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: Samira Rafaela
Country: Germany
Language: EN

In this agreement, we have special support for SMEs through a dedicated chapter for SMEs and a new stand—alone chapter on sustainable food systems. 95% of trade will be duty—free and 216 European geographical indications will be protected. With this agreement, we have shown that trade can indeed be responsible and fair, and we have been waiting for this modern and progressive agreement for a long time. In today’s world, it is important that we collaborate with like—minded partners to facilitate the energy transition, to create more jobs, to protect human rights and to ensure security. The amendment of the original agreement from 2002 was crucial to reflect the developments and modernisation and our increasingly sustainable and digital economies, as well as our rules—based trading system, and given the geopolitical situation. Chile is a key partner for the EU and in Latin America, and the EU is Chile’s third—largest trading partner and foreign investor. Our bilateral trade comprises many sectors, including – but not limited to – minerals, such as copper and lithium, machinery and chemicals, and especially agricultural products. The modernised agreement will allow the EU and Chile to strongly increase their bilateral political, trade and investment cooperation, as it will create mutually beneficial new opportunities on both sides. The modernisation is continuing to strengthen these important bilateral trade flows and provides improved market access for goods, services, investment and government procurement, amended investment protection, protection and enforcement of intellectual property rights and the reduction of non—essential non-tariff barriers. The agreement keeps the right to maintain public services. From the beginning, there were multiple key priorities for me, which I’m happy to see covered. I said it before, for the first time in an EU agreement, is there a dedicated chapter on gender and trade so that trade leads to gender equality and women’s empowerment and ultimately benefits all. There are specific provisions and references on the rights of indigenous people. It is key that their rights are respected and upheld in such an important agreement, and the chapters on sustainable development and trade and gender establish and foster the approach towards a green and fair trade relationship. The specific chapter on trade and SMEs is important, since they account for a large proportion of EU—Chile trade, so to assist them in taking full advantage of this agreement will be important. Of course, we must also recognise the role that Chile plays in our green and just transition. Chile has a leading role as a major supplier of critical raw materials, and a lot of these are supplied to the EU, especially when it comes to lithium and copper. Chile also has huge potential when it comes to the creation of clean energy, such as green hydrogen. The energy chapter plays into this. All the while, the agreement leaves sufficient policy space to Chile for local added value, and this has to be done in an environmentally and socially sustainable manner, while it should benefit local communities, including indigenous communities. All in all, I am happy that we have been able to reach such a good agreement with our like—minded partner. I look forward to a final conclusion very soon, and I also hope for a swift ratification procedure by Chile and at EU Member State level. The Advanced Framework Agreement brings our relationship in line with the most advanced standards and unlocks untapped potentials. It will modernise the existing association agreement, opening and improving new areas, including investment liberalisation and investment protection provisions. Political and economic cooperation on the basis of old rules is not an option for the EU anymore, and I am proud that today we are hopefully agreeing with such a modern and progressive agreement. Lastly, I would like to commend the work of the Commission negotiators on the trade side, led by Paolo Garzotti, for their engagement and transparent cooperation with the Parliament and with me as rapporteur. Special thanks to the Ambassador of Chile to the EU, Gloria Navarrete, and her embassy team for the wonderful cooperation we showed that trade can deliver for people. Let’s go.