Debate: EU/Chile Advanced Framework Agreement - EU/Chile Advanced Framework Agreement  - Interim Agreement on Trade between the European Union and the Republic of Chile
Date: THURSDAY, 29 FEBRUARY 2024
Speaker: Didier Reynders
Language: EN

With this new agreement, we are modernising and updating our partnership to adapt to a new and challenging geopolitical context. In doing so, we have identified opportunities to strengthen our links with our Chilean partner. The Commission’s message today is simple. We want to build on our solid foundation with Chile, to advance further together. We want to deepen our political dialogue, expand our cooperation and boost our economic relationship to match our ambitions. Thanks to this agreement, we will reinforce engagement and collaboration in new areas, such as human rights, gender equality, sustainable trade, protection of agrifood, geographical indications, sustainable food systems, environment and the fight against climate change. The new agreement will help us cooperate and address common challenges and opportunities in peace, justice and security, as well as in key areas like energy and raw materials cooperation. Chile is indeed a key partner for the European Union. With the new agreement, the EU and Chile will have a perfect platform to grow closer as partners, allies and supporters of the multilateral system. This matters more than ever in a world of increasing geopolitical tensions. Crucially, Chile is a key partner of the EU to cooperate on secure, stable, reliable and sustainable supplies of key raw materials, like copper and lithium, and energy sources, like green hydrogen. These are crucial for our industry and for the green digital transition, and we can work together for our mutual benefit. Honourable Members, as you know, we signed a new EU-Chile agreement last December. The Commission hopes that the agreement will come into force very rapidly. On the EU side, after the consent of the European Parliament, the Interim Trade Agreement can be rapidly adopted by the Council. The Commission understands that Chile will also start the ratification process very soon. If all goes well, we may have the Interim Trade Agreement in force after the summer. The agreement has all the elements to become a success story. The Commission is committed to make sure the new agreement lives up to its potential over the next decades. We have our work cut out as soon as the agreement comes into force. I am referring to the review of the trade and sustainable development chapter of the agreement. We have negotiated an ambitious joint statement for the review of the trade and sustainable development chapter. This review process is to be launched as soon as the Interim Trade Agreement comes into force. The text of the joint statement clearly spells out our level of ambition. We cannot prejudge the outcome of the review, but we will strive to achieve a very ambitious outcome. We are aware that this is a top priority for Parliament, and I am confident we will be able to meet our objectives through the review of the trade and sustainable development chapter. With regard to this, in preparation for today’s debate, the Commission has issued a formal statement on the role of, and the arrangement with, the European Parliament in the forthcoming review of the trade and sustainable development chapter. The statement is being sent to Parliament’s services for inclusion in the verbatim record of this debate. I would like to conclude by thanking our Chilean counterparts and friends for a very difficult job well done and for the good cooperation. I have expressed also such thanks to the Chilean Ambassador, who is present today with us. We have enjoyed during this journey again the same cooperation, which bodes well for the work ahead. So thank you very much for your support. We have a lot of things to do to achieve the entry into force of such an agreement. The Interim Trade Agreement before you today is accompanied by a joint statement, which expresses the Parties’ commitment to initiate, upon entry into force of the Agreement, a formal review process of its trade and sustainable development aspects with the aim to conclude the review process within 12 months. The explicit purpose of this review is – and I quote – 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”. The Commission will closely involve the European Parliament in this review process. In line with its obligations under the Framework Agreement, the Commission will inform the European Parliament, sufficiently in advance, of its intention to present a proposal for an amendment to the agreement and share the initial text of the proposal. The Commission will take due account of Parliament’s comments throughout the negotiations and will keep the Parliament regularly and promptly informed about the conduct of negotiations and explain whether and how Parliament’s comments were incorporated in the texts under negotiation and, if not, why. In this review process, the Commission will be guided by, inter alia, its communication of 22 June 2022 on “The power of trade partnerships: together for green and just economic growth” .  This relates, in particular, to further enhancing the enforcement mechanism, including the extension of the general state-to-state dispute settlement compliance stage to the trade and sustainable development chapter. This also includes the possibility to suspend preferences as measure of last resort in cases of failure to comply with obligations that materially defeat the object and purpose of the Paris Agreement on Climate Change or in serious instances of non-compliance with the ILO fundamental principles and rights at work. In line with the 2022 Communication, the Commission will step up cooperation with Chile, providing incentives and support if needed, to foster compliance with international labour and environmental standards.  The Commission is committed to use the Interim Trade Agreement to facilitate dialogue with Chile and, as appropriate, assist Chile in meeting the sustainability requirements of the Union’s autonomous instruments to support sustainable trade. The EU-Chile Interim Trade Agreement provides for an important role for civil society in the monitoring of its implementation, including with regard to the Parties’ compliance with the labour and environmental commitments contained in the trade and sustainable development chapter. It obliges each Party to create or designate a Domestic Consultative Group, which will advise it on the implementation of the agreement. The Commission will engage closely with civil society, and particularly with the Domestic Consultative Group established under the agreement. It will work with Chile to ensure that each side will provide resources and information to its Domestic Consultative Groups for their capacity building and functioning, in line with its domestic legislation and policies.