EU trade commissioner Pascal Lamy and Chilean foreign minister Soledad Alvear announced on April 26 that after 10 rounds of negotiations a trade agreement has finally been reached.

Chilean fruit has done particularly well out of the deal, which will be signed on May 17 at the EU Latin American-Caribbean summit hosted by the Spanish presidency of the union in Madrid. It is hoped it will be ratified by all 15 member states and passed by the EU parliament as well as the Chilean authorities before coming into effect on January 1, 2003.

Some 40 per cent of grape exports and kiwifruit will benefit from zero tariffs in four years time, plums, apples and pears will see zero tariffs kick in once the treaty has been accepted by member states, most likely next year. Meanwhile, and somewhat mysteriously, peaches, nectarines and apricots are likely to have to wait seven years before seeing duty eliminated altogether.

The terms of the agreement have been welcomed in Chile. President of the Chilean Fresh Fruit Association Ronald Bown was reported in the Chilean press as saying it would be of great benefit to Chile.

Duties payable on Chilean fresh fruit entering the EU under existing legislation average five to eight per cent.