Brussels, 25/01/2002 (Agence Europe) - The 8th negotiating session with a view to an association and free trade agreement between the European Union and Chile will be held from 28 January to 1 February in Brussels, under the chairmanship of the Director General for External Relations at the Commission, Guy Legras, on the European side, and, in principle, the Chilean Ambassador with the EU, Alberto van Klaveren, on the Chilean side. After an exchange of liberalisation proposals during the earlier sessions, both parties should speed up the rate of negotiations from next week on in the hope of concluding for the EU/Latin America, Caribbean Summit to be held on 17 and 18 May in Madrid. EUROPE has reason to believe that the next meetings will be held during the second half of March and end April. The General Affairs Council is expected to adopt, on Monday, conclusions confirming the political commitment of the EU for the Summit, while stressing that the results of negotiations should be "substantial". The Chilean Minister for External Relations, Maria Soledad Alvear could be in Brussels at the end of the negotiating session, in order to restate Chile's interest for such negotiations.
The most important points of divergence currently cover fisheries, wine and the financial services. France, followed by Greece and other wine producers, insisted this week during the meeting of permanent representatives on the content of the agreement concerning geographical indications. "This is a major issue for France, but it is not an insurmountable problem. There is good will on both sides to succeed", the French side nonetheless assures. The question of geographical indications is raised for several French wines and spirits, such as Champagne, Cognac or Bordeaux, which are used in Chile as "brands". Chile, for its part, attacks misleading names in Europe such as wines sold under the term "Los Andes".
Spain for its part insists on resolving the question of access to Chilean fish resources in the context of these negotiations. The dispute covers the definition of territorial waters in the context of the Galapagos agreement signed between Chile and the South Pacific countries, challenged by Spain according to which the international Law of the Sea should be respected. The Commission recently assured Chile that it is a "Community" question. Several diplomats, however, hope that this "Hispano-Chilean" issue will be resolved bilaterally, "especially as it is in Spain's interest, which has made of Latin America one of its major priorities, to reach agreement under its Presidency", remarked a European diplomat. For its part, Chile is extremely reluctant at the idea of negotiating access for its fish resources. The question should not be broached directly during the 8th negotiating session, Chilean sources say. The two parties are trying to find an agreement by working on the idea of creating joint-ventures between European and Chilean fisheries companies.
Negotiations on financial services have not progressed so far, Chile wanting first to progress in ongoing bilateral negotiations with the United States, an argument rejected by the Europeans who refuse later to adapt to the American rules. A Chilean source, however, states that Chile has already agreed to comply with the European negotiating system according to "positive lists" that rules out the liberalisation of all sectors not explicitly included in the agreement.
Anti-dumping rules also continue to be a stumbling block in negotiations as Chile that does not implement such measures is calling for its exports to the EU to be exempt from European anti-dumping rules. Chile, moreover, wants the EU to abolish farm subsidies on products exported to its territories, of which the Europeans are very reluctant, while stating that the question will have to be examined on a "case by case basis".
Despite these areas of divergence, the two parties agree that negotiations are progressing since the exchange of lists of tariff dismantling and proposals in other areas. "All the subjects are now on the table", remarked a European diplomat, citing: rules of origin, tariff lists for the agricultural industry, services, investments, plant health rules, names in the realm of wine, fisheries and public procurement. Contrary to the case of Mercosur with which the EU is conducting parallel liberalisation negotiations, agriculture does not seem to be source of major difficulty with Chile which essentially exports unseasonable fruit and vegetable, European negotiators stress.