The Council of the EU gives the green light to the signing of the trade agreement with Chile

The Council of the EU today adopted the decisions on the signing of the modernisation of the Trade Agreement between the EU and the Republic of Chile and of the Advanced Framework Agreement. The Council also agreed to seek the consent of the European Parliament on these agreements in order for the trade agreement to formally enter into force next year.

The Vice-President and Minister for Economy, Trade and Enterprise, Nadia Calviño, said that "the EU-Chile trade agreement will contribute to improving the EU's strategic autonomy, strengthening the security of supply and export opportunities for our companies".

What is more, the agreement is very ambitious and advanced in its various chapters. It will allow for the reduction of existing barriers to bilateral trade in goods and services and better access to raw materials and clean fuels crucial for the transition to a green economy, such as lithium, copper and hydrogen.

It also improves access to public procurement markets, and specifically considers the needs of small and medium-sized enterprises and the protection of intellectual property, including geographical indications.

Particularly noteworthy are the provisions of the trade and sustainable development chapter of the agreement, which contain a high level of ambition and cover aspects such as labour standards, environment, climate change, fisheries and Corporate Social Responsibility, including a chapter on sustainable food systems.

These commitments have been reinforced through a Joint Declaration on Trade and Sustainable Development, which complements the agreement reached.

The agreement is also one of the pioneers in the inclusion of provisions on gender equality, a very relevant issue for both the EU and Spain, but also for Chile. The importance of gender mainstreaming in policies for inclusive economic growth is recognised.

Moreover, the Advanced Framework Agreement contains clauses of a political and cooperation nature, as well as commitments in trade matters that require ratification by the EU member states, as they are a competence shared among them, such as the provisions on investment protection.

Next steps

Following the adoption of the decisions for signature by the Council, the signing ceremony for both the Trade Agreement and the Advanced Framework Agreement is scheduled to take place on 14 December in Brussels.

Spain-Chile bilateral trade data

In 2022, Spain exported goods to Chile worth €1.806 billion and imported goods worth €1.596 billion, with Chile ranking 32nd in the ranking of most important markets for Spanish exports, and 48th as a supplier, while Spain ranked as Chile's 10th customer and 9th supplier.

In terms of trade in services, according to the Bank of Spain, in 2022 services exports to Chile reached over $1.234 billion and imports $281 million. In terms of Spanish investment per capita, Chile is by far the leading destination in Latin America.

In 2021, the stock of Spanish investment in Chile (not ETVE) reached €15.81 billion (10th position), while the stock of Chilean investment in Spain reached €562 million (42nd position).

Non official translation