April 5, 2012

Chile seeks additional import duties on Argentinean corn, chicken

Corn and chicken imported from Argentina are being asked by SNA, Chile's farm bureau, to be additionally taxed.

SNA petitioned the National Commission of Distortion, to add a 15% surcharge duty on imported Argentine chicken, an additional import duty of 25% on corn with a high percentage of cracked kernels and a 30% for feed mixtures with significant cracked corn content.

Corn is Chile's second most important crop and forms the basis for the Chilean poultry industry.

Argentina's trade policies have as a result driven down the price of Argentine corn to levels below that of the international average price: Argentine corn is US$157 a tonne whereas US$267 a tonne.

As a result, imports of cracked corn from Argentina has grown 639% from 2008 to 2011, with feed mixtures with cracked corn in the same period rising by 41% and chicken imports increasing by 29%.

Chilean corn growers stand to lose US$108 million by some estimates, if the situation is not remedied. About 70% of the total cost in the poultry industry is due to corn prices. 

In 2007, the Poultry Producers Association (APA) put in a similar request for the raising of import duties on Argentinean grain, to the National Commission of Distortion, but to no avail.