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Chile signs modernization deal with EU: ‘Government is not against free trade agreements’



“I would like to reiterate that the government is not against free trade agreements, but what we have raised is that the dispute resolution mechanism needs to be reviewed,” Urrejola said.

This Friday, the government signed a long-awaited modernization of the trade deal European Union (EU), in an activity led by Prime Minister Urekora in Brussels.

let’s remember european union In 2017, the United States and Chile decided to renew the 2002 Association Agreement governing trade and investment between the two countries.

The technical negotiations for the new agreement, signed last November, must be ratified for it to come into force.

The latter was postponed after the government decided to review some aspects. Undersecretary for International Economic Relations (Subrey), José Miguel Ahmada.

In this regard, Urrehola defended the delay, as did the president himself. Gabriel Bolick the past week.

“I would like to reiterate that the government is not against free trade agreements, but what we have raised is that the dispute settlement mechanism needs to be reviewed,” Urehora said in Brussels.

Changes included in agreements with the EU

According to the government, the modernization of this agreement will allow It improves access to European markets and provides a permanent mechanism for effective, fair and predictable dispute resolution between investors and States.

In fact, for the first time in Chile, the agreement includes the creation of a permanent investment court system to resolve disputes between investors and states. This takes into account high ethical standards for judges, cases of appeal, and gender considerations when appointing judges.

For its contents, The agreement would be the most environmentally friendly Chile has ever signed. Establish a high level of sustainable development and promote environmental and labor protection.

Moreover, it is the first time that the European Union has signed it. Chapter on Gender and Trade An economic and commercial agreement that promotes equal opportunities and treatment between men and women.

Likewise, this modernization includes a new chapter on digital trade that addresses the current challenges of foreign trade.

Given the deadlines for these processes, it is estimated that a modernization agreement could be signed by the end of next year, ideally at the CELAC-EU Summit in November 2023. .

After signing, the Association Agreement must be approved by the countries that make up the European Community bloc, their respective parliaments and the Chilean National Congress.

Source: Biobiochile

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