Industry welcomes the modernized EU-Chile trade agreement

With the modernization of the free trade agreement with Chile, the EU takes another step to strengthen its trade relationships. “The modernized trade agreement with Chile opens up new opportunities for Austrian companies and strengthens economic relationships with one of our most important markets in South America,” says IV general secretary Christoph Neumayer on the occasion of the entry into force of the agreement. “This is particularly important for Austria because Chile is the second most important market for Austrian exports in South America. With a trading volume of 445 million euros in 2024 and around 50 domestic branches on site, Austrian companies secure around 4,000 jobs in Chile. ”

The geopolitical and economic challenges in Europe, coupled with protectionist tendencies on a global level, make it all the more important to open up new markets and diversify trading partners. “At a time of political and economic uncertainty, it is crucial for Europe and Austria to create open markets and to expand the trade relationships. After the political agreement with Mercosur and Mexico, the entry into force of the agreement with Chile is another important step to strengthen the global competitiveness of the European economy, ”Neumayer continued.

EU exports mostly duty-free

The modernized trade agreement not only includes duty freedom for a large part of EU exports to Chile, but also improved access to European companies to the Chilean service market and public orders. Particularly noteworthy is the focus on critical raw materials, such as lithium, a decisive component for green transformation and the expansion of renewable energies.

“Chile is a worldwide supplier of raw materials that are of crucial importance for the energy transition and the development of new technologies. The new agreement helps to ensure that European companies can benefit even better from these resources, which is of enormous importance for the sustainable economic development of the EU, ”concludes Neumayer.

IV is now calling for a quick implementation of further trade agreements, especially with Mercosur and Mexico, in order to further improve international competitive conditions for European companies.