Source: EURLEX
Language: en
Format: md

**Council of the**
**European Union**

**Interinstitutional File:**

**2023/0258(NLE)**

**PROPOSAL**

**Brussels, 5 July 2023**
**(OR. en)**

**11505/23**

**POLCOM 151**
**SERVICES 29**
**FDI 17**
**COLAC 83**

From: Secretary-General of the European Commission, signed by Ms Martine
DEPREZ, Director

date of receipt: 5 July 2023

To: Ms Thérèse BLANCHET, Secretary-General of the Council of the
European Union

No. Cion doc.: COM(2023) 434 final

Subject: Proposal for a COUNCIL DECISION on the signing, on behalf of the
European Union, of the Interim Agreement on Trade between the
European Union and the Republic of Chile

Delegations will find attached document COM(2023) 434 final.

Encl.: COM(2023) 434 final

11505/23 CP/hp
## COMPET.3 EN

EUROPEAN

COMMISSION

Brussels, 5.7.2023
COM(2023) 434 final

2023/0258 (NLE)

Proposal for a

**COUNCIL DECISION**

**on the signing, on behalf of the European Union, of the Interim Agreement on Trade**

**between the European Union and the Republic of Chile**

# **EN EN**

**EXPLANATORY MEMORANDUM**

**1.** **CONTEXT** **OF** **THE** **PROPOSAL**

**•** **Reasons for and objectives of the proposal**

The attached proposal constitutes the legal instrument for authorising the signature of the
Interim Agreement on Trade between the European Union and the Republic of Chile
(hereinafter referred to as 'the ITA').

Relations between the European Union ('EU') and the Republic of Chile ('Chile') are currently
based on the Association Agreement (hereinafter ‘the AA’) between the European
Community and its Member States, of the one part, and Chile, of the other part, which entered
into force on 1 March 2005 (with provisional application as from 1 February 2003) [1] .

Many changes occurred since the entry into force of the Association Agreement. In 2006, the
European Commission adopted a ‘Global Europe’ strategy, modernising its agenda for EU
trade policy and seeking deeper trade Agreements. The EU has concluded Agreements with
other countries in the region (Trade Agreement with Colombia, Ecuador and Peru,
Association Agreement with Central America) and beyond, inter alia with Canada, Japan,
New Zealand, Singapore and Vietnam.

Chile has signed 26 FTA with 64 Countries, including with the US (2004), China (2006) and
Japan (2007). Chile also joined the Pacific Alliance and the Trans-Pacific Partnership (now
Comprehensive and Progressive Agreement for Trans-Pacific Partnership).

These Agreements go well beyond the ambition and scope of the existing EU-Chile AA in
most areas. As a result, both Parties expressed interest in the modernisation of the AA to
further improve their trade ties and to contribute to deepening political and economic
relations.

During a meeting in the margins of the EU-CELAC Summit held in Santiago on 26-27
January 2013, leaders from the EU and Chile agreed to explore options to modernise the AA,
10 years after its entry into force. In April 2015, the 6 [th] EU-Chile Association Council
endorsed the establishment of the joint working group (‘the Group’) on the modernisation of
the AA. The aim of the Group was to conduct a scoping exercise by assessing the level of
ambition of the perspective negotiations to modernise the AA in all areas. The Group created
two subgroups, one responsible for political and cooperation issues and the other for trade.
The subgroups concluded their work on the occasion of the 14 [th] EU-Chile Association
Committee that was held on 31 January 2017.

On 13 November 2017, the Council adopted a Decision authorising the European
Commission and the High Representative of the Union for Foreign Affairs and Security
Policy to open negotiations for a modernised agreement with Chile to replace the AA.

The negotiations were formally launched on 16 November 2017. The negotiations were
conducted in consultation with the Council Working Party on Latin America and the
Caribbean. The Trade Policy Committee was consulted on the trade-related parts of the
Agreement.

1
_OJ L 26, 31.1.2003_ .

# EN 1 EN

The EU and Chile reached the political conclusion of the negotiations on 9 December 2022 in
Brussels.

The modernisation of the existing EU-Chile Association Agreement revolves around two
legal instruments:

1. an Advanced Framework Agreement (AFA), that will include a) the Political and
Cooperation pillar and b) the Trade and Investment pillar (inclusive of investment
protection provisions); and

2. an Interim Agreement on Trade (ITA) covering trade and investment liberalisation.
The ITA will expire when the AFA enters into force.

The ITA is proposed for signature and conclusion at the same time as the AFA and expected
to be signed and concluded in parallel. The ITA, once ratified and entered into force, will
remain in force until the AFA is fully ratified and entered into force.

**•** **Consistency with existing policy provisions in the policy area**

The ITA provides a modernised comprehensive legal framework for EU-Chile trade and
investment relations. Upon entry into force of the ITA, Part IV of the AA, including any
subsequent decision by its institutional bodies, will cease to have effects and will be replaced
by the ITA.

The Agreement on Trade in Wines and the Agreement on Trade in Spirits and Aromatised
Drinks (hereinafter ‘the Wines and Spirits Agreements’), previously annexed to the AA [2], are
going to be incorporated in the ITA.

The ITA is fully in line with the “Trade for All” strategy of October 2015 by anchoring trade
and investment policy in European and universal standards and values alongside core
economic interests, putting a greater emphasis on sustainable development, human rights,
consumer protection, and responsible and fair trade.

**•** **Consistency with other Union policies**

The ITA is fully consistent with European Union policies and will not require the EU to
amend its rules, regulations or standards in any regulated area, e.g. technical rules and product
standards, sanitary or phytosanitary rules, regulations on food and safety, health and safety
standards, rules on GMOs, environmental protection or consumer protection.

The ITA also includes a chapter on Trade and Sustainable Development, which links the
Agreement to the EU’s overall objectives of sustainable development and specific objectives
in the areas of labour, environment, and climate change. This will help the EU to reach its
Green Deal targets of inclusive green and digital transitions, including contributing to the roll
out of the Global Gateway strategy. Furthermore, a Joint Statement by the European Union
and the Republic of Chile on the Provisions on Trade and Sustainable Development contained
in the Interim Agreement on Trade between the European Union and the Republic of Chile
('the Joint Statement') is attached to the Agreement. The Joint Statement foresees that the
Parties will, upon the entry into force of the ITA, initiate a formal review process of its trade
and sustainable development aspects in order to consider the incorporation, as appropriate, of
additional provisions that may be deemed relevant by either Party at that time, including in
the context of their respective domestic policy developments and their recent international
treaty practice. Such additional provisions may relate, in particular, to further enhancing the
enforcement mechanism of the Trade and Sustainable Development chapter, including the

2 The Agreements were amended in 2005, 2006, 2009 and lastly in 2022 (OJ C287/19 of 28 July 2022).

# EN 2 EN

possibility to apply a compliance phase, and adequate countermeasures as a last resort.
Without prejudice to the outcome of the review, the Parties will also consider the possibility
of including the Paris Agreement on Climate Change as an essential element of the
Agreements.

Furthermore, the ITA fully safeguards public services and ensures that governments’ right to
regulate in the public interest is preserved by the Agreement and constitutes a basic
underlying principle to it.

Cooperation in Research and Innovation is in accordance with the Agreement for scientific
and technological cooperation between the European Community and the Republic of Chile,
signed in September 2002 and entered into force in January 2007.

**2.** **LEGAL** **BASIS,** **SUBSIDIARITY** **AND** **PROPORTIONALITY**

**•** **Legal basis**

In accordance with the Treaties and the case law of the European Court of Justice, in
particular its Opinion 2/15 on the EU-Singapore FTA of 16 May 2017, all the areas covered
by the ITA would fall within the exclusive external competence of the EU and, more
particularly, within the scope of Articles 91, 100(2) and 207 TFEU.

As a result, the ITA is to be signed by the Union pursuant to a decision of the Council based
on Article 218(5) TFEU and concluded by the Union pursuant to a decision of the Council
based on Article 218(6) TFEU, following the European Parliament’s consent.

**•** **Subsidiarity (for non-exclusive competence)**

The ITA as presented to the Council does not cover any matters that fall outside the EU’s
exclusive external competence.

**•** **Proportionality**

Trade agreements are the appropriate means to govern market access and the related areas of
comprehensive economic relations with a third country outside the EU. No alternative means
exist to render such commitments and liberalisation efforts legally binding.

This initiative pursues directly the objectives of the Union's external action and contributes to
the political priority of 'EU as a stronger global actor’. It is in line with the EU Global
Strategy’s orientations to engage with other Countries and to revamp its external partnerships
in a responsible way, in order to attain the EU's external priorities. It contributes to the EU’s
trade and development objectives.

Negotiations for the ITA with Chile were carried out in accordance with the negotiating
directives set out by the Council. The outcome of negotiations does not go beyond what is
necessary to achieve the policy objectives set out in the negotiating directives.

**•** **Choice of the instrument**

This proposal for a Council decision is submitted in accordance with paragraph 5 of Article
218 TFEU, which envisages the adoption by the Council of a decision authorising the signing
of the agreement. There exists no other legal instrument that could be used in order to achieve
the objective of this proposal.

# EN 3 EN

**3.** **RESULTS** **OF** **EX-POST** **EVALUATIONS,** **STAKEHOLDER**
**CONSULTATIONS** **AND** **IMPACT** **ASSESSMENTS**

**•** **Ex-post evaluations/fitness checks of existing legislation**

An “Evaluation of the Economic Impact of the Trade Pillar of the EU-Chile Association
Agreement” was commissioned by the Commission and completed in March 2012. An “Exante Study of a Possible Modernisation of the EU-Chile Association Agreement” looking at
options for modernisation was commissioned by the Commission and completed in February
2017.

These assessments demonstrated that, while the coverage of the existing trade pillar was
comprehensive at the time, there was scope for further improvements of the rules and
achieving further market access. It also concluded that it was necessary to update the
Association Agreement to the evolution of the global trade landscape.

Furthermore, a “Sustainability Impact Assessment in Support of the Negotiations for the
Modernisation of the Trade Part of the Association Agreement with Chile” was commissioned
by the Commission and completed in May 2019.

**•** **Stakeholder consultations**

The contractors for the external studies undertaken organised numerous consultation and
outreach activities, including: dedicated websites for documents and activities linked to the
studies; online surveys of stakeholders; and individual interviews.

In the context of the Impact Assessment, DG Trade consulted interested stakeholders
including businesses, civil society stakeholders, NGOs, trade unions as well as trade
associations, chambers of commerce and other private interests, on the modernisation. These
consultations with stakeholders involved different consultation activities including open
public on-line consultation.

These external studies, and the consultations held in the context of their preparation, provided
the Commission with input that has been of great value in the negotiations of the ITA.

During the negotiations, meetings to debrief civil society organisations on the status of the
negotiations and to exchange views on the modernisation were also organised.

Negotiations were carried out in consultation with the Council's Working Party on Latin
America and the Caribbean on the political and cooperation aspects of this Agreement, and in
consultation with the Trade Policy Committee on the trade aspects of this Agreement, as the
special committee designated by the Council in accordance with Article 218(4) TFEU. The
European Parliament and the European Economic and Social committee were also regularly
informed through the Committee on International Trade (INTA), notably its Monitoring
Group on Chile, and the Committee on Foreign Affairs. The texts progressively resulting from
the negotiations were circulated throughout the process to both institutions.

**•** **Collection and use of expertise**

The “ _Ex-post evaluation of the implementation of the EU-Chile Free Trade Agreement_ ” was
carried out by the external contractor “ITAQA SARL”.

The “ _Ex ante Study of a Possible Modernisation of the EU-Chile Association Agreement”_ was
carried out by the external contractor “Ecorys-Case”.

# EN 4 EN

The “ _Sustainability Impact Assessment (SIA) in support of the negotiations for the_
_modernisation of the trade pillar of the Association Agreement with Chile_ ” was carried out by
the external contractor “BKP Development Research & Consulting” [3] .

**•** **Impact assessment**

The proposal was supported by an Impact Assessment published in May 2017 [4] which
received a positive opinion (SWD/2017/0173 final).

The Impact Assessment concluded that a comprehensive negotiation would deliver positive
benefits for both the EU and Chile. Such benefits included increases in GDP, welfare and
exports, employment, wages (for both less skilled and more skilled employees),
competitiveness and an improved position for both the EU and Chile in respect of other global
competitors. The inclusion of provisions on sustainable development would also have a
positive impact on the promotion and respect of human rights as well as the effective
implementation of International Labour Organisation (ILO) core labour standards.

Furthermore, the Sustainability Impact Assessment (SIA) carried out during the negotiation
provides a comprehensive assessment of the potential economic, social and environmental
impacts of increased trade liberalisation under the ITA in the EU and Chile. The SIA also
analyses the potential impacts of the modernisation on Human Rights and on the
manufacturing, agriculture and services sectors.

The EU and Chile have reached an ambitious agreement in line with most recent trade
agreements such as CETA, Japan and New Zealand. The Agreement will open new
opportunities for trade and investment in both markets and support jobs in the EU.

The ITA will _inter alia_ remove most of the customs duties, extend access to public contracts,
open up services' market, offer predictable conditions for investors and, help prevent illegal
copying of EU innovations and traditional products. The ITA also contains all the guarantees
to make sure that the economic gains do not come at the expense of fundamental rights, social
standards, governments' right to regulate, environment protection or consumers' health and
safety.

**•** **Regulatory fitness and simplification**

The ITA is not subject to REFIT procedures. Its nevertheless contains a framework for
simplified trade and investment procedures, reduced export and investment-related costs and
will therefore increase trade and investment opportunities for small and medium-sized
enterprises. Among the expected benefits are increased transparency, less burdensome
technical rules, compliance requirements, customs procedures and rules of origin, enhanced
protection of intellectual property rights and geographical indications, better access to
procurement tender procedures, as well as a special chapter to enable SMEs to maximize the
benefits from the Agreement.

**•** **Fundamental rights**

The proposal does not affect the protection of fundamental rights in the Union.

3 [https://policy.trade.ec.europa.eu/analysis-and-assessment/sustainability-impact-assessments_en#chile](https://policy.trade.ec.europa.eu/analysis-and-assessment/sustainability-impact-assessments_en#chile)
4 [https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52017SC0173](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52017SC0173)

# EN 5 EN

**4.** **BUDGETARY** **IMPLICATIONS**

The ITA will have a limited negative impact on the EU budget in the form of elimination of
customs duties due to tariff liberalisation. Indirect positive impacts are expected in terms of
increases in resources linked to value added tax and gross national income.

**5.** **OTHER** **ELEMENTS**

**•** **Implementation plans and monitoring, evaluation and reporting arrangements**

The ITA includes institutional provisions that lay down an implementing bodies' structure to
continuously monitor its implementation, operation and impact.

The institutional provisions of the ITA establish the specific functions and tasks of the Trade
Council and Trade Committee which will continuously monitor the implementation and
application of the ITA.

The Trade Committee will assist the Trade Council in the performance of its function and
supervise the work of all Sub-Committees and other bodies established under the ITA. The
Trade Committee comprised of representatives of the EU and Chile with responsibility for
trade-related matters who will meet every year or at the request of either side.

**•** **Explanatory documents (for directives)**

Not applicable.

**•** **Detailed explanation of the specific provisions of the proposal**

The ITA broadens the scope of the current bilateral trade framework and adjusts it to the new
political and economic global challenges, to the new reality of the EU-Chile partnership and
to the level of ambition of recently concluded trade agreements and negotiations conducted by
the EU and Chile.

The ITA creates a coherent, comprehensive, up-to-date legally binding framework for the
EU's relations with Chile. It will foster trade and investment by contributing to the expansion
and diversification of economic and trade relations.

The ITA also includes a civil society consultation mechanism extended to the whole
Agreement to allow the civil society on both sides to be heard on all the provisions in the
Agreement.

In line with the objectives set by the negotiating directives, the ITA will offer:

Improved market access for agricultural and fisheries exports and improved rules

Under the current Association Agreement, all industrial goods and a considerable part of
agricultural and fisheries products had already been liberalised. With the modernisation, the
Trade in Goods chapter results in full liberalisation for more than 99% of all tariff lines.

At the same time, the ITA takes EU agricultural sensitivities fully into account. The EU will
not fully liberalise its markets for highly sensitive products, such as poultry, beef, pork and
olive oil. These products imported from Chile will only have a limited and controlled access
to the EU market through carefully calibrated tariff quotas that take into account concerns of
European farmers and consumer preferences.

# EN 6 EN

Moreover, the Trade in Goods text contains additional and more extensive rules that will
facilitate trade between the EU and Chile. This includes provisions on fees and formalities,
import and export licensing, prohibition of export duties, and binding of tariffs for which full
duty elimination is not foreseen (standstill). It also contains new generation provisions on
export competition, remanufacturing, goods entered after repair and provisions to facilitate the
temporary admission of goods.

Simplified Rules of Origin

The Rules of Origin (RoO) have been reviewed and in some cases simplified to take into
consideration the need of industry, for example, for key industrial products such as cars or
pharmaceuticals.

Modernised and simplified border procedures

The ITA contains an ambitious Chapter on Customs and Trade Facilitation based on the
provisions of the WTO Agreement on Trade Facilitation (TFA) and going even further in
certain areas. The EU and Chile undertake to apply simplified, modern and where possible
automated procedures for the efficient and expedited release of goods through streamlined
requirements on data and documentation, pre-arrival processing of customs documentation
and information as well as effective and non-discriminatory risk management.

Ensuring fair trade and business conditions

In order to be able to deal efficiently and effectively with unfair trading practices, improved
disciplines regarding trade remedies have been agreed. In addition, the ITA contains
provisions to protect domestic industries in the event that increased imports of a product
arising from the Agreement is causing, or risks causing, serious injury to that industry. The
ITA also contains a subsidy chapter which helps to level the playing field between EU and
Chilean companies through increased transparency for subsidies to both goods and services,
consultations if subsidies risk having a negative effect on trade, and rules on the most harmful
subsidies (restructuring aid without restructuring plan and unlimited guarantees).

The ITA also ensures that companies respect the basic competition principles: no abuse of a
dominant position, no agreements between enterprises that restrict competition, and scrutiny
of the competitive effects of a merger. At the same time, the ITA will ensure the level playing
field between public and private enterprises on the market. State-owned enterprises,
enterprises granted special rights or privileges and designated monopolies must act in a nondiscriminatory manner and according to commercial considerations when buying and selling
goods and services on the market.

Ensuring sustainability

The ITA contains a fully-fledged ambitious Trade and Sustainable Development chapter, to
enhance the integration of sustainable development in the Parties’ trade and investment
relationship through legally binding commitments on environmental protection, climate
change and labour rights, provisions on cooperation and dialogue, including with civil society,
as well as dispute settlement procedures.

Moreover, the ITA is the first trade agreement concluded by the EU to include a dedicated
Chapter on Trade and Gender Equality. This Chapter incorporates a gender perspective into
the promotion of inclusive economic growth. In this Chapter, the EU and Chile reaffirm their
commitment to effectively implement their obligations under the Convention on the
Elimination of all Forms of Discrimination Against Women as well as under other multilateral
agreements addressing gender equality or women’s rights. In a non-regression clause, EU and
Chile commit not to weaken or reduce the levels of protection granted under their respective

# EN 7 EN

laws aimed at ensuring gender equality or equal opportunities for women and men, nor to
waive or otherwise derogate from such laws, in order to encourage trade or investment.

Finally, a Joint Statement by the European Union and the Republic of Chile on the Provisions
on Trade and Sustainable Development is attached to the ITA, in which EU and Chile
expressed their joint intent to initiate a review of the Trade and Sustainable chapter upon entry
into force of the ITA, in order to consider the incorporation, as appropriate, of additional
provisions that may be deemed relevant by either Party at that time. In that review, the EU
will be guided by the Communication from the European Commission to the European
Parliament, the Council, the European Economic and Social Committee and the Committee of
the Regions, entitled “The power of trade partnerships: together for green and just economic
growth” (COM(2022) 409 final), in particular with regard to further enhancing the
enforcement mechanism. Without prejudice to the outcome of the review, the EU and Chile
will also consider the possibility of including the Paris Agreement on Climate Change as an
essential element of the Agreements.

Focusing on the needs of smaller businesses

The ITA requires the EU and Chile to set up a website for Small and Medium Enterprises
(SMEs) which will make it easier for SMEs to access information and therefore benefit from
all provisions of the Agreement. Contact points in the EU and Chile will work together to take
into account the specific needs of SMEs and identify ways in which they can take advantage
of new opportunities in each market.

Opportunities for service suppliers and rules for digital trade

The ITA contains comprehensive disciplines covering market access for services and
investment in all sectors of the economy, and specific disciplines covering digital trade. It
aims to establish a level playing field notably for EU service suppliers involved in sectors
such as telecommunications and financial services, as well as in areas such as delivery
services and maritime services. The ITA also provides a framework for the Parties to
recognise each other's qualifications in regulated professions such as architects, accountants,
lawyers and engineers. In digital trade, the agreement establishes horizontal disciplines,
including for areas such as online trade in goods or services, and that are indispensable for the
good functioning of online trade.

Encouraging investment

The ITA contains provisions liberalising investment following the same approach as the most
ambitious EU trade agreements concluded so far. In particular, all substantive disciplines
under this Chapter will apply identically to both services and non-services sectors. In
particular, investors and their investments will be able to benefit from the commitment to
provide non-discriminatory treatment in comparison to domestic or 3 [rd] country investors, as
well as from the ambitious disciplines for non-discriminatory market access barriers, in the
form of non-discriminatory quantitative restrictions such as monopolies and exclusive rights,
quotas, and economic needs tests.

Performance requirements, such as requirements to achieve a certain level of local content or
to transfer technology, as a condition attached to the establishment or operation of any
enterprise, will be prohibited while taking due account of Parties’ sensitivities, thus enhancing
the existing disciplines under the WTO TRIMS agreement.

One specific feature of the Investment Chapter negotiated with Chile is that it provides for
national treatment of locally established enterprises with respect to purchase of goods and
services through public procurement, a commitment which is normally found in the Public
Procurement Chapter in other EU agreements.

# EN 8 EN

The Parties’ liberalisation commitments are subject to narrowly defined exclusions (such as
for the audiovisual sector), and specific reservations that either limit the Parties’ respective
degree of openness, or define the desired future policy space for sectors considered
particularly sensitive. The reservations are scheduled through a ‘hybrid list’ approach, i.e. a
‘positive list’ for market access obligations (based on a list of specific sectors which are
committed), and a ‘negative list’ (all sectors committed with the exception of specific
reservations for certain sectors) for all other substantive obligations. The Parties’ specific
commitments reflect a high level of liberalisation, corresponding to their most ambitious
agreements concluded so far, including comprehensive market access commitments for nonservice sectors).

Access to Chilean public tenders

The ITA provides for more opportunities for bidders to access public procurement contracts.
Chile has opened up its government tenders to EU companies to a greater extent than with any
of its other trading partners. EU companies will be able to bid to provide goods and services
not only at central but also sub-central level. EU and Chile also undertake to subject their
public procurement procedures to a modern set of rules, applying high standards of
transparency, non-discrimination and equal treatment.

Setting better protection for innovation and creative works

The ITA establishes a level playing field by ensuring that Chile and the EU also follow a
common approach on Intellectual Property Rights (IPRs) enforcement and that both sides take
action to fight against counterfeiting and piracy and uncompetitive practices. It ensures a high
level of protection of IPRs and their enforcement. It also includes the reciprocal protection of
a selected list of EU and Chilean Geographical Indications (GIs). In the case of the EU, 216
EU GIs will be protected. This is in addition to the existing Agreements on wines and spirits,
which protect 1745 GI for wines and 257 GIs for spirits and 5 for aromatised wines from the
EU in Chile. Those GIs lists have also been updated in a parallel process.

                               Ensuring safe and sustainable trade in agri food products

The ITA includes a chapter on Sanitary and Phytosanitary matters (SPS) providing many
specific trade facilitation measures. This should enable faster yet safe trade. Both the EU and
Chile keep their right to establish the level of protection they consider appropriate.

Furthermore, the ITA includes a Sustainable Food System chapter foreseeing cooperation on
specific aspects of sustainable food systems, such as the sustainability of the food chain and
reduction of food loss and waste, the fight against food fraud along the food chain, animal
welfare, the fight against antimicrobial resistance and reducing the use and risk of fertilizers
as well as chemical pesticides, which imply,, unacceptable risks for health or the environment
as shown in relevant assessments. Among the cooperation activities to fight against the
antimicrobial resistance, the EU and Chile have agreed to phase out the use of antibiotics as
growth promoters.

                                                              Ensuring that technical regulations, standards, and conformity assessment procedures are non
discriminatory and do not create unnecessary obstacles to trade

To increase regulatory convergence between Chile and the EU based on international
standardisation, the Parties agreed on a closed list of international standardisation
organisations and reiterated their commitment to base their technical regulations and
conformity assessment procedures on relevant international standards developed by these
organisations. The ITA highlights the importance of impact assessments in the preparation of
technical regulations and conformity assessments. It promotes a risk-based approach to

# EN 9 EN

conformity assessment, including consideration of supplier’s declaration of conformity, and
the use of accreditation to qualify conformity assessment bodies, including the mechanisms of
the International Laboratory Accreditation Cooperation (ILAC) and the International
Accreditation Forum (IAF). In addition to general provisions on regulatory cooperation that
will enable Chile and the EU to cooperate on future regulatory issues of mutual interest, the
ITA also establishes a specific cooperation on market surveillance and product safety that
provides for the exchange of information on non-compliant or dangerous products on the
respective markets. The Parties also agreed on an annex on motor vehicles, which will
facilitate the approval of new motor vehicles and acceptance of type-approval certificates.

Transparency and Good Regulatory Practices

The ITA includes a Transparency Chapter with ambitious provisions on the publication,
administration, and review and appeal of measures of general application related to trade
matters and a Chapter that establishes a set of Good Regulatory Practices that EU and Chile
will use when developing regulations.

Modern Procedures on Dispute settlement

The ITA includes provisions on State-to-State Dispute Settlement establishing effective and
transparent modern procedures grounded in due process to prevent and solve any disputes
between Chile and the EU.

Institutional Structure

Finally, the institutional structure of the ITA is composed of a Trade Council, a Trade
Committee and a number of Sub-Committees. The Trade Council oversees the fulfilment of
the objectives of ITA and supervises its implementation. In the performance of its duties, it is
assisted by the Trade Committee, responsible for the general implementation of the ITA,
including the definition and supervision of the sectoral dialogues.
The Trade Council and the Trade Committee may establish additional Sub-Committees and
other bodies to assist in the exercise of their functions and to address specific tasks or subject

matters.

The Parties shall promote the participation of civil society in the implementation of the
ITA, in particular through interaction with the Civil Society Forum referred to in
Articles 33.7, and with their respective Domestic Consultative Group, referred to in Article
33.6.

# EN 10 EN

2023/0258 (NLE)

Proposal for a

**COUNCIL DECISION**

**on the signing, on behalf of the European Union, of the Interim Agreement on Trade**

**between the European Union and the Republic of Chile**

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular
Article 91(1), Article 100(2), and Article 207(4), first subparagraph, in conjunction with
Article 218(5) thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1) On 13 November 2017, the Council authorised the Commission and the High
Representative of the Union for Foreign Affairs and Security Policy to open
negotiations for a modernised agreement with Chile to replace the Association
Agreement.

(2) On 9 December 2022, the negotiations between the European Union and Chile were
successfully concluded.

(3) The modernisation of the existing EU-Chile Association Agreement foresees two
parallel legal instruments:

–
the Advanced Framework Agreement between the European Union and its
Member States, of the one part, and the Republic of Chile, of the other part,
which includes a) the Political and Cooperation pillar and b) the Trade and
Investment pillar (inclusive of investment protection provisions);

–
and the Interim Agreement on Trade between the European Union and
Republic of Chile ('the Agreement'), covering trade and investment
liberalisation, which will cease to have effect and be replaced by the Advanced
Framework Agreement upon entry into force of the latter.

(4) A Joint Statement by the European Union and the Republic of Chile on the Provisions
on Trade and Sustainable Development contained in the Interim Agreement on Trade
between the European Union and the Republic of Chile ('the Joint Statement') is
attached to the Agreement.

(5) The Agreement should be signed on behalf of the Union, subject to its subsequent
conclusion. The Joint Statement attached to the Agreement should be endorsed on
behalf of the Union,

# EN 11 EN

HAS ADOPTED THIS DECISION:

_Article 1_

1. The signing of the Agreement is hereby approved on behalf of the Union, subject to
the conclusion of the Agreement.

2. The Joint Statement attached to the Agreement, is hereby endorsed on behalf of the
Union.

3. The texts of the Agreement and of the Joint Statement are attached to this Decision.

_Article 2_

The Commission is hereby authorised to designate the person(s) empowered to sign the
Agreement, subject to the conclusion of the said Agreement at a later date, and to endorse the
Joint Statement attached to it on behalf of the Union.

_Article 3_

This Decision shall enter into force on the day of its adoption.

Done at Brussels,

_For the Council_

_The President_

# EN 12 EN