EU & Chile finalise key trade agreement amid global challenges

In light of increasing global geopolitical challenges, these agreements are timely, facilitating EU-Chile cooperation on crucial issues. These include addressing supply chain vulnerabilities, securing sustainable sources of critical raw materials, and combatting climate change. The initiatives are expected to support the competitiveness of businesses in both regions and contribute to the shared objective of a net-zero economy, the European Commission said in a media release.

The Interim Trade Agreement allows for the early implementation of the modernised trade rules and will remain in effect until the Advanced Framework Agreement is fully ratified.

The new agreements will now be submitted to the European Parliament for approval. Following this, the European Council can finalise the agreements. Parts of the Advanced Framework Agreement will be applied provisionally, pending ratification by all EU Member States, while the Interim Trade Agreement will take effect after ratification by Chile's Congress.

The signing ceremony was attended by executive vice-president and commissioner for trade Valdis Dombrovskis, high representative/vice-president Josep Borrell, along with the Chilean minister of foreign affairs Alberto van Klaveren Stork, Spanish minister for the economy and digital transformation Nadia Calviño, and José Manuel Albares, Spanish minister of foreign affairs, European Union and Cooperation.

“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,” Dombrovskis said.

Fibre2Fashion News Desk (KD)