1000)
1997 1998 Jan-Oct/1998 Jan-Oct/1999 % Variation
Origin Tonnes % Share Tonnes % Share Tonnes % Share Tonnes % Share 1998/1997Jan-Oct
(99/98)
Argentina 57,213 100 77,109 100 61,019 100 45,389 100 -26 35
P a r a g u a y 0 0 2 5 0 2 5000 - 1 0 0
Bolivia 168 0 0 0 0 0 0 0 0 -100
Total 57,381 100 77,134 100 61,044 100 45,389 100 34 -26
Sunflower-Seed Oil (1512.1110)
1997 1998 Jan-Oct/1998 Jan-Oct/1999 % Variation
Origin Tonnes % Share Tonnes % Share Tonnes % Share Tonnes % Share 1998/1997Jan-Oct
(99/98)
Argentina 66,459 116 75,685 98 62,355 102 48,868 108 -22 14
Total 66,459 116 75,685 98 62,355 102 48,868 108 -22 14
Total (1505.1000 and 1512.1110)
1997 1998 Jan-Oct/1998 Jan-Oct/1999 % Variation
Origin Tonnes % Share Tonnes % Share Tonnes % Share Tonnes % Share 1998/1997Jan-Oct
(99/98)
Argentina 123,672 100 152,794 100 123,373 100 94,257 100 -24 24
P a r a g u a y 0 0 2 5 0 2 5000 - 1 0 0
Bolivia 168 0 0 0 0 0 0 0 -100
Total 123,840 100 152,819 100 123,399 100 94,258 100 23 -24
Source:  Prepared by the Technical Secretariat.
__________