G/SG/N/7/CHL/11  
G/SG/N/11/CHL/8  
23 April 2013  
(13-2146)  Page: 1/3  
Committee on Safeguards  Original: Spanish  
 
  NOTIFICATION UNDER ARTICLE 12.4 OF THE AGREEMENT ON SAFEGUARDS 
BEFORE TAKING A PROVISIONAL SAFEGUARD MEASURE 
REFERRED TO IN ARTICLE 6 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2 
OF THE AGREEMENT ON SAFEGUARDS 
CHILE 
(Maize) 
The following communication, dated 19 April 2013, is being circulated at the request of the 
delegation of Chile.  
_______________ 
  
1. Product involved: Maize. Tariff headings: 
 Chilean Harmonized System (SACH) 1005.9020 and 1005.9090.  
 
2. Proposed measure:  Tariff surcharge of 9.7%.  
 
3. Proposed date of introduction of the measure:  
In the coming days.  
 4. Grounds for application of the measure: 
 
(a) Injury and Causal Link  Injury and threat of injury 
 The data relating to costs, yields and acreage planted to maize for the 2011/2012 season, provided by the Office for Agricultural Research and Policy ( Oficina de Estudios y Políticas 
Agrarias , ODEPA) attached to Chile's Ministry of Agriculture, point to a margin of loss per tonne 
produced ranging from $6,687 to $17,782 depending on whether production is considered to have been sold at the average price for 2012 ($139,162/to nne) or at the average price recorded during 
the 2012 harvest (April-June, $128,067/tonne).
1 
 The aforementioned margins per tonne produced show that domestic maize producers suffered aggregate losses of between $9,213 million and $24,503 million in 2012. 
 
                                               
1 The $ sign in this notification refers to Chilean pesos. G/SG/N/7/CHL/11 • G/SG/N/11/CHL/8 
- 2 - 
  Based on data relating to costs, yields and acreage sown to maize for the 2012/2013 season and 
the price prevailing in Chile in the week of 8 April 2013 ($124,000/tonne), the anticipated margin 
of loss per tonne produced is $28,821, while aggregate losses for the 2013 harvest are estimated at $42,444 million. It is important to note that maize futures prices at May 2013 fell by 12% in the 
past week. 
 The share of Argentine grain maize imports in apparent consumption reached 20.9% in 2012, up 
by 20.8% compared to 2011. This rise in imports at prices lower than those of other exporting 
countries is the reason behind the decline in the domestic price paid to local producers.  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. 
 (b) Existence of critical circumstances 
 
The available facts support a finding of critical ci rcumstances for the domestic industry due to the 
increase in maize imports, which have caused and threaten to cause further serious injury to 
domestic producers. The situation is worsening as the domestic maize harvest advances. 
 In 2012, imports from Argentina amounted to 453,720 tonnes, i.e. an increase of 30.3% over the previous year's figure. 
 
The ratio of Argentine imports to domestic production was 32.5%, i.e. an increase of 28.8%.  
5. Major exporting Members of imports of the product involved: 
 Argentina 
Paraguay 
 6. Countries not subject to the measure:  
The Commission decided to exclude the following from the application of the provisional 
safeguard measure:  
 imports from Brazil, Bolivia, Peru and Turkey , in accordance with Article 9.1 of the 
WTO Agreement on Safeguards;  
 imports from the United States, since they consist of maize for producing popcorn and 
therefore do not compete with domestic maiz e; moreover, these imports are insignificant 
in terms of apparent consumption, at a price that far exceeds the average price of imports, and hence have no impact on the price of domestic maize; 
 
 imports from France, since they consist of seed and therefore do not compete with the 
domestic product either, as their price is mu ch higher than those of the other imports; 
furthermore, imports from France amounted to only 5 kg in 2012; and 
 
 imports from Paraguay and Uruguay, since their prices are higher than those of maize 
from Argentina, and therefore cannot be said to account for the injury being suffered by 
the domestic industry. 
7. Offer of consultations under Article 12.4 
 
In accordance with Article 12.4 of the Agreement on Safeguards, Chile is prepared to hold 
consultations on the provisional safeguard measure, once the measure has been adopted, with those Members having a substantial interest as exporters of the subject product. 
 G/SG/N/7/CHL/11 • G/SG/N/11/CHL/8 
- 3 - 
  NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2 
OF THE AGREEMENT ON SAFEGUARDS 
Imports from developing country Members shall not be subject to the proposed provisional 
safeguard measure as long as each Member's imports do not exceed 3% of total imports into Chile 
and the share of Members with less than 3% impo rt share do not collectively account for more 
than 9% of total imports into Chile.  
__________