CHILE – SAFEGUARD MEASURES AND MODIFICATION OF SCHEDULES REGARDING SUGAR
Document: Understanding on
Date: 23 April 2001
Document codes: WT/DS230/1; G/L/448; G/SG/D17/1
Complainant: Colombia
Respondent: Chile
Dispute stage: Consultation
Agreements cited: Art. II, XIX, XXVIII  GATT 1994Art. 2, 3, 4, 5, 7, 9, 12  Safeguards

CHILE – SAFEGUARD MEASURES AND MODIFICATION
OF SCHEDULES REGARDING SUGAR
Requests for Consultations by Colombia
The following communication, dated 17 April 2001, from the Permanent Mission of
Colombia to the Permanent Mission of Chile and to the Chairman of the Dispute Settlement Body, is
circulated in accordance with Article 4.4 of the DSU.
My Government has instructed me to request consultations under Article 4 of the
Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU).
In a communication dated 27 February 1995, the Government of Chile informed the
Secretariat of the WTO that Chile had no legislation in force for the application of safeguards. This
communication was notified to Members by the Secretariat in document , dated
26 April 1995.
On 24 August 1999, the Secretariat circulated notification in which the
Government of Chile submitted its new legislation concerning the investigation and imposition of
safeguard measures.
On 7 February 2000, the WTO Secretariat circ ulated document containing
the communication sent by the Government of Chile notifying its finding of serious injury and its
decision to apply a definitive safeguard measure on imports of a variety of products, including sugar
under tariff headings 17.01.11.00, 17.01.12.00, 17.01.91.00 and 17.01.99.00.
On 10 February 2000, the WTO circulated document , containing a
copy of Decree No. 9 ("exempt procedure") of the Ministry of Finance, dated 20 January 2000,
published in the Official Journal of Chile on Saturday 22 January 2000, establishing definitive
safeguard measures on imports of sugar and other products in the form of an ad valorem surcharge
determined in accordance with Chilean law.
Subsequently, on 15 November 2000, the Secretariat circulated document
 in which Chile notified that it had decided to accept the request for a
one-year extension of these safeguard measures. This was followed, on 27 November, by document
G/SG/N/10/CHL/1/Suppl.2/Corr.1 explaining that the Government of Chile was examining the
possibility of extending the measures.
On 22 December 2000, in document G/SG/N/14/CHL/1, Chile notified the extension of the
safeguard measure, stating that Exempt Decree No. 349 of the Ministry of Finance had been
published on 25 November 2000.

Chile also notified its intention to modify certain concessions included in its Schedule VII
under headings 17.01.11.00, 17.01.12.00, 17.01.91.00 and 17.01.99.00.
On 26 January 2001, the Government of Colombia expressed its substantial interest in the
negotiation of concessions under Article XXVIII for the products classified under tariff headings
17.01.11.00 and 17.01.99.00 ("raw cane sugar", and "other", including refined sugar).
On 14 March, the Government of Chile stated that it recognized Colombia's status as Member
with a substantial interest in respect of raw cane sugar classified under tariff heading 17.01.11.00. It
also stated that according to the statistics available at the time of notification, Colombia did not
qualify as a supplier with a substantial interest for products classified under tariff heading 17.01.99.00
("other").
The Government of Colombia considers that the measures adopted by Chile with respect to
sugar are inconsistent with its obligations under the following provisions:
1. Articles 2, 3, 4, 5, 7, 9 and 12 of the Agreement on Safeguards;
2. Articles II, XIX and XXVIII of the GATT 1994;
3. The Understanding on the Interpretation of Article XXVIII of the General Agreement
on Tariffs and Trade 1994 and the Procedures for Negotiations under Article XXVIII
adopted as guidelines on 10 November 1980.
In Colombia's view, the measures adopted by Chile, taken as a whole or individually, nullify
or impair the benefits accruing to Colombia under the cited provisions.
The Government of Colombia reserves the right to raise additional factual and legal claims in
the course of the consultations.
In the light of the above considerations, Colombia requests consultations with Chile in
accordance with Article XXII of the GATT 1994, and looks forward to receiving a reply to this
request from the Chilean authorities, as well as to the establishment of a mutually acceptable time
and place for the initiation of consultations.
This document replaces, in its entirety, my communication of 15 March 2001, circulated by
the Secretariat as document WT/DS/228/1.