March 19, 2007

 

Chile's poultry group seeks tariffs against Argentina imports

 

 

Chile's poultry industry seeks protection from Argentine imports, local newspaper La Tercera reported Friday (Mar 16), citing the industry association's president, Juan Miguel Ovalle.

 

Ovalle argued that Chile's poultry producers needed protective tariffs due to the 46 percent jump in poultry imports from the country's eastern neighbour.

 

Argentine subsidies to its poultry industry--part of an effort to limit inflation--also pose a threat to Chilean producers, he added.

 

"We're facing new trade aggression, caused by the direct subsidies," Ovalle said.

 

A 2005 request for protection failed to win a response from Chile's commission on market distortions, he added.

 

More recently, however, trade relations between the two sides have soured, and Chile has introduced protective tariffs on various products to stem the tide of Argentine imports.

 

In December, the commission extended a 23 percent safeguard duty on select dairy imports from Argentina for a year and also slapped a 16.2 percent anti-dumping duty on wheat flour imports from Argentina.

 

Argentina, Chile's sole source of imported natural gas, early in 2004 began to unilaterally limit gas exports to stave off a domestic shortage amid rising demand for energy on both sides of the Andes.

 

In late November, Argentina petitioned the World Trade Organization for a consultation after Chile applied the temporary safeguards. The Argentine government has since said it will now seek a WTO panel investigation.

 

The commission is in charge of investigating import price distortions and suggesting protective measures.

 

Its members include the chief government antitrust attorney, two representatives from the central bank, the head of the customs service and a representative each from the Finance, Agriculture, Economy and Foreign ministries.