Written by León Lanis, Paralegal
Since 2003 Chile and the European Union have enjoyed great economical and political relations, mainly due to its 2002 free trade treaty, which stated the commercial relations and benefits between the South American nation and the European Union. The main exports Chile has provided the EU with are salmon (amongst other types of fish) and wine. But since 2008, the shipping of copper to the European continent has skyrocketed.
Many political sectors have been pushing negotiations with the EU’s parliament in order to establish a new accord, in which new frameworks can secure the future of both markets for the future, especially with the evidence of Chile’s lithium reserves which serve of great interest to most European nations. With this in mind, since 2013, Chile and the EU have been negotiating the Advanced Framework Treaty or AFT.
The ground-breaking treaty sought mainly to reduce the tariff cost of 99.8% of the Chilean products entering the EU, all the while assuring a strict ESG compliance is being followed by the companies involved in the production and delivery of the products. The AFT is scheduled to reduce almost all tariffs to 0 in a span of 7 years.
The EU’s main concern in negotiations had been compliance and environmental impact. To address this concern, in the same span of time as the tariff cuts, Chile is obliged to apply strict ESG frameworks to companies related to agriculture, mining, salmon extract, amongst others. One of the most notorious matters the EU outlined for negotiations was the respect for indigenous rights, gender equity through all markets and the reduction of carbon footprint.
Undoubtedly, this free trade treaty will expand the horizons of both markets by the reduction of tariffs, all the while maintaining an eye on social and environmental issues.
Harris Gomez Group opened its doors in 1997 as an Australian legal and commercial firm. In 2001, we expanded our practice to the international market with the establishment of our office in Santiago, Chile. This international expansion meant we could provide an essential bridge for Australian companies with interests and activities in Latin America, and in so doing, became the first Australian law firm with an office in Latin America.
We partner with innovative businesses in resources, technology and sustainability by providing strategy, legal and corporate services. Our goal is to see innovative businesses establish and thrive in Latin America and Australia. We are proud members of Austmine and the Australia Latin American Business Council.
To better understand how we can support your management team in the Region, please contact contact@hgomezgroup.com
