Chile — Definitive Safeguard Measure on Imports of Fructose

Summary up-to-date at 30 May 2008  

Consultations requested — no panel established nor settlement notified

Complaint by Argentina.

On 20 December 2002, Argentina requested consultations with Chile concerning a definitive safeguard measure on imports of certain kinds of fructose. Chile imposed the measure on 19 November 2002 for a period of one year backdated to 30 July 2002, at a rate of 14% ad valorem.
Argentina alleges that Chile’s safeguard measure violates Article XIX:1(a) of GATT 1994 and Articles 2.1, 3.1, 3.2, 4.1(b), 4.1(c), 4.2(a,) 4.2(b), 5.1, 7.1 and 7.5 of the Safeguards Agreement, for the following reasons:

•    there were no unforeseen developments which justified the measure;

•    the investigation was not based on a like or directly competitive product;

•    there was no determination of an increase in imports;

•    the injury factors did not justify the determination of a threat of serious injury;

•    there was no objective determination of a causal link between the increase in imports and the threat of serious injury;

•    the investigating authorities’ report was not published and did not contain findings and reasoned conclusions on all pertinent issues of fact and law;

•    the measure is applied beyond the permissible extent; and

•    Chile reapplied the measure before the end of the minimum permitted non-application period.