EU-Chile Interim Trade Agreement enters into force

Signed in December 2023, the ITA is expected to boost business competitiveness on both sides, while providing a shared platform for the development of net-zero economies. It will also boost the EU-Chile privileged partnership.

This work will be further underpinned by ongoing initiatives under the Global Gateway, such as development of critical raw materials value chains and the production of green hydrogen in Chile, a release from the European Commission said.

The agreement will enable both sides to cooperate on global challenges like de-risking of supply chains and the fight against climate change.

The ITA will eliminate tariffs on 99.9 per cent of EU exports and providing a level playing field for EU goods on the Chilean market. It will ensure more effective and sustainable flow of raw materials and derived products;

It includes energy and raw materials chapter that will foster investment and provide the EU with steady, reliable and sustainable access to critical raw materials as well as clean fuel like hydrogen, crucial for the transition to the green economy.

It will give Chile all the policy space it may need to pursue its industrial policy objectives and ensure EU investors in Chile are treated the same way as domestic investors, the release said.

An ambitious trade and sustainable development chapter confirms the parties' commitment to International Labour Organisation (ILO) standards and to the Paris agreement on climate change.

The EU and Chile negotiated between 2017 and 2022 to modernise the EU-Chile Association Agreement (in force since 2003). The negotiations concluded on December 9, 2022, and both sides signed the modernised agreement on December 13, 2023.

ALCHEMPro News Desk (DS)