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Sustainability Impact Assessment in Support of the Negotiations for the Modernisation of the Trade Part of the Association Agreement with Chile

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Sustainability Impact Assessment in Support of the Negotiations for the Modernisation of the Trade Part of the Association Agreement with Chile Sustainability Impact Assessment in Support of the Negotiations for the Modernisation of the Trade Part of the Association Agreement with Chile Inception Report Draft, 29 June 2018 Prepared by BKP Development Research & Consulting [June 2018] The views expressed in the report are those of the consultant, and do not present an official view of the European Commission. EUROPEAN COMMISSION Directorate-General for Trade Directorate C — Asia and Latin America Unit C.3 — Latin America Contact: Marta Moya Diaz E-mail: [email protected] European Commission B-1049 Brussels EUROPEAN COMMISSION Sustainability Impact Assessment in Support of the Negotiations for the Modernisation of the Trade Part of the Association Agreement with Chile Inception Report Draft, 29 June 2018 The information and views set out in this report are those of the authors and do not necessarily reflect the official opinion of the Commission. The Commission does not guarantee the accuracy of the data included in this study. Neither the Commission nor any person acting on the Commission’s behalf may be held responsible for the use which may be made of the information contained herein. Directorate-General for Trade 2018 Europe Direct is a service to help you find answers to your questions about the European Union. Freephone number (*): 00 800 6 7 8 9 10 11 (*) The information given is free, as are most calls (though some operators, phone boxes or hotels may charge you). LEGAL NOTICE This document has been prepared for the European Commission however it reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein. More information on the European Union is available on the Internet (http://www.europa.eu). Luxembourg: Publications Office of the European Union, 2018 ISBN [number] doi:[number] © European Union, 2018 Reproduction is authorised provided the source is acknowledged. Printed in [Country] PRINTED ON ELEMENTAL CHLORINE-FREE BLEACHED PAPER (ECF) PRINTED ON TOTALLY CHLORINE-FREE BLEACHED PAPER (TCF) PRINTED ON RECYCLED PAPER PRINTED ON PROCESS CHLORINE-FREE RECYCLED PAPER (PCF) Image(s) © [artist's name + image #], Year. Source: [Fotolia.com] (unless otherwise specified) SIA – Modernisation of the Trade Part of the EU-Chile Association Agreement Inception Report TABLE OF CONTENTS LIST OF TABLES AND FIGURES ...................................................................................... VI ACRONYMS ................................................................................................................. VI EXECUTIVE SUMMARY ................................................................................................. VII 1 INTRODUCTION .................................................................................................... 1 2 METHODOLOGY AND TOOLS ................................................................................... 1 2.1 Economic Analysis ........................................................................................ 2 2.2 Social Analysis ............................................................................................. 7 2.3 Human Rights Analysis ................................................................................. 14 2.4 Environmental Analysis ................................................................................ 18 2.5 Sector and Case Study Selection and Analysis ................................................. 22 2.6 Synthesis and Development of Recommendations ........................................... 28 3 BASELINES AND KEY SUSTAINABILITY ISSUES – PRELIMINARY FINDINGS .................. 29 3.1 Economic Analysis ....................................................................................... 29 3.2 Social Analysis ............................................................................................ 38 3.3 Human Rights Analysis ................................................................................. 47 3.4 Environmental Analysis ................................................................................ 54 3.5 Sectors and case studies proposed for in-depth analysis .................................. 60 4 CONSULTATION PLAN ........................................................................................... 64 4.1 Stakeholder Identification and Mapping .......................................................... 65 4.2 Pillar 1: SIA Website and Other Electronic Communication ................................ 66 4.3 Pillar 2: Interviews, Meetings and Surveys ..................................................... 69 4.4 Pillar 3: Civil Society Dialogue Meetings ......................................................... 70 4.5 Pillar 4: SIA Workshop in Chile ...................................................................... 71 4.6 Pillar 5: Meetings with the European Commission ............................................ 74 5 STUDY WORK PLAN .............................................................................................. 75 REFERENCES ............................................................................................................... 78 APPENDICES ............................................................................................................... 83 Appendix A: Draft Outline for Interim/Final Report .................................................... 83 Appendix B: List of Stakeholders (Chile & EU) Identified During the Inception Phase ........................................................................................................ 84 Appendix C: Detailed Explanation of Sector Selection ................................................ 95 Appendix D: Tables related to the Human Rights Analysis ........................................ 101 Page v LIST OF TABLES AND FIGURES Table 1: Summary of Main Impacts .................................................................................. 30 Table 2: EU Sectoral Exports to Chile, Change in Level and Percent ...................................... 31 Table 3: Chile Sectoral Exports to the EU, Change in Level and Percent ................................ 32 Table 4: EU Sectoral Output Impacts, Change in Level and Percent ...................................... 33 Table 5: Chile Sectoral Output Impacts, Change in Level and Percent ................................... 34 Table 6: Overview of EU-Chile cooperation instruments in the field of human rights ............... 52 Table 7: Overview of projects on human rights carried out by the EU Delegation in Chile in 2017 ................................................................................................................. 54 Table 8: Sector prioritisation ........................................................................................... 61 Table 9: Composition of identified stakeholders in Chile and the EU ...................................... 66 Table 10: Key data for SIA workshop in Chile .................................................................... 71 Table 11: Study schedule ................................................................................................ 76 Table 12: Status of Ratifications of International Human Rights Treaties for Chile ................ 101 Table 13: Status of Ratifications of International Human Rights Treaties for the EU Member States ................................................................................................ 104 Table 14: Status of Ratifications of Core ILO Conventions for Chile ..................................... 105 Table 15: Status of Ratifications of Inter-American Human Rights Treaties for Chile ............. 105 Table 16: Overview of Projects in Chile Related to Human Rights Carried Out/ Funded by EU Member States in 2017 ................................................................................ 106 Table 17: Clauses and Provisions in the Current EU-Chile Association Agreement Relevant for Human Rights .................................................................................... 106 Figure 1: Inputs for the Policy Recommendations and Accompanying Measures ..................... 28 Figure 2: Approach to consultations: overview ................................................................... 64 Figure 3: Screenshot of SIA website ................................................................................. 67 Figure 4: Workshop structure with side-events for selected stakeholders .............................. 72 ACRONYMS AVEs Ad Valorem Equivalents LGBTI Lesbian, Gay, Bisexual, Transgender/ CETA Comprehensive Economic and Trade Transsexual and Intersex Agreement MRV Monitoring, Reporting and CGE Computable General Equilibrium Verification CPI Corruption Perception Index MSMEs Micro, Small and Medium-Sized CPTPP Comprehensive and Progressive Enterprises Agreement for Trans-Pacific NGO Non-Governmental Organisation Partnership NTB Non-Tariff Barriers CSD Civil Society Dialogue OECD Organisation for Economic CSR Corporate Social Responsibility Cooperation and Development DG Directorate-General RoO Rules of Origin EU European Union SDGs Sustainable Development Goals FDI Foreign Direct Investment SIA Sustainability Impact Assessment FDIR Foreign Direct Investment SMEs Small and Medium-Sized Enterprises Restrictiveness SPS Sanitary and Phyto-Sanitary FTA Free Trade Agreement TBT Technical Barriers to Trade GATS General Agreement on Trade in TFA Trade Facilitation Agreement Services TFEU Treaty on the Functioning
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