Brussels, 17/04/2002 (Agence Europe) - The EU and Chile hope to conclude negotiations on an association and free trade agreement next week. The last negotiating session began on Monday (see EUROPE of 13 April, p.8). Chile's Foreign Minister Soledad Alvear is expected to be in Brussels next Tuesday for the last lap of negotiations. "I have the feeling that both parties are determined to reach an agreement before the EU/Latin America/Caribbean summit (16 and 17 May in Madrid). This does not mean that we do not yet have complex themes to resolve, but I am optimistic", said Chile's negotiator in chief, under-Secretary of State for External Relations Christián Barros told journalists on Tuesday.
The Chilean side calls for better access to the European agricultural market for its processed products, in order to develop high potential sectors in Chile, such as processed fish products, green vegetables or fruit. The European side, on the other hand, is awaiting progress on the question of names of origin for wines and spirits. "I am very optimistic about the fact that the EU will make a better offer for access to the agricultural area. It is clear that, at this stage, both parties must make concessions in order to reach an agreement", assured Cristián Barros. "There is no insurmountable difficulty" and the "EU is willing to examine Chile's request for market access with a certain amount of comprehension, using quotas", echoed one European negotiator. "The European offer will depend on what Chile is willing to do for wines and spirits (…). Considerable effort has already been made in this sector", continued the same source. Discussions focus on the concept of "traditional designations" for wine. Chile has already clarified its concept of "brands" in particular, as well as geographical indication, and should review its decree on "special quality indications" in the wine sector, states Alberto van Klaveren, Ambassador for Chile's mission in Brussels.
In the fisheries sector, which is still a difficult area, both parties have made headway. Chile is ready to amend its investment code to allow European fishing companies to register under Chilean flags and to fish in its territorial waters, subject to conditions of reciprocity, Ambassador van Klaveren said. Complex discussions on Chile's sovereign rights over its fishing resources over and beyond its territorial waters are, however, still in progress. "It is a matter of doctrinal discussion. By amending our approach, that is the EU's approach regarding resources, we run the risk of creating a precedent for fishing negotiations held by the two parties in the future", Ambassador Mercurio, Chilean's head negotiator on fisheries, said. According to a European negotiator, however, the issue does not directly concern negotiation of the association agreement. He said: "It is not a matter at this point of opening a debate that comes under international sea authorities and a declaration should specify this".
The question of financial services is "not a problem", said Mr Barros. The European side, however, hopes a more ambitious offer will be made. Discussions on this issue are expected to resume on Thursday. Discussions have also moved forward on the question of rules of origin, although "there is still a problem", says Ambassador van Klaveren, who noted that the EU has "very strict" rules in this area. Contrary to what was indicated last week by Eupeoan sources, "the question of public procurement is not a major problem. Chile has made a generous offer covering all sectors and regional levels", the Ambassador assured.