November 14, 2013
Chile resumes pork imports
Chile has determined that no action should be taken to limit pork imports, including those from the US, after concluding an investigation on whether they were harming domestic pork producers.
Chile initiated a "safeguard" investigation in May on all imported frozen pork. Under international trade rules, safeguard measures are temporary emergency actions, such as duty increases 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 National Pork Producers Council claimed the charges of harm were unfounded and pleaded the US pork industry''s case against safeguard measures. It pointed out 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. In fact, although Chilean pork producers continue to account for more than 95% of domestic consumption, they also have significantly increased their sales in export markets.
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.
Chile has become an important market for US pork since the implementation of the US-Chile Free Trade Agreement in 2005. Last year, Chile was the 12th most valuable export destination for US pork products, totalling almost 17,000 tonnes valued at more than US$42 million.