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Chilean Commission Won’t Impose Pork Import Safeguard

While Chile’s pork imports have increased rapidly in recent years, its exports remain nearly five times larger

While Chile’s pork imports have increased rapidly in recent years, its exports remain nearly five times larger

The commission responsible for investigating Chilean pork producers’ claim of economic damages from rising pork imports has declined to impose an import safeguard. The decision was published this week in Chile’s Official Gazette. Producers were seeking an additional 14.3 percent duty on imported pork, which is mainly supplied by the United States and Canada.

Key findings released separately by the commission stated that the local producers seeking the safeguard failed to show that increased imports had caused economic harm to domestic pork production. The commission also determined that Chile’s pork imports are still relatively low compared to domestic production volume and Chile’s growing pork exports. In fact, the commission noted that given Chile’s pork consumption trends and the export strategy employed by the Chilean pork industry, imports are needed in order to meet domestic demand. The commission also found that increased pork production costs were not attributable to rising imports, and that the Chilean industry has maintained a high rate of installed capacity utilization.

Through August, Chile was the 12th largest destination for U.S. pork exports by volume (11,684 mt, +29 percent from a year ago) and 11th largest by value ($30.3 million, +32 percent). Chile’s pork imports from all sources (through July) were up 67 percent from a year ago, totaling 19,537 mt valued at $58.9 million. But Chile’s pork exports during the same period were nearly five times larger – totaling 96,307 mt valued at $282 million.