WORLD TRADE  
ORGANIZATION   
G/STR/N/14/CHL 
2 May 2012 
 (12-2334) 
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 30 April 2012, is being circulated at the request of the delegation of Chile. 
 
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  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 joint stock company 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, packaging and quality certification, as well as on developing links between small and medium-siz ed grain producers and the industries that require grain as a raw 
material. 
 
 Thus, although the company has the authorit y to intervene in th e 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/14/CHL 
Page 2  
 
  I. ENUMERATION OF STATE TRADING ENTERPRISES 
A. I
DENTIFICATION OF STATE TRADING ENTERPRISES  
 The Chilean State has a majority interest in  the joint stock company Comercializadora de 
Trigo S.A. (COTRISA).  
B. D
ESCRIPTION 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 heading 1001 and subheadings) 
 - Maize (HS heading 1005 and subheadings) 
 - Rice (HS heading 1006 and subheadings)  - and other cereals (tariff items of Chapter 10 in general)  
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 provides grain packaging a nd storage services for sectoral agents that need to 
meet the current health and quality requir ements 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 provis ions 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 strategic objectives for the period 2010-2014 are as follows:  
1. Reinforce COTRISA's image as a sound and competent company committed to 
developing domestic agriculture; 
 
2. give domestic grain producers better access to market information; 
 
3. supply services in support of grain producers' business processes. 
 
 The company's duration is indefinite. 
  G/STR/N/14/CHL 
 Page 3 
 
 
  III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE 
A. SUMMARY STATEMENT PROVIDING OVERVIEW OF THE OPERATIONS OF THE STATE TRADING 
ENTERPRISE  
 From a commercial point of view, COTRISA, operating from three storage plants in the 
towns of Parral, Los Ángeles and Lautaro, is a company that supplies grai n packaging and storage 
services. 
  Services include the weighing of cereal loaded onto trucks, the loading, unloading, washing, 
drying, storage and bagging of  grain, and business advice. 
 
 Notwithstanding the above, COTRISA, taking advantage of the equipment of its central 
laboratory, has undertaken activities in areas such as grain quality certification and the development 
of studies to assess the commercial and industrial  quality of domestically produced and imported 
cereals.  
 Furthermore, the company's board of directors decided to strengthen its contribution to the 
transparent and competitive functioning of the dom estic grain market by supplying information for 
production- and marketing-related decision-making.  B. S
PECIFICATION 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 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 of Chile lays down the right to engage in any type of 
economic activity.  The rules and procedures governi ng the activity of any person engaged in foreign 
trade are set out in various bodies of law but mainly in Law No. 18.525 on Rules for the Import of Goods and the Customs Ordinance/Law.  Orga nic Law No. 18.840 on the Central Bank and the 
Compendium of International Exch ange Rules of the Central Bank regulate foreign trade transactions 
involving foreign currency. 
 
 Any registered taxpayer may become an exporte r or an importer, i.e. there is no special 
registration or authorization required to engage in  importation/exportation.  To formalize the export 
process, however, as a general rule and for tr ansactions exceeding US$2,000, the services of a 
customs broker must be contracted to submit the export declaration - known as the single export 
form - electronically on behalf of the exporter.  The same applies to imports.  There are no import 
restrictions whatsoever, and the formalities are ca rried out through a customs broker in the case of 
imports exceeding US$1,000.  D. H
OW IMPORT /EXPORT LEVELS ARE ESTABLISHED BY THE STATE TRADING ENTERPRISE  
 It is not within COTRISA's remit to est ablish and/or determin e import/export levels.  
Although the enterprise is authorized to engage in fo reign trade transactions, its short-term policies do 
not include business in  external markets. 
 G/STR/N/14/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 private traders make their own decisions freely.   More specifically, COTRISA has exported on onl y one occasion to date, 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 marketing chain for grain, which mainly extends from the Metropolitan 
Region to the Los Lagos Region.  Structure of the domestic market 
 
 The domestic market in Chile is made up of so me 45,000 wheat producers of different sizes.  
They deliver their products to the milling industr y, which processes the industrial products derived 
from this commodity. 
 
 Furthermore, around 76 companies make up th e domestic milling industry.  Approximately 
26 per cent of these companies import wheat in order to supplement the stocks required to meet domestic demand for farinaceous products.   Nature of competition:  The market in whic h COTRISA operates is governed 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 products dealt in by 
COTRISA.  
VI. ADDITIONAL INFORMATION ( AS APPROPRIATE ) 
 There is no additional information. 
 
  
   G/STR/N/14/CHL
 Page 5TABLE I 
STATE TRADING:  COTRISA  
STATISTICAL INFORMATION, IMPORTS 
 
Description of 
product(s) 
(including HS No.) Crop year Total quantity 
imported 
(tonnes) Quantity imported by 
State trading 
enterprise 
(tonnes) Average 
import price 
(US$/tonne) 
(5) Average 
representative 
domestic sales 
price (US$/tonne)Mark-up 
(US$/tonne) 
(6) National 
production 
(tonnes) 
WHEAT - 10.01 (1)  2000 415,869 0 --- 180 --- 1,492,710 
2001 140,279 0 --- 161 --- 1,780,157 
2002 216,621 0 --- 169 --- 1,820,387 
2003 401,265 0 --- 183 --- 1,797,084 
2004 159,476 0 --- 177 --- 1,921,652 
2005 114,830 0 --- 169 --- 1,851,940 
2006 949,647 0 --- 210 --- 1,403,689 
2007 996,633 0 --- 297 --- 1,103,497 
2008 778,467 0 --- 366 --- 1,237,861 
2009 663,605 0 --- 244 --- 1,145,290 
2010 614,636 0 --- 250 --- 1,523,921 
2011 625,441 0 --- 343 --- 1,575,822 
 
Description of 
product(s) 
(including HS No.) Crop year Total quantity 
imported 
(tonnes) Quantity imported by 
State trading 
enterprise 
(tonnes) Average 
import price 
(US$/tonne) 
(5) Average 
representative 
domestic sales 
price (US$/tonne)Mark-up 
(US$/tonne) 
(6) National 
production 
(tonnes) 
MAIZE - 10.05 (2)  2000 1,217,952 0 --- 128 --- 652,019 
2001 1,270,082 0 --- 123 --- 778,498 
2002 1,162,285 0 --- 129 --- 924,211 
2003 1,002,969 0 --- 132 --- 1,189,729 
2004 979,116 0 --- 152 --- 1,320,606 
2005 1,119,084 0 --- 136 --- 1,507,766 
2006 1,742,205 0 --- 157 --- 1,381,894 
2007 1,751,931 0 --- 214 --- 1,381,894 
2008 1,438,073 0 --- 240 --- 1,365,472 
2009 739,969 0 --- 200 --- 1,345,653 
2010 596,478 0 --- 197 --- 1,357,921 
2011 666,016 0 --- 309 --- 1,437,561  
  G/STR/N/14/CHL 
Page 6  
Description of 
product(s) 
(including HS No.) Crop year Total quantity 
imported 
(tonnes) 
(4) Quantity imported by 
State trading 
enterprise 
(tonnes) Average 
import price 
(US$/tonne) 
(5) Average 
representative 
domestic sales 
price (US$/tonne)Mark-up 
(US$/tonne) 
(6) National 
production 
(tonnes) 
RICE - 10.06 (3)  2000 99,377 0 --- 128 --- 135,060 
2001 122,209 0 --- 123 --- 143,261 
2002 113,311 0 --- 129 --- 141,927 
2003 188,372 0 --- 132 --- 140,849 
2004 128,156 0 --- 152 --- 119,265 
2005 133,822 0 --- 136 --- 116,832 
2006 140,520 0 --- 157 --- 160,315 
2007 162,741 0 --- 214 -- 110,280 
2008 164,315 0 --- 316 --- 121,400 
2009 172,576 0 --- 322 --- 127,311 
2010 174,665 0 --- 340 --- 94,673 
2011 147,961 0 --- 309 --- 130,375 
 
Source : COTRISA, based on information from O ffice for Agricultural Research and Policy (ODEPA) and the Central Bank. 
 
(1) Includes the following products: 1001.90.00:  Other wheat and meslin 
(2) Includes the following products: 1005.90.00:  Other maize (corn), other than for sowing 
(3) Includes the following products: 1006.10.00:  Rice in the husk 
     1006.30.00:  Semi-milled or wholly milled rice 
(4) Imports of paddy or rough rice, plus imports of milled rice (c onverted into their equivalent in terms of paddy rice using a  paddy rice/milled rice conversion fa ctor of 1.77, i.e. 1.77 kilos of 
paddy rice are required to produce 1 kilo of milled rice with a 15 per cent broken grain content). 
(5) Not applicable as the State trading en terprise does not engage in importation. 
(6) Idem.   
   G/STR/N/14/CHL
 Page 7TABLE II 
STATE TRADING:  COTRISA  
STATISTICAL INFORMATION, EXPORTS 
 
Description of 
product(s) 
(including HS No.) Crop year Total quantity 
exported 
(tonnes)  Quantity exported by 
State trading 
enterprise (tonnes) Average 
export price 
(US$/tonne) 
(5) Average 
representative 
domestic price 
(US$/tonne) Mark-up 
(US$/tonne) 
(6) National 
production 
(tonnes) 
WHEAT - 10.01 (1)  2000 6.7 0 --- 180 --- 1,492,710 
2001 5.1 0 --- 161 --- 1,780,157 
2002 11.7 0 --- 169 --- 1,820,387 
2003 34.5 0 --- 183 --- 1,797,084 
2004 35.9 0 --- 177 --- 1,921,652 
2005 8.4 0 --- 169 --- 1,851,940 
2006 7.5 0 --- 210 --- 1,403,689 
2007 23.0 0 --- 297 --- 1,103,497 
2008 12.7 0 --- 366 --- 1,237,861 
2009 3.7 0 --- 244 --- 1,145,290 
2010 2.5 0 --- 250 --- 1,523,921 
2011 6.6 0 --- 353 --- 1,575,822 
 
Description of 
product(s) 
(including HS No.) Crop year Total quantity 
exported 
(tonnes) Quantity exported by 
State trading 
enterprise (tonnes) Average 
export price 
(US$/tonne) 
(5) Average 
representative 
domestic price 
(US$/tonne) Mark-up 
(US$/tonne) 
(6) National 
production 
(tonnes) 
MAIZE - 10.05 (2)  2000 11.2 0 ---- 128 --- 652,019 
2001 37 0 ---- 123 --- 778,498 
2002 69.2 0 ---- 129 --- 924,211 
2003 879 0 ---- 132 --- 1,189,729 
2004 3,854 0 ---- 152 --- 1,320,606 
2005 1,834.8 0 ---- 136 --- 1,507,766 
2006 1,543.6 0 ---- 157 --- 1,381,894 
2007 1,480.7 0 ---- 214 --- 1,381,894 
2008 235.8 0 ---- 240 --- 1,365,472 
2009 73.7 0 ---- 200 --- 1,345,653 
2010 179.8 0 ---- 197 ---- 1,357,921 
2011 353.0 0 ---- 309 ---- 1,437,561  
  G/STR/N/14/CHL 
Page 8  
Description of 
product(s) 
(including HS No.) Crop year Total quantity 
exported 
(tonnes) 
(4) Quantity exported by 
State trading 
enterprise (tonnes) Average  
export price 
(US$/tonne) 
(5) Average 
representative 
domestic price 
(US$/tonne) Mark-up 
(US$/tonne) 
(6) National production
(tonnes) 
RICE - 10.06 (3)  2000 9 0 ---- 128 --- 135,060 
2001 28 0 ---- 123 --- 143,261 
2002 19 0 ---- 129 --- 141,927 
2003 1,089 0 ---- 132 --- 140,849 
2004 416 0 ---- 152 --- 119,265 
2005 11 0 ---- 136 --- 116,832 
2006 222 0 ---- 157 --- 160,315 
2007 57 0 ---- 214 --- 110,280 
2008 330 0 ---- 316 --- 121,400 
2009 2,377 0 ---- 322 --- 127,311 
2010 2,208 0 ---- 340 ---- 94,673 
2011 317 0 ---- 309 ---- 130,375 
 
Source : COTRISA, based on information from O ffice for Agricultural Research and Policy (ODEPA) and the Central Bank. 
 
(1) Includes the following products: 1001.90.00:  Other wheat and meslin 
(2) Includes the following products: 1005.90.00:  Other maize (corn), other than for sowing 
(3) Includes the following products: 1006.10.00:  Rice in the husk 
     1006.30.00:  Semi-milled or wholly milled rice 
(4) Exports of paddy or rough rice, plus exports of milled rice (c onverted into their equivalent in terms of paddy rice using a  paddy rice/milled rice conversion fa ctor of 1.77, i.e. 1.77 kilos of 
paddy rice are required to produce 1 kilo of milled rice with a 15 per cent broken grain content). 
(5) Not applicable as the St ate trading enterprise does not engage in exportation. 
(6) Idem.  
  
   G/STR/N/14/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 
(tonnes) National production 
(tonnes) Domestic sales by 
State trading enterprise 
(tonnes) National 
consumption 
(tonnes) 
WHEAT - 10.01 (1)  2000 3,904 1,492,710 
 3,904 1,908,572 
2001 9,210 1,780,157 9,210 1,920,431 
2002 5 1,820,387 5 2,036,996 
2003 None 1,797,084 - 2,198,315 
2004 None 1,921,652 - 2,081,092 
2005 None 1,851,940 - 1,966,762 
2006 None 1,403,689 - 2,353,329 
2007 None 1,103,497 - 2,100,107 
2008 None 1,237,861 - 2,016,315 
2009 None 1,145,290 - 1,808,891 
2010 None 1,523,921 - 2,138,557 
2011 3,123 1,575,822 3,123 2,201,263 
 
Description of 
product(s) 
(including HS No.) Crop year Domestic purchases by 
State trading enterprise 
(tonnes) National production 
(tonnes) Domestic sales by 
State trading enterprise 
(tonnes) National 
consumption 
(tonnes) 
MAIZE - 10.05 (2)  2000 None 652,019 0 1,869,960 
2001 None 778,498 0 2,048,543 
2002 None 924,211 0 2,086,427 
2003 None 1,189,729 0 2,191,819 
2004 None 1,320,606 0 2,295,868 
2005 None 1,507,766 0 2,625,015 
2006 None 1,381,894 0 3,122,555 
2007 None 1,381,894 0 3,132,344 
2008 None 1,365,472 0 2,803,309 
2009 None 1,345,653 0 2,085,548 
2010 None 1,357,921 0 1,954,399 
2011 None 1,437,561 0 2,103,577  
  G/STR/N/14/CHL 
Page 10  
Description of 
product(s) 
(including HS No.) Crop year Domestic purchases by 
State trading enterprise 
(tonnes) National production 
(tonnes) 
(4) Domestic sales by 
State trading enterprise 
(tonnes) National consumption 
(tonnes) 
(5) 
RICE - 10.06 (3)  2000 None 135,060 0 234,428 
2001 None 143,261 0 265,442 
2002 None 141,927 0 255,219 
2003 None 140,849 0 328,132 
2004 None 119,265 0 247,005 
2005 None 116,832 0 250,643 
2006 None 160,315 0 300,613 
2007 None 110,280 0 272,964 
2008 None 121,400 0 285,385 
2009 None 127,311 0 297,510 
2010 None 94,673 0 269,338 
2011 None 130,375 0 278,336 
 
Source : COTRISA, based on information from O ffice for Agricultural Research and Policy (ODEPA) and the Central Bank. 
 
(1) Includes the following products: 1001.90.00:  Other wheat and meslin 
(2) Includes the following products: 1005.90.00:  Other maize (corn), other than for sowing 
(3) Includes the following products: 1006.10.00:  Rice in the husk 
     1006.30.00:  Semi-milled or wholly milled rice 
(4) Production of paddy or rough rice. 
(5) Consumption of paddy or rough rice:  This is the sum of national production of paddy rice, pl us imports of paddy rice and o f milled rice (converted into the paddy rice equivalent), less 
exports of paddy rice and of milled rice (conver ted into the paddy rice equivalent). 
 
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