WORLD TRADE  
ORGANIZATION  G/STR/N/8/CHL 
G/STR/N/9/CHL 
G/STR/N/10/CHL G/STR/N/11/CHL 
27 September 2006 
 
(06-4607) 
Working Party on State Trading Enterprises Original:   Spanish 
 
 
 
STATE TRADING 
 
New and Full Notification Pursuant to Article XVII:4(a) of the GATT 1994 and  
Paragraph 1 of the Understanding on the Interpretation of Article XVII  
 
CHILE 
   The following communication, dated 6 September 2006, is being circulated at the request of 
the Permanent Mission of Chile. 
 
_______________ 
 
  In accordance with Article XVII of the GATT 1994 and paragraph 1 of the Understanding on 
the Interpretation of that Article, the Government of Chile hereby notifies the entity 
"Comercializadora de  Trigo S.A . (COTRISA)" as a State trading enterprise. 
  The functioning of this enterprise has been based on exclusively commercial considerations 
and its participation in the market has had no effect  whatsoever on the level or direction of imports 
and exports of the tradable goods w ithin its sphere of operation.   
  We submit herewith our replies to the questionnaire in document G/STR/3. G/STR/N/8/CHL, G/STR/N/9/CHL,  
G/STR/N/10/CHL, G/STR/N/11/CHL Page 2 
 
 
   
Replies to the Questionnaire on State Trading in Document G/STR/3
 
  I. ENUMERATION OF STATE TRADING ENTERPRISES 
A. I
DENTIFICATION OF STATE TRADING ENTERPRISES  
 Chile has a State trading enterprise, Comercializadora de Trigo S.A . (COTRISA). 
 B. D
ESCRIPTION OF PRODUCTS AFFECTED (INCLUDING TARIFF ITEM NUMBER (S) ENCOMPASSED 
IN PRODUCT DESCRIPTION ) 
 COTRISA is authorized to deal in the following products: 
  - Wheat (HS No. 10)
1 
 - Maize (HS No. 10)2 
 - Rice (HS No. 10)3 
 - and other cereals   However, COTRISA has in practice dealt almost only in wheat and virtually none of the other 
products.  II. REASON AND PURPOSE 
A. R
EASON OR PURPOSE FOR ESTABLISHING AND /OR MAINTAINING STATE TRADING ENTERPRISE  
 The enterprise's mission is to in tervene in the wheat market wh en 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. S
UMMARY 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 closed joint stock company governed by the provisions of 
Law No.18.046 on joint stock companies, the Regula tions on joint stock companies and by its Articles 
of Incorporation.  
                                                     
 
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 we ight of more than 5 per 
cent but not exceeding 15 per cent );  1005.30 90 (Other);  and 1006.4000 (Broken rice).  G/STR/N/8/CHL, G/STR/N/9/CHL,  
 G/STR/N/10/CHL, G/STR/N/11/CHL  Page 3 
 
 
   Its strategic objectives are: 
 
• To implement policies and courses of action aimed at ensuring tr ansparency in the 
operation of the wheat market in conformity with the country's current policies. 
 
• To develop a commercial strategy conduciv e to the strengthening and diversification 
of the provision of cereal storage and packaging services. 
 
• To contribute to the development of initia tives to help improve the conditions in 
which farmers market their produce. 
 
• Improve the cereal quality analysis, and cer tification network in the Los Angeles, 
Lautaro, and Parral plants. 
  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  
 COTRISA engages in the purchase, sale, pack aging, storage, distribution, delivery and 
trading of wheat and occasionally of other cereal s.  COTRISA buys the goods concerned from private 
parties, on a non-discriminatory basis.  
 COTRISA then sells those products on the dom estic market at prices determined by free 
competition.  B. S
PECIFICATION OF EXCLUSIVE OR SPECIAL RI GHTS OR PRIVILEGES ENJOYED BY THE STATE 
TRADING ENTERPRISE  
 COTRISA enjoys no special privileges.  Its operations are governed by Law No. 18.046 on 
Limited 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. 
 G/STR/N/8/CHL, G/STR/N/9/CHL,  
G/STR/N/10/CHL, G/STR/N/11/CHL Page 4 
 
 
  D. H
OW IMPORT /EXPORT LEVELS ARE ESTABLISHED BY THE STATE TRADING ENTERPRISE  
 As a matter of policy, COTRISA acts as a purchaser from domestic producers and as such 
does not handle export or import transactions.    
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 IM PORTED PRODUCTS ARE DETERMINED  
 
 See the answer to question E.  To date, COTRISA has conducted no import transactions.  
 
G. W HETHER LONG -TERM CONTRACTS ARE NEGOTIATED BY  THE STATE TRADING ENTERPRISE .  
WHETHER THE STATE TRADING ENTERPRISE IS US ED 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. B
RIEF DESCRIPTION OF MARKET STRUCTURE  
 
Structure of the domestic market  
  The domestic market in which COTRISA operates is made up of some 87,000 wheat 
producers of different sizes.  They deliver their pr oducts to the milling indus try, 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/8/CHL, G/STR/N/9/CHL, 
 G/STR/N/10/CHL, G/STR/N/11/CHL
 Page 5TABLE I  
STATE TRADING:  COTRISA 
STATISTICAL INFORMATION, IMPORTS 
Description of product(s) 
(including HS No.) Crop year Total quantity import ed Quantity imported by State 
trading enterprise Average import 
price (4) Average representative 
domestic sales price 
(US$/tonnes) Mark-up (5) National 
production 
(tonnes) 
WHEAT - 10.01 (1)  2000 499,912 0 --- 182 --- 1,492,710 
 2001 245,588 0 --- 159 --- 1,780,157 
 2002 311,034 0 --- 161 --- 1,820,387 
 2003 484,678 0 --- 178 --- 1,797,084 
 2004 227,580 0 --- 180 --- 1,921,652 
 2005 190,892 0 --- 181 --- 1,851,940 
        
Description of product(s) 
(including HS No.) Crop year Total quantity import ed Quantity imported by State 
trading enterprise Average import 
price (4) Average representative 
domestic sales price 
(US$/tonnes) Mark-up (5) National 
production 
(tonnes) 
MAIZE - 10.05 (2)  2000 1,220,044 0 --- 128 --- 652,019 
 2001 1,271,338 0 --- 123 --- 778,498 
 2002 1,163,939 0 --- 129 --- 924,211 
 2003 1,011,667 0 --- 132 --- 1,189,729 
 2004 984,688 0 --- 151 --- 1,320,606 
 2005 1,127,267 0 --- 136 --- 1,507,766 
        
Description of product(s) 
(including HS No.) Crop year Total quantity import ed Quantity imported by State 
trading enterprise Average import 
price (4) Average representative 
domestic sales price 
(US$/tonnes) Mark-up (5) National 
production 
(tonnes) 
RICE  - 10.06 (3)  2000 68,023 0 --- 160 --- 135,060 
 2001 91,353 0 --- 133 --- 143,261 
 2002 76,666 0 --- 122 --- 141,927 
 2003 137,550 0 --- 132 --- 140,849 
 2004 89,515 0 --- 148 --- 119,265 
 2005 93,226 0 --- 188 --- 116,832 
Source :  DECOEX, based on information from COTRISA, ODEPA and the Central Bank. 
 (1) Including the following products:  1001.1000 Durum wheat 
 1001.9000 Other 
(2) Including the following products: 1005.1010 For sowing 
 1005.1090 For sowing, other 
  1005.9000 Other 
(3) Including the following products: 1006.1000 Paddy rice  
  1006.2000 Husked rice 
  1006.3010 Milled and semi-milled rice of a broken grain content by weight not exceeding 5 per cent 
  1006.3020 Milled and semi-milled rice, whether or not polished or glazed , of a broken grain content by weight of more than 5 pe r cent but not exceeding 
15 per cent 
  1006.3090 Other 
  1006.4000 Broken rice 
(4) Not applicable as the State trading en terprise does not enga ge in importation. 
(5) idem .  
  G/STR/N/8/CHL, G/STR/N/9/CHL,  
G/STR/N/10/CHL, G/STR/N/11/CHL 
Page 6 TABLE II  
STATE TRADING:  COTRISA 
STATISTICAL INFORMATION, EXPORTS 
Description of product(s) 
(including HS No.) Crop year Total quantity 
exported Quantity exported by 
State trading enterprise Average procurement 
price Average representative 
domestic price 
(US$/tonnes) Average export 
price (4) National production 
(tonnes) 
WHEAT - 10.01 (1)  2000 7 0 157 182 --- 1,492,710 
 2001 7 0 214 159 --- 1,780,157 
 2002 20 0 12.3 161 --- 1,820,387 
 2003 35 0  178 --- 1,797,084 
 2004 66 0  180 --- 1,921,652 
 2005 9 0  181 --- 1,851,940 
        
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) 
MAIZE - 10.05 (2)  2000 47,176 0 ---- 128 --- 652,019 
 2001 50,921 0 ---- 123 --- 778,498 
 2002 52,081 0 ---- 129 --- 924,211 
 2003 56,313 0 ---- 132 --- 1,189,729 
 2004 62,758 0 ---- 151 --- 1,320,606 
 2005 58,911 0 ---- 136 --- 1,507,766 
        
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) 
RICE - 10.06 (3)  2000 6 0 ---- 160 --- 135,060 
 2001 16 0 ---- 133 --- 143,261 
 2002 11 0 ---- 122 --- 141,927 
 2003 659 0  132 --- 140,849 
 2004 235 0 ---- 148 --- 119,265 
 2005 6 0 ---- 188 --- 116,832 
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-milled 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) 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/8/CHL, G/STR/N/9/CHL, 
 G/STR/N/10/CHL, G/STR/N/11/CHL
 Page 7TABLE  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) 
WHEAT - 10.01 (1)  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 
      
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) 
MAIZE - 10.05 (2)  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 
      
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) 
RICE - 10.06 (3)  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 
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-milled 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 grai n 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 the maize market in 1995 only. 
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