EU-Chile Interim Trade Agreement (ITA) Enters into Force
The EU-Chile Interim Trade Agreement (ITA) has officially come into effect following Chile’s completion of its ratification process. Originally signed in December 2023, the agreement holds significant geopolitical importance, strengthening economic ties while supporting the transition to net-zero economies on both sides.
The ITA will enhance business competitiveness and is complemented by initiatives under the Global Gateway, including the development of critical raw materials value chains for lithium and copper and the production of green hydrogen in Chile.
Beyond economic benefits, the agreement establishes a framework for EU-Chile cooperation on global challenges, such as strengthening supply chain resilience and combating climate change. It also reinforces the EU-Chile privileged partnership, prioritizing shared values with dedicated commitments to sustainable trade and gender equality.
Boosting Trade, Investment, and Sustainable Resource Flows
The ITA will deepen EU-Chile trade and investment relations, creating new opportunities for businesses through:
- Eliminating tariffs on 99.9% of EU exports, ensuring fair competition for EU goods in Chile;
- Enhancing the flow of raw materials and derived products through sustainable trade policies;
- Introducing an Energy and Raw Materials chapter, promoting investment while securing stable and sustainable access to key materials like lithium and copper, as well as clean energy sources such as hydrogen;
- Facilitating EU services in Chile, covering sectors like delivery, telecommunications, maritime transport, and finance;
- Providing equal treatment for EU investors in Chile, ensuring a non-discriminatory investment environment;
- Expanding EU access to Chilean government procurement contracts, boosting opportunities in Latin America’s fifth-largest economy; and
- Supporting small businesses in both regions to maximize the benefits of the agreement.
Commitment to Sustainability
The agreement promotes sustainable trade and investment, reflecting the EU and Chile’s shared commitment to environmental and social responsibility. Key provisions include:
- A Trade and Sustainable Development (TSD) chapter, reinforcing commitments to International Labour Organization (ILO) standards and the Paris Agreement on climate change;
- A Trade and Gender chapter—the first in an EU trade deal—dedicated to eliminating discrimination against women; and
- A Sustainable Food Systems chapter, another EU trade agreement first, aimed at creating more resilient and sustainable food supply chains.
Strengthening Intellectual Property Protections
The ITA enhances legal certainty for EU businesses by:
- Safeguarding intellectual property rights, including strong copyright protections; and
- Protecting 234 geographical indications (GIs)—traditional European and Chilean food and beverage products—with provisions for future additions.
Background and Next Steps
The EU and Chile negotiated between 2017 and 2022 to modernize their 2003 Association Agreement, culminating in the signing of the new agreement on December 13, 2023.
The modernized EU-Chile Agreement consists of two parallel legal instruments:
- The Advanced Framework Agreement (AFA), covering political, cooperation, and trade relations, which requires ratification by all EU Member States; and
- The Interim Trade Agreement (ITA), which includes trade and investment provisions under EU-exclusive competence and has now entered into force through the EU’s own ratification process.
Once all EU Member States ratify the AFA, it will replace the ITA, bringing the full agreement into effect.
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