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On 4 December 2023, the Council of the European Union announced that it had adopted the Advanced Framework Agreement (AFA) and the Interim Trade Agreement (iTA). The revised EU-Chile Advanced Framework Agreement enhances trade and investment by removing most remaining tariffs on goods, facilitating services trade, and simplifying business for small companies. The AFA also aims at facilitating digital trade between the parties. Under the AFA, the parties agreed that cross-border data flows should be facilitated and not be restricted, customs duties on the electronic transmission of data will not be imposed, and the parties' legal systems should allow digital signatures. Furthermore, the parties agreed to foster a dialogue on issues of digital trade. The signing is expected to take place in mid-December, after which the Agreement will be adopted.
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