EU-Chile agreement

• Validity: The agreement came into force in February 2025.
• Relevance: It helps the EU expand export and import markets, reduces risks and strengthens economic ties.
• Chile: One of the largest economies in Latin America, the EU's main partner in the region.
• Trade relations: In 2021, trade between the EU and Chile amounted to €16.9 billion in goods and €6.7 billion in services.
• Trade growth: From 2002 to 2021, trade between the EU and Chile grew by 142%.

Key benefits of the agreement:

• Elimination of tariffs: 99.9% of European products will be duty-free, which could increase exports by €4.5 billion.
• Access to raw materials: Better access to lithium, copper and hydrogen for the green economy.
• Conditions for services: Simplification for European companies in telecommunications, maritime transport and financial services.
• Investment: A level playing field between European and Chilean investors.
• Public procurement: Better access to contracts in Chile for European companies.
• Supporting small businesses: Reducing administrative burdens and supporting smaller firms.

Modernisation of the agreement:

• Legal instruments: Two instruments – the Advanced Framework Agreement and the Interim Trade Agreement (ITA).
• Trade and investment: Elimination of tariffs on most European products, better rules of origin.
• Digital commerce: E-commerce support, data protection and digital transactions.
• Sustainability: Commitments to environmental protection and labour rights.

Other aspects:

• Lithium: The EU gets access to Chilean lithium on fair terms.
• Hydrogen: The agreement facilitates trade in renewable hydrogen.
• Geographical Indications: Protection of 216 European products in Chile, such as Parmigiano Reggiano and Bayerisches Bier.

This agreement strengthens trade relations between the EU and Chile, promoting economic growth and sustainable development.