From 1 February 2025, the EU–Chile Interim Trade Agreement (ITA) has been in force. It updates the old 2002 agreement and, more importantly, gets very concrete on issues that matter to anyone shipping goods: tariffs, rules of origin, customs documentation and access to the services market. For Italy – Chile’s 10th largest supplier worldwide and 3rd within the EU (after Germany and Spain) – this is a strategic game: smoother customs clearance means more predictable lead times and lower costs along the entire logistics chain.
On top of that, from 1 June 2025 some chapters of the new EU–Chile Advanced Framework Agreement (AFA) – the broader political and cooperation “umbrella” that sits alongside the ITA – entered into provisional application. This widens the scope to sustainability, digital, energy and institutional cooperation. In other words, we’re not just talking about tariffs any more; we’re talking about the whole ecosystem underpinning a modern supply chain.
Let’s take a closer look at the different areas covered by these new agreements.
Tariffs scrapped and new opportunities in services
The headline change? Tariffs have been reduced to zero on 99.9% of EU exports to Chile (with sugar as the only exception). The European Commission also estimates a potential increase of around €4.5 billion in EU exports in the medium term under the new conditions. So if you sell machinery, chemicals or transport equipment – the product categories where the EU is strongest in Chile – your cost breakdown can already improve, even with everything else unchanged.
And it’s not just about goods. The ITA makes it easier to provide services in Chile (including telecommunications, maritime transport and financial services), while the AFA, once fully in force, will further consolidate these channels. For logistics operators, that translates into more scope for door-to-door integration, easier procurement and better operating margins on transport, handling and downstream services.
Preferential origin: goodbye EUR.1, hello REX and self-certification
To benefit from preferences, the EUR.1 movement certificate is no longer used. Preferential treatment is now obtained through:
- a statement on origin made by a REX-registered exporter (for EU exporters, for consignments over €6,000);
- the importer’s knowledge;
- a statement for multiple consignments of identical products (valid for a maximum of 12 months).
While this change may feel like a bit of a hassle at first, it can actually lead to several simplifications, such as less paperwork and better digital traceability.
Note: it is important to pay close attention to the document codes in the customs declaration (SAD/DAU): U123 (statement on origin), U124 (statement for multiple shipments) and U125 (importer’s knowledge).
Critical raw materials and strategic value chains
Chile is one of the world’s main suppliers of lithium and a key player in copper. The ITA aims to make flows of raw materials and semi-finished products more efficient and sustainable, with commitments on environmental and labour standards. For anyone planning European sourcing, this is crucial: around 80% of the lithium imported into the EU comes from Chile, a critical input for batteries and therefore for automotive, storage and renewables. Likewise, stable access to copper and copper products underpins the electrification of grids.
The AFA and the new cooperation framework
Until the AFA is ratified by all EU Member States, the “dual track” with the ITA will remain. However, from 1 June 2025 nine chapters are being applied on a provisional basis. These cover general objectives and principles, political dialogue, socio-economic cooperation and – importantly for logistics and trade – several pieces that shape the broader context in which they operate: climate, green energy, digitalisation and security. In the meantime, the ITA remains the sole reference for tariffs, origin and commercial market access.
Operational implications for logistics
First of all, a reminder: EU operators must be REX-registered in order to issue statements on origin for consignments above €6,000.
Beyond that, it’s worth updating:
- your internal procedures for collecting origin evidence (supplier declarations, bills of materials, component traceability);
- your document templates (including the prescribed wording of the statement on origin);
- your TMS/WMS workflows so they can manage multiple-shipment declarations valid for up to 12 months and avoid preference requests that are “uncovered” or outside the allowed time window.
Then there’s planning. Thanks to simpler documentation and the removal of tariffs on almost all lines, it is easier to build competitive door-to-door offers on reefer routes (fresh fruit), steel and copper, wine and food, machinery and plant engineering. On top of this, forecasts of EU export growth to Chile will help consolidate volumes and capacity on maritime services, reducing the risk of additional surcharges in peak season.
Sectors to watch
In the agri-food sector, the package strengthens protection for several geographical indications and eases barriers. This is useful for those exporting ingredients and dairy from Italy and for those importing wines and fruit and vegetable products from Chile. Especially for reefer cargo, more linear processes and clearer compliance rules reduce the risk of idle time and cargo damage. The same applies to machinery and components – the core of Italian exports. Duty-free access and self-certification have an immediate impact on landed costs.
In short, fewer hiccups at clearance and greater predictability widen the room for manoeuvre when renegotiating Incoterms and logistics SLAs.
To sum up: the provisional application of the AFA does not change the customs procedures already set by the ITA, but it does deepen cooperation on sustainability, digitalisation and procurement. At EU level, objectives on critical raw materials and the energy transition are closely intertwined with the partnership with Chile. As the battery and renewables value chain grows, the Italy–Chile logistics corridor will need to handle more frequent and more tightly regulated flows, including from an ESG perspective.
If you’d like to explore these topics in more detail, or if you need support with any aspect of your international trade, CTI offers targeted consultancy to assist you at every stage of your shipments. Get in touch with us via the contact form!
