Brussels, 12/07/2001 (Agence Europe) - The European Union presented an offer for the liberalisation of trade in ten years with Chile, during the fifth negotiating round that is taking place this week in Santiago, Chile. As in the case of the proposal presented to the Mercosur last week (see EUROPE of 6 July, p.7), the European Union is proposing to dismantle customs duties in four stages: with the entry into force of the future agreement, after four years, after seven years and after ten years. The non-tariff barriers to trade should be eliminated with the entry into force of the agreement as well as the barriers in terms of standards, procedures for the recognition of conformity and phytosanitary measures.
In the agricultural field, which represents 20% of the Chilean exports to the EU with a value of EUR 760 million (against 3% of European exports for a value of EUR 90 million), the EU is proposing to dismantle 86% of the existing duties, to which are added the EUR 56 million in exports that presently freely enter into Europe. The agricultural issue is less sensitive in the case of Chile than for the Mercosur, but Chile is a major exporter of wines, for which the Commission has not specified the timetable it is proposing. The duties for sensitive products such as mutton and poultry would be reduced in the framework of the quota. Furthermore, the duties would be dismantled: 1) immediately: for a category of products representing EUR 150 million (or 20% of the Chilean agricultural exports) and including apples and pears; 2) after four years: for a category of products representing EUR 184 million (or 24% of the Chilean agricultural exports), including table raisins and prunes; 3) after seven years: for the products representing EUR 56 million (7% of Chilean agricultural exports), including blackberries and raspberries; 4) after ten years for the products representing EUR 17 million, notably including fresh fruits such as peaches, nectarines and clementines, and honey; 5) gradually for wines and spirits, whose European exports represent 240 million. Wine and spirits will be the object of a separate agreement over the recognition of geographic names and oenological practices; 6) gradually for processed agricultural products (EUR 12 million in Chilean exports).
In the industrial field, which represents 75% of Chilean exports to the EU (or EUR 2.8 billion), the EU is proposing dismantling all the duties according to the following timetable: 1) immediately: for 93% of Chilean industrial exports (of EUR 2.6 billion), including among others offset printing machines and combed wool; 2) after four years: for a category of products representing EUR 42 million, and including gas turbines, certain copper products and certain categories of paper; 3) after seven years: for the remaining industrial products, representing EUR 160 million and including potassium nitrate, lithium carbonate and methanol.
For fishing products, representing EUR 250 million of Chilean exports, the EU is proposing to dismantle 72% of the duties, and to negotiate the dismantling of the duties on a category of products representing EUR 69 million, in the framework of the fishing agreement giving fishing rights to European ships in Chilean waters. The duties would be dismantled according to the following timetable: 1) immediately: for a category of products which, cumulated with the products already freely entering into Europe representing EUR 43 million, indicated the Commission without specifying the content of this category; 2) after four years: for 48% of the present Chilean exports (EUR 121 million), including frozen pacific salmon filets, prepared molluscs and coquilles Saint Jacques; 3) after seven years: for a category of products representing a value of EUR 6 million and including frozen hake meat; 4) after ten years: for a category of products representing EUR 11 million and including the remaining frozen fish fillets.
In the field of services, which represents around 20% of the trade between the EU and Chile, the EU proposes a substantial liberalisation and thus a lifting of barriers to trade with the entry into force of the agreement, covering all the categories of services with the exception of audiovisual. Special attention will be give to maritime transport, financial services and telecommunications.
For public procurement, the EU proposes to cover all the goods, services and works markets at the central and sub-central level, including for state companies. It would like to negotiate rules for transparency, competition and non-discrimination, as well as reciprocal undertakings notably based on the principal of national treatment.