WORLD TRADE
ORGANIZATIONG/SG/26
21 November 2000
(00-4959)
Committee on Safeguards Original:  English
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 communications, dated 17 November 2000, have been received from the
Permanent Mission of Poland.
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On 30 June 2000, Chile notified the WTO (G/SG/N/6/CHL/4) that its Distortions
Commission had initiated an investigation on powdered milk and liquid UHT milk.  On 3 July 2000,
Chile notified its intention of applying a safeguard measure (G/SG/N/7/CHL/3) and on 12 July 2000imposed the provisional safeguard measure on imports of powdered milk and liquid UHT milk
(G/SG/N/7/CHL/3/Suppl.1) establishing an ad valorem  tariff surcharge of 16 per cent on imports of
the above-mentioned products.
Poland is of the opinion that this measure is inconsistent with Article XIX GATT and the
Agreement on Safeguards and considers that th e requirements contained in the Agreement on
Safeguards for the adoption of a provisional safeguard measure have not been met.
Poland is of the view that based on available facts it is difficult to prove that there has been an
increase in imports in absolute terms or relative to domestic production and that the goods were
imported under such conditions as to cause or threaten to cause serious injury to the domestic
industry.  There are also doubts as to the causal link between imports and the serious injury.
Furthermore, in accordance with Article 6 of  the Agreement on Safeguards, Chile should have
proved the existence of critical circumstances, before adopting provisional safeguard measures, which
Chile has failed to do until now.  In addition the duration of the measure has not been duly notified.
Taking into account that the consultations, under the Agreement on Safeguards, should
commence immediately after the measure has been introduced, Poland formally requests the holding
of consultations under Article 12.4 with the aim to review the information provided and to obtain
additional information concerning the results of this investigation.  Poland requests Chile not to take
any measures until consultations have taken place.
It is proposed that consultations be held forthwith at a mutually agreed date and place.Poland 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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