The European Commission (EC) announced on Tuesday (24th) that the Association Agreement concluded with Chile last December cannot be signed before the end of the year as the text still has to be legally checked and translated, which is necessary for its signature.
Paolo Garzotti, the EU’s chief negotiator on the deal, gave an update on the deal’s progress during a meeting of the European Parliament’s Committee on International Trade.
This pact modernizes the 20-year agreement between the EU and Chile, with which the EU bloc wants to diversify supplies of raw materials important for the ecological transition (like lithium) and reduce dependence on China.
On this last point, European Commission President Ursula von der Leyen recalled last September that lithium and rare earths are already replacing gas and oil in the European economy and that demand is set to increase fivefold by 2030.
In this context, Garzotti explained that the European Commission is currently carrying out the legal verification of the text and that it plans to complete this by the end of April and then start translating it into all the official languages of the Union, so that it can be completed “by the autumn”.
The agreement could be signed “by the end of 2023, during the Spanish EU presidency”, a date he described as “ambitious”.
CRITICISM AND TIMING
MEPs expressed surprise at the deadline given to the European Commission for the translation and legal verification of the text, which meant it could only be signed a year after the end of negotiations.
“They tried to do it as quickly as possible, but to be honest I was criticized internally for going too quickly according to the usual procedures,” said Garzotti.
The EU negotiator explained that the signing can be considered “soon” compared to other deals.
He pointed out that the legal verification of the text will take around four months and the translations two to three months, hoping to take advantage of the fact that around 45% of the text of the new agreement is identical to that of the previous agreement between the EU and Chile, which it replaces.
At the same time, the EU Council must adjust the format of the legal revision of the agreement before it can be signed, he added.
After initiation, the ratification process begins, which takes place in two phases on the European side.
The first only requires the consent of the European Parliament and the Council of the EU (the two EU institutions with legislative powers) and opens the door for the provisional application of the renewed agreement.
After that, the essential part of the pact, the advanced framework agreement, has to be ratified, which contains chapters that fall under the competence of the member states and therefore require ratification by each national EU parliament and even by some regions, such as Belgium.
“MODERN AND PROGRESSIVE”
Garzotti stressed that the new agreement between the EU and Chile is a “very modern and progressive” pact.
“Not only is it good for our trade, investments and our respective economic resilience in a difficult geopolitical context, but also to send a clear message to the world about Chile’s and the EU’s shared commitment to values, sustainability and their determination to go green.” and accelerate digital transformation,” he said.
With this agreement, the EU and Chile will modernize their trade relationship by, among other things, lower tariffs on both sides’ exports, almost all of which are duty-free, open access to government procurement markets and provide reciprocity for European and Chilean investors.
The compact also includes a chapter on gender equality and the ability to take remedial action in the event of breaches of trade and sustainable development provisions.
Garzotti also stressed the importance of the EU modernizing and deepening its agreements with a region like Latin America, with countries “that have a similar mentality and values to ours” that can make an “important contribution to the green transition”.
“There aren’t many places in Latin America to go to and I would say that Chile is probably the place to go,” he concluded.
Read More from The Rio Times