WORLD TRADE  
ORGANIZATION  G/STR/N/12/CHL 
6 August 2008 
 (08-3726) 
Working Party on State Trading Enterprises Original:   Spanish 
  
 
STATE TRADING 
 
New and Full Notification Pursuant to
 
Article XVII:4(a)of the GATT 1994  
 
CHILE 
   The following communication, dated 14 July 2008, is being circulated at the request of the delegation of Chile. 
 
_______________ 
 
  In accordance with Article XVII of the GATT 1994 and paragraph 1 of the Understanding on 
the Interpretation of that Article, the Gove rnment of Chile hereby notifies the entity 
"Comercializadora de  Trigo S.A . (COTRISA)" as a joint stock co mpany in which the State has a 
majority interest, and which currently focuses its activities on supplying market information and services in the area of grain storage, packagi ng and quality certification, as well as on developing 
links between small and medium grain producers and the industries that require grain as a raw 
material. 
 
 Thus, although the company has the authorit y to intervene in the wheat market for 
institutional purchases when the transaction price is lower than the price that would exist in a 
competitive market, and when the intervention cost is  lower than the profits, its functioning has been 
based on exclusively commercial considerations and its  intervention has had no effect whatsoever on 
the level or direction of imports and exports of th e tradable goods within its sphere of operation. 
 
 We submit herewith our replies to th e questionnaire in document G/STR/3/Rev.1. G/STR/N/12/CHL 
Page 2  
 
  I. ENUMERATION OF STATE TRADING ENTERPRISES 
A. I
DENTIFICATION OF STATE TRADING ENTERPRISES  
 The Chilean State has a majority in terest in the joint stock company Comercializadora de 
Trigo S.A . (COTRISA). 
 
B. DESCRIPTION OF PRODUCTS AFFECTED (INCLUDING TARIFF ITEM NUMBER (S) ENCOMPASSED 
IN PRODUCT DESCRIPTION ) 
COTRISA's corporate purpose enables it to deal mainly in the following products: 
  - Wheat (HS No. 10)
1 
 - Maize (HS No. 10)2 
 - Rice (HS No. 10)3 
 - and other cereals (rape, barley, rye and lupine)  
II. REASON AND PURPOSE 
A. R
EASON OR PURPOSE FOR ESTABLISHING AND /OR MAINTAINING STATE TRADING 
ENTERPRISE  
The enterprise's mission is to intervene in th e wheat market when the transaction price is 
lower than the price that would exist in a competitiv e market, and when the intervention cost is lower 
than the profits.  It also provid es cereal packaging and storage services for sectoral agents that need to 
respond to current health and quality requ irements established by the food industry. 
B. SUMMARY OF LEGAL BASIS FOR GRANTING THE RELEVANT EXCLUSIVE OR SPECIAL RIGHTS 
OR PRIVILEGES , INCLUDING LEGAL PROVISIONS AND SUMMARY OF STATUTORY OR 
CONSTITUTIONAL POWERS  
 COTRISA S.A. is a joint stock company incorporated through a document drawn up by a 
notary on 16 November 1986.  It is  governed by the provisions of Law No.18.046 on Joint Stock 
Companies, the Regulations thereto, and by the provi sions set forth in its Articles of Incorporation and 
subsequent amendments.   The company's purpose is to "buy, sell, package, store, transport, distribute, deliver and trade, 
on its own account or on behalf of  others, all types and grades of wheat and other cereals, and in 
general, to carry out all transactions that may be necessary or conducive to its corporate purpose." 
 
 Its budget and strategic plan for 2008 are designed to achieve the following strategic objectives:   1. Act as a market stabilization tool, optimizing the costs of the State's presence in its 
subsidiary role in the domestic grain market; 
 
                                                     
 
1 Including the following products:  1001.1000 (Durum wheat), and 1001.9000 (Other). 
2 Including the following products:  1005.1010 (for sowing, hybrids);  1005.1090 (for sowing, other);  
and 1005.9600 (Other). 
3 Including the following products:  1006.1000 (Paddy rice), 1006.2000 (Husked rice), 1006.3010 
(Milled and semi-milled rice of a broken grain content by weight not exceeding 5 per cent);  1005.3020 (Milled and semi-milled rice, whether or not polished or glazed, of a broken grain content by weight of more than 5 per 
cent but not exceeding 15 per cent );  1005.30 90 (Other);  and 1006.4000 (Broken rice).  G/STR/N/12/CHL 
 Page 3 
 
 
   2. cooperate in ensuring the transparent functioning of the domestic grain market; 
  3. contribute to the improvement of the marketing conditions of the productive segment, 
in particular small and medium grain producers. 
 
 The company's duration is indefinite. 
 
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE 
A. S
UMMARY STATEMENT PROVIDING OVERVIEW OF THE OPERATIONS OF THE STATE TRADING 
ENTERPRISE  
From a commercial point of view COTRISA, operating from three plants, is essentially a 
company that supplies grain packaging and storage services. 
 The services most commonly offered  in its th ree plants are the management of purchases;  
the unloading of grain;  drying;  storage;  transf er of cargo from the railway to trucks;  bagging and 
loading onto trucks;  pre-washing of grain and weighing of cereal loaded onto trucks. 
 Notwithstanding the above, taking advantage of the equipment of the Central Laboratory, of 
the information which it is constantly collecting an  processing, and of the know how of its staff, 
COTRISA has undertaken activities in other services areas, such as grain quality certification, the 
supply of information and analyses concerning the do mestic and international grain markets, as well 
as studies and specialized information. 
B. SPECIFICATION OF EXCLUSIVE OR SPECIAL RIGHTS OR PRIVILEGES ENJOYED BY THE STATE 
TRADING ENTERPRISE  
 COTRISA enjoys no special privileges.  Its operations are governed by Law No. 18.046 on 
Joint Stock Companies and by the Regulations thereto.  C. T
YPE OF ENTITIES OTHER THAN THE STATE TRADING ENTERPRISE THAT ARE ALLOWED TO 
ENGAGE IN IMPORTATION /EXPORTATION AND CONDITIONS FOR PARTICIPATION  
 The Constitution of the Republic lays down the ri ght of citizens to engage in any type of 
economic activity.  The institutional procedures gover ning the conduct of foreign trade are set out in 
the Constitution, specifically in Organic Law No. 18.840 on the Central Bank.  There is also Law No. 18.525 on Rules for the Import of Goods a nd the Compendium of International Exchange 
Rules of the Central Bank. 
 
 Thus, any registered taxpayer may become an  exporter.  To formalise the export process, 
exporters must resort to the services of a customs broker to submit the single export form 
electronically on their behalf.  Once the form has been accepted by the customs authorities, exports 
must be shipped within 25 days. 
 
 The same applies to imports.  There are no import restrictions whatsoever, and the formalities are carried out through a customs broker.  D. H
OW IMPORT /EXPORT LEVELS ARE ESTABLISHED BY THE STATE TRADING ENTERPRISE  
COTRISA's activities do not currently include export or import transactions. 
 G/STR/N/12/CHL 
Page 4  
 
  E. H
OW EXPORT PRICES ARE DETERMINED  
 Under the present national legislation goods may be freely exported or imported to and from 
the country, so that private traders make their own decisions freely.   More specifically, to date, COTRISA has exported on only one occasion, and the export 
prices were set by public tender. 
 F. H
OW THE RESALE PRICES OF THE IMPORTED PRODUCTS ARE DETERMINED  
 See the answer to question E.  To date, COTRISA has conducted no import transactions. 
 
G. WHETHER LONG-TERM CONTRACTS ARE NEGOTIATED BY THE STATE TRADING ENTERPRISE .  
WHETHER THE STATE TRADING ENTERPRISE IS USED TO FULFIL CONTRACTUAL 
OBLIGATIONS ENTERED INTO BY THE GOVERNMENT  
 COTRISA does not negotiate long-term contracts or carry out transactions to fulfil 
contractual obligations entered into by the Government. 
 
H. BRIEF DESCRIPTION OF MARKET STRUCTURE  
 COTRISA's activities form an integral part of the country's agricultural economy, in 
particular the production and mark eting chain for grain, which mainly extends from the Metropolitan 
Region to the Los Lagos Region.  
 Structure of the domestic market   
 The domestic market in which COTRISA operates is made up of some 90,000 wheat 
producers of different sizes.  They deliver their pr oducts to the milling industry, where the industrial 
products derived from this commodity are processed. 
 
 In addition, the milling industry imports wheat  to build up stocks for subsequent processing 
and marketing.  
Nature of competition 
 
 The market in which COTRISA operates is govern ed by the laws of free market competition. 
 
IV. STATISTICAL INFORMATION 
 See tables I to III (attached). 
 V. REASONS WHY NO FOREIGN TRADE HAS TAKEN PLACE (AS APPROPRIATE)  
 Although COTRISA has not been involved, there is foreign trade in the three products dealt 
in by COTRISA.  
VI. ADDITIONAL INFORMATION (AS APPROPRIATE)  
 There is no additional information.  
   G/STR/N/12/CHL
 Page 5TABLE I  
STATE TRADING:  COTRISA 
STATISTICAL INFORMATION, IMPORTS 
 
Description of 
product(s) 
(including HS No.) Crop 
year Total quantity 
imported Quantity imported 
by State trading 
enterprise Average 
import price 
(4) Average 
representative 
domestic sales price 
(US$/tonnes) Mark-up (5) National 
productio
n (tonnes) 
2000  499,912 0 --- 130 --- 1,492,710 
2001  245,588 0 --- 142 --- 1,780,157 
2002  311,034 0 --- 140 --- 1,820,387 
2003  484,678 0 --- 158 --- 1,797,084 
2004  227,580 0 --- 186 --- 1,921,652 
2005  190,892 0 --- 174 --- 1,851,940 
2006  1,029,017 0 --- 169 --- 1,403,689 WHEAT - 10.01 (1)  
2007  1,086,320 0 --- 261 --- 1,322,357 
        
Description of 
product(s) 
(including HS No.) Crop 
year Total quantity 
imported Quantity imported 
by State trading 
enterprise Average 
import price 
(4) Average 
representative 
domestic sales price 
(US$/tonnes) Mark-up (5) National 
productio
n (tonnes) 
2000  1,220,044 0 --- 104 ---  652,019 
2001  1,271,338 0 --- 105 ---  778,498 
2002  1,163,939 0 --- 111 ---  924,211 
2003  1,011,667 0 --- 119 --- 1,189,729 
2004  984,688 0 --- 139 --- 1,320,606 
2005  1,127,267 0 --- 123 --- 1,507,766 
2006  1,746,538 0 --- 139 --- 1,381,894 MAIZE - 10.05 (2)  
2007  1,764,220 0 --- 202 --- 1,557,087 
         
  G/STR/N/12/CHL 
Page 6 Description of 
product(s) 
(including HS No.) Crop 
year Total quantity 
imported Quantity imported 
by State trading 
enterprise Average 
import price 
(4) Average 
representative 
domestic sales price 
(US$/tonnes) Mark-up (5) National 
productio
n (tonnes) 
2000  68,023 0 --- 294 ---  135,060 
2001  91,353 0 --- 251 ---  143,261 
2002  76,666 0 --- 256 ---  141,927 
2003  137,550 0 --- 243 ---  140,849 
2004  89,515 0 --- 279 ---  119,265 
2005  93,226 0 --- 341 ---  116,832 
2006  103,087 0 --- 332 ---  160,615 RICE  - 10.06 (3)  
2007  112,314 0 --- 416 ---  140,075 
 
Source :  DECOEX, based on information from COTRISA, ODEPA and the Central Bank. 
 
(1) Including the following products:  1001.1000 Durum wheat 
 1001.9000 Other 
(2) Including the following products: 1005.1010 For sowing 
 1005.1090 For sowing, other 
  1005.9000 Other 
(3) Including the following products: 1006.1000 Paddy rice  
  1006.2000 Husked rice 
  1006.3010 Milled and semi-mil led rice of a broken grain content by weight not exceeding 5 per cent 
  1006.3020 Milled and semi-mille d rice, whether or not polished or glazed, of a br oken grain content by weight of more than 5 pe r cent but 
not exceeding 15 per cent 
  1006.3090 Other 
  1006.4000 Broken rice 
(4) Not applicable as the State trading en terprise does not enga ge in importation. 
(5) Idem .  
   G/STR/N/12/CHL
 Page 7TABLE II  
STATE TRADING:  COTRISA 
STATISTICAL INFORMATION, EXPORTS 
 
Description of 
product(s) 
(including HS No.) Crop year Total quantity 
exported Quantity 
exported by 
State trading 
enterprise Average 
procurement price Average 
representative 
domestic price 
(US$/tonnes) Average export 
price (4) National 
production 
(tonnes) 
2000  7 0 157 130 ---  1,492,710 
2001  7  0 214 142 ---  1,780,157 
2002  20 0 12.3 140 ---  1,820,387 
2003  35 0 --- 158 ---  1,797,084 
2004  66 0 --- 186 ---  1,921,652 
2005  9 0 --- 174 ---  1,851,940 
2006  12 0 --- 169 ---  1,403,689 WHEAT - 10.01 (1)  
2007  26 0 --- 261 ---  1,322,357 
        
Description of 
product(s) 
(including HS No.) Crop year Total quantity 
exported Quantity 
exported by 
State trading 
enterprise Average 
procurement price Average 
representative 
domestic price 
(US$/tonnes) Average export 
price (4) National 
production 
(tonnes) 
2000  47,176 0 ---- 104 ---  652,019 
2001  50,921  0 ---- 105 ---  778,498 
2002  52,081 0 ---- 111 ---  924,211 
2003  56,313 0 ---- 119 ---  1,189,729 
2004  62,758 0 ---- 139 ---  1,320,606 
2005  58,911 0 ---- 123 ---  1,507,766 
2006  72,038 0 ---- 139 ----  1,381,894 MAIZE - 10.05 (2)  
2007  74,622 0 ---- 202 ----  1,557,087 
         
  G/STR/N/12/CHL 
Page 8 Description of 
product(s) 
(including HS No.) Crop year Total quantity 
exported Quantity 
exported by 
State trading 
enterprise Average 
procurement price Average 
representative 
domestic price 
(US$/tonnes) Average export 
price (4) National 
production 
(tonnes) 
2000  6 0 ---- 294 ---  135,060 
2001  16 0 ---- 251 ---  143,261 
2002  11 0 ---- 256 ---  141,927 
2003  659 0 ---- 243 ---  140,849 
2004  235 0 ---- 279 ---  119,265 
2005  6 0 ---- 341 ---  116,832 
2006  126 0 ---- 332 ---  160,615 RICE - 10.06 (3)  
2007  32 0 ---- 416 ---  140,075 
 
Source :  DECOEX, based on information from COTRISA, ODEPA and the Central Bank. 
 
(1) Including the following products: 1001.1000 Durum wheat  
  1001.9000 Other  
(2) Including the following products: 1005.1010 For sowing, hybrids 
1005.1090 For sowing, other   1005.9000 Other  
(3) Including the following products: 1006.1000 Paddy rice  
  1006.2000 Husked rice 
  1006.3010 Milled and semi-mil led rice of a broken grain content by weight not exceeding 5 per cent 
  1006.3020 Milled and semi-mille d rice, whether or not polished or glazed, of a br oken grain content by weight of more than 5 pe r cent but not 
exceeding 15 per cent 
  1006.3090 Other 
  1006.4000 Broken rice 
(4) Not applicable as the State trading en terprise does not enga ge in exportation. 
(5) The State trading enterprise made no purchases during the period indicated.  
   G/STR/N/12/CHL
 Page 9TABLE  III  
STATE TRADING:  COTRISA 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES 
 
Description of product(s) 
(including HS No.) Crop year Domestic purchases by 
State trading enterprise National 
production Domestic sales by State 
trading enterprise National consumption (4) 
(tonnes) 
2000  3,904  1,492,710  3,904  1,992,615 
2001  9,210  1,780,157  9,210  1,780,403 
2002  5  1,820,387  5  1,820,698 
2003 None  1,797,084   1,797,569 
2004 None  1,921,652   1,921,880 
2005 None  1,851,940   1,852,131 
2006 None  1,403,689   2,432,694 WHEAT - 10.01 (1)  
2007 None  1,322,357   2,408,651 
      
Description of product(s) 
(including HS No.) Crop year Domestic purchases by 
State trading enterprise National 
production Domestic sales by State 
trading enterprise National consumption (4) 
(tonnes) 
2000 None  652,019 0  1,824,887 
2001 None  778,498 0  2,049,836 
2002 None  924,211 0  2,088,150 
2003 None  1,189,729 0  2,201,396 
2004 None  1,320,606 0  2,305,294 
2005 None  1,507,766 0  2,635,033 
2006 None  1,381,894 0  3,056,394 MAIZE - 10.05 (2)  
2007 None  1,557,087 0  3,246,685 
       
  G/STR/N/12/CHL 
Page 10 Description of product(s) 
(including HS No.) Crop year Domestic purchases by 
State trading enterprise National 
production Domestic sales by State 
trading enterprise National consumption (4) 
(tonnes) 
2000 None  135,060 0  203,077 
2001 None  143,261 0  234,614 
2002 None  141,927 0  218,593 
2003 None  140,849 0  278,399 
2004 None  119,265 0  208,780 
2005 None  116,832 0  210,058 
2006 None  160,615 0  263,576 RICE - 10.06 (3)  
2007 None  140,075 0  252,357 
 
Source :  DECOEX, based on information from COTRISA, ODEPA and the Central Bank. 
 
(1) Including the following products:  1001.1000 Durum wheat   
  1001.9000 Other   
(2) Including the following products: 1005.1010 For sowing, hybrids   
  1005.1090 For sowing, other   
 1005.9000 Other   
(3) Including the following products:  1006.1000 Paddy rice  
  1006.2000 Husked rice 
  1006.3010 Milled and semi-mil led rice of a broken grain content by weight not exceeding 5 per cent  
  1006.3020 Milled and semi-milled rice , whether or not polished or glazed, of a broken grain content by weight of more than 5 pe r 
cent but not exceeding 15 per cent. 
  1006.3090 Other   
  1006.4000 Broken rice   
(4) This is the sum of national production and imports, minus exports. 
(5) COTRISA made no purchases of rice during the period i ndicated, and was active on th e maize market in 1995 only. 
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