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DRAFT OPINION (COM2023/0435 – C90000 – 2023/0259(NLE))

On the Interim Agreement on Trade between the European Union and the Republic of Chile

AGRI-PA-753797

Committee on Agriculture and Rural Development · Rapporteur: Francisco Guerreiro

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This is a draft opinion by Parliament's Committee on Agriculture and Rural Development on the Interim Agreement on Trade between the EU and Chile. The rapporteur recommends that Parliament give its consent to the agreement. The agreement removes tariffs on 99.9% of EU exports to Chile but keeps exclusions for sensitive products such as sugar, rice and bananas, and grants extra EU market access only through duty-free quotas. It protects 216 European and 18 Chilean agri-food geographical indications, and adds a trade and sustainable development chapter and a chapter on sustainable food systems.

Committee position. The rapporteur recommends that Parliament give its consent to the conclusion of the agreement, and the committee calls on the Committee on International Trade to recommend approval of the proposal for a Council decision concluding the Interim Agreement.

Key points

  1. The rapporteur recommends that Parliament give its consent to the conclusion of the agreement.
  2. The Committee on Agriculture and Rural Development calls on the Committee on International Trade to recommend approval of the proposal for a Council decision concluding the Interim Agreement.
  3. The agreement reaches a high level of tariff liberalisation on the Chilean side, making 99.9% of EU exports tariff-free.
  4. It keeps exclusions for sensitive products of both parties, notably sugar for the EU and Chile, and rice and bananas for the EU.
  5. Additional access to the EU market is granted only as duty-free quotas; existing duty-free quotas for beef and sheep meat are rationalised by removing the annual growth rate and clarifying fixed amounts.
  6. Increases in existing duty-free quotas for pork, garlic and canned fish remain modest, aside from the increase for poultry.
  7. The agreement protects a further 216 European agri-food geographical indications and 18 Chilean ones.
  8. A dedicated trade and sustainable development chapter commits both parties to effectively implement the Paris Agreement and the Nationally Determined Contributions, and provides for a review clause to revise provisions as environmental and social standards evolve.
  9. A dedicated chapter on sustainable food systems is to serve as a basis for EU-Chile cooperation on the transition to a sustainable food system, including on antimicrobial resistance and animal welfare.
  10. Both parties commit to maintain their current prohibitions on the use of antibiotics as growth promoters.
  11. The trade and investment market access provisions of the Advanced Framework Agreement are submitted as an Interim Trade Agreement under EU exclusive competence, which will expire once the Advanced Framework Agreement enters into force.

Who is affected

  • EU exporters to Chile, who gain tariff-free access for 99.9% of exports.
  • EU producers of sensitive products such as sugar, rice and bananas, which remain excluded.
  • EU producers of beef, sheep meat, pork, poultry, garlic and canned fish, affected by duty-free quotas.
  • Holders of European and Chilean agri-food geographical indications, with 216 European and 18 Chilean GIs protected.

Figures and deadlines

  • 99.9% of EU exports become tariff-free under the agreement.
  • 216 European agri-food geographical indications are protected.
  • 18 Chilean geographical indications are protected.

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