According to the Undersecretary of International Economic Relations, Claudia Sanhueza, the Third Modifying Protocol to the Additional Protocol to the Framework Agreement of the Pacific Alliance was also approved.
The Undersecretary of International Economic Relations, Claudia Sanhueza, highlighted the approval, in the Committee on Foreign Relations, Interparliamentary Affairs and Latin American Integration of the Chamber of Deputies, of the Protocol of Amendment to the Comprehensive Economic Association Agreement between Chile and Indonesia and of the Third Modifying Protocol to the Additional Protocol to the Framework Agreement of the Pacific Alliance. Now, both initiatives will continue their first constitutional process in the Chamber for discussion and voting.
The authority noted that the progress of both initiatives (approved by 8 votes in favor, 1 against and 1 abstention) “allows us to continue with our work of diversifying Chile's export basket, providing opportunities for more entrepreneurs to benefit from international trade. with its consequent impact on economic growth and people's quality of life."
The draft agreement that approves the Protocol of Amendment to the Comprehensive Economic Partnership Agreement (CEPA) in force between Chile and Indonesia incorporates provisions on trade in services. This modification is part of the CEPA modernization process, which came into force in August 2019 and which, in a first stage, only included trade in goods. In a context of increasing trade in services in the world, Undersecretary Sanhueza highlighted that Indonesia is the main economy in Southeast Asia (with a population of more than 275 million people and a GDP of US$ 1,319 billion) and is a country of high interest to deepen economic-commercial relations with Chile.
“This Services Protocol contemplates direct benefits to Chile to access professional services of different types (legal, architecture, engineering, medical and dental; computer science; research and development; cultural, and transportation, among others). In this way, this protocol provides certainty and predictability to our service exports, as well as a framework to promote these exports at a bilateral level. In addition, this protocol supports both exports of goods and logistics services,” commented the authority.
Meanwhile, the draft agreement that approves the Third Modifying Protocol of the Additional Protocol to the Framework Agreement of the Pacific Alliance, signed between Chile, Colombia, Mexico and Peru, seeks to expand the scope of accumulation of origin to the Associated States of the bloc , since, until now, it is only possible to apply this tool among its Member States. Accumulation of origin consists of a mechanism that is incorporated into free trade agreements through provisions that allow producers in one country to source parts and inputs from other nations without said inputs losing their originating status.
“The accumulation of origin allows producers to expand the availability of inputs to generate goods eligible for the tariff preferences established in trade agreements, increasing the possibilities of effectively using these benefits. The greater the number of States involved in the accumulation mechanism, the greater the amount of inputs and materials to which exporters will have access to produce their goods,” commented Undersecretary Sanhueza, who added the importance of this initiative, in the framework of the Pro Tempore Presidency of the Pacific Alliance assumed by Chile on March 22.
