The SIA consists of two equally important and complementary components:

  • a robust analysis of the potential economic, social, human rights and environmental impact (both negative and positive) that the modernised trade Agreement under negotiation could have in Chile, the EU and in other relevant countries (notably the EU's outermost regions and least developed countries) - this section provides more details on these analysis; and
  • a continuous and wide-ranging consultation process to ensure a high degree of transparency and the engagement of all relevant stakeholders in the conduct of the SIA.

The economic impact analysis provides the starting point for the SIA, as many of the other effects are consequences of the agreement's economic effects. The economic impact to be analysed is not restricted to changes in Chile's and the EU's exports and imports but cover a vast range of economic factors.

Valapraiso, Chile. Photo by Loïc Mermilliod on Unsplash

The social analysis will seek to respond to the question of how a reduction of tariff and non-tariff barriers in the modernised Agreement, and the resulting changes in trade and investment flows between the EU and Chile may affect the situation on the labour market, job quality, welfare, rights of consumers, and public policies and services, such as social protection, education, and health-care in both Chile and the EU.

Solar panels near Antofagasta, Chile. Photo by Antonio Garcia on Unsplash

This analysis will provide a detailed assessment of the potential environmental impact, both direct and indirect, of the future modernized agreement. Although the analytical work carried out in the ex-ante study has shown that, overall, environmental impacts are likely to be limited both in Chile and the EU, recent political agreements in Chile and in the EU could have a significant impact on selected environmental matters.

The impact of the modernised Agreement may vary considerably across different actors, sectors, and issues. Therefore the general analysis of economic, social, human rights and environmental impacts will be complemented by assessments of about five economic sectors and about ten different thematic case studies. The selection of sectors and case studies is currently ongoing.

BKP Development Research and Consulting GmbH (BKP) is a Germany-based economic research and consulting firm owned and managed by its five partners. We focus on the preparation of economic and policy studies and provision of economic and policy-oriented consulting services to governments and institutions, particularly in developing and transition countries. International trade is one of our core areas of expertise.

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