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Interaction between the EAEU and Chile requires involving business of the “five” countries

Interaction between the EAEU and Chile requires involving business of the “five” countries

Никшина Чили.jpg
10/10/2019

Veronika Nikishina, Member of the Board – Minister in charge of Trade of the EEC, and Rodrigo Yanez Benitez, Deputy Minister for International Economic Relations of the Republic of Chile, discussed possible parameters of further cooperation on October 9 at the headquarters of the Eurasian Economic Commission (EEC) in Moscow. The sides agreed to start working on assessing prospects for mutually beneficial cooperation within the framework of potential Free Trade Agreement.

The Eurasian “five” countries and Chile have significantly expanded their mutual trade in recent years. In 2018, the trade turnover increased by 31% compared to 2017 - up to 1.2 bln US dollars. The Union’s exports to Chile increased by 54.8% to 127.1 mln US dollars. Imports from Chile increased by 28.7% to nearly 1.1 bln US dollars over the same period. Supplies from Chile mainly consist of such commodity groups as frozen fish (37.3%), copper ores and concentrates (11.9%), pork (7.7%), fish fillets (5.5%) and wine (4.0%). The share of other goods is 33.6%. In this regard, the work on improving the trading pattern appears relevant.

The Chilean side has projected the main advantages of the Eurasian economic integration for developing trade and economic cooperation between the Eurasian Economic Union (EAEU) States and the Republic of Chile.

“The information has been provided in time. Right now we are starting the next cycle of forming a list of priority countries it will be possible to conclude free trade agreements with”, - Veronika Nikishina pointed out.

Rodrigo Yanez Benitez, Deputy Minister for International Economic Relations of the Republic of Chile, stressed that cooperation with the Union countries was a priority for Chile, and they set an objective to conclude a trade agreement with the EAEU in the near future.

In turn, the EEC Minister noted that it is required to move progressively in this direction, having made some relevant arrangements. “It would be right if we initially work out a common strategy for developing trade and economic relations between the EAEU and the Republic of Chile. And the improvement of trade conditions is considered as important, but nevertheless part of a more complex set of issues we need to resolve in order to expand trade and improve its structure”, - Veronika Nikishina said.

The EEC Minister in charge of Trade announced the procedure for concluding the EAEU Free Trade Agreements with third countries. The action algorithm includes several mandatory steps. At the first stage, the Commission shall collect proposals from the EAEU five countries on the desired partner countries for establishing the FTA, and then some survey shall be conducted on the EAEU economic feasibility to conclude Free Trade Agreements with a particular country. For this purpose, the position of the EAEU business is extremely important. Yet, a consensus on negotiations reached by all EAEU Member States shall be a mandatory condition for obtaining a mandate after the survey. Thus, as a rule, forming such a track takes a lot of time.

Providing the FTA is formed, the Chilean side predicts an increase in the supply of oil and gas, metallurgical, chemical and agricultural products from the EAEU.