MercoPress. South Atlantic News Agency

Chile slaps 12 months 23% levy on Argentine milk

Chile's Distortions Committee extended this week for twelve months a 23% safeguard levy on Argentine milk and Gouda cheese imports to protect Chilean dairy farmers.

The Committee is made up of delegates from the Chilean Central Bank and several ministries related to the issue.

The milk and cheese safeguard was first established as "transitory" last October 13 following on complaints from the Chilean dairy industry, Federacion de Productores de Leche that was demanding a 31.5% levy.

The Chilean dairy industry argued that farmers until last August had lost 42.5 million US dollars because of the drop in internal prices following the "explosive flood" of Argentine milk.

Argentina rejected the decision and presented a claim before the World Trade Organization.