EFTA Signs Revised Free Trade Agreement With Chile

(MENAFN- Swissinfo) The European Free Trade Association (EFTA), which includes Switzerland, signed a revised free trade agreement with Chile on Monday. Swiss Economics Minister Guy Parmelin also expressed caution about ongoing talks with the Latin American Mercosur trade bloc and "relative optimism" about trade deal negotiations with China.

This content was published on June 24, 2024 - 15:31 5 minutes Keystone-SDA

• Español es La AELC firma un acuerdo de libre comercio revisado con Chile Read more: La AELC firma un acuerdo de libre comercio revisado con Chil

Check out our selection of newsletters.
Subscribe
here .

The revised agreement with Chile was signed at a ministerial meeting of EFTA states (Switzerland, Liechtenstein, Iceland and Norway) in Geneva on Monday. Switzerland is the current chair.

Parmelin told reporters that he was confident about the improvement of business opportunities, market access and the legal framework with Chile.

Negotiations were concluded last January after five years. Compared to the first agreement 20 years ago, components on sustainable development, financial arrangements, small and medium sized enterprises (SMEs) and e-commerce have been added.

+ EFTA updates free trade agreement with Chile

Improved competitiveness

The new agreement will improve exports and the competitiveness of SMEs, which make up more than 90% of the volume of business in Switzerland, the economics minister told the Keystone-SDA news agency.

+ Switzerland signs free trade deal with India

In recent free trade deals, the focus has mostly been on pharmaceuticals and multinationals. However, since the signing of the agreement with India a few months ago, SMEs have become more of an issue, noted Parmelin.

+ Explainer: Will the India-EFTA pact be a 'game-changer'?

From now on, 99.99% of Swiss exports to Chile will be exempt from customs duties. All intellectual property rights will also be applied. Total trade of goods between EFTA and Chile is estimated to have reached nearly CHF1 billion ($1.12 billion) in 2023.

Negotiations with Mercosur

Chile's Minister of Foreign Affairs, Alberto van Klaveren, pointed out that the link with EFTA was a very important part of his country's policy with Europe. It comes a few months after a similar arrangement with the European Union.

He said there had been no obligation to sign the agreement with Switzerland and the three partners ahead of a possible similar agreement between EFTA and the South American trade bloc, known as Mercosur.“We would very much welcome an agreement between Mercosur and the EU, as well as between Mercosur and EFTA,” he said.

Parmelin also sees no direct link between the EFTA-Chile agreement signed on Monday and the more difficult negotiations with Mercosur. These talks were relaunched at the end of April after a five-year break due to the coronavirus pandemic and the political situation in South America. According to other sources, the dialogue is not good.

More difficult dialogue with Lula

Former Argentinian President Alberto Fernandez dragged out talks for months. And while Argentina is now more favourable to negotiations, current Brazilian President Luiz Inazio Lula da Silva has new demands.

“There was a window of opportunity,” said Parmelin. A few months ago, he was not ruling out the possibility of an agreement this year, but he is even more cautious now.“There are intellectual property issues on which Brazil has brought back to the negotiating table, although they had already been settled in 2019,” he said.

Other issues such as public procurement are also under discussion.“I prefer us to take things one step at a time,” insisted the Swiss minister. No date has yet been set for the next round of negotiations, according to the same sources.

Parmelin expected in China

On the other hand, Parmelin is“relatively optimistic” about the discussions on a revised trade agreement with China. However, he said it was“difficult to say” when a new arrangement would be reached.“China is showing interest”, he said. China's domestic situation, in particular the difficulties in the property market, is pushing it to engage in dialogue.

+ China edges closer to free trade update with Switzerland

It took about six years to identify the points that could be discussed, according to the Swiss minister. However, since the signing of the agreement between EFTA and India a few months ago, China's interest has also increased. Parmelin also believes agreement has been reached regarding a first phase of the deal.

He will be in China next week to launch the second stage of this process, which consists of an assessment of the parties' manoeuvrability on the issues to be discussed. The negotiations themselves are scheduled for a third phase.

Adapted from French by DeepL/dkk/sb

This news story has been written and carefully fact-checked by an external editorial team. At SWI swissinfo we select the most relevant news for an international audience and use automatic translation tools such as DeepL to translate it into English. Providing you with automatically translated news gives us the time to write more in-depth articles.

If you want to know more about how we work, have a look here , and if you have feedback on this news story please write to ... .

External Content Your subscription could not be saved. Please try again. Almost finished... We need to confirm your email address. To complete the subscription process, please click the link in the email we just sent you. Daily news

Get the most important news from Switzerland in your inbox.

Daily

Email

The SBC Privacy Policy provides additional information on how your data is processed.

I consent to the use of my data for the SWI swissinfo newsletter.

Deeply Read More Science Switzerland says it can't afford to take part in Copernicus programme Read more: Switzerland says it can't afford to take part in Copernicus programm More Workplace Switzerland How Switzerland plans to tackle its labour shortage Read more: How Switzerland plans to tackle its labour shortag More Culture Switzerland wins Eurovision Song Contest 2024 Read more: Switzerland wins Eurovision Song Contest 202 More Workplace Switzerland Owning a home is becoming increasingly difficult in Switzerland Read more: Owning a home is becoming increasingly difficult in Switzerlan More Life & Aging Swiss village of Lauterbrunnen mulls Venice-style tourist entry charge Read more: Swiss village of Lauterbrunnen mulls Venice-style tourist entry charge Most Discussed More Debate Hosted by: Katy Romy June 9 votes in Switzerland: how can healthcare costs be reined in?

On June 9, Swiss voters decided on two initiatives aimed at capping the cost of healthcare in the country. Have your say on the issue here.

Join the discussi Jun 5, 2024 83 Likes 79 Comments View the discussi More Debate Hosted by: Bruno Kaufmann How can democracy be enhanced in schools?

How can we improve democracy education to better prepare students for civic engagement?

Join the discussi May 24, 2024 10 Likes 41 Comments View the discussi More Debate Hosted by: Elena Servettaz Should politics be kept out of sporting and cultural events?

Cultural and sporting events are being increasingly politicised. Is this a problem?

Join the discussi May 28, 2024 17 Likes 16 Comments View the discussi More Debat Ne More High immigration from Europe reflects strong Swiss employment growth

This content was published on Jun 24, 2024 Around 68,000 people moved to Switzerland from other European countries in 2023, attracted by the job opportunities, the Swiss authorities said on Monday.

Read more: High immigration from Europe reflects strong Swiss employment growt More Switzerland must adapt to changing flood risks, warns Swiss hydrologist

This content was published on Jun 24, 2024 Unusually warm temperatures, most probably linked to the climate crisis, suggest the situation is changing and Switzerland needs to better adapt, says a Swiss expert.

Read more: Switzerland must adapt to changing flood risks, warns Swiss hydrologis More Some Swiss cantons are ill-prepared for new sex offences legislation

This content was published on Jun 24, 2024 Some Swiss cantons, especially in German-speaking Switzerland, are inadequately prepared for the new criminal law on sexual offences which will be implemented from July 1.

Read more: Some Swiss cantons are ill-prepared for new sex offences legislatio More Football legend Ronaldinho opens restaurant in Geneva

This content was published on Jun 24, 2024 The former Brazilian football star Ronaldinho has opened his first restaurant near Geneva in western Switzerland. The restaurant serves burgers and is named "R10" after the famous footballer's shirt number.

Read more: Football legend Ronaldinho opens restaurant in Genev More Six hydroelectric power plants hit by flooding in southeast Switzerland

This content was published on Jun 24, 2024 Six hydroelectric power stations belonging to the energy group Axpo have been affected by flooding in the Misox region in canton Graubünden in southeast Switzerland.

Read more: Six hydroelectric power plants hit by flooding in southeast Switzerlan More Swiss canton of Jura celebrates triumph through 'conviction'

This content was published on Jun 24, 2024 Citizens and celebrities from canton Jura on Sunday celebrated the 50th anniversary of a historic referendum that led to the creation of Switzerland's youngest canton.

Read more: Swiss canton of Jura celebrates triumph through 'conviction More Euro 2024: Switzerland heads to knockout stage after 1:1 draw against Germany

This content was published on Jun 23, 2024 Switzerland heads to the knockout stage of the Euro 2024 after a 1:1 draw with Germany.

Read more: Euro 2024: Switzerland heads to knockout stage after 1:1 draw against German More One dead, two missing after landslide in Switzerland

This content was published on Jun 23, 2024 Three are missing after heavy rains caused a landslide in southeastern Graubünden, police have said. One woman was rescued alive on Saturday.

Read more: One dead, two missing after landslide in Switzerlan More Swiss glaciers show signs of recovery after snowy winter

This content was published on Jun 23, 2024 Swiss glaciers, heavily impacted by climate change, benefited from heavy snowfalls this winter.

Read more: Swiss glaciers show signs of recovery after snowy winte More Eritreans demonstrate in Bern against repression and racism

This content was published on Jun 23, 2024 More than 800 Eritreans demonstrated in front of the federal building in Bern on Saturday.

Read more: Eritreans demonstrate in Bern against repression and racis

In compliance with the JTI standards

More: SWI swissinfo certified by the Journalism Trust Initiative

You can find an overview of ongoing debates with our journalists here . Please join us!

If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at ... .

MENAFN24062024000210011054ID1108366951