Modernization of the trade agreement between the EU and Chile

The European Parliament last week gave the green light to the updated trade pact between the European Union (EU) and Chile, marking a milestone in the bilateral relationship.

 

According to an official statement, the renewed agreements, known as the Advanced Framework Agreement (FFA) and the Interim Trade Agreement (ITA), deepen cooperation in key areas such as foreign policy, sustainable development, environmental protection, climate change, clean energy, justice and human rights. Notably, this pact introduces for the first time in the history of EU agreements a specific chapter on trade and gender, committing to eradicate gender discrimination.

 

Under this new agreement, virtually all EU exports to Chile will be exempt from tariffs, with the exception of sugar. Sensitive agricultural products such as fruit, vegetables and olive oil will benefit significantly from the tariff reduction.

 

The agreement promotes preferential access to essential resources and clean fuels, including lithium, copper and hydrogen, and incorporates social, labour and environmental commitments in line with International Labour Organisation standards and the Paris Agreement.

 

Next steps

 

With the approval of the European Parliament, the next step is approval by the EU Council. The FPA requires ratification by the member states.

 

It is important to recall that the original EU-Chile Association Agreement was implemented in 2005, and both parties agreed to its modernisation. As a result, they signed the SAA in December, covering political and trade cooperation. The ITA, which focuses on trade and investment, needs ratification only at the EU level and will become obsolete once the SAA becomes effective. The latter must also be ratified in Chile.