European Union: Signed EU-Chile AFA and iTA including cross-border data transfer regulation

On 13 December 2023, the European Union (EU) and the Republic of Chile signed the Advanced Framework Agreement (AFA) and the Interim Trade Agreement (iTA). The revised EU-Chile AFA enhances trade and investment by removing most remaining tariffs on goods, facilitating services trade, and simplifying business for small companies. The AFA also aims to facilitate digital trade between the parties. The iTA states that the parties agreed that cross-border data flows should be facilitated and not be restricted. This refers to allowing the use of computing facilities or network elements in the respective countries, not requiring the localisation of data and allowing data storage or processing.