The EU-Chile Interim Trade Agreement has officially come into force after Chile completed its ratification process. This agreement, signed in December 2023, is crucial for boosting the competitiveness of businesses in both regions and facilitating the transition to net-zero economies. Key aspects of the agreement include the elimination of tariffs on a vast majority of EU exports to Chile, providing a level playing field for EU goods in the Chilean market. Additionally, the agreement focuses on ensuring a sustainable flow of raw materials, particularly critical resources like lithium, copper, and green hydrogen, essential for the green economy shift. It also aims to enhance cooperation on global challenges like supply chain stability and climate change mitigation. The EU and Chile share a commitment to sustainability, as reflected in the inclusion of ambitious chapters on Trade and Sustainable Development, Trade and Gender, and Sustainable Food Systems. These chapters emphasize adherence to international labor standards, climate change agreements, gender equality, and sustainable food supply chains. Furthermore, the agreement prioritizes the protection of intellectual property rights and geographical indications of European and Chilean products, offering legal certainty for businesses. The modernized EU-Chile Agreement, resulting from negotiations between 2017 and 2022, comprises the Advanced Framework Agreement (AFA) and the Interim Trade Agreement (ITA). While the ITA is currently in effect, the AFA will become operational upon completion of ratification by all EU Member States. This milestone signals a significant step towards enhancing economic relations, supply chain diversification, and business opportunities, as highlighted by Commissioner Maroš Šefčovič. The agreement not only enhances economic ties but also signifies a strong partnership between like-minded entities during times of geopolitical uncertainty.