Brussels, 13 December 2023
The EU and Chile have today signed an Advanced Framework Agreement and an Interim Trade Agreement to strengthen political cooperation and foster trade and investment. The signature took place at a meeting between Executive Vice-President and Commissioner for Trade Valdis Dombrovskis, High Representative/Vice-President Josep Borrell, the Chilean Minister of Foreign Affairs Alberto van Klaveren Stork, the Spanish Minister for the Economy and Digital Transformation Nadia Calviño and the Spanish Minister of Foreign Affairs, European Union and Cooperation José Manuel Albares on behalf of the Spanish Presidency of the Council.
These agreements put in place an ambitious and modern framework to deepen and widen EU-Chile relations. They will create new economic opportunities for both sides while promoting shared values, including substantive commitments and specific provisions on human rights, sustainable trade and gender equality.
Responding to growing geopolitical challenges, the agreements facilitate cooperation between the EU and Chile as like-minded partners on global issues. This includes the de-risking of supply chains, the securing sustainable supply of critical raw materials, and addressing climate change. Such efforts will support the competitiveness of businesses on both sides while advancing the shared goal of achieving a net-zero economy.
These efforts are further underpinned by the Global Gateway Investment Agenda, which includes support for projects such as the development of critical raw materials value chains for lithium and copper, and the production of green hydrogen in Chile.
A stronger political partnership
With this Agreement, Chile becomes the first country in the region to conclude a next generation agreement with the EU, bolstering a renewed ambition in tackling present and future challenges, such as the 2030 Agenda, climate action, state modernisation, sustainable development and gender equality.
The EU and Chile have agreed on a separate Interim Trade Agreement. This is a standalone agreement that replicates the provisions of the Trade and Investment pillar of the Advanced Framework Agreement, with the exception of the Investment protection provisions. The Interim Trade Agreement allows for an early entry into force of the modernised trade rules. It will expire automatically once the Advanced Framework Agreement enters into force.
Next steps
The new Agreements will now be submitted to the European Parliament. Once the Parliament gives it consent, the European Council can adopt the decisions to conclude the agreements. Parts of the Advanced Framework Agreement will come into provisional application (pending ratification by all EU Member States), while the Interim Trade Agreement will come into force when Chile’s Congress concludes its ratification procedure.
Background
The EU and Chile concluded an Association Agreement in 2002, which includes a comprehensive Free Trade Agreement (FTA) that entered into force in February 2003 covering EU-Chile trade relations. EU-Chile bilateral trade grew by about 150% between 2002 and 2022.
The EU and Chile engaged in negotiations between 2017 and 2022 to modernise their Agreement. The Parties reached the political conclusion of the negotiations on 9 December 2022.
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Quote(s)
Today marks a momentous occasion in EU-Chile relations. This modern, ambitious deal will be beneficial for our economies, creating new opportunities for our SMEs in particular, while helping us diversify our supply chains. Strengthening ties with a trusted partner like Chile will benefit the EU across a range of geopolitically important areas. It boasts wide-reaching sustainability commitments to help both sides achieve the green transition.
We are opening today a new chapter in our privileged partnership with Chile. At a time of unprecedented geopolitical challenges, the new Advanced Framework Agreement places joint values such as human rights, sustainability and the fight against climate change at the heart of our partnership. This landmark agreement also paves the way of a closer cooperation in the areas of justice, peace and security matters, energy and digital transition and will bring together our people, businesses and civil societies for decades to come.
Source – EU Commission
Statement by President von der Leyen on the signature of the EU-Chile Advanced Framework Agreement and Interim Trade Agreement
The signature of the EU-Chile Advanced Framework Agreement and Interim Trade Agreement is great news.
When we met in Santiago in June, President Boric and I agreed to press ahead and deliver these agreements by the end of this year. These are now a done deal.
99,9% of EU exports to Chile will be exempt from tariffs. Equally Chile’s products will enjoy more streamlined access to the EU’s Single Market.
With these new agreements we will create stronger connections between the EU and Latin America’s fifth largest economy. In particular, we will work together on sustainable critical raw materials supply chains. It’s a great opportunity for our clean tech industry. And an important contribution to our open strategic autonomy.
The EU and Chile share common core values and ambitions. We both champion respect for human rights, gender equality and protection of the environment. And we are both committed to decarbonisation. This is why we have put these guiding principles at the heart of our new agreements. They will govern our trade and investments relations. And this can serve as a blueprint for the EU’s future trade agreements.
I’m glad to open this new chapter today with such a privileged and trusted partner.
Source – EU Commission
Remarks by Executive Vice-President Dombrovskis on EU-Chile Agreement
Buenas Tardes, Señoras y Señores,
First of all, I am delighted to welcome Minister Van Klaveren to Brussels.
It is a true pleasure to ink the latest landmark achievement between our two democracies: the modernised EU and Chile Advanced Framework Agreement and Interim Trade Agreement.
The EU and Chile have shared a privileged partnership for a long time.
We have a long history working as like-minded allies. For example, to uphold the multilateral trading system.
And we have fought for fair global rules for decades.
Today’s signature formalises a commitment that takes this close bond to a whole new level. In many regards, it marks an even stronger partnership between old friends.
This matters greatly at a time of considerable geopolitical tension. Russia’s war in Ukraine has refocused minds on the need to forge closer alliances with trusted allies.
Let me say for the record that the EU deeply appreciates Chile’s strong and consistent support for Ukraine.
Meanwhile, the wider repercussions of Russia’s war in Ukraine highlight the need to accelerate the energy transition, reinforce strategic supply chains and diversify sources of supply. Our modernised agreement will help us in all these respects.
But not only that.
The agreement also marks a real leap forward in terms of our sustainability commitments.
It very much reflects our shared strategic interests in terms of cooperating in areas like clean energy and raw materials, which will be vital for our future economic resilience.
It commits us to working together on the green transition, and on clean energies of the future. Notably, it enshrines both the Paris Climate targets and International Labour Organization standards in a strong chapter on Trade and Sustainable Development.
It is also aninclusiveagreement, with strong participation foreseen for civil society.
And it features state of the art elements – from promoting sustainable food systems to support of gender equality via a dedicated Trade and Gender chapter.
Of course, the value of this modern, dynamic agreement goes much further.
It will also open up significant trade and investment potential for both sides. Companies – big and small – stand to gain. In that context, we have worked especially hard to ensure that smaller companies will reap its benefits, with easier trading rules.
Just on the EU side, we expect an increase of our exports to Chile by up to 4,5 billion euros over time thanks to the elimination of 99,9% of tariffs. Our agreement will provide new business opportunities and ensure a level playing field for EU goods on the Chilean market.
Let me conclude with the famous words of Chilean poet and politician Pablo Neruda:
‘Algunas amistades son eternas’ – some friendships are eternal.
Today’s world is very different to 20 years ago when our previous Association Agreement was signed.
So, I am proud that we succeeded in getting this next generation agreement over the line with one of our closest friends.
In doing so, we have unlocked a whole new level of opportunities for our citizens, our businesses, and our planet.
Thank you.
Source – EU Commission
Chile: Statement by High Representative Josep Borrell after the signature of the Advanced Framework Agreement
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Thank you, dear Minister, [for Foreign Affairs of Chile] Alberto van Klaveren. Thank you to you, dear Ministers. Thank you, Vice-Presidents Nadia [Calviño Santamaría, Vice-President of Spain], Valdis [Dombrovskis, Executive Vice-President of the European Commission] .
It is a great day today.
Allow me to start with brief remarks in English since we are in Brussels, in the European Union. But you will allow me to switch to Spanish for obvious reasons. Allow me to start [by] saying that it is a real honour and a great pleasure to welcome you here in Brussels.
Chile and the European Union, we are close allies. We have a privileged relationship.
I remember my visit to Chile in April last year, when I had the honor of meeting President [of Chile, Gabriel] Boric in such a historical place as La Moneda.
Back then, we discussed the agreement extensively and the President pushed me to do whatever I could in order to finally reach an agreement. That is what we have been doing, together with Vice-President Dombrovskis – thank you, Valdis, for your cooperation – to finalise these negotiations and conclude the agreement.
Therefore, I am really delighted to be here today to sign – in English, it is the “Advanced Framework Agreement” – with all of us, with you, with Vice-President Dombrovskis and with the Spanish Presidency of the Council of the European Union and with the Spanish Vice-President of the government, Nadia.
Chile was the first country in Latin America to sign an Association Agreement with the European Union. It was in 2002 – 21 years ago. And Chile is again the first country to sign a new generation of Advanced Framework Agreements with the European Union. I think that these two sentences say everything. You were the first 21 years ago, and you are the first today.
And now, allow me to switch to Spanish to say that you, estimado canciller, usted era embajador de Chile ante la Unión Europea, o sea que alguna responsabilidad tiene usted también con lo que firmamos hace 21 años, cuando firmamos ese primer Acuerdo de Asociación. Y hoy está usted aquí, otra vez, cerrando un círculo, y no creo que sea necesario recordar el largo y fructífero recorrido de nuestras relaciones bilaterales.
Una relación que tiene mucha historia. Nuestra firma de hoy lo demuestra, pero también tiene – y eso es lo importante – mucho futuro. Dicho en español suena mejor. Si decimos en español ‘Acuerdo Marco Avanzado’, por sus siglas AMA, hasta el nombre refleja la amistad. Dicho en español, la verdad es que no solamente suena mejor, si no que tiene un significado simbólico. Estamos firmando casi una declaración de amor, un “AMA”. Estamos modernizando y actualizando nuestra relación para – como ha dicho el ministro español con palabras elocuentes que no voy a repetir – [adaptarnos a] un nuevo y difícil contexto geopolítico.
Pero con Chile hemos sido socios, tenemos muchas oportunidades. Juntos podemos enfrentarnos a los peligros y a las amenazas, desde, no solo el reconocimiento, no solo la amistad, si no la larga historia común que tenemos. Chile, como dice Isabel Allende, “este largo pétalo de mar”, el título de su última novela, que describe perfectamente lo que es ese país desde las tierras ardientes del norte hasta los glaciares del sur, pasando por los grandes lagos repletos de nombres que recuerdan la geografía de España: Osorno, Valdivia y tantos otros.
Y, además, si bajamos de las musas al teatro, reconoceremos que somos el tercer socio comercial de Chile, y somos el primero inversor extranjero en Chile. Y cuando alguien invierte en un país es porque tiene confianza en él. Somos los que más confianza tenemos porque somos los que más invertimos. Esta es una base muy sólida para ir más allá. Vamos a profundizar nuestro diálogo político e impulsar nuestra relación económica. Vamos a trabajar juntos en la innovación, la sostenibilidad, la lucha contra el cambio climático, la promoción de los derechos humanos y la cooperación multilateral.
Gracias a este acuerdo ampliaremos conexiones entre nuestros sectores privados, nuestras sociedades civiles, nuestras comunidades académicas. En suma, acercaremos a nuestros pueblos.
Permítanme terminar con una palabra de agradecimiento y reconocimiento al presidente Boric – a quien le ruego transmita nuestros saludos – a usted, señor Canciller, y también a nuestros equipos a los que quiero dar las gracias muy sentidas por todo el trabajo que han hecho, tanto desde la Comisión como desde las distintas instituciones chilenas que han hecho posible que nos reunamos hoy aquí para reforzar y relanzar nuestras relaciones.
Muchas gracias.
Source: EEAS