The recent entry into force of the EU-Chile Interim Trade Agreement (ITA) is set to enhance business competitiveness and promote the transition to net-zero economies in both regions. Signed in December 2023, the agreement is expected to strengthen the EU-Chile partnership by creating opportunities for cooperation on critical areas. The ITA will eliminate tariffs on a significant portion of EU exports and ensure fair competition for EU goods in Chile. Notably, the agreement includes a focus on sustainable development, with provisions for clean energy sources like hydrogen. This paves the way for investments in green technologies and the establishment of sustainable value chains. Additionally, the agreement underscores commitments to international standards, including those set by the International Labour Organisation and the Paris agreement. The EU and Chile's collaborative efforts in modernizing their trade relations demonstrate a shared vision for sustainable growth and development.