Politics

Agreement With EU Facilitates the Trade With Organic Products

Made an Agreement that Expands Access of Chilean Organic Products to the European Union

April 21st, 2016
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The European Union (EU) and Chile concluded negotiations on an agreement to trade with organic products. This agreement will allow Chilean organic products to get with better conditions to EU countries, also mutually recognize the equivalence of their respective rules of organic production and control systems, ensuring a high level of respect for the principles of this type of production. It is the first bilateral recognition of this kind with a Latin American country.

The Chile-EU agreement will be the first agreement of "new generation" trade of organic products, so far, the European Union has concluded administrative agreements for recognition of equivalence with third countries or unilaterally recognized the equivalence of production systems and control third countries. This agreement will pave the way for other agreements on trade in organic products by providing a solid foundation for the development of the organic sector, benefiting a growing industry, supporting growth and employment on a global scale.

The agreement signed in the framework of the participation of Minister Furche at the Ministerial Meeting of the Agriculture Committee of the Organization for Economic Cooperation and Development (OECD) that took place in Paris, the agreement will also try to provide reciprocal protection of ecological seals as well as a review system scope with enhanced cooperation, exchange of information and a mechanism for resolving trade disputes.

The EU organic sector is a dynamic sector of European agriculture with an average annual growth of 5.5% over the past 10 years and represents 6% of the total utilized agricultural area of the EU. Although the EU is a net importer of Chilean products, it is expected that this agreement will promote the exports of organic products from the EU to Chile. Chilean exports of organic products to the world reached 212.7 million of US$, experiencing a growth of 4% compared to 2014. The main products shipped by Chile to the world in this category were berries, both the fresh and the frozen format, exporting as a whole more than 110.4 million of US$, an increase of 27% compared to 2014, include raspberries, blueberries, blackberries and strawberries.

The goal is also to form a mutual protection and organic seal and is provided an updates system regarding the products covered. This will be also accompanied by an enhanced cooperation, information exchange and dispute resolution.

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References:

Cultural Diplomacy News
Iñaqui Gonzalez, CD News