Chile’s international relations continue to be strengthened throughout the world. This has been reflected in the signing of the Chile-European Union Advanced Framework Agreement (AFA), which will take a decisive step forward in political, cooperation, trade and investment matters.
This alliance renews the Association Agreement (AA) signed with the European Union (EU) in 2002. It aims to provide an updated institutional framework to face the new challenges that arise between Chile and the EU.
The AFA strengthens cooperation in areas that reflect common values and principles, such as the promotion of democracy, human rights and fundamental freedoms, the rule of law and good governance, sustainable development and the environment.
The AFA also establishes the need to generate inter-institutional collaboration in all the areas included in the instrument, in both the parliamentary sphere and civil society. This will deepen the relationship between Chile and the EU.
With regard to trade, it is important to consider that the EU is made up of 27 countries, representing an expanded market of 448 million people. It is the third largest global economy, with a GDP of US$16.6 trillion (2022).
The signing of the AA opened the door to this market, generating opportunities for Chile’s economic growth and development. With modernization, this exchange deepens, adding value by incorporating new materials.
Main scope of the Chile-EU Advanced Framework Agreement
Chilean products covered by tariff reduction in the EU increase from 94.7% to 99.6% of tariff lines. Among the products are:
- Olive oil
- Beef, lamb, poultry and pork
- Milk
- Agro-industrial products
- Food preparations
- Salmon, hake and tuna preparations
Greater access of Chilean services in the EU
The agreement will allow our providers to receive almost the same treatment as European service providers in sectors such as:
- Engineering and architecture
- Research and development
- Computing services
- Business services
- Construction
- Distribution
- Mining
- Energy
- Manufacture
The new areas included in the AFA
- This is the greenest agreement signed by Chile, as it expressly incorporates the standards of the Paris Agreement.
- It includes a chapter on Gender and Trade, which promotes equal opportunities and treatment between men and women in the field of trade.
- A new chapter on Small and Medium Enterprises (SME) will provide information that SMEs need to access the respective markets.
- A new chapter on Sustainable Food Systems is included to establish close cooperation in the transition to sustainability.
- It incorporates a chapter on Digital Trade.
- A new chapter on Energy and Raw Materials has been added.
- It also incorporates areas such as public health, international security and cyberspace, ocean governance, state modernization, and labor and social issues.