The European Union and Chile are poised to finalize a trade agreement next month.
This is a key achievement for the EU amid difficulties in securing deals with Australia and other Latin American nations.
This agreement, set to be signed on December 21st, follows a unanimous decision by EU member states.
The decision emerged from a private meeting of ambassadors in Brussels. This new trade deal will replace the 2002 Association Agreement with Chile.
It aims to nearly eliminate tariffs on EU exports, potentially boosting the EU’s exports to Chile by as much as €4.5 billion (US$4.9 billion).
This information comes from the European Commission, highlighting the deal’s economic significance.
The agreement represents a strategic move for the EU to strengthen trade relations in Latin America.
It promises broader access to Chile’s market, especially for raw materials like lithium and copper. This aligns with the EU’s push for a more sustainable economy.
The EU Commission’s Trade Spokesperson, Olof Gill, emphasized the mutual desire for a swift ratification process.
He expressed confidence in finalizing the agreement before year-end, noting its current finalization phase in the EU.
Despite this progress, some unresolved issues linger, including the need for Chile to address certain trademark disputes raised by EU members.
Hurdles with Mercosur Bloc
Simultaneously, the EU is actively engaged in intensified negotiations with the Mercosur bloc, consisting of Argentina, Brazil, Uruguay, and Paraguay.
These talks, aiming to conclude over two decades of negotiations, face potential hurdles due to political changes in Argentina.
President-elect Javier Milei’s commitment to withdraw from Mercosur adds a layer of uncertainty to these discussions.
In another vein, the EU’s trade talks with Australia remain ongoing following a recent impasse over agricultural market access.
Despite various challenges, this continued effort underscores the EU’s broader strategy to expand its global trade partnerships.