Chilean authorities agreed to end the investigation affecting Argentine gouda cheese and powdered milk exports to Chile. The proceedings looked into the existence of possible distortions in the prices of those products and had caused uncertainty as to the future of dairy sector exports.
The Chilean National Commission in charge of looking into the distortions decided, by vote of the majority of its members, to end the investigation without recommending any definitive safeguard measures, as had been requested by Argentina, which had presented legal arguments. Hence, powdered milk and gouda cheese exports will not be affected by this type of measures that reduce their competitiveness.
"This is very good news, after the technical explanations provided by Argentina. We greatly appreciate Chile's decision," the Secretary for International Economic Relations of the Foreign Ministry, Horacio Reyser, stated.
The investigation, started on 8 March 2018 and ended on 23 January 2019, was in response to a request by the National Milk Producers Federation (Federación Nacional de Productores de Leche - FEDELECHE) to raise tariffs on those products. The Argentine government proved in various submissions that national exports do not threaten nor affect the Chilean industry.
Any safeguards would have affected the Argentine dairy sector, which has a big growth potential in the Chilean market.
