CHILE – TAXES ON ALCOHOLIC BEVERAGES

Notification of an Appeal by Chile under

paragraph 4 of Article 16 of the Understanding on Rules

and Procedures Governing the Settlement of Disputes (DSU)

            The following notification, dated 13 September 1999, sent by Chile to the Dispute Settlement Body (DSB), is circulated to Members.  This notification also constitutes the Notice of Appeal, filed on the same day with the Appellate Body, pursuant to the Working Procedures for Appellate Review.

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            In conformity with paragraph 4 of Article 16 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU) and Rule 20 of the Working Procedures of Appellate Review, the Government of Chile hereby notifies its decision to lodge an appeal with the Appellate Body in connection with certain issues of law in the Report of the Panel on "Chile – Taxes on Alcoholic Beverages" (WT/DS87/R; WT/DS110/R), circulated to the WTO Members on 15 June 1999, as well as certain legal interpretations developed by the Panel.

            Chile asks the Appellate Body to review the following errors of law and erroneous legal interpretation developed by the Panel in relation to the DSU and the General Agreement on Tariffs and Trade 1994 (GATT 1994).

            First, Chile considers that the Panel erred as a matter of law and legal interpretation in finding that the New Chilean Tax system constitutes 'dissimilar taxation' of directly competitive or substitutable products within the meaning of Article III:2, second sentence GATT 1994: