European Union Council Approves Interim Trade Agreement with Chile

The Council of the European Union recently announced the adoption of the decision on the Interim Agreement on Trade (iTA) between the EU and Chile on March 18, 2024.

This agreement, along with the Advanced Framework Agreement (AFA), aims to update the existing Association Agreement from 2005 to enhance trade cooperation between the EU and Chile. The political conclusion for both agreements was reached on December 9, 2022, with a formal signing ceremony taking place on December 13, 2023.

The iTA focuses on trade and investment liberalization and will remain in effect until the broader AFA, which includes provisions for investment protection, is enforced. One key aspect of the iTA is the inclusion of measures related to data flows and personal data protection under Chapter 19 ‘Digital Trade.’ Article 19.6 specifically addresses the protection of personal data and privacy, emphasizing that each party can maintain measures to ensure data protection without compromising privacy.

Additionally, the iTA covers various aspects such as electronic contracts, trust services, online consumer trust, unsolicited marketing communications, and regulatory cooperation concerning digital trade.

The agreement will come into force once Chile completes its internal ratification process and notifies the EU, with the AFA currently undergoing ratification by member states.

For more information, you can access the press release on the endorsement of the bilateral trade agreement and download the iTA text for further details.