Negotiations on the modernisation of the 2005 EU-Chile Association Agreement, launched in November 2017, are progressing well.
During the fifth round of negotiations from 15 to 19 July, negotiators made “very good progress” on a very large number of chapters, the European Commission confirmed in a detailed report published on 26 July (see EUROPE 12239/31).
These talks are mainly driven by political interest, according to a Chilean source.
Chile's tariffs are significantly lower than those of the Mercosur block. European offensive interests concern, among other things, access to Chilean public markets or the protection of European geographical indications - a particularly sensitive subject for the Chilean side.
For the Chilean partner, “a deal with the EU is a quality label”, the same source told EUROPE. The opening of quotas for olive oil and pork is one of Chile's offensive interests.
Overview of the status of the talks
The parties continued their discussions about market access offers for goods, intellectual property rights, parts of the investment chapter - including the ‘ICS’ Investment Court System - and subsidies.
The chapters on SMEs and inter-State dispute settlement have been closed; the chapter on trade facilitation and customs is close to conclusion. Most of the provisions of the competition chapter have already been approved.
Discussions are also progressing on the mechanisms for rules of origin, although differences on cumulation rules have emerged.
The EU system of geographical indications, a sensitive subject for the Chilean side, is the subject of additional clarifications as to the scope of protection, coexistence with earlier trademarks and administrative implementation of protection.
The parties are on the same page on many points in the chapter on sustainable development, and the discussion continues.
To consult the report (EN): https://bit.ly/2SQdoYy (Original version in French by Hermine Donceel)