On the draft Council decision on the conclusion of the Interim Agreement on Trade between the European Union and the Republic of Chile
INTA-PR-756026
Committee on International Trade · Rapporteur: Samira Rafaela
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This is the rapporteur's draft report on the draft Council decision to conclude the Interim Agreement on Trade between the EU and Chile. It recommends that Parliament give its consent to the agreement.¶¶¶ The Interim Agreement contains the trade and investment provisions of the wider Advanced Framework Agreement that fall within the EU's exclusive competence, and will expire automatically once that agreement enters into force.¶ It liberalises most remaining agricultural tariffs, protects geographical indications, opens new quotas, and includes chapters on investment and services, energy and raw materials, trade and gender, and trade and sustainable development.¶¶¶
Committee position. The rapporteur recommends that Parliament give its consent to the conclusion of the Interim Agreement on Trade between the EU and Chile.¶¶
Key points
- Parliament gives its consent to the conclusion of the Interim Agreement on Trade between the EU and Chile.¶
- The rapporteur recommends giving consent, saying the agreement will strengthen ties with a reliable partner and support fair, sustainable, values-based trade.¶¶
- The Interim Agreement covers only the trade and investment provisions of the Advanced Framework Agreement that fall within the EU's exclusive competence, and follows an EU-only ratification procedure.¶
- The Advanced Framework Agreement will be ratified by Parliament and by all member states, and the Interim Agreement will expire automatically once it enters into force.
- The agreement liberalises 96 percent of agricultural tariff lines not yet liberalised on Chile's side and 66 percent on the EU side over a maximum of seven years, making over 95 percent of bilateral trade in goods duty free.¶
- Exclusions continue for sugar on both sides and for bananas and rice on the EU side, and Chilean fruit and vegetables remain subject to the EU entry price system.
- The EU provides increased duty-free quotas for Chilean poultry meat, pork, sheep meat, beef, garlic and canned fish, and opens new quotas for olive oil, fruit preparations and other items.
- The agreement protects 216 EU geographical indications in Chile and 18 Chilean geographical indications in the EU.
- Chapters on investment and services give European and Chilean investors equal treatment and safeguard the right of public authorities to regulate in the public interest, including public services such as education, healthcare and water.¶
- A stand-alone chapter on trade and gender, the first in an EU trade agreement, sets commitments on gender equality.¶
- The chapter on energy and raw materials ensures discrimination-free access to critical raw materials and clean energy, prohibits export and import monopolies and dual pricing, and allows Chile limited policy space for a lower domestic price.¶
- A chapter on trade and sustainable development contains binding commitments on social, labour and environmental matters, and a joint statement commits both sides to review the agreement to align it with the most up-to-date sustainability standards.¶
Who is affected
- EU and Chilean exporters of agricultural goods, which face new tariff liberalisation, quotas and continued exclusions.¶
- EU and Chilean investors, who receive equal treatment when establishing and operating businesses.¶
- Producers of EU and Chilean geographical indications, which gain protection in the other market.¶
- Chilean and EU workers and indigenous peoples, covered by commitments on labour rights, including free, prior and informed consent.¶
Figures and deadlines
- 96 percent of agricultural tariff lines not yet liberalised on Chile's side¶
- 66 percent of agricultural tariff lines not yet liberalised on the EU side
- over 95 percent of bilateral trade in goods duty free
- maximum of seven years for tariff liberalisation
- 216 EU geographical indications protected in Chile
- 18 Chilean geographical indications protected in the EU
- EU-Chile bilateral trade grew by 142 percent between 2002 and 2021¶
Legal basis: Article 91(1), Article 100(2), Article 207(4), first subparagraph, Article 218(6), second subparagraph, point (a)(v) and Article 218(7) of the Treaty on the Functioning of the European Union¶