Australia, Canada, New Zealand and Uruguay have participated in formals talks with Chile requested at the World Trade Organisation by Argentina, which has complained about provisional safeguard duties of 16% that it has imposed on imports of powdered milk and liquid UHT milk.

Initial consultations – which are the first stage of a WTO disputes procedure – were held yesterday (21 November). Argentina claims that Chile has broken the Agreement on Safeguards, a statement contested by Santiago.

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If the talks fail to resolve the issue, it is likely that one of the complaining countries will request the creation of an arbitration panel.

By Keith Nuthall

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