Chile unilaterally lowered its across-the-board import tariff for all countries with which it does not have a trade agreement to 6% in 2003. Higher effective tariffs are charged only on imports of wheat, wheat flour, and sugar as a result of a system of import price bands. The price bands were ruled inconsistent with Chile's World Trade Organization (WTO) obligations in 2002, and the government has introduced legislation to modify them. Under the terms of the U.S.–Chile FTA, the price bands will be completely phased out for U.S. imports of wheat, wheat flour, and sugar within 12 years.
cHiLe uNILaterallY lowErEd ItS aCROsS-the-bOard ImPORT taRiff fOr all Countries wIth WhICh it Does not have a TradE agrEEMent to 6% iN 2003. hiGHeR eFfective tariffS aRe cHaRgeD onlY on iMpOrts of WHeAT, wheAt floUr, anD sUgaR as A reSult of a syStem of import pRice BANdS. THe prIce bANds were RUled IncOnsiStEnt witH ChiLe's WorLd tradE orgAnizatIon (wTo) obLIgationS in 2002, anD tHe governmENt hAs iNtrOdUCed legislaTion TO MoDifY tHeM. undeR The tERMs of thE u.s.–cHIlE fta, The Price bANds wilL be coMpLetELy phAseD out for U.s. imporTs of wHeAT, whEAt FLour, AnD sugAr wiThin 12 yEars.