1 Future relations between
the EU and the Overseas Countries and Territories
| (31117)
15647/09
COM(09) 623
| Commission Communication: Elements for a new partnership between the European Union and the Overseas Countries and Territories
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| Legal base | — |
| Document originated | 6 November 2009
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| Deposited in Parliament | 11 November 2009
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| Department | Foreign and Commonwealth Office
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| Basis of consideration | EM of 23 November 2009
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| Previous Committee Report | None; but see (29789) 11238/08: HC 16-xxviii (2007-08), chapter 3 (22 July 2008)
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| To be discussed in Council | To be determined
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| Committee's assessment | Politically important
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| Committee's decision | For debate in European Committee B
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Background
1.1 Non-European countries and territories of Denmark, France,
the Netherlands and the United Kingdom (as listed in Annex II
to the EC Treaty) are associated with the Community by virtue
of Articles 182 to 188 EC. Such territories include Greenland,
Polynesia, Netherlands Antilles, Cayman Islands and the Falkland
Islands (Gibraltar and the Sovereign Base Areas in Cyprus are
European territories; the EC Treaty applies to Gibraltar but not
to the SBAs). They are styled the Overseas Countries and Territories,
or OCTs.
1.2 Whereas Part Four of the EC Treaty contains the
basic provisions on the association of the OCTs with the Community,
the detailed rules and procedures are laid down by the Council,
pursuant to Article 187 EC, through successive Overseas Association
Decisions adopted since 1964 — most recently, Council Decision
2001/822/EC. These detailed provisions can be divided into two
main categories: provisions on development finance cooperation
and provisions on economic and trade cooperation.
1.3 Although the current Overseas Association Decision
was initially applicable until 31 December 2011, its duration
was extended until 31 December 2013 following technical amendments
made in 2007, in order to coincide with the duration of the 10th
European Development Fund (EDF) covering the period 2008 to 2013
and the multiannual financial framework for the period 2007 to
2013.
1.4 The basic aim of the Decision is to promote the
OCTs' economic and social development and to establish close economic
relations between them and the Community as a whole. This is achieved
through co-operation: grants from the European Development Fund;
loans from the European Investment Bank; and technical assistance.
There are relevant provisions included in the Decision on economic
co-operation, a trade regime, human and social development, regional
co-operation and cultural development.
The Commission's 2008 Green Paper
1.5 Having set out the basic background and summarised
the changing relationship over the intervening years between an
expanding European Union in an increasingly liberalising global
economy, the Commission examined:
— the
nature of the Partnership between the Community and the OCTs;
— a contemporary interpretation of the
purpose of the OCT-EC association;
— their mutual interests;
— the trade arrangements between the Community
and the OCTs; and
— the OCTs' specific characteristics,
and posed a number of questions that it saw as arising,[1]
and invited comments and contributions by 17 October 2008.
1.6 In his accompanying Explanatory Memorandum of
17 July, the then Minister for Europe at the Foreign and Commonwealth
Office (Mr Jim Murphy) noted that implementation of the Decision
was achieved via a Commission/Member State/Overseas Countries
and Territories partnership. He listed the twenty Overseas Countries
and Territories covered by the Decision: Anguilla, Cayman Islands,
Falkland Islands, South Georgia and South Sandwich Islands, Montserrat,
Pitcairn, Saint Helena and Dependencies, British Antarctic Territory,
British Indian Ocean Territory, Turks and Caicos Islands and British
Virgin Islands, with the UK as the Member State; New Caledonia
and Dependencies, French Polynesia, French Southern and Antarctic
Territories, Wallis and Futuna Islands, Mayotte, Saint Pierre
and Miquelon with France as the Member State; Aruba and the Antilles
with the Netherlands as the Member State; and Greenland with Denmark
as the Member State. He explained that Representatives met annually
to discuss and develop the Association; Partnership Working Parties
concentrated on specific issues; and every two months, officials
of the Commission, Member States and Overseas Territories and
Countries met to discuss more general issues.
1.7 Noting that the Green Paper was the start of
the re-negotiation process of the Overseas Association Decision,
the then Minister said that it would be fundamental to the future
relationship between the EU and the OCTs, and that the consultation
was the opportunity for all stakeholders to influence the direction
the future relationship would take. The UK (in consultation with
the Overseas Territories) would be analysing the questions posed
in the Green Paper with a view to submitting a joint response
on the key issues to meet the 17 October deadline.
1.8 The Minister made it clear that the Commission
had consulted Member States and the OCTs at the concept stage
of the Green Paper, and went on to note that the questions in
the Paper put emphasis on enhancing the competitiveness of the
OCTs and their gradual integration within both regional and world
economies, taking into account not only the challenges they faced
but also their potential. Because of the close link between the
Overseas Countries and Territories and the Community through the
Member States, the trade regime applicable to them was one of
the most favourable ever granted by the Community. The Commission
believed that a review of the trading arrangements was necessary
to take account of changes in the wider world and the Territories'
trading partners, especially those of the Africa, Caribbean and
Pacific countries.
1.9 The then Minister welcomed the Green Paper as
the next phase in the discussion between the Overseas Territories,
Member States and the Commission; shared what he described as
"the overall motivation of the Paper of improving and modernising
the relationship, one that is better adapted to the needs of the
UK's Overseas Territories and which recognises the uniqueness
of the links with them" and said that the UK would work to
ensure that the UK Overseas Territories were not worse off under
any new Association or partnership. He was "in the early
stages of considering the questions posed", and the UK Government's
view on them would be submitted to the Commission before the end
of the consultation process at the end of October, where after
Commission was expected to present the outcome at the annual EU/OCT
Forum in November.
Our assessment
1.10 Given its long-standing relationship with its
overseas territories, and their diversity and geographical spread,
we felt that this process would be of particular importance to
the UK. We therefore recommended that the Green Paper be debated
in the European Committee at the outset, and preferably before
the consultation process had been completed, so that the views
of the House could form part of the UK response to the Green Paper.[2]
1.11 That debate took place on 27 October 2008.[3]
The Commission Communication
1.12 The Communication provides an overview of the
outcome of the public consultation launched by the Green Paper
and sets out the Commission's standpoint on essential elements
for a new partnership between the EU and the OCTs which should
guide further work, in 2011-2012, on replacing the current Overseas
Association Decision when it expires on 31 December 2013.
1.13 The Commission says that, in its view:
"… the special relationship between
the EU and the OCTs should move away from a classic development
cooperation approach to a reciprocal partnership to support the
OCTs' sustainable development and promote the EU's values and
standards in the wider world. Taking into account the feedback
received in response to the public consultation, particular from
the OCTs and the four Member States to which they are linked (Denmark,
France, the Netherlands and the United Kingdom), the Commission
believes that the focus should be on strengthening the OCTs' competitiveness
and resilience, as well as cooperation with other partners, all
while taking due account of the OCTs' diversity."
1.14 The Commission favours "a significant change
in the approach to the association of the OCTs with the EU".
Such a change should:
"reflect the fact that the relationship
between them is one of a kind, in the sense that the OCTs and
the EU are intricately linked even though the OCTs do not form
part of the EU as such. This should give rise to a partnership
based on mutual interests, reciprocity, rights and obligations.
In this context, the EU's solidarity towards the OCTs should ensure
their sustainable development by strengthening their competitiveness
and reducing their vulnerability, while the OCTs should contribute
to the promotion of European values."
1.15 Against this background, the Commission says
that, to help build a new EU strategy towards the OCTs, it intends
to examine in particular the following issues in more detail before
making a proposal for a new Overseas Association Decision:
— Main
challenges and opportunities of each OCT in its regional environment,
as well as each OCT's comparative assets, strategic potential
and present competitiveness in light of the development of an
enabling environment for business cooperation and capacity building;
— Degree of convergence between the local
legislation in each OCT and the Community acquis in relevant
policy areas;
— Possible ways of improving OCTs' accessibility,
including through information and communication technologies (ICTs);
— Impact and prospects of regional integration
and globalisation for the OCTs;
— Promotion of closer cooperation on environment,
inter alia
climate change and biodiversity, and Disaster
Risk Reduction in the OCTs;
— Actual need for development aid;
— Possible OCT-specific rules of origin;
— Possible financing mechanisms.
1.16 The aim, the Commission says, is "to pursue
and intensify the reflection in the course of 2010 and 2011, in
partnership with the OCTs and the related Member States [which]
… should pave the way for working out concrete legislative
proposals in time before the end of 2013, to amend the current
association."
The Government's view
1.17 In his Explanatory Memorandum of 23 November
2009, the Minister for Europe at the Foreign and Commonwealth
Office (Chris Bryant) says that the UK response to the Green Paper
noted that the future relationship would need to reflect the EU
and the wider world has changed significantly since the current
OAD came into force, and continues as follows:
"Modernising the relationship between the
Territories and the EU is part of the UK's strategy to manage
the specific challenges that globalisation presents for our Overseas
Territories (OTs). Any new OAD should lead to an improvement of
the OTs' overall position compared with present arrangements.
It also needs to respect the constitutional arrangements between
the UK and our OTs. This improvement can take many forms including
development assistance, trade preferences, environmental support,
technical assistance, academic, scientific and cultural exchanges.
The UK will consider the overall package."
1.18 The Minister notes that the UK's relationship
with its Territories is outlined in its 1999 White Paper, "Partnership
for Progress and Prosperity",[4]
and welcomes the fact that the Commission also refers to a partnership.
He further notes that the Communication acknowledges that "there
is a unique relationship between the Territories and the EU and
that they are part of the European family", and continues
thus:
"Any new Association should take into account
their economic and social development, diversity and vulnerability
as well as their environmental importance. The UK considers that
one size will not fit all. The Commission will need to factor
in the specific circumstances applicable to the individual territories
including in particular the limited resources and geographic isolation
of some of the UK's Territories."
1.19 The Minister then draws attention to the Communication's
view that a new partnership should entail a change in the way
that OCTs receive financial assistance from 2014, though he also
notes that the Commission accepts that maintaining an anti poverty
approach in some Territories might be justified:
"The UK will continue to argue that any
new Decision should not lead to a lessening of development support
where it is still needed. Access to development funds, complementing
funding provided by the Department for International Development,
is vital for some of the UK's OTs and is likely to remain so for
some considerable time. Our OTs should also have better access
to other funding streams to tackle global issues such as the threats
to the environment and climate change.
1.20 The Minister also notes that the Commission
wants to encourage OTs to upgrade their legislation in relevant
policy areas to the level of the Community acquis, and
comments as follows:
"The Territories are proud of their heritage
and in the constitutional reviews which have taken place to date
they have asked for more devolved powers. They would not like
to see the loss of policy control and would not welcome any obligation
to assume the full burden of the EU acquis e.g legislation and
taxation. The FCO wants to continue to work in partnership with
the Territories to ensure that they achieve good governance and
meet the highest of international standards in for instance their
financial services industries. Any proposal from the Commission
for them to adhere to the Community acquis should be on a voluntary
basis. Moves in this direction would put greater burdens on the
OTs both in terms of legislating, but also in developing the capacity
to follow and potentially contribute to EU policy discussions.
"Any new Association or partnership must
reflect that those Territories which are unable or unwilling to
implement the Commission's desire for greater integration, adopting
the EU acquis or becoming centres of excellence, which
would be difficult for many of the small, isolated Territories
which require greater assistance, should not lead to a two tier
system of OTs."
1.21 The Minister recognises that the OTs receive
preferential treatment in terms of trade links and preferences,
and notes that the Commission are funding projects to look at
greater regional trade cooperation and integration, including
rules of origin, in the Caribbean and the South Atlantic. He believes
that these should inform the Commission and Member States of the
possibilities of greater cooperation in this area, but notes,
however, "that few of the UK's Territories are likely to
benefit because of their isolation and narrow economic base."
1.22 The Minister concludes by welcoming "the
fact that the Commission have identified the areas that it intends
to examine in greater detail before making a proposal for a new
Overseas Association Decision", and says:
"The UK Government is committed to progress
and prosperity in the OTs, and to a strong and well functioning
European Union. We will work with the Commission, the OTs and
the other Member States to ensure that any future relationship
between all parties works in the best interests of all."
1.23 With regard to the timetable, the Minister says
only that the Communication was agreed by the Commission on 6
November 2009 and published on 10 [sic] November 2009.
Conclusion
1.24 It is unclear what discussion there will
in the Council or elsewhere, when and with whom, until the Commission
comes forward with a revised OAD. Presumably, there is some sort
of timetable somewhere, including the involvement of the OTs themselves,
and not just Member States. It would have been helpful to have
heard from the Minister on these aspects of the way forward.
1.25 As part of this process, we think that the
Commission will benefit from knowing the views not just of the
Government, but also of the House. We therefore recommend that
the Communication be debated in European Committee B.
Annex: Questions posed by the
Commission in the Green Paper
Question
1: How should the
solidarity between the Community and the OCTs be translated at
policy level, taking into account the special relationship of
the OCTs with the Community?
Question
2: Do you agree that we should move
to a new approach with the OCTs distinct from the classical development
cooperation approach (based on the fight against poverty)? If
so, what kinds of actions would you propose in order to better
promote the sustainable development of the OCTs and the strengthening
of their competitiveness and resilience?
Question
3: How could the partnership between
the OCTs and the EU become more active and reciprocal, in the
mutual interest of both partners? Which actual responsibilities
should this entail for the OCTs or the Member States to which
they are linked (within the limits of their constitutional competences)?
Question
4: What are, in your view, the most
important domains of mutual interest for cooperation between the
OCTs and the EU?
Question
5: What could be the advantage for
the OCTs of increased regional cooperation and integration? How
could a transfer of knowledge and know-how between the OCTs and
their neighbours be encouraged?
Question
6: What is your opinion on a possible
reinforcement of the political dialogue between the EU, an OCT
and the Member State to which it is linked, in particular in situations
where the interests of the EU and the OCT concerned would differ?
Question
7.1: What are in your view the benefits
of greater regional economic integration that could present an
advantage for certain OCTs in response to globalisation and the
erosion of their trade preferences vis-à-vis the Community?
Question
7.2: How could the OCTs engage in
wider regional trade and how could the Community facilitate this?
Question
8.1: What is your view on the added
value for OCTs of OCT-ACP cumulation of origin?
Question
8.2: By which OCTs and how often is
OCT-ACP cumulation used? Does it involve the sourcing of raw materials
from ACP states and their transformation on the spot in OCTs?
Question
8.3: How can the modernisation of
the rules of origin be adjusted to the specific situation of the
different OCTs?
Question
9.1: What is in your view the added
value of cooperation with the OCTs in trade related areas in response
to globalisation and the erosion of their trade preferences vis-à-vis
the Community?
Question
9.2: How could the OCT-EC association
contribute to improving the situation in OCTs more actively in
this regard?
Question
10.1: What is your opinion on the
real added value of the existing transhipment procedure in the
current Overseas Association Decision?
Question
10.2: How could the OCT-EC association
be adapted to better promote the development of transport (air,
road and harbour) infrastructure?
Question
10.3: Do you have suggestions regarding
other ways to help make well-developed but under-utilised harbour
infrastructure in OCTs more competitive?
Question
11: How should the Community's promotion
of the sustainable development of the OCTs relate to their actual
vulnerability as micro-island economies?
Question
12: What is your opinion on the establishment
of an index to measure the relative vulnerability of the OCTs,
allowing comparison not only between the OCTs, but also with other
countries and territories? If such an index is to be established,
which criteria should be used?
Question
13: In view of the exposure of many
OCTs to natural disasters, how should Disaster Risk Reduction
be included in future OCT-EU relations?
Question
14: How could the OCT-EC association
be adapted to take greater account of the OCTs' diversity without
increasing the administrative burden for the OCTs and the Commission?
1 The questions were set out in the Annex to chapter
3 of our earlier Report: (29789) 11238/08: HC 16-xxviii (2007-08),
chapter 3 (22 July 2008); see headnote. Back
2
(29789) 11238/08: HC 16-xxviii (2007-08), chapter 3 (22 July 2008);
see headnote. Back
3
See http://www.publications.parliament.uk/pa/cm200708/cmgeneral/euro/081027/81027s01.htm
for the record of that debate. Back
4
Available at http://www.uniset.ca/microstates/pfpp.pdf Back
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