CHILE – PRICE BAND SYSTEM AND SAFEGUARD MEASURES

RELATING TO CERTAIN AGRICULTURAL PRODUCTS

Request for the Establishment of a Panel by Argentina

            The following communication, dated 19 January 2001, from the Permanent Mission of Argentina to the Chairman of the Dispute Settlement Body, is circulated pursuant to Article 6.2 of the DSU.

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            Pursuant to Article XXIII of the GATT 1994, Articles 4 and 6 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU), Article 19 of the Agreement on Agriculture and Article 14 of the Agreement on Safeguards, I herewith request the establishment of a panel against the Republic of Chile in relation to the price band system, the provisional and definitive safeguard measures on imports of wheat, wheat flour and edible vegetable oils, and the extension of those measures.

1.                  Price band system

            Under Law 18.525, as amended by Law 18.591 and subsequently by Law 19.546, as well as the regulations and complementary provisions and/or amendments, Chile applies a price band system which is inconsistent with various provisions of the GATT 1994 and with the Agreement on Agriculture. 

            The price band system does not ensure certainty in respect of market access for agricultural products and has caused Chile to breach its commitments on tariff bindings in relation to the concessions set forth in its national schedule.  Argentina submits that the said legislation is inconsistent with Article II of the GATT 1994 and with Article 4 of the Agreement on Agriculture.