The EU-Chile Interim Trade Agreement (ITA) has entered into force, following the completion of Chile's ratification process. The ITA, which was signed in December 2023, is of key geopolitical importance, says the EU.
It will boost the competitiveness of businesses on both sides, while providing a shared platform for the development of the countries’ net-zero economies.
This work will be further underpinned by ongoing initiatives under the Global Gateway, such as the development of critical raw materials value chains for lithium and copper, and the production of green hydrogen in Chile.
The ITA will deepen EU-Chile bilateral trade and investment relations and provide new opportunities for businesses by eliminating tariffs on 99.9% of EU exports and providing a level playing field for EU goods on the Chilean market.
The agreement will contribute to the EU and Chile's shared ambition to make their bilateral trade and investment sustainable, through:
• An ambitious Trade and Sustainable Development (TSD) chapter confirming the Parties' commitment to International Labour Organization (ILO) standards and to the Paris agreement on climate change;
• A dedicated Trade and Gender chapter, a first in an EU trade agreement, which includes commitments to eliminate all discrimination against women; and
• A chapter on Sustainable Food Systems, also a first in an EU trade agreement, with the objective of making food supply chains more sustainable and resilient.
The EU and Chile negotiated between 2017 and 2022 to modernize the EU-Chile Association Agreement (in force since 2003).