PanamaTimes

Monday, Apr 22, 2024

EU ties trade bow with Chile — to carmakers’ delight

EU ties trade bow with Chile — to carmakers’ delight

It’s official: Brussels and Santiago renewed their trade vows today.
Chile and the EU sealed a revamp of their trade deal in Brussels on Friday, potentially giving Europe better access to Chile’s vast lithium and copper resources.

The updated deal — which includes both trade and political upgrades — provides the EU with key access to the world’s biggest reserves of lithium in Chile’s Atacama salt flats. Lithium is essential in producing car batteries, so the European car industry is delighted.

“This is positive news as it reinvigorates the EU’s trade agenda. It is also of particular significance to our sector as it will enhance access to the raw materials which are much needed for e-mobility,” said the European Automobile Manufacturers’ Association.

Chile’s new government, led by left-wing President Gabriel Boric, has won more “policy space” to develop its own raw materials industry, explained an EU official. Now, the deal allows Chile to sell its lithium or copper at lower prices for EU companies that use Chilean processing.

Coincidentally, later today EU negotiators are also poised to agree on the world’s most stringent standards for sustainable batteries. Brussels is also readying a Critical Raw Materials Act.

For EU trade chief Valdis Dombrovskis, locking in another trade deal is a victory. Brussels has been firing up negotiations with potential trade partners around the world to diversify away from Russia, and to a lesser extent, China — even more so since Russia’s invasion of Ukraine.

“Today’s agreement marks a real leap forward in terms of our sustainability commitments,” said Dombrovskis. “It also very much reflects our shared strategic interest in terms of cooperating in areas like clean energy and raw materials, which will be vital for our future economic resilience.”

Brussels is eyeing closer ties with Latin America and hopes to still conclude its deals with Mexico and the Mercosur bloc before the European Parliament election in 2024.

No teeth (yet) on sustainability

But the pact doesn’t allow the EU or Chile to slap sanctions if one of the parties violates its sustainability provisions, unlike Brussels’ recent trade deal with New Zealand. That’s because the deal was “technically concluded” before the EU unveiled its higher green aspirations for trade deals in June, the EU official told a background briefing.

“Every negotiation is different,” the official said, adding that both sides promise to conclude extra negotiations within one year “as soon as the agreement enters into force.” This commitment is laid out in a statement that Brussels and Santiago will publish next week, along with the full revamped agreement, they added.

“I would expect this particular conversation with Chile to be very like-minded and progressive,” the EU official said.

Today’s renewed deal does, however, include some novelties like a gender equality chapter — a first in the EU’s agreements.

“This chapter could function as a new benchmark for making trade more inclusive, with a special focus on women’s role in the global economy,” said European lawmaker Samira Rafaela of the liberal Renew group, who’s in the lead on the EU-Chile agreement.

Chile and the EU agreed to split the pact to speed up the ratification process, an EU official confirmed, meaning that the trade section will go only to the Council of the EU and the European Parliament., while the political and investment section will need to be ratified by the bloc’s national — and at times regional — parliaments.
Newsletter

Related Articles

PanamaTimes
0:00
0:00
Close
Apple warns against drying iPhones with rice
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
Global Law Enforcement Dismantles Lockbit Ransomware Operation
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
The President of Argentina Javier Mile does not fly private, he flies commercial, with the citizens he represents. And they LOVE him for it.
Bitcoin Reaches $50,000 for First Time in Over Two Years
Belo Horizonte: Brazil's Rising Carnival Hotspot for 2024
In El Salvador, the 'Trump of Latin America' stuns the world with a speech slamming woke policing after winning a landslide election
Tucker’s interview with Putin is over 50M views on X within the first 5 hours.
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
President Nayib Bukele has proudly announced El Salvador's remarkable achievement of becoming the safest nation in the Western Hemisphere.
Former Chilean President Sebastian Piñera Dies in Helicopter Crash
This farmer seems to understand science a bit more than the event organizer, Klaus Schwab.
Facebook turns 20: From Mark Zuckerberg's dormitory to a $1trn company
The Coolest Dictator in the World" on the Path to Victory in El Salvador
Macron, France and fake news
Indian-Origin Man 'King' Arrested For Smuggling $16 Million Drugs Into US
Can someone teach Americans that not every person with slanted eyes is Chinese?
Europe's Farmers Feeding the People, Protesting Against Politicians Who Do Nothing for Their Country and Serve Only Themselves at Taxpayers' Expense
Paris Restaurant That Inspired 'Ratatouille' Loses $1.6 Million Worth Of Wine
Brazilian Police Investigate Bolsonaro's Son for Alleged Illegal Spying
Police in Brazil Raid Residence of Bolsonaro Associate Over Allegations of Illegal Spying
Border Dispute Escalates as Texas Governor Vows Increased Razor Wire
OpenAI Enhances ChatGPT-4 Model, Potentially Addressing AI "Laziness" Issue
The NSA finally acknowledges spying on Americans by acquiring sensitive data
Report Reveals Toxic Telegram Group Generating X-Rated AI-Generated Fake Images of Taylor Swift
US Border Patrol States 'No Plans' to Remove Razor Wire Installed in Texas
Bitcoin Experiences Approximately 20% Decline in Value
Klaus Schwab recently appointed himself as the Earth's "trustee of the future."
DeSantis Drops Out, Endorses Trump.
Nikki Haley said former President Trump is "just not at the same level" of mental fitness as he was while president in 2016.
Residents of a southern Mexican town set the government palace on fire in response to the police killing of a young man
Samsung Launches AI-Driven Galaxy S24, Ushering in New Smartphone Era
Judge Questions SEC's Regulatory Overreach in Coinbase Lawsuit
The Ecuador prosecutor who was investigating the television studio attack, has been assassinated.
Is artificial intelligence the solution to cyber security threats?
Vivek Ramaswamy suspends his US election campaign and endorses Trump.
Viral Satire: A Staged Satirical Clip Mistaken as Real Footage from the 2024 World Economic Forum in Davos
The AI Revolution in the Workforce: CEOs at Davos Predict Major Job Cuts in 2024
Ecuador Reports 178 Hostages in Prison Gang Standoff
The Startling Cuban Espionage Case That Has Rattled the US Government
Two Armed Men in Ecuador, Dressed as Batman and The Joker Storm the Streets.
Armed Gang Raids Ecuadorian TV Station Following State of Emergency Declaration
Anti-Democratic Canada: Journalist Arrested for Questioning Canadian Finance Minister on Support of Terrorist Group
Ecuador's 'Most-Wanted' Criminal Vanishes from Prison
Mexican Cartel Supplied Wi-Fi to Locals Under Threat of Fatal Consequences for Non-Compliance
Border Surge Leads to Over 11,000 Migrants Waiting in Northern Mexico
Outsider Candidates Triumph in Latin American Elections
As Argentina Goes to the Polls, Will the Proposal to Replace the Peso with the Dollar Secure Votes?
Fatal Shark Attack Claims Life of Boston Woman Paddleboarding Near Bahamas Resort, According to Police
×