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INTERIM REPORT (COM(2023)0432 – C90467/2023 – 2023/0260R(NLE))

On the proposal for a Council decision on the conclusion, on behalf of the European Union, of the Advanced Framework Agreement between the European Union and its Member States, of the one part, and the Republic of Chile, of the other part

A-9-2024-0017

Committee on Foreign Affairs Committee on International Trade · Rapporteur: María Soraya Rodríguez Ramos, Samira Rafaela

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The report is a motion for a resolution on the EU-Chile Advanced Framework Agreement. It welcomes the agreement, which replaces the 2002 Association Agreement, and recommends that Parliament give its consent. It highlights the agreement's political and cooperation part, including bi-regional dialogue, security and defence cooperation, migration, climate action and space cooperation. It welcomes the trade and investment pillar: tariff liberalisation, protection of geographical indications, a chapter on trade and gender, and a chapter on sustainable food systems. It calls for an ambitious review of the trade and sustainable development provisions and for the swift implementation of the agreement and the Interim Trade Agreement.

Committee position. The Committee on Foreign Affairs and the Committee on International Trade recommend that Parliament give its consent to the agreement, welcoming its political, cooperation, trade and investment provisions and calling for an ambitious review of its trade and sustainable development chapter.

Key points

  1. Highlights the geopolitical significance of strong EU relations with Latin America and the Caribbean and the geopolitical value of the agreement given the presence of other actors such as China.
  2. Welcomes the EU-CELAC Summit of July 2023 and stresses the importance of regular bi-regional dialogue and Chile's constructive role in it.
  3. Calls for swift implementation of the EU strategy for Latin America and the Caribbean and of the Global Gateway investment agenda, and welcomes the EUR 45 billion financial package and progress on the Green Hydrogen Fund in Chile.
  4. Welcomes Chile's votes in favour of UN General Assembly resolutions condemning Russia's aggression against Ukraine and its humanitarian aid and demining support, and encourages Chile to join restrictive measures against Russia.
  5. Underlines the importance of fighting human rights violations and discrimination, protecting indigenous peoples' rights including free, prior and informed consent, and protecting human rights defenders and whistleblowers.
  6. Welcomes strengthened political cooperation on foreign and security matters, the launch of the EU-Chile Security and Defence dialogue, and Chile's participation in Operation Althea since 2004.
  7. Notes cooperation on migration, acknowledges Chile's efforts to integrate migrants and its role as President Pro Tempore of the Quito Process, and calls for increased bi-regional cooperation against organised crime and drug trafficking.
  8. Welcomes the commitment to climate neutrality by 2050, implementation of the Paris Agreement and the Kunming-Montreal Global Biodiversity Framework, and cooperation on satellite navigation and Earth observation including a Copernicus data centre in Chile.
  9. Welcomes the trade and investment pillar: 99% of tariff lines fully liberalised, over 95% of trade duty-free, protection of 216 EU and 18 Chilean geographical indications, and a dedicated chapter on trade and gender.
  10. Welcomes the chapter on sustainable food systems and the single entity mechanism for agri-food exports, and calls for a level playing field for agricultural, fishery and aquaculture products and action against illegal, unreported and unregulated fishing.
  11. Welcomes the investment protection provisions aligned with the EU's reformed approach and the Investment Court System, and the improved access to public procurement markets and support for small and medium-sized enterprises.
  12. Calls for an ambitious review of the trade and sustainable development provisions, with Parliament kept closely involved, and for the swift roll-out of the agreement and the Interim Trade Agreement.

Who is affected

  • EU and Chilean companies, including small and medium-sized enterprises, which gain new market access and procurement opportunities.
  • EU agricultural producers, whose sensitive products are protected by tariff rate quotas and exclusions.
  • Indigenous peoples and local communities in Chile, whose rights including free, prior and informed consent are addressed.
  • EU investors in Chile, who will be treated the same as Chilean investors and covered by the Investment Court System.
  • Civil society organisations, which are to be involved in monitoring the agreement's implementation through Domestic Consultative Groups.

Figures and deadlines

  • EUR 225 million: initial budget for the Team Europe initiative for renewable hydrogen in Chile.
  • EUR 45 billion: financial package to support a fair green transition and other goals in Latin America and the Caribbean.
  • 99% of tariff lines will be fully liberalised and over 95% of trade will be duty-free.
  • 99.9% of EU exports will be tariff-free.
  • 216 EU agricultural geographical indications and 18 Chilean ones are protected, in addition to 1745 EU wine GIs and 257 EU spirits and aromatised wines GIs.
  • Chile has concluded bilateral investment protection treaties with 16 EU Member States, which the Investment Court System will replace.
  • The EU-Chile Association Agreement entered into force on 1 March 2005.
  • The phase-out of antibiotics as growth promoters has been in place in Chile since 2018.

Legal basis: Articles 91, 100(2), 207 and 212 of the Treaty on the Functioning of the European Union, in conjunction with Article 218.