Today, the Socialists and Democrats will proudly vote in favour of deepening economic and political ties with Chile, by backing the EU-Chile Advanced Framework Agreement*.
This truly progressive and modern deal with the third-largest EU trading partner in Latin America will be beneficial for both sides. While fostering trade and investment opportunities, it confirms both the EU’s and Chile’s commitment in the fight against climate change and promotes the shared values of human rights, sustainable development and trade. For the first time ever in an EU trade agreement, a chapter on trade and gender is included - with both sides committing to eliminating discrimination against women.
Around 99.9% of EU exports will be tariff-free with the entry into force of the agreement, which is expected to increase EU exports to Chile by up to EUR 4.5 billion, according to the Commission. The agreement will bring greater access and sustainable investments in critical raw materials and clean fuel, such as lithium, copper and hydrogen, which are crucial for the green and digital transformations and EU’s economy. Besides, the agreement will protect 216 EU geographical indications (GIs) in Chile, and 18 GIs from Chile in the EU.
Margarida Marques, the S&D shadow rapporteur on this file in the international trade committee (INTA), said:
“This agreement, a progressive agreement, is extremely important for Chile and the EU to modernise and update their relationship in an evolving geopolitical context.
“This agreement is mutually beneficial and empowers us to together face new challenges with trust and mutual respect. With this deal, we will have new standards on trade and sustainable development; gender equality; greater access to raw materials - key for economic development in Chile; new opportunities for SMEs; protection of EU products; as well as a reduction of tariffs up to 0%, allowing for better market access. We will also be in a better place when it comes to the fight against climate change, by upholding the Paris Agreement, and promoting the social and economic sustainable development of both partners’ societies.”
Javi López, the S&D shadow rapporteur on this file in the foreign affairs committee (AFET), added:
“The conclusion of the Advanced Framework Agreement with Chile is magnificent news and represents a true qualitative leap in our bilateral relations.
“The European Union and Chile are close allies, and we enjoy a privileged relationship based on common values and interests, also built on the previous agreement in force for more than 21 years. Furthermore, the Government of President Gabriel Boric is one of the progressive references in the region and we have a special interest in strengthening our ties with it.
“Now we can modernise our relationship and together adapt it to the current difficult geopolitical context and seize the opportunities to generate and redistribute wealth, advance our societies, and address poignant global challenges. With this progressive agreement, we will deepen economic and political relations with a like-minded partner and promote stronger co-operation on foreign and security matters; sustainable development; climate change; sustainable energy; rule of law; human rights; and labour and women’s rights. With our vote today, we are paving the way for similar agreements with other key Latin American partners.”
Note to editors:
*The Advanced Framework Agreement (AFA) will replace the current Association Agreement between the EU and Chile. AFA, which consists of a political dialogue and co-operation pillar and a trade and investment pillar, is complemented by an Interim Trade Agreement (iTA), which includes only the trade and investment liberalisation elements of the AFA that fall under exclusive EU competences. This means that the iTA will only need to be ratified at EU level, while the AFA also needs to be ratified by all member states individually. The iTA will then expire once the AFA enters into force.
