*An interim trade agreement (ITA) between Chile and the European Union (EU) has officially entered into force, following the completion of Chile’s ratification process. Initially signed in December 2023, the ITA is a key component of the advanced framework agreement (AFA) which modernised the EU-Chile association agreement that had been in place since 2003. Focusing solely on the trade aspects that fall under the EU’s exclusive jurisdiction, the ITA aims to boost the competitiveness of businesses, support the transition to net-zero economies, and enhance cooperation in tackling global challenges such as climate change. Through the elimination of tariffs on 99.9% of EU exports and the provision of a level playing field for Chilean and EU investors, the ITA opens new businesses opportunities, facilitates increased exports, and promotes investment, according to a statement from the European Commission (EC), the EU’s executive branch. The Commission added that the ITA will also “foster investment and provide the EU with steady, reliable and sustainable access to critical raw materials such as lithium, copper as well as clean fuel like hydrogen, crucial for the transition to the green economy, while at the same time, giving Chile all the policy space it may need to pursue its industrial policy objectives”. EU companies will also benefit from improved conditions for providing services in Chile, including delivery, telecommunications, maritime transport, and financial services. Beyond trade, the agreement incorporates chapters dedicated to gender equality, labour standards, and sustainable trade. Chile’s Foreign Minister Alberto van Klaveren celebrated the ITA on social media, stating that the agreement “will bring more trade and more investment, allowing greater growth and more opportunities for our nations”.