DISPUTE SETTLEMENT

DS: Chile — Definitive Safeguard Measure on Imports of Fructose

This summary has been prepared by the Secretariat under its own responsibility. The summary is for general information only and is not intended to affect the rights and obligations of Members.

  

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Current status

 

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Key facts

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Complainant:
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(as cited in request for consultations)
Request for Consultations received:

  

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Summary of the dispute to date

The summary below was up-to-date at

Consultations

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.

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