The Vice-President and Minister of Economy, Trade and Enterprise, Nadia Calviño has pointed out that “the EU-Chile trade agreement will contribute to improving the EU’s strategic autonomy, reinforcing the security of supply and export opportunities for our companies”.

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The Council of the European Union

The Council of the European Union today adopted the Decisions on the signing of the modernization of the Trade Agreement between the European Union and the Republic of Chile and of the Advanced Framework Agreement. The Council also agreed to ask the European Parliament to give its consent to these Agreements so that the trade agreement can formally enter into force next year.

The Vice President and Minister of Economy, Trade and Enterprise, Nadia Calviño, said that “the EU-Chile trade agreement will contribute to improving the EU’s strategic autonomy, strengthening the security of supply and export opportunities for our companies”.

The trade agreement reached is very ambitious and advanced in its various chapters. It will allow for the reduction of existing barriers to bilateral trade in goods and services and better access to raw materials and clean fuels crucial for the transition to a green economy, such as lithium, copper and hydrogen.

It also improves access to public procurement markets and specifically takes into account the needs of Small and Medium-Sized Enterprises and the protection of Intellectual Property, including Geographical Indications.

Particularly noteworthy are the provisions of the trade and sustainable development chapter of the agreement, which contain a high level of ambition and cover aspects such as labour standards, the environment, climate change, fisheries, and Corporate Social Responsibility, as well as a chapter on sustainable food systems.

These commitments have been reinforced through a Joint Declaration on Trade and Sustainable Development that complements the agreement reached.

The agreement is also one of the pioneers in the inclusion of provisions on gender equality, a very relevant issue for both the European Union and Spain, but also for Chile. It recognizes the importance of incorporating the gender perspective in policies to achieve inclusive economic growth.

On the other hand, the Advanced Framework Agreement also contains clauses of a political and cooperation nature, as well as commitments on trade matters that require ratification by the Member States of the Union, as it is a competence shared with the Member States, such as the provisions on investment protection.

Next steps
Once the decisions for signature have been adopted by the Council, the signing ceremony for both the Trade Agreement and the Advanced Framework Agreement is scheduled to take place on December 14 in Brussels.

Spain-Chile bilateral trade data
In 2022, Spain exported goods to Chile worth 1,806 million euros and imported goods worth 1,595 million euros, with Chile ranking 32nd in the ranking of most important markets for Spanish exports, and 48th as a supplier, while Spain ranked as Chile’s 10th customer and 9th supplier.

Regarding trade in services, according to the Bank of Spain, in 2022, exports of services to Chile reached 1,234 million euros, and imports were 281 million euros. In terms of Spanish investment per capita, Chile is by far the top destination in Ibero-America.

The stock of Spanish investment in Chile (not ETVE) reached, in 2021, 15,810 million euros (10th position), while the stock of Chilean investment in Spain reached 562 million euros (42nd position).