The EU Chile Interim Trade Agreement has come into effect, bolstering trade and investment relations between the EU and Chile. This agreement, signed in December 2023, holds strategic significance in the geopolitical landscape and aims to enhance business competitiveness while facilitating the transition to Net Zero economies. Notably, the pact includes provisions for collaboration on initiatives like producing green hydrogen in Chile, a critical component for sustainable energy transitions. Additionally, the agreement emphasizes the development of raw material value chains for essential resources like lithium and copper, ensuring a sustainable flow of materials between the two regions. Maroš Šefčovič, the EU Commissioner for Trade and Economic Security, highlighted the importance of forging global partnerships to support economic growth and security, offering new opportunities for businesses, including SMEs. The agreement also focuses on energy and raw materials, aiming to secure sustainable access to critical resources such as lithium, copper, and clean fuel like hydrogen. As Chile plans to invest in green hydrogen projects and manufacturing capabilities, challenges remain in achieving ambitious production targets by 2030 due to the current gap between capacity and objectives. Despite this, the trade agreement exemplifies a positive step towards enhancing economic cooperation and addressing global challenges like climate change. While the US implements tariffs on various countries, the EU and Chile are strengthening their ties to promote sustainable trade practices and market access for businesses.