The Czech Presidency has managed to negotiate a political and trade agreement between the EU and Chile; it is one of the most ambitious and advanced agreements negotiated by the European Union. As part of the trade agreement, the deal will allow investment and trade on equal terms, regardless of whether traders are from the EU or Chile, deepen relations, eliminate 99.9% of tariffs and other charges, and make it easier for exporters to trade digital services. EU exports to Chile are expected to increase by €4.5 billion.

The agreement also brings benefits in political and strategic terms. The Minister of Industry and Trade Síkela says, "Chile is an important trade and strategic partner, and we must do everything we can to develop our trade relations with such actors. In addition, Chile is also an important country in terms of its reserves of critical raw materials, especially lithium, which is essential to ensure the European Union's resilience in terms of trade and energy".

As part of its Presidency of the EU Council, the Czech Republic aims to diversify trade flows in the EU to reduce dependence on a few countries and be more flexible in the event of crises. The Czech Presidency has made this one of its priorities and, according to Minister Síkela, will continue to pursue this agenda after its presidency ends.

Prepared by foreign office CzechTrade Belgium

Source: MPO.cz