The Interim Commercial Agreement (ATI) between the European Union (EU) and Chile to promote the competitiveness of the companies on both sides entered into force this Saturday, in order to also provide a shared platform for the development of their zero -emission economies .
The agreement, of “Key geopolitical importance,” was signed in 2023 and has entered into force after the completion of the process of Ratification in the Latin American country, the European Commission (CE) reported today in a statement.
This pact will allow the EU to cooperate as “related and durable partners in world challenges as partners“As the reduction of the risk of supply chains and the fight against climate change, pointed out.
Likewise, the Community Executive indicated that the agreement will promote the “privileged” association between the EU and Chile and will place shared values ”at the center of bilateral relations, including important commitments and specific provisions on sustainable trade and gender equality. “
“The effective alliances that we continue to create throughout the world support both our economic growth and our economic security,” said the Commissioner for Commerce and Economic Security, Maroš ŠEF? OVI?.
“Chile is the third largest commercial partner in Latin America And I am sure that the economic operators of both parties can benefit from this agreement from the first day. It will help us diversify our supply chains, while creating new opportunities for our companies, including SMEs, “he added.
The ATI will deepen the bilateral trade and investment relations between the EU and Chile, will offer new opportunities to companies, such as the elimination of tariffs on 99.9 % of EU exports; and will provide equitable competition conditions for EU products In the Chilean market, the European Commission explained.
It also seeks to guarantee a more effective and sustainable flow of raw materials and derived products, as well as favor investment and access to critical raw materials such as lithium and copper, already clean fuels such as hydrogen, crucial for the transition to the green economy .
In addition, it will facilitate EU companies to provide their services in Chile, including delivery, telecommunications, maritime transport and financial services; and will ensure that EU investors in Chile receive the same treatment as Chilean investors.
The agreement will improve the access of EU companies that invest and tender public contracts in Chile, the fifth largest economy in Latin America.
The EU and Chile negotiated between 2017 and 2022 to modernize the EU-Chile Association Agreement (In force since 2003), they reached the political conclusion of the negotiations on December 9, 2022 and signed the Agreement modernized on December 13, 2023.
The modernized UE-Chile Agreement consists of two parallel legal instruments: the Advanced Framework Agreement (AFA) and the Interim Commercial Agreement (ATI).
While the ATI is already in force, The AFA will enter into force when all EU member states have completed their respective ratification processes And, in that case, the ATI will cease to exist and will be replaced by the AFA.
#commercial #agreement #Chile #enters #force #promote #competitiveness
