On June 24, 2024, the European Free Trade Association (EFTA) held its annual ministerial meeting in Geneva, Switzerland, where a significant highlight was the signing of a protocol of amendment to modernise the Free Trade Agreement (FTA) with Chile. Chaired by Guy Parmelin, Federal councillor of Switzerland, the meeting marked a pivotal moment in strengthening the economic ties between EFTA States and Chile.

The modernised agreement promises significant economic benefits, including the elimination of duties on all industrial goods, encompassing those currently exported to Chile by EFTA companies. Additionally, the updated agreement will provide duty-free access to 99 per cent of existing agricultural imports into Chile from the EFTA States and cover 95 per cent of Chilean imports into the EFTA States.

Beyond tariff reductions, the modernised FTA incorporates new chapters on trade and sustainable development, digital trade, and, for the first time, a chapter dedicated to small and medium-sized enterprises (SMEs). These additions reflect a commitment to promoting sustainable economic growth and embracing the digital economy, EFTA said in a press release.

The agreement was signed on behalf of the EFTA States by Thordis Kolbrun Reykfjord Gylfadottir, minister for foreign affairs of Iceland; Dominique Hasler, minister of foreign affairs, education and sport of Liechtenstein; Cecilie Myrseth, minister of trade and industry of Norway; and Guy Parmelin. Alberto van Klaveren, minister of foreign Affairs, signed the agreement on behalf of Chile.

The original FTA between EFTA and Chile was first signed in Kristiansand, Norway, on June 26, 2003, and entered into force on December 1, 2004. The modernisation process, initiated in 2019, was completed in January 2024 after seven rounds of negotiations.

“I am pleased that we managed to conclude a modern and ambitious free trade agreement which will in particular establish better market access for goods. The strengthened IPR chapter will provide our exporting communities with more legal certainty. I am confident that the EFTA–Chile modernised agreement will create new business opportunities through improved market access and greater predictability and legal certainty for operators from the EFTA States and Chile,” said Federal councillor Parmelin.

“This modernisation offers Chile expanded access to the EFTA markets in goods. We especially value the inclusion of new areas, such as trade and sustainable development, digital trade, small and medium enterprises, and trade and gender. These additions will help us to adapt to the global economic realities and promote more inclusive trade. This modernised FTA aligns perfectly with the political values and principles that we share with EFTA members,” said minister Van Klaveren.

Fibre2Fashion News Desk (DP)