Chile—Price Band System and Safeguard Measures Relating to Certain Agricultural Products
World Trade Organization, Appellate Body
WT/DS207/AB/R (October 23, 2002)

- Written by Josh Lee, JD
Facts
Chile (defendant) adopted a price-band system to calculate tariffs on certain agricultural imports. The system used international market prices to set an upper and lower threshold for each of those products. The price bands were set one time per year. If a product was priced within the price band, the set ad valorum tariff would be applied. However, if the price was below the lower threshold, an additional tariff percentage equal to the difference between the price and the lower threshold would be applied, up to the cap of Chile’s maximum tariff rate in its international trade agreements. If the price was above the higher band threshold, a rebate would be granted in an amount equal to the difference between the price and the upper threshold. Argentina (plaintiff) challenged this price-band system under the Agreement on Agriculture. Argentina argued that the system constituted variable import levies, which are prohibited by the Agreement on Agriculture.
Rule of Law
Issue
Holding and Reasoning ()
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