Interim Trade Agreement between Chile and the European Union enters into force

As of today, the entire trade relationship between Chile and the European Union (EU) will be governed by the Interim Trade Agreement (ITA), following its approval in the European Parliament (February 29th, 2024) and the Chilean Congress (November 13th, 2024), and publications in their respective official gazettes.

The ITA, which replaces the existing Part IV (on trade) of the current Association Agreement, includes new provisions that will regulate trade in goods, services and liberalization of investments between both parties and will be in force until the entire processing and approval of the new Advanced Framework Agreement is completed in the 27 EU Member States. For the time being, the Political and Cooperation areas of the 2003 Association Agreement will remain in force alongside the ITA.

Among the main changes of the ITA, compared to its predecessor, are that the percentage of Chilean products covered by some tariff reduction by the European Union will be expanded from 94.7% to 99.6% of the tariff lines, representing almost the totality of Chilean exports to that market. The products with improvements include: olive oil; beef, sheep, poultry and pork; milk; agro-industrial products; food preparations and salmon, hake and tuna preparations, among others.

In addition, the EU will recognize in the European market all geographical indications and appellations of origin recognized in our country, giving them exclusivity to distinguish themselves in this market. Chile will do the same with the European ones.

As for services, this will allow national service providers to be treated almost at the level of a European service provider, which will have a positive impact on exports in this area.