Chile and the European Free Trade Association States modernize their FTA

The European Free Trade Association (EFTA) held its annual ministerial meeting today in Geneva, Switzerland. The meeting was chaired by Guy Parmelin, Federal Councilor of Switzerland.

On this occasion, the EFTA States and Chile agreed to sign a Protocol of Amendment, modernizing their Free Trade Agreement (FTA), further strengthening economic ties between the two parties.

Federal Councilor Parmelin made a statement on behalf of the Member States, thanking all parties for making the conclusion of the negotiations possible.

The modernized EFTA-Chile FTA was signed on the EFTA side by Thórdís Kolbrún Reykfjörd Gylfadóttir, Minister of Foreign Affairs of Iceland; Dominique Hasler, Minister of Foreign Affairs, Education and Sport of Liechtenstein; Cecilie Myrseth, Minister of Trade and Industry of Norway; and Guy Parmelin, Federal Councilor of Switzerland. Alberto van Klaveren Stork, Minister of Foreign Affairs, signed on behalf of Chile.

Minister van Klaveren highlighted the relevance of this signature for Chile: “This modernization offers Chile expanded access to the EFTA market in goods, services and public procurement. We especially value the incorporation of new subjects, such as Trade and Sustainable Development, Digital Trade, Small and Medium Enterprises, Trade and Gender. These additions will help us adapt to global economic realities and cooperate for more inclusive trade. This modernized FTA aligns perfectly with the values and political principles we share with EFTA member states.” 

In addition, the FTA now includes updated chapters on trade in goods and services, with a section dedicated to financial services, and strengthened and improved provisions on intellectual property rights and government procurement. The modernized FTA also incorporates new sections on trade and sustainable development, digital trade and, for the first time, a chapter on small and medium-sized enterprises.

Trade between the EFTA States and Chile has grown steadily over the past 20 years and continues to do so. In 2023, total trade reached €970 million, of which €449 million represented exports from Chile and €521 million were imports from EFTA States. The main exports to the EFTA States were inorganic chemicals (217 million euros), while imports to Chile were mainly pharmaceuticals (231 million euros).