Chile and the European Union Strengthen Relations with the Signing of the Advanced Framework Agreement
The Advanced Framework Agreement represents a significant step forward in relations between Chile and the European Union, offering the promise of strengthening key aspects of the country’s agenda. Crucial issues such as sustainability, trade, support for SMEs, energy, among others, will be addressed.
On Wednesday 13 December 2023, Chile took a significant step towards strengthening its ties with the European Union by signing the Advanced Framework Agreement (AFA), which modernises the current Association Agreement in force since 2003. This agreement, signed at an official ceremony in Brussels, marked a milestone in bilateral relations between the two parties and promises to strengthen cooperation in several areas.
The ESA strengthens cooperation in areas reflecting common values and principles, such as the promotion of democracy, human rights and fundamental freedoms, the rule of law and good governance, sustainable development, the environment, among others.
For Chile, the Minister of Foreign Affairs, Alberto van Klaveren, signed on behalf of Chile, while for the European Union, the Minister of Foreign Affairs, European Union and Cooperation of the Kingdom of Spain, José Manuel Albares, and the High Representative of the Union for Foreign Affairs and Security Policy and Vice-President of the European Commission, Josep Borrell, signed on behalf of the European Union.
This treaty represents a renewed commitment to international collaboration and sends a clear message about the importance of strengthening ties between regions in an interconnected and ever-changing world.
In terms of market access, the new agreement will expand the percentage of products covered by any tariff reduction by the European Union from 94.7% to 99.6%. It will also expand the recognition of geographical indications for Chilean agricultural products and will have chapters dedicated to Gender and Trade, Small and Medium Enterprises, Sustainable Food Systems, Digital Trade, Energy and Raw Materials.
“This agreement marks a crucial milestone in our international relations. At Eurochile we have been working for 30 years to support Small and Medium Enterprises, and this Advanced Framework Agreement not only consolidates links, but also opens up new opportunities for companies. This allows us to continue with our commitment to guide SMEs in their internationalisation processes, promoting technological and commercial opportunities, generating various business initiatives that connect Chilean companies with European counterparts and taking advantage of our experience and extensive network of contacts“, highlights José Aravena, Executive Director of the Eurochile Business Foundation.
With this agreement, the relationship between Chile and the European Union is expected to reach new heights, generating mutual benefits in terms of trade, economic cooperation and sustainable development. The agreement enters into force once the parties complete the respective legislative and administrative procedures in the countries that make up the European Union and in the Chilean National Congress.