G/SG/N/6/CHL/14  
G/SG/N/8/CHL/6  
23 April 2013  
(13-2136)  Page: 1/3  
Committee on Safeguards  Original: Spanish  
 
  NOTIFICATION UNDER ARTICLE 12.1(A) OF THE AGREEMENT 
ON SAFEGUARDS ON INITIATI ON OF AN INVESTIGATION 
AND THE REASONS FOR IT 
NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON 
SAFEGUARDS ON FINDING A SERIOUS INJURY OR THREAT 
THEREOF CAUSED BY INCREASED IMPORTS 
CHILE 
(Maize) 
The following communication, dated 19 April 2013, is being circulated at the request of the 
delegation of Chile. 
 
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1  Date of initiation of investigation  
9 April 2013. 
 2  Date and place of publication notice  
Official Journal of the Republic of Chile, 9 April 2013.
1 
 3  Product involved: Maize. Tariff headings 
 
Chilean Harmonized System (SACH) 1005.9020 and 1005.9090.  
4  Reasons for initiating the investigation 
 The request for investigation was submitted by Asociación Gremial Agrícola Central; Asociación Gremial de Productores de Maíz del Maule Sur - MAIZMAULESUR A.G.; 
Asociación Gremial de Agricultores del Ñuble; Consorcio de Sociedades Agrícolas del Sur 
Federación Gremial - CONSORCIO AGRÍCOLA DEL SUR F.G.; Corporación Movimiento Unitario Campesino y Etnias de Chile - MUCECH; and by individual farmers in applications 
dated 15 and 21 March 2013. 
 The applicants maintain that they represent all the farmers from the VI to the XIV region, which 
corresponds to 75,742 hectares planted to maize and 458,169 tonnes produced, i.e. 68.7% 
and 53.6% of the respective national totals.  
                                               
1 A copy of the notice published in the Official Jo urnal on 9 April 2013 was submitted in electronic form. 
To view this document, please contact Mrs Budd ( hilary.budd@wto.org ) or Mrs Naville 
(delphine.naville@wto.org ) in the Rules Division. G/SG/N/6/CHL/14 • G/SG/N/8/CHL/6 
- 2 - 
  Evidence on the basis of which the investigation was initiated: 
 (a) Analysis of imports  
Total imports of grain maize rose by 31.1% in 2012, compared to an increase of 11.1% in 2011. 
 The ratio of grain maize imports to domestic production was 62.6% en 2012, i.e. an increase 
of 29.6%. 
 (b) Injury and causal link  
Injury and threat of injury 
 
The complainants submit that the reference price for the grain maize market is the Gulf of Mexico 
price, plus the costs involved in importing the grain and delivering it to the animal feed industry's 
facilities, and that since harvesting in Chile is concentrated over a two-month period and storage and financial costs are unavoidable, the anticipated domestic price is the alternative cost indicated 
minus a 10% discount. Hence, any discount that drives the producer price in April below the figure 
calculated is considered to constitute injury to the domestic industry.  The complainants maintain that freight and other costs relating to imports from Argentina and 
Paraguay are only 4% lower than those involved in importing from the United States, which does 
not explain the difference in price of the im ports from the former exporting countries. 
 
In view of the foregoing, the complainants argue that the injury to producers stems from the price 
gap between the cost of importing from Arge ntina and Paraguay and the alternative cost 
of importing at the Gulf of Mexico price. 
 
The complainants submit that, if the requested measures are not applied, the increase in imports will lead to excess supply which "will cause a significant number of maize producers to cease their activity as a result of the negative profitability of the business …". 
 
Injury and causality indicators 
 
In 2012, domestic maize prices in pesos, UF (development units) and dollars were down 
by 1.6%, 5.0% and 2.3%, respectively, compared to 2011.  
According to the latest information provided by the complainants, production costs for a small 
producer amount to $1,763,640 per hectare planted, increasing to $2,064,029 per hectare for medium and large producers.  
In 2012, domestic maize production rose 1.2% over the figure for the previous year, whereas it 
increased by 9.3% and 0.1%, respectively, in 2011 and 2010.  
Apparent domestic consumption of grain maize rose by 7.9% in 2012, down from a 10.8% 
increase the previous year.  
Installed capacity for maize production is the planted acreage, which is estimated 
at 116,323 hectares for the 2012/2013 season, i.e. a 5.5% increase over the planted area in the 2011/2012 season.  
According to the Office for Agricultural Research and Policy ( Oficina de Estudios y Políticas 
Agrarias , ODEPA) attached to Chile's Ministry of Agriculture, yield per hectare declined by 5.9% 
in 2012. The information provided by the complainan ts, however, shows that yields for the various 
types of producer have remained unchanged over the past three years. 
 The complaint states that the losses incurred by small producers this past season 
reached $4,884 million, while medium producers suffered losses of $14,000 million. No mention is 
made of the situation of large producers.  According to the complainants, the margin of loss suffered by small producers this season amounts 
to $509,640 per hectare, exceeding the previous season's loss margin by 55.2%, while that of G/SG/N/6/CHL/14 • G/SG/N/8/CHL/6 
- 3 - 
  medium and large producers this season is $480,0 29 per hectare, exceeding the previous season's 
margin by 71.8%.  The share of grain maize imports in apparent consumption reached 40.1% in 2012, up by 21.6% 
compared to 2011. 
 The average import price of grain maize recorded in 2012 was US$297 per tonne, i.e. a 6.9% 
decrease compared to US$319 per tonne in 2011. 
 For the period January 2009 - February 2013, the linear correlation coefficient between the domestic mill gate price and the average import price of grain maize was 0.93%. 
 
5  Contact point for the investigation  
Technical Secretariat, National Commission responsible for investigating the existence of 
distortions in the price of imported goods:  
Morandé 115, 1º piso, Banco Central de Chile 
Tel.: 2670 2564 Fax: 2670 2419 E-mail: sectec@bcentral.cl  
 
6  Deadlines and procedures for importers, exporters and other interested parties to 
present evidence and their views 
 
Registration as an interested party, any background information that interested parties may wish to submit in writing, any requests, and generally speaking any information concerning the conduct 
of the investigation must be submitted in du e time to the contact point indicated above. 
 The date, place and time of the public hearing will be decided by the Commission at least 15 days ahead of time. Not only will the date be posted on the Commission's website within three days 
of its having been set, but the Technical Secret ariat will also send a copy of the summons by 
registered letter and e-mail to the applicants and to those taking part in the investigation.  
A copy of the public notice of initiation of the investigation is attached. 
 
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