MercoPress. South Atlantic News Agency

Chilean safeguard 15% tariff on dairy imports does not apply in Punta Arenas

The area is benefited by the free trade system

The 15% safeguard tariff imposed by the Chilean government on imports of powder milk (whole and skimmed) and certain types of cheese from Argentina and Uruguay, does not apply to Punta Arenas in the extreme south of the country.

The special tariff contemplated as a WTO resource, is geared to help Chilean dairy farmers through difficult moments. The decision was adopted following a request from Chile’s main dairy farmers’ organization which claims both Argentina and Uruguay “subsidize” their production.

Esteban Tafra general manager from Corcoran & Co Ltd a main importer from Punta Arenas said that the safeguard tariff does not apply to free trade areas.

Imports under this system come in virtually tariff free (0.8%) and therefore the benefit is extensive to dairy produce introduced to Punta Areas from overseas.

Roberto Cárdenas regional Customs director confirmed the safeguard tariff does not apply to free trade areas, according to Punta Arenas newspaper La Prensa Austral.