The treaty promises closer bilateral relations as well as more cooperation on critical minerals.
The Interim Trade Agreement (ITA) between the European Union and Chile has officially come into force following the ratification process. Signed in December 2023, the ITA promises to strengthen bilateral relations as well as foster trade and investment opportunities. A central provision of the agreement is the elimination of tariffs on 99.9 percent of exports from the EU to Chile, giving European companies more access to the market in Latin America. In addition, Chile is set to benefit from increased financing from Europe. The EU, on the other hand, hopes to gain better access to the mineral wealth of the Latin American country. Chile is especially rich in lithium and copper, two key elements for the global energy transition. In recent years, the country has been the main supplier of lithium to the EU, accounting for over half of the total imports. In the future, Chile could also become a player in the rare earth industry, with mining company Aclara developing a project close to the central trade hub of Concepción.
Photo: Tom Fisk via Canva
