CHILE - TAXES ON ALCOHOLIC BEVERAGES

                                Request for Consultations by the European Communities

        The following communication, dated 15 December 1997, from the Permanent Delegation of the European Commission to the Permanent Mission of Chile and to the Dispute Settlement Body, is circulated in accordance with Article 4.4. of the DSU.

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        My authorities have instructed me to request consultations with Chile under Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes and Article XXII:1 of the General Agreement on Tariffs and Trade 1994 (the “GATT”) with regard to the Additional Tax on Alcoholic Beverages (“Impuesto Adicional a las Bebidas Alcoholicas”), as recently modified by Law No. 19.534.

        On 13 November 1997 the President of the Republic of Chile signed the new Law No. 19.534 modifying Article 42 of the Decree-Law No. 824 of 1974 concerning the Additional Tax on Alcoholic Beverages.  Law No. 19.534 was published in Chile’s Official Journal on 18 November, i.e. on the same day the Dispute Settlement Body agreed to the request of the European Communities to establish a panel with respect to the Additional Tax on Alcoholic Beverages (WT/DS87/5).  Law No. 19.534 provides for the application of a transitional regime until 1 December 2000.