Chilean authorities have decided to end the investigation into Argentine exports of powdered milk and Gouda cheese to the neighbouring country. The procedure analysed the existence of possible distortions in the prices of these products and had generated a framework of uncertainty regarding the future of exports from the dairy sector.
The Chilean National Commission in charge of analyzing the aforementioned distortions decided to end the investigation without recommending definitive safeguard measures, as requested and legally justified by Argentina. Thus, exports of powdered milk and Gouda cheese will not be affected by this type of measures that reduce their competitiveness.
"This is very good news, after the technical arguments presented by Argentina. We value Chile's decision very positively," said Horacio Reyser, Secretary of International Economic Relations of the Ministry of Foreign Affairs..
The investigation, which began on March 8, 2018 and concluded on January 23,or, responded to a request from the National Federation of Milk Producers (FEDELECHE) to raise the tariffs applied to these products. The Argentine government demonstrated in various presentations that national exports do not threaten or affect the Chilean industry.
Any safeguard measures would have affected the Argentine dairy sector, which has great potential for growth in the Chilean market.
What is a safeguard?
The measurements of safeguard They are defined as “emergency” measures with respect to increased imports of certain products when such imports have caused or threaten to cause serious injury to the domestic industry of the importing Member (Article 2, WTO).
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