. /.WORLD TRADE
ORGANIZATIONG/SG/24
2 October 2000
(00-3998)
Committee on Safeguards Original:  Spanish
PROVISIONAL SAFEGUARD MEASURES IMPOSED BY CHILE
ON POWDERED MILK AND LIQUID UHT MILK
Request for Consultations under Article 12.4
of the Agreement on Safeguards
The following communication, dated 19 September 2000, has been received from the
Permanent Mission of Argentina.
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I have the honour to transmit herewith the communication by the Republic of Argentina to the
Republic of Chile requesting consultations under Article 12.4 of the Agreement on Safeguards, in
relation to the provisional safeguard measure imposed by the Chilean authorities on imports of
powdered milk and liquid UHT milk (doc uments G/SG/N/7/CHL/3 and Suppl.1).
_______________
I have been instructed by my Government to request consultations with Chile under
Article 12.4 of the Agreement on Safeguards.  This request is made in connection with the imposition
by the Chilean Government of a provisional safeguard measure on imports of powdered milk and
liquid UHT milk.
On 30 June 2000, Chile notified the WTO (G/SG/N/6/CHL/4) that its Distortions
Commission had initiated an investigation on certain products, powdered milk and liquid UHT milk.
On 3 July 2000 it notified its intention of applying a safeguard measure (G/SG/N/7/CHL/3) and very
soon after, on 12 July 2000, under Ministry of Finance Decree No. 211(doc. G/SG/N/7/CHL/3/Suppl.1) it imposed the provisional safeguard measure on  imports of
powdered milk and liquid UHT milk.
According to the notification circulated by the WTO on 20 July 2000, the measure consists of
establishing an ad valorem  tariff surcharge of 16 per cent on imports of the products listed therein.
Argentina is seriously concerned about the consistency of this measure with the Agreement
on Safeguards.
From the scant information available so far, it considers that the requirements laid down in
the Agreement on Safeguards for the adoption of a provisional safeguard measure have not been
satisfied.
The available facts do not justify the conclusion that there has been an increase in imports in
absolute terms or relative to domestic production, nor does there appear to be any clear evidence thatthe increase in imports has caused serious injury or threat of serious injury, nor has the existence ofG/SG/24
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critical circumstances been proved whereby any delay would lead to irreparable injury such as to
justify the adoption of a provisional measure.  Neither has the duration of the measure been
specifically notified.
Furthermore, the notification and publication obligations laid down in the Agreement do not
appear to have been complied with.  In these circumstances, and since the consultations which, under
the Agreement on Safeguards, should commence immediately, have not taken place, Argentina
formally requests the holding of consultations unde r Article 12.4 with the objective of reviewing the
information provided and obtaining further information concerning the safeguard measure, and
requests Chile not to take any new measures until consultations have taken place.
Accordingly, it is proposed that consultations be held forthwith at a mutually agreed date and
place.
I have also been instructed to inform you that my Government reserves all its rights under the
Agreement on Safeguards, in particular Article 14, as well as under the Dispute Settlement
Understanding.
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