Brussels, 03/02/2003 (Agence Europe) - The trade chapter of the association and free trade agreement between the EU and Chile took effect on 1 February. The whole agreement, which mainly covers investment and financial services, will come into force after ratification by the European Parliament, the national parliaments of the Member States and of Chile.
Chile's National Congress has already ratified the agreement. The European Parliament is expected to do the same during its February session, on the basis of the report by José Salafranca, unanimously approved on 27 January by the Committee on External Affairs. The text of the agreement was published in the Official Journal of 30 December (L352).
Concluded in March 2002, the agreement provides for the liberalisation of trade over ten years. Some 90% of Chile's manufactured products can now enter the EU freely, and the remaining 10% will be able to do so in three years' time. Chile, for its part, will abolish its customs duties on European industrial goods after 3, 5 and 7 years. In the farm sector, 97-98% of trade will be freed over ten years.