October 23, 2013

Chile has decided to end its "safeguard" exam on US frozen pork imports, as announced by the National Pork Producers Council (NPPC).

Due to concerns that imports were harming the domestic pork industry, Chile implemented the exam in May. According to the NPPC, safeguard measures, such as duty increases, are temporary emergency actions against imported products that have caused or threaten to cause serious injury to the importing country's domestic industry. The Chilean Pork Producers Association alleged that pork imports caused losses to its producers and called for a 14.3% additional duty on imported pork.

The NPPC opposed the additional duty, calling the claims of harm "unfounded." The group said that while US pork exports to Chile have grown over the past eight years, they remain small and stable in relation to pork consumption and production in that country.

Although Chilean pork producers continue to account for more than 95% of domestic consumption, they also have significantly increased their sales in export markets, NPPC said.

A Chilean commission decided such measures were not warranted, after a 90-day investigation to determine whether safeguard measures should be imposed and at what rate.

"America's pork producers are pleased that Chile has found that US pork exports to that country are not harming Chilean pork producers," said NPPC President Randy Spronk. "NPPC believed that the charges of harm were unsupported and led the defence of the US pork industry against any safeguard action."

According to NPPC, Chile has become an important market for US pork since the implementation of the US-Chile Free Trade Agreement in 2005.