G/SG/N/6/CHL/15  
 
6 June 2013  
(13-2940)  Page: 1/2  
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 
CHILE 
(Frozen Pork) 
The following communication, dated 4 June 2013, is being circulated at the request of the 
delegation of Chile. 
 
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1  Date of initiation of investigation  
31 May 2013. 
 2  Date and place of publication notice 
 
Official Journal of the Republic of Chile, 31 May 2013.
1 
 3  Product involved 
 
Frozen meat of swine. Tariff headings: Ch ilean Harmonized System (SACH) 0203.2200; 
0203.2910; 0203.2920. 
 
4  Reasons for initiating the investigation  
The request for investigation was submitted by Asociación Gremial de Productores de Cerdos 
de Chile  –  ASP R OCER  whic h, ac c ord in g  to the  re que s t, is  mad e  up  of larg e , me d ium a nd  s mall  
producers, with a total of 36 enterprises represen ting 89% of the country's total pork production. 
 
Evidence on the basis of which the investigation was initiated: 
 (a) Analysis of imports  
 
Imports of frozen pork totalled 9,805 tonnes during the period January–April 2013, an increase of 58.9% compared to imports for the same period in 2012. In 2012, 
imports totalled 18,741 tonnes, an increase of 35.3% over 2011.  
 The ratio of imports and domestic production of carcasses reached 4.8% in 2012, i.e. an increase 
of 34.9% over the 3.9% recorded in 2011. 
 
                                               
1 A copy of the public notice of initiation of the investigation 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/15 
 
- 2 - 
 
  (b) Injury and causal link 
 Injury and threat of injury 
 
The complainants point out that the rapid increase in imports of frozen pork have caused injury, 
and will continue to do so, for two complementary reasons. On the one hand, prices are decreasing, or it is impossible to raise them, which in either case results in lower income for the 
industry; and on the other hand, the imports result in a decline in the domestic industry's 
market share.   Thus, the estimated loss for 2012 is US$78.2 million (US$30 million due to the price decrease 
and US$48.2 million due to loss of market share). Assuming that imports continue to grow at an 
average rate of 63% per year, which would result in an average decrease in the domestic price 
of pork of 6%, losses are estimated at US$132.6 million for 2013 and US$186.4 million for 2014. 
 
Injury and causality indicators 
 
During the first quarter of 2013, the domestic market price of "compensated" cuts of pork fell 
by 4.1% in pesos. The decrease in 2012 in comparison to 2011 was 4.3% in pesos, while in 2011 prices had increased by 13.5% in pesos compared to 2010.  
During the period January-March 2013, production costs fell by 1.9% compared to the previous 
year, chiefly owing to the decrease in the cost of feed, and in slaughterhouse and meat-cutting 
losses. In 2012, costs rose 2.5% over 2011, chiefly owing to an increase in slaughter costs, 
losses and administrative costs. In 2011, costs in creased by 12.8% compared to 2010, essentially 
owing to the increase in the cost of feed.  
The share of imports in apparent consumption, measured in tonnes of carcases, reached 6.7% 
in 2012, i.e. an increase of 29.5% compared to 2011. Between 2008 and 2011, that figure had increased from 1.2% to 5.2%.   
The correlation coefficient between the domest ic price of boneless leg and import prices 
of deboned pork (which includes other products besides boneless leg), frozen, for the period from January 2010 to March 2013, is 0.61. 
 
Regarding the domestic price levels for boneless cuts and the import prices for the tariff item corresponding to other frozen deboned meat, import prices are below the domestic prices. 
 
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 due 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 Secr etariat 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.  
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