A New Chapter in EU-Chile Relations: The Advanced Framework Agreement and Interim Trade Agreement

Photo: Reuters
The European Union (EU) and Chile have embarked on a new chapter of their relations, having signed an Advanced Framework Agreement and an Interim Trade Agreement. These remarkable agreements, inked today, will serve to fortify political cooperation and stimulate trade and investment between the EU and Chile. The signing ceremony took place during a meeting attended by distinguished figures from both sides, including Executive Vice-President and Commissioner for Trade Valdis Dombrovskis, High Representative/Vice-President Josep Borrell, Chilean Minister of Foreign Affairs Alberto van Klaveren Stork, Spanish Minister for the Economy and Digital Transformation Nadia Calviño, and Spanish Minister of Foreign Affairs, European Union and Cooperation José Manuel Albares. The Advanced Framework Agreement signifies a milestone in EU-Chile ties, forming a comprehensive partnership that extends beyond trade. It lays the groundwork for deepened cooperation in a plethora of areas, such as foreign and security policy, climate change, human rights, and digital transformation. This agreement highlights the shared values and interests of both entities, reinforcing their commitment to multilateralism and international law.
The Interim Trade Agreement, on the other hand, ensures enhanced economic cooperation. As the EU is already Chile’s third-largest trading partner, this agreement aims to expand trade opportunities, foster investment, and create jobs, thereby contributing to the economic growth of both regions. The trade agreement includes innovative elements that reflect the EU’s commitment to sustainable development. It features provisions to protect labor rights, ensure environmental sustainability, and promote responsible business conduct. These clauses align with the EU’s “Trade for All” strategy, which advocates for a fair and ethical trade policy that benefits everyone. Moreover, the agreement is expected to facilitate greater market access for both Chilean and European businesses, contributing to a more integrated, robust, and resilient transatlantic economy. Spanish Minister for the Economy and Digital Transformation, Nadia Calviño, remarked during the signing ceremony, “This agreement is a testament to the deepening of our relations and demonstrates the mutual commitment to sustainable and inclusive growth. It is a key step in the right direction towards a more resilient and digital economy, strengthening our economic ties, and fostering investment between the EU and Chile.” The Spanish Minister of Foreign Affairs, European Union and Cooperation, José Manuel Albares, representing the Spanish Presidency of the Council, echoed these sentiments. He noted the historic nature of these agreements, stating, “Today, we are not just signing two agreements; we are marking the beginning of a new era in EU-Chile relations. An era marked by stronger political dialogue, enhanced economic cooperation, and shared commitment to multilateralism and the rule of law.” The Advanced Framework Agreement and the Interim Trade Agreement between the EU and Chile are more than mere diplomatic or trade agreements. They represent a shared vision for a fairer, more sustainable, and inclusive global economy, and a renewed commitment to international collaboration. As the world grapples with unprecedented challenges, such as climate change, digital transformation, and the aftermath of the COVID-19 pandemic, these agreements offer a blueprint for how international cooperation can lead to tangible benefits for all. The EU and Chile, through these agreements, have shown their readiness to tackle these global challenges together, setting an example for the rest of the world to follow.
By Roberto Casseli