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Chile – Price Band System and Safeguard Measures Relating to Certain Agricultural Products*

  • Kyle Bagwell (a1) and Alan O. Sykes (a2)
Abstract

This study addresses the dispute brought to the World Trade Organization (WTO) by Argentina concerning certain Chilean measures affecting the importation of wheat, wheat flour, oil seeds, edible vegetable oils and sugar. The complaint by Argentina challenged two types of policies – a “price band system” that was applicable to four of those product categories, and safeguards measures that were applicable to three of them. The WTO panel ruled in favor of Argentina on both sets of measures. It found that the price band system violated Article IV of the Agriculture Agreement and Article II of GATT 1994. The safeguards measures, according to the panel, violated various provisions of the Safeguards Agreement, as well as Article XIX of GATT 1994. Chile elected not to appeal the panel ruling regarding the safeguards measures, but did appeal the adverse finding as to the price band system.

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We wish to thank Alberto Martin for valuable assistance, and to thank the other reporters and conference participants of the American Law Institute for many valuable ideas and suggestions.

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References
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Bagwell Kyle and Staiger Robert W. (2002). The Economics of the World Trading System (MIT Press: Cambridge MA).
Nordstrom H. (2001). Do Variable Levies Beggar Thy Neighbor?, European Journal of Political Economy 17: 420430.
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World Trade Review
  • ISSN: 1474-7456
  • EISSN: 1475-3138
  • URL: /core/journals/world-trade-review
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