AFA & ITA signed between the EU and Chile. Read our briefing. Entry into operation of the ITA in February 2025. Download the interim law and other tools to check how you can benefit
The EU and Chile are modernising their Association Agreement through two complementary legal instruments: the Advanced Framework Agreement (AFA) and the Interim Trade Agreement (ITA).
Once the AFA takes effect, it will replace the ITA.
Both agreements were signed on 13 December 2023, with the European Parliament granting its approval on 29 February 2024. On 20 December 2024, it was announced that the Interim Agreement of Trade will enter into operation on 1 February 2025:
The modernised EU-Chile Advanced Framework Agreement (download factsheet) aims to strengthen trade and investment ties between the two partners.
It eliminates most of the remaining tariffs on goods, boosts trade in services, and simplifies business operations for small enterprises. A key feature of the agreement is including a comprehensive chapter on trade and sustainable development. This chapter addresses critical areas such as climate change, energy, environmental protection, raw materials, disaster risk reduction, and sustainable food systems. It also highlights social commitments, including labour rights, gender equality, and responsible business practices.
The Interim Trade Agreement will take effect on the first day of the third month following the final ratification by Chile, as the EU has already completed its ratification process.
Once the ITA is in force, most provisions of the Advanced Framework Agreement will be provisionally applied. Full implementation of the AFA will occur once all EU Member States have ratified it.
The Advanced Framework Agreement (AFA) consists of political and cooperation and trade and investment components.
The Interim Trade Agreement (ITA) deals with trade and investment liberalisation, which is the component of the AFA that falls exclusively within the EU’s competence. Investment protection provisions are covered by the Advanced Framework Agreement (AFA).
Advanced Framework Agreement (AFA)
The agreement is founded on shared universal values such as democracy and human rights.
It includes cooperation in areas such as health, the environment, climate change, ocean governance, energy, tax, education and culture, labour, employment and social affairs, science and technology and transport. It also addresses legal cooperation, the rule of law, money laundering and terrorist financing, organised crime and corruption. Finally, the AFA covers the EU’s standard clauses on the International Criminal Court (ICC), Weapons of Mass Destructions (WMD), Small Arms and Light Weapons (SALW) and counter-terrorism.
The trade component of the AFA broadens the scope of the current bilateral trade framework and adjusts it to the new political and economic global challenges, to the new reality of the EU-Chile partnership and to the level of ambition of recently concluded trade agreements and negotiations conducted by the EU and Chile.
Interim Trade Agreement (ITA)
The EU is Chile’s third-largest trade partner. On the agreement's entry into force, around 99.9% of EU exports will be tariff-free, which is expected to increase EU exports to Chile by up to EUR 4.5 billion.
The agreement will bring greater access to raw materials and clean fuel such as lithium, copper and hydrogen, which are crucial for the transition to the green economy.
It will also make it easier for EU companies to provide their services in Chile, including in delivery, telecommunications, maritime transport and financial services.
It will provide the same treatment for EU investors in Chile as for Chilean investors and will give EU companies improved access to Chilean government procurement contracts for goods, services, works and works concessions, and vice versa.
The agreement includes a dedicated chapter on small and medium-sized enterprises in order to help ensure that smaller businesses fully benefit from the agreement, including by cutting red tape.
‘Strategic partnership’ on raw materials
A key aspect of the strategic partnership will be to create local added value in Chile rather than extract minerals and leave, like Chinese companies often do in Africa – with little regard for human rights or the environment.
EU pushes alternative model to China in global race for raw materials
The European Commission is looking to forge “win-win partnerships” with raw material-producing countries in a bid to develop new mining projects across the globe and reduce the bloc’s dependence on China.
Download the applicable law here
The following section contains the laws, key documents like the rules of origin applicable and more