not sure if this is a question better suited for serverfault but I\'ve been messing with amazon RDS lately and was having trouble getting \'file\' privileges to my web host
You need to use LOAD DATA LOCAL INFILE as the file is not on the MySQL server, but is on the machine you are running the command from.
LOAD DATA LOCAL INFILE
As per comment below you may also need to include the flag:
--local-infile=1