EU and Chile expand trade agreement after twenty years

The EU and Chile modernize their existing trade agreement. The new trade agreements replace the treaty that was concluded 20 years ago. 99.9% of the EU exports will soon be tariff-free, which is expected to increase exports to Chile by about 4.5 billion euros.

There will be changes, especially for the import of poultry meat from Chile. Until now, the import quota has been increased annually by 10 percent. Soon there will be a fixed import quota without annual increase. The EU grants Chile an additional import quota of 9,000 tons of poultry meat, which will be increased by another 9,000 tons after three years. In addition, 2,000 tons of beef and 9,000 tons of pork are imported into the EU. 

For the EU countries, dairy exports to the Chilean market will be further opened up to cheese and other products. The Chileans promise to recognize the geographical indications in the EU and to facilitate the importation of many foodstuffs, such as confectionery or jam. Chile also commits to complying with the veterinary standards of the EU and refraining from certain growth hormones in livestock farming. 

The new trade arrangements still need to be approved by the EU countries and the European Parliament. The European Commission expects less resistance than with the previous Mercosur agreement with four other South American countries, partly because beef imports play only a minor role in the agreement with Chile.

The EU and Chile signed an Association Agreement in 2002 which came into effect in February 2003. Trade in goods between the EU and Chile grew by 163 % over the past twenty years. Goods exports from the EU to Chile grew by 284 % in the same period.