EU Council Adopts Updated Trade Arrangements With Chile

The European Council on Dec. 4 adopted decisions for two trade agreements with Chile, which together would create an updated version of the EU-Chile Association Agreement currently in force. The new agreements -- which the bloc is calling an advanced framework agreement and an interim trade agreement -- contain political, trade and investment components and trade and investment liberalization, respectively.

The advanced framework agreement includes sections on "health, the environment, climate change, ocean governance, energy, tax, education and culture, labour, employment and social affairs, science and technology and transport," the council said. The deal also addresses legal cooperation and counterterrorism.

The interim trade agreement secures tariff-free treatment of around 99.9% of EU exports, the council said. The deal will "bring greater access to raw materials and clean fuel such as lithium, copper and hydrogen," while making it easier for EU firms to provide their services in Chile, "including in delivery, telecommunications, maritime transport and financial services."

A signing ceremony is expected mid-month. The European Parliament still must approve the agreements before they can take effect.