The European Union and Chile advance their partnership through the adoption of a modernized Association Agreement. Announced by the EU Council, this development signals a transformative era in the EU-Chile relationship, addressing current global challenges proactively.
The Council’s latest decision encompasses two critical components: the Advanced Framework Agreement (AFA) and the interim Trade Agreement (iTA). These are not mere updates; they represent a comprehensive revamp of the current EU-Chile Association Agreement.
Led by Nadia Calviño, Spain’s Minister of Economy, Trade, and Enterprise, and José Manuel Albares, Minister of Foreign Affairs, this enhanced collaboration between the EU and Chile confronts issues arising from the Russian invasion of Ukraine, such as global inflation, supply chain disruptions, and the energy crisis.
Spanning health, environment, climate change, education, and culture, the AFA and iTA’s scope is extensive. Trade components are particularly significant, granting 99.9% of EU exports to Chile tariff-free status and potentially increasing EU exports by EUR 4.5 billion. This opens a lucrative gateway for European companies into Latin America’s fifth-largest economy, providing access to vital green transition materials like lithium, copper, and hydrogen.
The iTA focuses on trade and investment liberalization and will take effect immediately upon EU ratification, bypassing the need for ratification by individual member states. Its provisions will merge into the AFA, which requires ratification by all member states.
As the globe faces unique challenges, the EU-Chile enhanced Association Agreement symbolizes the strength of collaborative effort and strategic alliance. With its wide-ranging impact and visionary approach, this agreement is set to redefine the economic and political dynamics of the EU-Chile partnership. The mid-December signing ceremony will officially confirm this historic commitment, with the European Parliament’s approval as the final step to activate these landmark agreements.
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