“We have taken an important step that will open up many opportunities to Chile’s organic producers”, said Chile’s Agriculture Minister, Carlos Furche, following the signing of the deal to widen access for Chilean organic products into the EU.

EU Commissioner Phil Hogan stated, “I very much welcome the end of negotiations with Chile with a view to concluding an agreement on trade in organic products. The European organic sector continues to be one of our most dynamic production sectors and Chile has great potential in developing opportunities for organic farmers and businesses. This agreement will contribute to creating jobs and growth for both partners, with the guarantee for the consumer of solid control systems.”

The agreement was signed on the occasion of Minister Furche’s participation in the Organisation for Economic Co-operation and Development (OECD) Meeting of Agriculture Ministers in Paris. It gives organic producers in both Chile and the EU access to a bigger market, reduces the administrative burden for producers and companies and makes more organic products available to both European and Chilean consumers.

This agreement is based on the EU and Chile mutually recognizing the equivalence of their organic production rules and control systems. The EU proposes gradually eliminating the current import system based on certification provided by control organisms or certifying companies recognized by the EU.

The Agreement
The agreement is broad in scope, as it includes all the organic products included in the EU’s regulations and allows products produced and controlled according to EU rules to be sold directly in the Chilean market and vice versa. The agreement also includes mutual protection of organic logos, a system for updating the field of application, as well as increased co-operation, information exchange and a mechanism for settling trade disputes.

The EU-Chile agreement will be the first of the “new generation” agreements in trade in organic products and the first bilateral recognition with a Latin American country. Until now the European Union has only reached administrative agreements on organic equivalence recognition with third countries or has unilaterally recognized the equivalence of the organic production and control systems of third countries.
This agreement will pave the way for other agreements regarding trade in organic products. This will provide a strong foundation for the development of the organic sector, benefitting a growing industry and supporting growth and jobs on a global scale.

Figures
The organic sector is one of the most dynamic areas of the EU’s agrifood sector and there are currently 10.3 million hectares in the EU dedicated to organic production, especially in Spain, Italy, France and Germany.

The EU market for organic products accounts for 40% of the world total, ranking second after the USA. Meanwhile Chile stands out in this field with fresh and processed products, including wine, fruit, vegetables, olive oil, honey, medicinal herbs. Among Chile’s main export markets are the USA, Canada, the Netherlands, Spain, the United Kingdom and Japan.

In 2015, Chile’s organic exports to the European Union exceeded US$43 million. Blueberries were particularly important, totalling almost US$10 million, followed by kiwis and apples. In addition to fresh fruit, there were more than US$19 million in shipments of organic wine with denomination of origin and US$7.7 million in olive oil.

It is worth highlighting that Chile was present again this year at Biofach Germany, an organic food fair that took place between 10 and 13 February. Chile’s delegation included organic wine, juice and dried fruit producers.