The Council of the European Union approved, on Tuesday 5 December, the signing of the Advanced Framework Agreement (AFA) and the Interim Trade Agreement (ITA) with Chile, which together constitute a modernised version of the EU/Chile Association Agreement currently in force. Negotiations between the two parties were finalised in December 2022 (see EUROPE 13081/19).
The Advanced Framework Agreement includes political and cooperation components as well as trade and investment components. The Interim Trade Agreement (ITA) covers the liberalisation of trade and investment.
The EU and Chile had opted to add an interim agreement so that they could implement the part on trade liberalisation without having to wait for ratification by the Member States.
The EU is Chile’s third largest trading partner. With the entry into force of the ITA, virtually all EU exports to Chile will be exempt from customs duties.
In line with the EU’s ambitions for strategic autonomy and economic security, the agreement should provide better access to raw materials and clean fuels, such as lithium, copper and hydrogen.
The two texts must now be approved by the European Parliament and the Chilean Parliament before they can come fully into force. (Original version in French by Isalia Stieffatre)