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DRAFT OPINION (COM(2023)0432 – C90000 – 2023/0260(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

AGRI-PA-753796

Committee on Agriculture and Rural Development · Rapporteur: Francisco Guerreiro

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The Committee on Agriculture and Rural Development gives its opinion on the proposed Council decision to conclude the Advanced Framework Agreement between the EU and Chile. It calls on the responsible committees to recommend approval. The rapporteur notes the agreement removes tariffs on 99.9% of EU exports, keeps exclusions for sugar, rice and bananas, and grants extra access only through duty-free quotas. The agreement adds a trade and sustainable development chapter committing both parties to implement the Paris Agreement and a chapter on sustainable food systems, including maintaining bans on antibiotics as growth promoters. The rapporteur recommends that Parliament give its consent to the conclusion of the agreement.

Committee position. The rapporteur recommends that Parliament give its consent to the conclusion of the agreement, and the Committee on Agriculture and Rural Development calls on the responsible committees to recommend approval of the proposal for a Council decision.

Key points

  1. The rapporteur recalls that negotiations to modernise the 2002 EU-Chile Association Agreement were authorised in 2017 and concluded in 2021, with chapters published by 9 December 2022.
  2. The agreement mixes shared and exclusive EU competences, so it goes to Parliament and member states for ratification, while trade and investment access is handled through an Interim Trade Agreement that expires when the agreement enters into force.
  3. The agreement makes 99.9% of EU exports tariff-free but keeps exclusions for sensitive products, notably sugar for both sides and rice and bananas for the EU.
  4. Extra EU market access is granted only through duty-free quotas; existing quotas for beef and sheep meat are rationalised, and increases for pork, garlic and canned fish remain modest, aside from poultry.
  5. The agreement protects 216 additional European agri-food geographical indications and 18 Chilean ones.
  6. A dedicated trade and sustainable development chapter commits both parties to implement the Paris Agreement and their Nationally Determined Contributions, and includes a review clause to revise provisions as standards evolve.
  7. The core standards of the International Labour Organisation and the Paris Agreement are not yet essential elements subject to sanctions under the general dispute settlement chapter.
  8. A chapter on sustainable food systems is to support cooperation on the transition to sustainable food systems, antimicrobial resistance and animal welfare, with both parties maintaining bans on antibiotics as growth promoters.
  9. Parliament's consent is required under Article 218(6) of the Treaty on the Functioning of the European Union for the Council to conclude the agreement.
  10. The rapporteur recommends that Parliament give its consent to the conclusion of the agreement.
  11. The Committee on Agriculture and Rural Development calls on the Committee on Foreign Affairs and the Committee on International Trade to recommend approval of the proposal for a Council decision.

Who is affected

  • EU exporters of agricultural and food products, who gain tariff-free access for 99.9% of exports but face exclusions and quotas for sensitive products.
  • EU producers of sugar, rice, bananas, beef, sheep meat, pork, garlic, poultry and canned fish, affected by exclusions, quota rationalisation and modest increases.
  • Holders of European and Chilean geographical indications, with 216 additional European and 18 Chilean GIs protected.
  • Workers and environmental stakeholders, through commitments on International Labour Organisation core standards, the Paris Agreement and a review clause.
  • Actors in food systems, through cooperation on antimicrobial resistance and animal welfare and the ban on antibiotics as growth promoters.

Figures and deadlines

  • 99.9% of EU exports become tariff-free under the agreement.
  • 216 additional European agri-food geographical indications are protected.
  • 18 Chilean geographical indications are protected.
  • 13 November 2017: date the Council authorised opening negotiations with Chile.
  • October 2021: negotiations concluded at technical level.
  • 9 December 2022: date by which the agreement's chapters were published.

Legal basis: Article 218(6) of the Treaty on the Functioning of the European Union