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EU-Chile Interim Trade Agreement Enters Into Force, Boosting Critical Raw Materials and Green Hydrogen Development

February 7, 2025

The EU-Chile Interim Trade Agreement (ITA) has officially entered into force following the completion of Chile’s ratification process. Signed in December 2023, the agreement is set to enhance the competitiveness of businesses on both sides and strengthen efforts to develop net-zero economies. The ITA holds significant geopolitical importance and will foster deeper cooperation between the EU and Chile in critical sectors such as lithium and copper value chains and green hydrogen production.

This agreement aligns with ongoing initiatives under the Global Gateway, supporting the sustainable flow of critical raw materials and advancing green energy projects in Chile. The ITA also emphasizes mutual efforts to address global challenges like supply chain resilience and climate change mitigation.Key Benefits of the Agreement:

The ITA is designed to deepen EU-Chile trade and investment relations, offering new opportunities for businesses by:

  • Eliminating tariffs on 99.9% of EU exports and creating a level playing field for EU goods in the Chilean market.
  • Ensuring a sustainable and efficient flow of raw materials, including lithium, copper, and hydrogen, crucial for the green transition.
  • Including an Energy and Raw Materials chapter to foster investment and secure reliable access to critical raw materials while preserving Chile’s industrial policy autonomy.
  • Facilitating EU companies' access to Chile’s markets in services such as delivery, telecommunications, maritime transport, and financial services.
  • Guaranteeing equal treatment for EU investors in Chile and improving access to government procurement contracts.
  • Ensuring small businesses in both regions benefit from the agreement’s opportunities.

Commitment to Sustainability:

The ITA reinforces the EU and Chile’s shared commitment to sustainable trade and investment through:

  • A Trade and Sustainable Development (TSD) chapter, affirming adherence to International Labour Organization (ILO) standards and the Paris Agreement on climate change.
  • A pioneering Trade and Gender chapter, committing to eliminate discrimination against women.
  • A first-of-its-kind chapter on Sustainable Food Systems, aimed at enhancing the sustainability and resilience of food supply chains.

Intellectual Property Protection:

The agreement also includes provisions to safeguard intellectual property rights by:

  • Strengthening copyright protections.
  • Protecting 234 geographical indications for food and drink products from both the EU and Chile, with provisions to add more in the future.

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