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Argentina to appeal Chilean safeguard tariff on dairy exports

09 October 2006

ARGENTINA - Argentine dairy farmers will appeal the Chilean decision to impose a 23% safeguard tariff until next December on Argentine milk and cheese imports. Chilean farmers claim Argentina is involved in “disloyal competition” practices which have helped boost dairy exports several times.

Raul Roccatagliata from Argentina’s Rural Society International Negotiations Department is quoted in Saturday’s Buenos Aires press refuting Chilean arguments of “disloyal competition” from Argentina’s dairy industry.

“We will put forward a strong case in the hearing with Chilean businessmen scheduled for next November 7 because the CIF (Cost includes freight) value of Argentine dairy exports are not below international prices”, said Mr. Roccatagliata.

He added that the real problem is that Chile has considerably increased its domestic milk production over last year.

Apparently the Argentine Foreign Affairs and Trade ministry will be supporting exporters following the same argument because when Chile announced a few weeks ago it was considering limiting imports, it also admitted that to impose safeguards it must be proved that “the increase in imports has caused or threatens to cause a serious damage to the production sector involved”.

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