A4-0329/95

Resolution on the communication from the Commission to the Council and the European Parliament on the strengthening of relations between the European Union and Chile (SEC(95)0563 - C4-0153/95 - COM(95)0232 - C4-0219/95)

The European Parliament,

- having regard to the communication from the Commission to the Council and the European Parliament (SEC(95)0563 - C4-0153/95 - COM(95)0232 - C4- 0219/95),

- having regard to its opinion of 22 February 1991 on the proposal for a Council Decision concerning the conclusion of the Framework Agreement for cooperation between the European Economic Community and the Republic of Chile ((OJ C 72, 18.3.1991, p. 193.)),

- having regard to the its resolution of 15 December 1992 on the Free Trade Agreement between the United States of America, Canada and Mexico (NAFTA) ((OJ C 21, 25.1.1993, p. 77.)),

- having regard to its resolution of 22 April 1994 on economic and trade relations between the European Union and Latin America ((OJ C 128, 9.5.1994, p. 443.)),

- having regard to the report of the Committee on External Economic Relations (A4-0329/95),

A. whereas for more than a decade Chile has chosen to follow a firm and coherent strategy of liberalization and open trade, while pursuing integration into the world economy on the basis of the multilateral approach advocated by the WTO and a balanced regional diversification of its economic and trade relations,

B. whereas the model of 'open regionalism' advocated by Chile should enable the countries to strengthen their economic and commercial integration beyond what is required by the Uruguay Round Agreements, provided that regional or inter-regional liberalization agreements do not involve increased protectionism vis-à-vis those countries not party to the agreements in question and, provided they contribute to the general trend towards integration of the world market,

C. whereas Chile plays an active role in the regional integration process in Latin America and in this connection has signed bilateral free trade agreements with many Latin American countries,

D. whereas Chile is negotiating closer trade relations with MERCOSUR with the aim of establishing a free trade zone,

E. whereas Chile is negotiating with the United States, Canada and Mexico with a view to joining NAFTA,

F. whereas Chile is a member of the Asia-Pacific Economic Cooperation Forum (APEC), is negotiating a free trade agreement with New Zealand, and wishes to take advantage of its unique position between Asia and Latin America, two of the regions with the most dynamic economies and greatest trade potential,

G. whereas the financial credibility enjoyed by Chile on international financial markets is evidence of the soundness of its 'macroeconomic fundamentals' and the competitiveness of its economy,

H. whereas, however, measures to combat poverty and social exclusion continue to be basic needs that the Chilean model of economic and social development must tackle in the years to come, and whereas the inadequacy of the state education system considerably reduces the opportunities for training managers capable of promoting the country's industrial and technological renewal,

I. whereas the European Parliament has always supported the restoration of democracy in Chile and, for this purpose, set up a special budget heading in 1988 to support the efforts of Chilean NGOs working to help the most disadvantaged groups of the population and to boost the process of democratic transition in the country,

J. whereas the European Union is Chile's main trading partner, as well as its main donor in the field of cooperation and the second largest investor in the country,

K. whereas European firms play a prominent role in leading-edge sectors of the Chilean economy,

L. whereas the limited commercial scope of the current framework agreement on cooperation between the European Economic Community and Chile of 1990, which is non-preferential in nature, has not allowed the potential for growth and complementary development in trade between the two parties to be fully exploited,

M. whereas the agreement concluded between Chile and the European Union on 25 May 1994, under which the Union cut customs duties on Chilean exports of apples and pears by 50%, has highlighted the need to strengthen the machinery for dialogue when settling trade disputes,

N. whereas 82% of the Union's imports from Chile are raw materials which enter the Community market duty-free and whereas Chilean exports are still largely dependent on copper (46%) and greater diversification should be sought,

O. whereas agricultural and fisheries products account for 29% of Chilean exports to the EU and bearing in mind the special sensitivity of this sector and the likely consequences of the final agreement on the liberalization of farm trade reached during the Uruguay Round,

P. whereas 91% of all Chilean exports consist of raw materials, and whereas the current economic model of liberalization and openness is resulting in the depletion of natural resources and serious environmental degradation,

Q. whereas the European Union and MERCOSUR have just initialled a new framework agreement for interregional cooperation, the aim of which is to establish a political and economic association between the two regions through closer political cooperation and gradual and reciprocal liberalization of trade,

R. whereas the strengthening of relations between the EU and Chile is based on shared common values such as a democratic system, respect for human rights, economic freedom and social justice, as well as on the close historic and cultural ties between the two regions and their shared strategic interests,

1. Welcomes the Chilean Government's proposed legislation designed to complete the process of democratic transition by means of constitutional reforms that will consolidate the supremacy of civilian rule over the armed forces, the independence of the judiciary and the principle that there should be no impunity from the law in the case of human rights violations committed in the recent past;

2. Welcomes the Commission communication and endorses the strategy designed to achieve the final objective of political and economic association between the European Union and Chile through the negotiation of a new agreement including:

- stepping up of political dialogue;

- strengthening of cooperation on trade and the rules governing trade, so as to pave the way for progressive and reciprocal liberalization of trade in goods and services, taking account of the sensitivity of certain products and in conformity with WTO rules;

- promotion of reciprocal investment;

- closer cooperation in the fields covered by the current agreement and the extension of cooperation to new sectors with a view to diversifying production and promoting a sustainable economy;

3. Considers it essential also that the new agreement should establish an institutional framework for a regular political dialogue between the EU and Chile on bilateral and international questions of common interest; this dialogue could be developed in conjunction with the regional dialogue to be pursued with MERCOSUR;

4. Stresses the need to strengthen the mechanisms for economic and trade dialogue and the settlement of disputes under the new agreement, with the aim of ensuring an expansion in reciprocal trade and harmonious trade relations;

5. Believes that the EU and Chile should agree on possible strategies with regard to the operating rules of the new WTO and the items on its agendas as well as in other international economic forums where coordinated action is possible;

6. Applauds the work undertaken by the EC-Chile Business Foundation in the field of economic cooperation and technology transfer to help small and medium-sized enterprises and stresses the importance of encouraging joint enterprises which can operate in Chile or other regional markets;

7. Supports the Union's participation in the co-financing of Chile-MERCOSUR and Chile-Andean Pact regional projects in the fields of infrastructure, agricultural and forestry research, fisheries technology, environmental protection, energy, and support for operations designed to promote European private investment; with this in view, considers that a new multiannual framework should be adopted, bringing together aid from the Community budget and loans from the European Investment Bank;

8. Believes that the new agreement with Chile should be accompanied by a substantial increase in financial aid to the country with the aim of promoting industrial and technological cooperation in leading-edge sectors such as environment, telecommunications, information technology and the audiovisual sector, not forgetting NGOs which play an important role in educating and supporting civilian society and promoting human rights;

9. Considers that Chile should take part in a number of specific R& D programmes and in other Community programmes such as MEDIA, in accordance with the procedures established for the EFTA countries and the countries of Central and Eastern Europe;

10. Calls on the Commission and the Council to endorse the priorities laid down by the European Parliament in this resolution when preparing and adopting the negotiating mandate for the new agreement between the European Union and Chile;

11. Instructs its President to forward this resolution to the Commission, the Council, the governments of the Member States, the Government of Chile and the National Congress of Chile.