EU-Chile Agreement brings more EU exports and better access to raw materials

29.02.2024 12:24

EU-Chile Agreement brings more EU exports and better access to raw materials


The EPP Group stands for fair and smart trade agreements. "The new and very comprehensive agreement between the European Union and Chile underscores our commitment to fostering mutually beneficial trade relationships. The agreement will promote trade, sustainable development, energy and raw material supply and the green transition," said José Manuel García-Margallo MEP, chief negotiator for the EPP Group on the EU-Chile agreement.

"I am very pleased to see that the European Parliament has given its consent to the EU-Chile trade agreement. This deal will increase EU exports to Chile by up to €4.5 billion and secure the supply of critical raw materials and clean energy. Smaller businesses will be able to take full advantage of the agreement, with no tariffs for 99.9% of EU exports and less red tape through the dedicated SME chapter," said Jörgen Warborn MEP, the EPP Group's spokesman for international trade.

The European Parliament today gave its green light to the EU-Chile Advanced Framework Agreement, which will most likely enter into force this year.

"The EU-Chile Agreement reflects how deep and comprehensive Europe's relationship is with Latin American countries. Maintaining close relationships based on a robust framework of trade and investment is imperative. Building on this common ground, with a long-term perspective, is an opportunity for partnership for both parties that cannot be wasted. It is time to be able to generate a vision based on common interests," said García-Margallo.

"Let us take advantage of this momentum and seize the opportunity to intensify negotiations with other key partners such as Australia and Mercosur. Free and fair trade agreements are crucial for economic growth, job opportunities, prosperity, and European competitiveness," emphasised Warborn.

The agreement will bring closer trade relations and better access to raw materials such as lithium and clean fuels such as green hydrogen, which are crucial for the transition to a green economy. Lithium is particularly important for batteries and e-mobility. The Agreement will give EU investors in Chile the same treatment as it will for Chilean investors in the EU and will give EU companies better access to Chilean government procurement contracts for goods, services, works and works concessions. Chile agrees to the protection of the geographical indications of more than 200 traditional EU food and drink products. More than 20,000 SMEs currently export from Europe to Chile.

Note to editors

The EPP Group is the largest political group in the European Parliament with 178 Members from all EU Member States

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