Legal provisions of COM(2018)461 - Association of the Overseas Countries and Territories with the EU including relations between the EU and Greenland and Denmark ('Overseas Association Decision')

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dossier COM(2018)461 - Association of the Overseas Countries and Territories with the EU including relations between the EU and Greenland and ...
document COM(2018)461 EN
date October  5, 2021

Contents

PART I - GENERAL PROVISIONS OF THE ASSOCIATION OF THE OVERSEAS COUNTRIES AND TERRITORIES WITH THE UNION


CHAPTER 1

General provisions

Article 1

Subject matter

This Decision establishes an association of the OCTs with the Union (the ‘association’), which constitutes a partnership to support the OCTs’ sustainable development as well as to promote the values and standards of the Union in the wider world. The partners to the association are the Union, the OCTs and the Member States to which they are linked. In addition, this Decision lays down rules concerning the relations between the Union on the one hand, and Greenland and Denmark on the other.

This Decision establishes the funding programme for the association (the ‘Programme’) for the period from 1 January 2021 to 31 December 2027. It lays down the objectives of the Programme, the budget for the period from 2021 to 2027, the forms of Union funding and the rules for providing such funding as set out in Annex I.

Article 2

Territorial application

The association applies to the OCTs listed in Annex II to the TFEU, excluding the 12 UK OCTs listed in that Annex.

Article 3

Objectives, principles and values

1. The association between the Union and the OCTs shall be based on objectives, principles and values shared by the OCTs, the Member States to which they are linked and the Union.

2. The partners recognise each other’s rights to determine their sustainable development policies and priorities, to establish their own levels of domestic environmental and labour protection, and to adopt or amend accordingly the relevant laws and modify the relevant policies, consistently with commitment to the internationally recognised standards and agreements. In doing so, they shall strive to ensure high levels of environmental and labour protection.

3. In implementing this Decision, the partners shall be guided by the principles of transparency, subsidiarity and the need for efficiency and shall equally address the three pillars of OCTs’ sustainable development, implementing the 2030 Agenda across all its internal and external policies in a comprehensive and strategic approach: economic development, cultural and social development and nature and environmental protection. Gender equality and the rights of girls and women should be mainstreamed into all actions as a key contribution to the successful achievement of the SDGs.

4. The general objective of this Decision is to promote the economic and social development of the OCTs and to establish close economic relations between them and the Union as a whole. The association shall pursue this general objective by enhancing the OCTs’ competitiveness, strengthening the OCTs’ resilience, reducing their economic and environmental vulnerability and by promoting cooperation between them and other partners. Furthermore, the aim of this Decision is to preserve the existing ties between the Union on the one hand, and Greenland and Denmark on the other, acknowledging the geostrategic position of Greenland in the Arctic, and to preserve existing ties between the Union and the other OCTs, acknowledging their geostrategic positions in the Caribbean, the Indian Ocean, the Atlantic and the Pacific.

5. In accordance with Articles 3(5) and 21 of the TEU, the specific objectives of this Decision are the following:

(a)to foster and support cooperation with OCTs, including in addressing their major challenges and reaching the SDGs,

(b)to support and to cooperate with Greenland in addressing its major challenges such as the raising of education level and to contribute to the capacity of the administration of Greenland to formulate and implement national policies.

6. In pursuing the general objectives referred to in paragraph 4 and the specific objectives referred to in paragraph 5, the association shall respect the fundamental principles of liberty, democracy, human rights and fundamental freedoms, the rule of law, good governance and sustainable development, all of which are common to the OCTs and the Member States to which they are linked.

Article 4

Management of the association

Management of the association shall be conducted by the Commission and the OCTs’ authorities and, where necessary, by the Member State to which the OCT is linked, in accordance with their respective institutional, legal and financial competences.

Article 5

Mutual interests, complementarity and priorities

1. The association shall be the framework for policy dialogue and cooperation on issues of mutual interest.

2. Priority shall be given to cooperation in areas of mutual interest, such as:

(a)the sustainable diversification of OCTs’ economies, including their further integration in world and regional economies; in the specific case of Greenland, the need to increase the skills of its labour force;

(b)fostering exchange, cooperation and partnerships for accelerating the achievement of the SDGs;

(c)education and training, public health, tourism and culture;

(d)the promotion of a green and blue economy;

(e)the sustainable management of natural resources, including the conservation and sustainable use of biodiversity and ecosystem services;

(f)mitigation of climate change and adaptation to the impacts of climate change;

(g)the promotion of disaster risk reduction;

(h)the promotion of research, innovation and scientific cooperation activities;

(i)digital accessibility;

(j)the promotion of social, cultural and economic exchanges between the OCTs, their neighbours and other partners;

(k)the social sector, mobility of the workforce, social protection systems, food safety and food security issues;

(l)Arctic issues;

(m)the development of regional cooperation in the Caribbean, the Indian Ocean, the Atlantic and the Pacific;

(n)the development of intraregional cooperation in the Arctic, the Caribbean, the Indian Ocean, the Atlantic and the Pacific.

3. Cooperation in the areas of mutual interest shall aim to promote OCTs’ self-reliance and of the development of OCTs’ capacities to formulate, implement and monitor strategies and policies set out in paragraph 2.

Article 6

Promotion of the association

1. With an aim to strengthen their mutual relations, the Union and the OCTs shall endeavour to make the association known among their citizens, in particular by promoting the development of the links and cooperation between the authorities, academic community, civil society and businesses of OCTs on the one hand and their interlocutors within the Union on the other.

2. OCTs shall make efforts to strengthen and promote their relations with the Union as a whole. The Member States shall support these efforts.

Article 7

Regional cooperation, regional integration and cooperation with other partners

1. Subject to Article 3, the association shall support the OCTs in their efforts to take part in relevant international, regional and sub-regional cooperation initiatives as well as regional and sub-regional integration processes, in line with their own aspirations and in accordance with objectives and priorities defined by the competent OCTs’ authorities.

2. To this end, the Union and the OCTs may exchange information and best practices or establish any other form of close cooperation and coordination with other partners in the context of the OCTs’ participation in regional and international organisations, where appropriate by means of international agreements.

3. The association aims to support cooperation between the OCTs and other partners in the areas of cooperation set out in Parts II and III of this Decision. In that respect, the objective of the association is to promote the cooperation between the OCTs and the outermost regions, referred to in Article 349 TFEU, their neighbouring ACP and non-ACP states and territories (19). In order to achieve that objective, the Union shall improve coordination and synergies between the relevant Union programmes or instruments. The Union shall also endeavour to associate OCTs in its instances of dialogue with their neighbouring countries, whether they are ACP or non-ACP States or territories, and with the outermost regions, where appropriate.

4. The support to OCTs’ participation in relevant regional integration organisations shall focus in particular on:

(a)capacity building of relevant regional organisations and institutions of which OCTs are members;

(b)regional or sub-regional initiatives such as the implementation of sectoral reform policies relating to the areas of cooperation identified in Parts II and III;

(c)the awareness and knowledge of the OCTs on the impacts of regional integration processes in different areas;

(d)OCTs’ participation in the development of regional markets within the framework of regional integration organisations;

(e)cross-border investment between OCTs and their neighbours.

Article 8

Participation in European Groupings of Territorial Cooperation

In the application of Article 7(1), (2) and (3) of this Decision, the cooperation initiatives or other forms of cooperation shall also mean that governmental authorities, regional and sub-regional organisations, local authorities and, where appropriate, other public and private bodies or institutions, including public service providers, from an OCT may participate in a European Grouping of Territorial Cooperation (EGTC) subject to the rules and objectives of the cooperation activities of this Decision and those of Regulation (EC) No 1082/2006 of the European Parliament and of the Council (20) and in accordance with the arrangements applicable to the Member State to which the OCT is linked.

Article 9

Specific treatment

1. The association shall take into account the diversity of the OCTs in terms of economic development and their capacity to benefit fully from regional cooperation and regional integration referred to in Article 7.

2. A specific treatment shall be established for isolated OCTs.

3. In order to enable isolated OCTs to overcome structural and other obstacles to their development, specific treatment shall take account of their specific difficulties, inter alia, when determining the volume of financial assistance and the conditions attached thereto.

4. St Pierre et Miquelon shall be considered to be an isolated OCT.

CHAPTER 2

Cooperation

Article 10

General approach

1. The association shall be based on a broad dialogue and consultations on issues of mutual interest between the OCTs, the Member States to which they are linked and the Commission, and, if appropriate, the European Investment Bank (EIB), as well as other Union institutions and bodies.

2. The OCTs shall organise, where appropriate, a dialogue and consultations with authorities and bodies such as:

(a)the competent local and other public authorities;

(b)the economic and social partners;

(c)any other appropriate body representing civil society, such as environmental partners, non-governmental organisations and bodies responsible for promoting equality between men and women.

Article 11

Actors of cooperation

1. Actors of cooperation in the OCTs shall include:

(a)the government authorities of the OCTs;

(b)the local authorities within the OCTs;

(c)public service providers and civil society organisations, such as social, business, employers’ and trade union associations, and local, national or international non-governmental organisations;

(d)regional and sub-regional organisations.

2. The Member States to which the OCTs are linked shall notify to the Commission the names of the governmental and local authorities referred to in points (a) and (b) of paragraph 1.

Article 12

Responsibilities of the non-governmental actors

1. Non-governmental actors may play a role in the exchange of information and consultations concerning the cooperation, and in particular for the preparation and implementation of cooperation assistance, projects or programmes. They may receive a delegation of financial management powers for implementing such projects or programmes for the purpose of supporting local development initiatives.

2. Non-governmental actors eligible for decentralised management of projects or programmes shall be identified by agreement between the OCT authorities, the Commission and the Member State to which the OCT is linked, taking into account the subject concerned, their expertise and field of activity. The process of identification shall be conducted in each OCT as part of the broad dialogue and consultations referred to in Article 10.

3. The association aims to contribute to the efforts of the OCTs to strengthen civil society organisations, in particular to facilitate their creation and development, and the development of the arrangements necessary for opening their involvement in the design, implementation and evaluation of development strategies and programmes.

CHAPTER 3

Institutional framework of the association

Article 13

Guiding principles for dialogue

1. The Union, the OCTs and the Member States to which they are linked shall regularly engage in a comprehensive and political dialogue.

2. The dialogue shall be conducted in full compliance with the respective institutional, legal and financial powers of the Union, of the OCTs and of the Member States to which they are linked. The dialogue shall be conducted in a flexible manner. It may be formal or informal, at an appropriate level or format and shall be conducted within the framework referred to in Article 14.

3. The dialogue shall enable the OCTs to take part fully in the implementation of the association.

4. The dialogue shall focus, inter alia, on specific political issues of mutual concern or of general significance for the attainment of the objectives of the association.

5. The dialogue with OCTs, including Greenland, shall, in particular, provide the basis for broad cooperation and dialogue in areas concerning, inter alia, education, energy, climate change, nature, environment, the blue economy, natural resources, including raw materials and fish stocks, maritime transport, research and innovation, as well as the Arctic dimension of those issues, where relevant.

Article 14

Instances of dialogue of the association

1. The association shall establish the following instances of dialogue:

(a)an OCTs-EU forum for dialogue (the ‘OCTs-EU Forum’), which shall meet annually to bring together OCTs’ authorities, representatives of the Member States and the Commission. Members of the European Parliament, representatives of the EIB and representatives of the outermost regions shall, where appropriate, be associated with the OCTs-EU Forum;

(b)trilateral consultations between the Commission, the OCTs and the Member States to which they are linked, which shall be held on a regular basis. Those consultations shall be organised at least four times a year on the initiative of the Commission or at the request of OCTs and of the Member States to which they are linked. Member States will be informed about the results of the consultations appropriately;

(c)working parties, acting in an advisory capacity, which shall be set up in agreement between the OCTs, the Member States to which they are linked and the Commission,, to follow the implementation of the association, in a form appropriate to the issues to be addressed. Those working parties may be convened at the request of the Commission, of a Member State or of an OCT. They shall provide for technical discussions on matters which are of specific concern to the OCTs and the Member States to which they are linked, complementing the work that is being done in the OCTs-EU Forum and/or in the trilateral consultations.

2. The Commission shall chair the OCTs-EU Forum, the trilateral consultations and the working parties and shall provide their secretariat. The working orientations of the trilateral consultations shall be jointly defined by the Commission, the OCTs and the Member States to which they are linked. The working orientations of the OCTs-EU Forum shall be jointly defined by the Commission, the OCTs, the Member States to which they are linked and other interested Member States.

PART II - AREAS OF COOPERATION FOR SUSTAINABLE DEVELOPMENT IN THE FRAMEWORK OF THE ASSOCIATION


CHAPTER 1

Environmental issues, climate change, oceans and disaster risk reduction

Article 15

General principles

In the framework of the association, cooperation in the field of nature, environment, climate change and disaster risk reduction may concern:

(a)support to the OCTs’ efforts to define and implement policies, strategies, action plans and measures;

(b)support to the OCTs’ efforts to integrate in regional, Union and global networks and initiatives;

(c)the promotion of sustainable use of resources and resource efficiency, and encouragement towards the decoupling of economic growth from environmental degradation; and

(d)support to the OCTs’ efforts to act as regional hubs and centres of excellence.

Article 16

Sustainable management and conservation of biodiversity and ecosystem services

In the framework of the association, cooperation in the field of sustainable management and conservation of biodiversity, and ecosystem services may concern:

(a)the promotion of the establishment and effective management of marine and terrestrial protected areas and improved management of existing protected areas;

(b)the encouragement of sustainable management of marine and terrestrial resources, which contribute to protecting species, habitats and ecosystem functions outside protected areas, in particular, endangered, vulnerable and rare species;

(c)the strengthening of conservation and sustainable use of marine and terrestrial biodiversity and ecosystems by:

(i)addressing the wider ecosystem challenge of climate change by maintaining healthy, resilient ecosystems and fostering green and blue infrastructure and ecosystem-based approaches to mitigation of and adaptation to climate change, which often produce multiple benefits;

(ii)strengthening capacities at a local, regional or international scale, by promoting the exchange of information, knowledge, including indigenous, traditional and local knowledge, and best practices amongst all stakeholders including public authorities, landowners, private sector, researchers and civil society;

(iii)strengthening existing nature conservation programmes and related efforts within and outside conservation areas;

(iv)broadening the knowledge base and filling the knowledge gaps, including quantifying the value of ecosystem functions and services and developing long-term monitoring programmes of the development of species and ecosystems;

(d)the encouragement and facilitation of regional cooperation in order to address issues such as invasive alien species or the impacts of climate change and the sustainable conservation of oceans;

(e)the development of mechanisms to lever resources, including payments, for ecosystem services.

Article 17

Sustainable forest management

In the framework of the association, cooperation in the field of sustainable forest management may concern the promotion of the conservation and sustainable management of forests, including their role in the conservation of the environment from erosion and desertification control, afforestation and management of timber exports.

Article 18

Integrated coastal zone management

In the framework of the association, cooperation in the field of integrated coastal zone management may concern:

(a)the support to the efforts of the OCTs towards an effective sustainable management of marine and coastal zones in defining strategic and integrated approaches to marine and coastal zone planning and management, including support for long-term monitoring programmes;

(b)conciliation of economic and social activities such as fisheries and aquaculture, tourism, maritime transports and agriculture with the potential of marine and coastal zones in terms of renewable energy, water resources, raw materials, whilst taking into account impacts of climate change and human activities.

Article 19

Oceans

1. In the framework of the association, cooperation in the field of international ocean governance may concern:

(a)the strengthening of the dialogue on issues of common interest in that field;

(b)the promotion of marine knowledge and biotechnology, ocean energy, maritime surveillance, coastal zone management and ecosystem-based management, including through monitoring of marine ecosystems;

(c)the promotion of integrated approaches at regional and international level;

(d)the active promotion of good governance, best practices and responsible fisheries management in the conservation and sustainable management of fish stocks, including fish stocks of common interest and those managed by regional fisheries management organisations;

(e)the local development of responsible fisheries processing industries;

(f)dialogue and cooperation regarding the conservation of fish stocks, including through measures to fight illegal, unreported and unregulated fishing, and by effectively cooperating with and within regional fisheries management organisations, which shall include control and inspection schemes, incentives and obligations for a more effective management of fisheries and coastal environments in the long term.

2. In the context of the association, and while ensuring consistency and complementarity with existing Fisheries Partnership Agreements, cooperation referred to in points (d) and (f) of paragraph 1 shall be based on the following principles:

(a)commitment to responsible fisheries management and fishing practices;

(b)refraining from measures or activities that are inconsistent with the principles of sustainable exploitation of fisheries resources and sustainable local development;

(c)taking into account existing or possible future bilateral Fisheries Partnership Agreements between the Union and the OCTs, the Union and the OCTs shall aim to regularly consult each other on the conservation and management of the living marine resources and to exchange information on the ongoing state of resources within the context of the relevant instances of dialogue as provided for in Article 14.

Article 20

Sustainable water management

1. In the framework of the association, the Union and the OCTs may cooperate in the field of sustainable water management through water policy and institution building, protecting water resources, water supplies in rural and urban areas for domestic, industrial or agricultural purposes, storage, distribution and management of water resources, the reduction of water loss and the efficient use of water and waste water management.

2. In the field of water supply and sanitation sector, particular attention shall be given to access in under-served areas to clean and affordable drinking water supply and sanitation services and in those areas particularly exposed to natural disasters, which contribute directly to human resources development by improving the state of health and increasing productivity.

3. Cooperation in the fields referred to in paragraph 1 shall be guided by the principle that the continuing need to extend the provision of basic services in water and sanitation to both urban and rural populations must be addressed in environmentally sustainable ways. Priority shall be given to the development of active and climate-sensitive water resource management.

Article 21

Waste management

In the framework of the association, cooperation in the field of waste management may concern the promotion of the use of the best environmental practice in all operations related to waste management. Such cooperation may also concern the reduction of waste, including ocean plastic waste, recycling or other processes of recovery, e.g. energy recovery and waste disposal.

Article 22

Energy

In the framework of the association, cooperation in the field of sustainable energy may concern:

(a)sustainable energy production, distribution and access, in particular the development, promotion, use and storage of low-carbon energy from renewable energy sources;

(b)energy policies and regulations, in particular the formulation of policies and the adoption of regulations guaranteeing affordable and sustainable energy tariffs;

(c)energy efficiency, in particular the development and introduction of energy efficiency standards and the implementation of energy efficiency measures in different sectors, such as industrial, commercial, public and households, as well as accompanying educational and awareness activities;

(d)transport, in particular the development, promotion and use of more environmentally friendly public and private transport means such as hybrid, electric or hydrogen vehicles, carpooling and cycling schemes;

(e)town planning and construction, in particular the promotion and introduction of high environment quality standards and high energy performance in urban planning and construction; and

(f)tourism, in particular the promotion of energy self-sufficient (renewable energy based) and green tourism infrastructures.

Article 23

Raw materials

In the framework of the association, cooperation in the field of raw materials, including rare earths, may concern the promotion of a raw material sector which is sustainable in respect of all operations related to mining and which aims to:

(a)support an efficient and optimal use of resources;

(b)promote responsible consumption and recycling;

(c)develop and strengthen environmental protection at local and regional level;

(d)support environmentally friendly handling and exploitation;

(e)strengthen capacities, training, innovation, research and business measures for raw material exploitation and extraction on a local, regional and national level, in accordance with international labour standards;

(f)support the sustainable management of socio-economic impacts of exploitation and extraction of raw materials;

(g)take into account the views of stakeholders involved in raw materials activities.

Article 24

Climate change

In the framework of the association, cooperation in the field of climate change shall aim to support the initiatives of the OCTs concerning mitigation of climate change and adaptation to the adverse effects of climate change, and may cover:

(a)the development of evidence; identification of key risks and territorial, regional and/or international actions, plans, or measures in view of adapting to climate change or mitigating its adverse effects;

(b)contributing to partners countries’ efforts to pursue their commitments on climate change in line with the Paris Agreement;

(c)the integration of adaptation to climate change and its mitigation in public policies and strategies;

(d)the elaboration and identification of statistical data and indicators, essential tools for policy making and implementation; and

(e)the promotion of the participation of the OCTs in regional and international dialogue in order to foster cooperation, including exchange of knowledge and experience.

Article 25

Disaster risk reduction

In the framework of the association, cooperation in the field of disaster risk reduction may cover:

(a)the development or perfection of systems, including infrastructures, for disaster prevention and preparedness, including prediction and early-warning systems, with a view to reducing the consequences of disasters;

(b)the development of detailed knowledge of the exposure to disasters and the current response capacities in the OCTs and in the regions where they are located;

(c)the strengthening of existing measures of disaster prevention and preparation at local, national and regional levels;

(d)the improvement of response capacities of the actors concerned, to improve their coordination, effectiveness and efficiency;

(e)the improvement of awareness-raising amongst and access to information by the population regarding the exposure to risks, prevention, preparation and the response in the event of disaster, with due attention to the specific needs of persons with disabilities;

(f)the strengthening of collaboration between key actors involved in civil protection;

(g)the promotion of international disaster-risk reduction initiatives, such as the Sendai Framework for Disaster Risk Reduction 2015-2030; and

(h)the promotion of the participation of the OCTs in regional, European and international instances in order to allow a more regular exchange of information and closer cooperation among the different partners in the event of a disaster.

CHAPTER 2

Accessibility

Article 26

General objectives

1. In the framework of the association, cooperation in the field of accessibility shall aim to:

(a)ensure greater access of OCTs to global transport networks; and

(b)ensure greater access of OCTs to information and communication technologies (ICT) and services.

2. Cooperation as referred to in paragraph 1 may cover:

(a)policy and institution building;

(b)transport by road, rail, air, sea or inland waterway;

(c)storage facilities in sea- and airports; and

(d)security of supply for remote areas and isolated islands.

Article 27

Maritime transport

1. In the framework of the association, cooperation in the field of maritime transport shall aim to the development and promotion of cost-effective and efficient maritime transport services in the OCTs and may concern:

(a)the promotion of efficient and low-carbon shipments of cargo at economically and commercially viable rates;

(b)the facilitation of greater participation of the OCTs in international shipping services;

(c)the encouragement of regional programmes;

(d)the support to local private sector involvement in shipping activities; and

(e)the development of sustainable and resilient infrastructure.

2. The Union and the OCTs shall promote shipping safety, the security of crews and the prevention of pollution.

3. The Union and the OCTs shall promote maritime safety and security, protection of the marine environment, living and working conditions on board that are consistent with the relevant international conventions and Union legislation.

Article 28

Air transport

In the framework of the association, cooperation in the field of air transport may concern:

(a)the reform and modernisation of the OCTs’ air transport industries;

(b)the promotion of the commercial viability and competitiveness of the OCTs’ air transport industries;

(c)the facilitation of private sector investment and participation; and

(d)the promotion of the exchange of knowledge and good business practice, taking into account issues of sustainability and of mitigation of climate change.

Article 29

Air transport safety and security

In the framework of the association, cooperation in the fields of air transport safety and security shall aim to support the OCTs in their efforts to comply with the relevant Union and international standards and may cover inter alia:

(a)the implementation of the European aviation safety system and, where relevant, of international standards;

(b)the implementation of airport security and the strengthening of the capacity of civil aviation authorities to manage all aspects of operational security placed under their control; and

(c)the development of infrastructures and human resources.

Article 30

ICT services

In the framework of the association, cooperation in the field of ICT services shall aim to address the digital divide and spur, in the OCTs, digital accessibility, innovation, economic growth and improvements in daily life for both citizens and businesses, including the promotion of accessibility for persons with disabilities. Cooperation shall, in particular, be directed at enhancing OCTs’ regulatory capacity and may support the expansion of ICT networks and services, including adequate and reliable electronic communications networks, in order to ensure that citizens and businesses from OCTs can benefit from digital services, through the following measures:

(a)creation of a predictable regulatory environment that keeps pace with technological developments, stimulates growth and innovation and fosters competition and consumer protection;

(b)dialogue on the various policy aspects regarding the promotion and monitoring of the information society;

(c)exchange of information on standards and interoperability issues;

(d)promotion of cooperation in the field of ICT research and in the field of ICT-based research infrastructures;

(e)development of services and applications in fields of high societal impact;

(f)education and training, especially for young people.

CHAPTER 3

Research and innovation

Article 31

Cooperation in research and innovation

In the framework of the association, cooperation in the field of research and innovation may cover science, energy, climate change, disaster resilience, natural resources including raw materials, and sustainable use of living resources.

It may also cover technology, including ICT, with the aim of contributing to the OCTs’ sustainable development and to promoting the OCTs’ role as regional hubs and centres of excellence as well as their industrial competitiveness. In particular, cooperation may concern:

(a)dialogue, coordination and the creation of synergies between OCTs and Union policies and initiatives with regard to science, technology and innovation;

(b)policy and institutional building within OCTs and concerted actions at local, national or regional level, with a view to developing science, technology and innovation activities and their application;

(c)cooperation between legal entities from the OCTs, the Union, the Member States and third countries;

(d)participation of individual researchers, research bodies and legal entities from OCTs in the European Framework Programmes for Research and Innovation and the Programme for the Competitiveness of Enterprises and small and medium size enterprises (COSME), also linking them to already supported activities of those programmes with the aim to ensure complementarity of activities; and

(e)training, international mobility and exchange of researchers from OCTs.

CHAPTER 4

Youth, education, training, protection of the rights of the child, health, employment, social security, food safety and food security

Article 32

Youth

The association aims to strengthen the ties between young people living in the OCTs and the Union, including by promoting learning mobility of OCTs youth and by fostering mutual understanding among young people.

Article 33

Education and training

1. In the framework of the association, cooperation in the field of education and training may cover:

(a)the provision of high quality, inclusive education at primary, secondary and higher education level and in the field of vocational education and training; and

(b)the support to the OCTs in defining and implementing education and vocational training policies.

2. The Union shall ensure that educational bodies and institutes from OCTs can take part in education related cooperation initiatives of the Union on the same basis as the educational and vocational training bodies and institutes of the Member States.

Article 34

Protection of the rights of the child

1. In the framework of the association, the Union shall ensure the comprehensive protection and promotion of the rights of the child in the OCTs, giving special attention to girls and boys who are disadvantaged, vulnerable and marginalised, to ensure that no child is left behind.

2. The association aims to take a life-cycle approach to child development to ensure that children’s rights and needs are recognised and realised in a gender- and age-appropriate way. It acknowledges that such an approach is critical for the transition into adulthood and for human development.

Article 35

Employment and social policy

1. The Union and the OCTs shall maintain dialogue in the field of employment and social policy in order to contribute to the economic and social development of the OCTs and the promotion of decent work in the OCTs and regions where they are located. Such a dialogue shall also aim to support the efforts of the OCTs’ authorities to develop policies and legislation in this area, taking into account the dialogue established by the OCTs with the International Labour Organisation (ILO).

2. The dialogue in the field of employment and social policy shall mainly consist of exchange of information and best practices relating to policies and legislation in the area of employment and social policy that are of mutual interest to the Union and the OCTs. In that regard, areas such as skills development, social protection, social dialogue, equal opportunities, non-discrimination and accessibility for persons with disabilities, health and safety at work and other labour standards shall be taken into consideration.

Article 36

Public health, food safety, and food and nutrition security

In the framework of the association, cooperation in the field of public health and food safety shall aim, inter alia, to reduce the burden of communicable and non-communicable diseases and, in particular, to develop, strengthen, and maintain the OCTs’ capacity for epidemiological surveillance, monitoring, early warning, risk assessment and response to serious cross-border health threats through measures including:

(a)actions to strengthen preparedness and response planning for health emergencies such as outbreaks of communicable diseases including through the implementation of the International Health Regulations (2005), ensure interoperability between the health sector and other sectors, and continuous delivery of critical services and products, and address challenges related to geographical remoteness;

(b)capacity building through strengthening public health networks at regional level, facilitating exchange of information among experts and promoting adequate training, including in the field of food safety;

(c)development of tools and communication platforms, including rapid alert systems, as well as e-learning programs adapted to OCTs’ particular needs;

(d)actions to prevent and reduce food related outbreaks, and address food safety and food and nutrition security issues;

(e)actions to reduce the burden of non-communicable diseases in the framework of achieving the SDGs.

CHAPTER 5

Culture and tourism

Article 37

Cultural exchanges and dialogue

1. In the framework of the association, cooperation in the field of cultural exchanges and dialogue may cover:

(a)the self-reliant development of the OCTs, this being a process centred on people themselves and rooted in each people’s culture;

(b)the support to the policies and measures adopted by the competent authorities of OCTs to enhance their human resources, increase their own creative capacities and promote their cultural identities;

(c)the participation by the population in the process of development;

(d)the development of a common understanding and enhanced exchange of information on cultural and audio-visual matters through dialogue.

2. Through their cooperation, the Union and the OCTs shall seek to stimulate cultural exchanges between each other through:

(a)cooperation between the cultural and creative sectors of all partners;

(b)promotion of the circulation of cultural and creative works and operators between them;

(c)policy cooperation in order to foster policy development, innovation, audience building and new business models.

Article 38

Audio-visual cooperation

1. In the framework of the association, cooperation in the audio-visual field aims at promoting each other’s audio-visual productions and may cover the following actions:

(a)cooperation and exchange between the respective broadcasting industries;

(b)encouraging exchange of audio-visual works;

(c)exchange of information and views on audio-visual and broadcasting policy and regulatory framework between competent authorities;

(d)encouraging visits to and participation in international events held in each other’s territory as well as in third countries.

2. Co-produced audio-visual works shall be entitled to benefit from any scheme for the promotion of local or regional cultural content set up in the Union, the OCTs and the Member States to which they are linked.

Article 39

Performing arts

In the framework of the association, cooperation in the field of performing arts may cover:

(a)the facilitation of increased contacts between practitioners of performing arts in areas such as professional exchanges and training, including participation in auditions, development of networks and promotion of networking;

(b)the encouragement of joint productions between producers of one or several Member States of the Union and one or several OCTs; and

(c)the encouragement of the development of international theatre technology standards and the use of theatre stage signs, including through appropriate standardisation bodies.

Article 40

Protection of cultural heritage and historic monuments

In the framework of the association, cooperation in the field of tangible and intangible cultural heritage and of historic monuments aims at allowing the promotion of exchanges of expertise and best practices through:

(a)the facilitation of exchanges of experts;

(b)collaboration on professional training;

(c)the awareness of the local public; and

(d)counselling on the protection of the historic monuments and protected spaces and on the legislation and implementation of measures related to heritage, in particular its integration into local life.

Article 41

Tourism

In the framework of the association, cooperation in the field of tourism may cover:

(a)measures aiming to define, adapt and develop sustainable tourism policies;

(b)measures and operations to develop and support sustainable tourism;

(c)measures aiming to integrate sustainable tourism into the social, cultural and economic life of the citizens of the OCTs.

CHAPTER 6

Fight against organised crime

Article 42

Fight against organised crime, trafficking in human beings, child sexual abuse, sexual exploitation, gender-based violence, terrorism and corruption

1. In the framework of the association, cooperation in the field of organised crime may include:

(a)the development of innovative and effective means of police and judicial cooperation, including cooperation with other stakeholders such as civil society and national human rights institutions, in the prevention of and fight against organised crime, trafficking in human beings, child sexual abuse, sexual exploitation, gender-based violence, terrorism and corruption; and

(b)support in order to increase the efficiency of OCTs’ policies to prevent and fight against organised crime, trafficking in human beings, child sexual abuse, sexual exploitation, gender-based violence, terrorism and corruption, as well as the production, distribution and trafficking of all kinds of narcotic drugs and psychotropic substances, preventing and reducing drug use and drug-related harms, taking into account work carried out in those areas by international bodies, inter alia through:

(i)training and capacity building in preventing and fighting organised crime, including trafficking in human beings, child sexual abuse, sexual exploitation, gender-based violence, terrorism and corruption;

(ii)prevention including training, education and health promotion, treatment and rehabilitation of dependent drug users, including projects for the reintegration of dependent drug users into work and social environments;

(iii)development of effective enforcement measures;

(iv)technical, financial and administrative assistance in the development of effective policies and legislation on trafficking in human beings, in particular awareness raising campaigns, referral mechanisms and victim protection systems, involving all relevant stakeholders and civil society;

(v)technical, financial and administrative assistance relating to the prevention, treatment and reduction of harm related to drug use;

(vi)technical assistance to support the development of legislation and policy against child sexual abuse, sexual exploitation and gender-based violence; and

(vii)technical assistance and training to support capacity building and encourage compliance with international anti-corruption standards notably those set out in the UN Convention against Corruption.

2. In the framework of the association, the OCTs shall cooperate with the Union as regards combatting money laundering and the financing of terrorism in accordance with Article 72.

PART III - TRADE AND TRADE-RELATED COOPERATION

TITLE I - GENERAL PROVISIONS


Article 43

Specific objectives

The objectives of trade and trade-related cooperation between the Union and the OCTs are to:

(a)promote the economic and social development of the OCTs by establishing close economic relations between the OCTs and the Union as a whole;

(b)stimulate the OCTs’ effective integration in the regional and world economies and the development of trade in goods and services;

(c)support OCTs in creating a favourable investment climate to support the social and economic development of OCTs;

(d)promote the stability, integrity and transparency of the global financial system and good governance in the area of tax;

(e)support the process of diversification of OCTs economies;

(f)support OCTs’ capacities to formulate and implement policies necessary for the development of their trade in goods and services;

(g)support OCTs’ export and trading capacities;

(h)support OCTs’ efforts to align or converge their local legislation with Union legislation, where relevant;

(i)provide possibilities for targeted cooperation and dialogue with the Union on trade and trade-related areas;

(j)encourage OCTs in expressing their views in the context of any relevant public consultation activities or any existing relevant tool linked to the design and impact assessment of the negotiation of free trade agreements by the Union; and

(k)where relevant, take account of the OCTs in impact analyses accompanying the launch and negotiation of free trade agreements by the Union.

TITLE II - ARRANGEMENTS FOR TRADE IN GOODS AND SERVICES AND ESTABLISHMENT


CHAPTER 1

Arrangements for trade in goods

Article 44

Free access for originating goods

1. Products originating in the OCTs shall be imported into the Union free of import duty.

2. The definition of originating products and the methods of administrative cooperation relating thereto are laid down in Annex II.

Article 45

Quantitative restrictions and measures having equivalent effect

1. The Union shall not apply to imports of products originating in the OCTs any quantitative restrictions or measures having equivalent effect.

2. Paragraph 1 shall not preclude prohibitions or restrictions on imports, exports or goods in transit which are justified on grounds of public morality or public policy, the protection of health and life of humans, animals and plants, the protection of national treasures possessing artistic, historic or archaeological value, the conservation of exhaustible natural resources or the protection of industrial or commercial property.

3. Prohibitions or restrictions referred to in paragraph 2 shall in no case constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction of trade.

Article 46

Measures adopted by the OCTs

1. The authorities of the OCTs may retain or introduce, in respect of imports of products originating in the Union, such customs duties or quantitative restrictions as they consider necessary in view of their respective development needs.

2. For the fields covered by this Chapter, the OCTs shall grant to the Union treatment no less favourable than the most favourable treatment applicable to any major trading economy as defined in paragraph 4.

3. Paragraph 2 shall not preclude an OCT from granting certain other OCTs or other developing countries more favourable treatment than that accorded to the Union.

4. For the purposes of this Title, a ‘major trading economy’ means any developed country, or any country accounting for a share of world merchandise exports above one per cent, or, without prejudice to paragraph 3, any group of countries acting individually, collectively or through an economic integration agreement accounting collectively for a share of world merchandise exports above 1,5 %. For that calculation, the latest available official data by the WTO on leading exporters in world merchandise trade, excluding intra-Union trade, shall be used.

5. The authorities of the OCTs shall communicate to the Commission the customs tariffs and lists of quantitative restrictions which they apply in accordance with this Decision. The authorities of the OCTs shall also communicate to the Commission any subsequent amendments to such measures as and when they are adopted.

Article 47

Non-discrimination

1. The Union shall not discriminate between OCTs and the OCTs shall not discriminate between Member States.

2. In accordance with Article 66, the implementation of the specific provisions in this Decision and in particular its Article 45(2), Articles 46 and 49, 50 and 52 and Article 59(3) shall not be deemed to constitute a discrimination.

Article 48

Conditions for movements of waste

1. Movements of waste between the Member States and the OCTs shall be controlled in accordance with international law, in particular the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal (21) (Basel Convention), and Union law. The Union shall support the establishment and development of effective international cooperation in this area with a view to protecting the environment and public health.

2. As regards those OCTs which, due to their constitutional status, are not Party to the Basel Convention, their relevant authorities shall expedite adoption of the necessary internal legislation and administrative regulations to implement the Basel Convention in their respective territories.

3. The Member States to which OCTs are linked shall promote the adoption by the OCTs of the necessary internal legislation and administrative regulations to implement relevant Union law concerning waste and waste shipments.

4. An OCT and the Member State to which it is linked may apply their own procedures to the export of waste from the OCT to that Member State. In such cases, the Member State to which the OCT is linked shall notify to the Commission the applicable legislation as well as any subsequent amendments to such legislation.

Article 49

Temporary withdrawal of preferences

Where the Commission considers that there are sufficient grounds to question whether this Decision is being correctly implemented, the Commission shall enter into consultations with the OCT and the Member State with which the OCT has special relations, in order to ensure the proper implementation of this Decision. If the consultations do not lead to a mutually acceptable way of implementing this Decision, the Union may temporarily withdraw preferences from the OCT concerned in accordance with Annex III.

Article 50

Safeguard and surveillance measures

In order to ensure the proper implementation of this Decision, the Union may take the safeguard and surveillance measures set out in Annex IV.

CHAPTER 2

Arrangements for trade in services and for establishment

Article 51

Definitions

For the purposes of this Chapter, the following definitions apply:

(a)‘natural person from an OCT’ means a natural person ordinarily resident in an OCT who is a national of a Member State or who enjoys a legal status specific to an OCT. This definition is without prejudice to the rights conferred by citizenship of the Union within the meaning of Article 20 of the TFEU;

(b)‘legal person of an OCT’ means a legal person of an OCT set up in accordance with the laws applicable in that OCT, and having its registered office, its central administration, or its principal place of business in the territory in that OCT. Should the legal person have only its registered office or central administration in the OCT, it shall not be considered as a legal person of that OCT, unless it engages in an activity which has a real and continuous link with the economy of that OCT;

(c)the respective definitions laid down in the economic integration agreements referred to in Article 52(1) shall apply to the treatment accorded between the Union and the OCTs.

Article 52

Most favourable treatment

1. With respect to any measures affecting trade in services and establishment in economic activities:

(a)the Union shall accord to natural and legal persons of the OCTs a treatment no less favourable than the most favourable treatment applicable to like natural and legal persons of any third country with whom the Union concludes or has concluded an economic integration agreement;

(b)an OCT shall accord to the natural and legal persons of the Union a treatment no less favourable than the most favourable treatment applicable to like natural and legal persons of any major trading economy with which it has concluded an economic integration agreement after 1 January 2014.

2. The obligations provided for in paragraph 1 shall not apply to treatment granted:

(a)in the framework of an internal market or economic integration agreement requiring the parties thereto to significantly approximate their legislation with a view to removing non-discriminatory obstacles to establishment and to trade in services;

(b)under measures providing for recognition of qualifications or licences. This is without prejudice to OCTs specific measures under this Article;

(c)under any international agreement or arrangement relating wholly or mainly to taxation;

(d)under measures benefitting from the coverage of a most-favoured nation exemption listed in accordance with Article II.2 of the GATS.

3. Nothing in this Decision shall prevent either the Union or the OCTs from adopting or maintaining measures for prudential reasons, including for:

(a)the protection of investors, depositors, policy-holders or persons to whom a fiduciary duty is owed by a financial service supplier; or

(b)to ensure the integrity and stability of a Party’s financial system.

4. The authorities of an OCT may with a view to promoting or supporting local employment, adopt regulations to aid their natural persons and local activities. In this event, the OCT authorities shall notify the Commission of the regulations they adopt so that it may inform the Member States thereof.

TITLE III - TRADE-RELATED AREAS


CHAPTER 1

Trade and sustainable development

Article 53

General approach

Trade and trade-related cooperation under the association aims to contribute to sustainable development in its economic, social and environmental dimensions. In this context, the domestic environmental or labour laws and regulations of OCTs shall not be lowered in order to encourage trade or investment.

Article 54

Environmental and climate change standards in trade

1. Trade and trade-related cooperation under the association aims to enhance the mutual supportiveness between trade and environmental policies and obligations. For those purposes, trade-related cooperation under the association shall take into account the principles of international environmental governance and multilateral environmental agreements.

2. Trade-related cooperation shall aim to support the ultimate objectives of the UNFCCC and the implementation of the Paris Agreement. It may also extend to cooperation on other trade-related multilateral environmental agreements, such as the Convention on International Trade in Endangered Species of Wild Fauna and Flora (22).

Article 55

Labour standards in trade

1. The association aims to promote trade in such a way that it is conducive to full and productive employment and decent work for all.

2. The internationally recognised core labour standards, as defined by the relevant ILO conventions, shall be respected and implemented. Such labour standards include, in particular, respect for freedom of association, right to collective bargaining, abolition of all forms of forced or compulsory labour, elimination of the worst forms of child labour, the minimum age for admission to employment and non-discrimination in respect to employment. The OCTs shall ensure effective labour inspection, effective measures for occupational safety and health, consistent with relevant ILO conventions and decent working conditions for all.

Article 56

Sustainable trade in fisheries products

The association may include cooperation to promote the sustainable management of fish stocks, as well as to combat illegal, unreported and unregulated fishing and related trade. Cooperation in this field should aim to:

(a)facilitate cooperation between OCTs and regional fisheries management organisations, in particular with respect to the development and effective implementation of control and inspection schemes, incentives and measures for effective long term management of fisheries and marine ecosystems;

(b)promote the implementation of measures to combat illegal, unreported and unregulated fishing and related trade in OCTs.

Article 57

Sustainable timber trade

In the framework of the association, cooperation in the field of timber trade aims to promote trade in legally harvested timber. Such cooperation may include dialogue on regulatory measures as well as exchange of information on market-based or voluntary measures such as forest certification or green procurement policies.

Article 58

Trade and sustainable development

1. In the framework of the association, cooperation in the field of trade and sustainable development may be pursued by:

(a)facilitating and promoting trade and investment in environmental goods and services including through the elaboration and implementation of local legislation, as well as in those goods that contribute to the improvement of social conditions in OCTs;

(b)facilitating the removal of obstacles to trade or investment regarding goods and services of particular relevance for mitigation of climate change, such as sustainable renewable energy and energy efficient products and services, including through the adoption of policy frameworks conducive to the deployment of best available technologies and through the promotion of standards that respond to environmental and economic needs and minimise technical obstacles to trade;

(c)promoting trade in goods that contribute to enhanced social conditions and environmentally sound practices, including goods that are the subject of voluntary sustainability assurance schemes such as fair and ethical trade schemes, eco-labels, and certification schemes for natural resource-based products;

(d)promoting internationally recognised principles and guidelines in the area of responsible business conduct and corporate social responsibility, encouraging companies operating in the territory of OCTs to implement them and exchanging information and best practices;

(e)promoting the United Nations 2030 Agenda for Sustainable Development and the implementation of the related SDGs.

2. In the design and implementation of measures aiming to protect the environment or labour conditions that may affect trade or investment, the Union and the OCTs shall take account of available scientific and technical information, and relevant international standards, guidelines or recommendations, including the precautionary principle.

3. The Union and the OCTs shall apply full transparency to develop, introduce and implement any measures aimed at protecting the environment and labour conditions affecting trade or investment.

CHAPTER 2

Other trade-related issues

Article 59

Current payments and capital movements

1. No restrictions shall be imposed on any payments in freely convertible currency on the current account of balance of payments between residents of the Union and residents of the OCTs.

2. With regard to transactions on the capital account of balance of payments, the Member States and the OCTs authorities shall ensure free movement of capital relating to direct investments in companies formed in accordance with the laws of the host Member State, country or territory and shall ensure that the assets formed by such investment and any profit stemming therefrom can be realised and repatriated.

3. The Union and the OCTs shall be entitled to take the measures referred to in Articles 64, 65, 66, 75, 143, 144 and 215 TFEU in accordance with the conditions laid down therein mutatis mutandis.

4. The OCT authorities, the Member State concerned or the Union shall inform one another immediately of any such measures and submit a timetable for their elimination as soon as possible.

Article 60

Competition policies

With due consideration to their different levels of development and economic needs, the OCTs shall adopt, maintain or be subject to law or policies aiming to:

(a)prevent and prohibit horizontal and vertical agreements between undertakings, decisions by associations of undertakings and concerted practices which have as their object or effect the significant prevention, restriction or distortion of competition;

(b)prevent and prohibit abuses by one or more undertakings of a dominant position;

(c)prevent and prohibit concentrations between undertakings which would significantly impede effective competition, in particular as a result of the creation or strengthening of a dominant position; and

(d)transparency about the OCTs’ granting of subsidies regarding goods that have a significant negative effect on trade or investment between the Union and an OCT.

Article 61

Protection of intellectual property rights

1. An adequate and effective level of protection of intellectual property rights, including means for enforcing such rights, shall be ensured in line with the highest international standards, where appropriate, with a view to reducing distortions and impediments to bilateral trade.

2. In the framework of the association, cooperation in this field may concern the preparation of laws and regulations for the protection and enforcement of intellectual property rights, the prevention of the abuse of such rights by right holders and of the infringement of such rights by competitors and support for regional intellectual property organisations involved in enforcement and protection, including the training of personnel.

Article 62

Protection of Geographical Indications

The Union and the OCTs recognise the importance of Geographical Indications (GIs) for sustainable agriculture and rural development. They shall ensure the proper protection and enforcement of GIs and shall cooperate towards the further development of more effective GI systems. They shall also exchange information on legislative and policy developments on GIs.

Article 63

Technical barriers to trade

The association may include cooperation in the fields of technical regulation for goods, standardisation, conformity assessment, accreditation, market surveillance and quality assurance with a view to removing unnecessary technical barriers to trade between the Union and the OCTs and to reduce differences in those areas.

Article 64

Consumer policy, consumer health protection and trade

In the framework of the association, cooperation in the field of consumer policy, consumer health protection and trade may include the preparation of laws and regulations in the area of consumer policy and consumer health protection, with a view to avoiding unnecessary barriers to trade.

Article 65

Sanitary and phyto-sanitary measures

In the framework of the association, cooperation in the field of sanitary and phyto-sanitary measures aims to:

(a)facilitate trade between the Union and the OCTs as a whole and between OCTs and third countries, whilst safeguarding human, animal and plant health or life in accordance with the WTO Agreement on the Application of Sanitary and Phytosanitary Measures (the ‘WTO SPS Agreement’);

(b)address trade-related issues arising from sanitary and phyto-sanitary measures;

(c)ensure transparency as regards sanitary and phyto-sanitary measures applicable to trade between the Union and the OCTs;

(d)promote the harmonisation of measures with international standards, in accordance with the WTO SPS Agreement;

(e)support the effective participation of OCTs in organisations that set international sanitary and phyto-sanitary standards;

(f)promote consultation and exchanges between OCTs and European institutes and laboratories;

(g)establish and enhance OCTs’ technical capacity to implement and monitor sanitary and phyto-sanitary measures;

(h)promote technology transfer and rapid exchange of information in the area of sanitary and phyto-sanitary measures.

Article 66

Prohibition of protectionist measures

The provisions of Chapter 1 and of this Chapter shall not be used as a means of arbitrary discrimination or a disguised restriction on trade.

CHAPTER 3

Monetary and tax matters

Article 67

Tax carve out

1. Without prejudice to Article 68, the most favoured nation treatment granted in accordance with this Decision shall not apply to tax advantages which the Member States or OCTs authorities are providing or may provide in the future on the basis of agreements to avoid double taxation or other tax arrangements, or to domestic tax legislation in force.

2. Nothing in this Decision may be construed so as to prevent the adoption or enforcement of any measure to prevent tax fraud or avoidance or evasion of taxes pursuant to the tax provisions of agreements to avoid double taxation or other tax arrangements, or domestic tax legislation in force.

3. Nothing in this Decision shall be construed so as to prevent the respective competent authorities from distinguishing, in the application of the relevant provisions of their tax legislation, between taxpayers who are not in the same situation, in particular with regard to their place of residence, or with regard to the place where their capital is invested.

Article 68

Tax and customs arrangements for Union-funded contracts

1. An OCT shall apply to contracts funded by the Union tax and customs arrangements no less favourable than those applied by them to the Member State to which the OCT is linked or to the states to which the most-favoured nation treatment is granted, or to international development organisations with which it has relations, whichever treatment is the most favourable.

2. Without prejudice to paragraph 1, the following arrangements shall apply to contracts financed by the Union:

(a)the contract shall not be subject in the beneficiary OCT to stamp or registration duties or to fiscal charges having equivalent effect, whether such charges already exist or are to be instituted in the future; however, such contracts shall be registered in accordance with the legislation in force in that OCT and a fee corresponding to the service rendered may be charged for it;

(b)profits and/or income arising from the performance of contracts shall be taxable according to the internal fiscal arrangements of the beneficiary OCT, provided that the natural persons or legal persons who realise such profit or such income have a permanent place of business in that OCT, or that the performance of the contract takes longer than six months;

(c)natural persons or legal persons that must import equipment in order to carry out works contracts shall, if they so request, benefit from the system of temporary admission as laid down by the legislation in force in the beneficiary OCT in respect of that equipment;

(d)professional equipment necessary for carrying out tasks defined in a service contract shall be temporarily admitted into the beneficiary OCT free of fiscal, import and customs duties and of other charges having equivalent effect where those duties and charges do not constitute remuneration for services rendered;

(e)imports under supply contracts shall be admitted into the beneficiary OCT without customs duties, import duties, taxes or fiscal charges having equivalent effect. The contract for supplies originating in the OCT concerned shall be concluded on the basis of the ex-works price of the supplies, to which may be added such internal fiscal charges as may be applicable to those supplies in the OCT;

(f)fuels, lubricants and hydrocarbon binders and all materials used in the performance of works contracts shall be deemed to have been purchased on the local market and shall be subject to fiscal rules applicable under the legislation in force in the beneficiary OCT;

(g)personal and household effects imported for use by natural persons, other than those recruited locally, engaged in carrying out tasks defined in a service contract and members of their families, shall be exempt from customs or import duties, taxes and other fiscal charges having equivalent effect, within the limits of the legislation in force in the beneficiary OCT.

3. Any contractual matter not covered by paragraphs 1 and 2 shall remain subject to the legislation in force in the OCT concerned.

CHAPTER 4

Trade capacity development

Article 69

General approach

With a view to ensuring that OCTs derive the maximum benefit from this Decision and that they may participate under the best possible conditions in the Union’s internal market as well as regional, sub-regional and international markets, the association aims to contribute to the development of the OCTs’ trade capacities by:

(a)increasing the OCTs’ competitiveness, self-reliance and economic resilience, through diversifying the range and increasing the value and volume of OCTs trade in goods and services and by strengthening the OCTs’ ability to attract private investments in various sectors of economic activity;

(b)improving cooperation in trade in goods, services and establishment between the OCTs and neighbouring countries.

Article 70

Trade dialogue, cooperation and capacity development

In the framework of the association, trade dialogue, cooperation and capacity development initiatives may include:

(a)strengthening the OCTs’ capacities to define and implement policies necessary for the development of trade in goods and services;

(b)encouraging the efforts of OCTs to put in place appropriate legal, regulatory and institutional frameworks as well as the necessary administrative procedures;

(c)promoting private sector development, in particular SMEs;

(d)facilitating market and product development, including product quality improvement;

(e)contributing to the development of human resources and professional skills relevant to trade in goods and services;

(f)enhancing the capacity of business intermediaries to provide OCTs enterprises services pertinent to their exporting activities, such as market intelligence;

(g)contributing to the creation of a business climate conducive to investment.

CHAPTER 5

Cooperation in the area of financial services and taxation matters

Article 71

Cooperation on international financial services

With a view to promoting the stability, integrity and transparency of the global financial system, the association may include cooperation on international financial services. Such cooperation may cover:

(a)the provision of effective and adequate protection of investors and other consumers of financial services;

(b)the prevention and combat of money laundering and financing of terrorism;

(c)the promotion of cooperation between different actors of the financial system, including regulators and supervisors;

(d)the setup of independent and effective mechanisms for the supervision of financial services.

Article 72

International standards in financial services

1. The Union and the OCTs shall make their best endeavours to ensure that internationally agreed standards for regulation and supervision in the financial services sector and for the fight against tax evasion and avoidance are implemented and applied in their territory. Such internationally agreed standards are, inter alia, the Basel Committee’s ‘Core Principle for Effective Banking Supervision’, the ‘International Association of Insurance Supervisors’‘Insurance Core Principles’, the ‘International Organisation of Securities Commissions’‘Objectives and Principles of Securities Regulation’, the OECD’s Agreement on exchange of information on tax matters, the G20 ‘Statement on Transparency and exchange of information for tax purposes’, the Financial Stability Board’s ‘Key Attributes of Effective Resolution Regimes for Financial Institutions’.

2. The OCTs shall adopt or maintain a legal framework for the prevention of the use of their financial systems for the purpose of money laundering and the financing of terrorism, taking particular account of the instruments of international bodies active in this field, such as the Financial Action Task Force’s ‘International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation - the FATF Recommendations’.

3. Where the Commission issues Decisions authorising a Member State to conclude an agreement with an OCT for the transfer of funds between that OCT and the Member State to which it is linked, this transfer shall be treated as a transfer of funds within the Union under Regulation (EU) 2015/847 of the European Parliament and of the Council (23) and that OCT shall comply with the terms of that Regulation.

4. This Article shall be without prejudice to Article 155 of the Financial Regulation.

Article 73

Cooperation in taxation matters

The Union and the OCTs shall recognise and commit themselves to effectively implement the principles of good governance in the tax area, including the global standards on transparency and exchange of information, fair taxation and the minimum standards against Base Erosion and Profit Shifting. They will promote good governance in tax matters, improve international cooperation in the tax area and facilitate the collection of tax revenues.

PART IV - FINANCIAL COOPERATION


CHAPTER 1

Principles

Article 74

Financial resources

The Union shall contribute to the achievement of the association’s overall objectives through the provision of:

(a)adequate financial resources and appropriate technical assistance aimed at strengthening the OCTs’ capacities to formulate and implement strategic and regulatory frameworks;

(b)long term financing to promote private sector growth;

(c)where appropriate, other Union programmes may contribute to actions established under this Decision, provided that the contributions do not cover the same costs. This Decision may also contribute to measures established under other Union programmes, provided that the contributions do not cover the same costs. In such cases, the work programme covering those actions shall establish which set of rules shall be applicable.

Article 75

Budget

1. The financial envelope for the implementation of the Programme for the period 2021-2027 shall be EUR 500 000 000 in current prices.

2. The indicative distribution of the amount referred to in paragraph 1 shall be detailed as set out in Annex I.

3. The amount referred to in paragraph 1 is without prejudice to the application of provisions providing for flexibility in Council Regulation (EU, Euratom) 2020/2093 (24), Regulation (EU) 2021/947 and the Financial Regulation.

4. The cumulative net reflows stemming from the OCT Investment Facility set out in Article 3(3) of Annex IV of Decision 2013/755/EU shall constitute external assigned revenues to top-up the non-allocated fund referred to in Article 1(1)(e) of Annex I of this Decision, from the moment they become available. Without prejudice to the decisions to be taken with respect to the subsequent Multiannual Financial Frameworks, after 31 December 2027, and until their depletion, the cumulative net reflows shall constitute contributions to the next OCT financial instrument which replaces this instrument.

Article 76

Definitions

For the purposes of this Part, the following definitions apply:

(a)‘programmable aid’ means the non-repayable aid allocated to the OCTs in order to finance territorial, regional and intra-regional strategies when applicable or priorities set out in programming documents;

(b)‘programming’ means the process of organisation, decision-making and allocation of indicative financial resources intended to implement, on a multi-annual basis and in an area referred to in Part II, the action to achieve the association’s objectives for the sustainable development of the OCTs;

(c)‘programming document’ means the document which sets out the OCT’s strategy, priorities and arrangements and translates the objectives and targets of the OCT for its sustainable development in an effective and efficient way to pursue the objectives of the association;

(d)‘development plans’ means a coherent set of operations defined and financed exclusively by the OCTs in the framework of their own policies and strategies of development, and those agreed upon between an OCT and the Member State to which it is linked;

(e)‘territorial allocation’ means the amount allocated to individual OCTs for the programmable aid in order to finance territorial strategies and priorities set out in programming documents;

(f)‘regional allocation’ means the amount allocated in accordance with Article 84(1) for the programmable aid in order to finance regional cooperation strategies or priorities as set out in programming documents;

(g)‘intra-regional allocation’ means an amount, within the regional allocation, allocated in accordance with Article 84(2) for the programmable aid in order to finance intra-regional cooperation strategies and priorities as set out in programming documents.

Article 77

Principles of financial cooperation

1. Union financial assistance shall be based on the principles of partnership, ownership, alignment to territorial systems, complementarity and subsidiarity.

2. Operations funded within the framework of this Decision may take the form of programmable or non-programmable aid.

3. Union financial assistance shall:

(a)be implemented with due regard to the OCTs’ respective geographical, social and cultural characteristics, as well as their specific potential;

(b)ensure that resource flows are accorded on a predictable and regular basis;

(c)be flexible and tailored to the situation in each OCT; and

(d)be conducted in full compliance with the respective institutional, legal and financial powers of each of the partners.

4. The authorities of the OCT concerned shall be responsible for implementing operations without prejudice to the powers of the Commission to ensure sound financial management in the use of Union funds.

CHAPTER 2

Specific provisions for the financial cooperation

Article 78

Subject matter and scope

Within the framework of the strategy and priorities established by the OCT concerned at local or regional level, financial support may be given to the following:

(1)sector policies and reforms as well as projects that are in coherence with them;

(2)institutional development, capacity building and integration of environmental aspects; and

(3)technical assistance.

Article 79

Capacity development

1. Financial assistance may contribute among other things, to supporting the OCTs with developing the necessary capacities to define, implement and monitor territorial and/or regional strategies and actions in view of achieving the general objectives for the areas of cooperation mentioned in Parts II and III.

2. The Union shall support the efforts of the OCTs in developing reliable statistical data regarding those areas including to ensure the follow-up on the implementation of the SDGs.

3. The Union may support OCTs in their efforts to improve the comparability of their macroeconomic indicators, in particular to facilitate the analysis of OCTs’ GDPs.

Article 80

Technical assistance

1. On the initiative of the Commission, Union financing may cover support expenditure for the implementation of this Decision and for the achievement of its objectives, including administrative support associated with the preparation, follow-up, monitoring, control, audit and evaluation activities necessary for such implementation, as well as expenditure at headquarters and Union delegations for the administrative support needed for the programme, and for the management of operations financed under this Decision, including information and communication actions, and corporate information and technology systems.

2. On the initiative of the OCTs, studies or technical assistance measures, including long-term support, may be financed in relation to the implementation of the activities scheduled in the programming documents. The Commission may decide to finance such action either from the programmable aid or from the envelope earmarked for technical cooperation measures.

CHAPTER 3

Implementation of the financial cooperation

Article 81

General principle

Unless otherwise specified in this Decision, Union financial assistance shall be implemented in accordance with this Decision, the Financial Regulation, and, as appropriate, the following chapters of Title II of Regulation (EU) 2021/947:

—Chapter I with the exception of Articles 10, 11, 13, 14(3), 14(4), 15, Article 16(1) to (4), and Article 17,

—Chapter III with the exception of Articles 25(1), 25(2)(a), (b) and (c) and 25(3), and

—Chapter V with the exception of Articles 41(1), 41(4), 41(6), 41(7), 41(9) and 42(4).

Article 82

Adoption of multiannual indicative programmes, action plans and measures

The Commission shall adopt, under this Decision, in the form of ‘single programming documents’, multiannual indicative programmes as referred to in Article 14 of Regulation (EU) 2021/947.

The single programming documents may take into account the territorial development plans or other plans agreed upon between the OCTs and the Member States to which they are linked.

The single programming documents shall be adopted in accordance with the examination procedure referred to in Article 90(5) of this Decision. That procedure shall also apply to reviews which have the effect of significantly modifying the content of the multiannual indicative programme.

Action plans and measures as referred to in Article 23 of Regulation (EU) 2021/947 may be adopted separately from the multiannual indicative programmes and shall be adopted in accordance with the examination procedure referred to in Article 90(5) of this Decision. That procedure shall not apply to cases referred to in point (d) of paragraph 2 of Article 25 of Regulation (EU) 2021/947.

Article 83

Eligibility for territorial financing

1. The OCTs’ public authorities shall be eligible for financial support provided for in this Decision.

2. Subject to the agreement of the authorities of the OCTs concerned, the following entities and bodies shall also be eligible for financial support provided for in this Decision:

(a)local, national and regional public or semi-public agencies, departments or local authorities of the OCTs and in particular their financial institutions and development banks;

(b)companies and businesses of the OCTs and of regional groups;

(c)companies and businesses of a Member State, so as to enable them, in addition to their own contribution, to undertake productive projects in the territory of an OCT;

(d)OCTs or Union financial intermediaries promoting and financing private investments in the OCTs; and

(e)actors of decentralised cooperation and other non-governmental actors from OCTs and from the Union, to enable them to undertake economic, cultural, social and educational projects and programmes in the OCTs in the framework of decentralised cooperation, as referred to in Article 12.

Article 84

Eligibility for regional financing

1. A regional allocation may be used for operations benefitting and involving:

(a)two or more OCTs regardless of their location; or

(b)the OCTs and the Union as a whole; or

(c)two or more regional bodies of which OCTs are members; or

(d)two or more OCTs regardless of their location and at least one of the following:

(i)one or more outermost regions referred to in Article 349 TFEU;

(ii)one or more ACP States and/or one or more non-ACP States or territories (25);

(iii)one or more regional bodies or associations of which OCTs are members;

(iv)one or more entities, authorities or other bodies from at least one OCT, being members of an EGTC in accordance with Article 8.

For the purposes of points (a) and (d), the French Southern and Antarctic Lands, given their specific situation, shall be considered as two separate OCTs.

2. Within the regional allocation, an intra-regional allocation may be used for operations benefitting and involving:

(a)one or more OCTs and at least one of the following:

(i)one or more outermost regions referred to in Article 349 TFEU;

(ii)one or more neighbouring ACP and/or non-ACP States or territories;

(iii)one or more regional bodies of which OCTs, or ACP States or one or more of the outermost regions are members; or

(b)one or more entities, authorities or other bodies from at least one OCT, being members of an EGTC, and one or more outermost regions and/or one or more neighbouring ACP and/or non-ACP States or territories.

3. The funding to enable participation of the ACP States, outermost regions and other countries and territories to OCT regional cooperation programmes shall be additional to funds allocated to the OCTs under this Decision.

4. The participation of ACP States, outermost regions and other countries or territories in programmes established pursuant to this Decision shall be envisaged only to the extent that:

(a)equivalent provisions exist in the framework of relevant Union’s programmes or in the relevant funding programmes of third countries and territories not covered by Union programmes; and

(b)the principle of proportionality is respected, taking into account the capacities of stakeholders, in particular their financial capacities under instruments of the Union for cooperation with other countries.

Article 85

Eligibility for other Union programmes

1. Natural persons from an OCT and, where applicable, the relevant public and private bodies and institutions in an OCT, shall be eligible to participate in and for funding from Union programmes, such as InvestEU, subject to the rules and objectives of the programmes and possible arrangements applicable to the Member State to which the OCT is linked.

2. OCTs shall also be eligible for support under programmes and instruments of the Union for cooperation with other countries, such as Regulation (EU) 2021/947 and Council Regulation (EC) No 1257/96 (26), subject to the rules, objectives and arrangements of those programmes.

3. Where appropriate, the Commission shall encourage the access of OCTs to Union programmes, as well as programmes and instruments of the Union for cooperation with other countries.

4. The OCTs, with the support of relevant stakeholders, shall report to the Commission on their participation in the Union programmes, at mid-term and at the end of the period 2021 to 2027.

Article 86

Reporting

The Commission shall examine the progress made in implementing the financial assistance provided to the OCTs under this Decision and shall submit a report to the Council every year starting in 2022 on the implementation and results of that financial cooperation. The report shall also be sent to the European Parliament, the European Economic and Social Committee and the Committee of the Regions.

Article 87

Financial controls

1. OCTs shall bear primary responsibility for the financial supervision of the Union funds. That financial supervision shall be carried out, where appropriate, in coordination with the Member State to which the OCT is linked in accordance with the applicable national legislation.

2. The Commission shall be responsible for:

(a)ensuring that management and control systems exist and function properly in the OCTs concerned so as to ensure that the Union funds are used correctly and effectively; and

(b)in the event of irregularities, sending recommendations or requests for corrective measures to remedy those irregularities and rectify any management shortcomings found.

3. The Commission, the OCTs and, where appropriate, the Member State to which they are linked, shall cooperate on the basis of administrative arrangements at annual or biannual meetings to coordinate programmes, methodologies and the implementation of controls.

4. With regard to financial corrections:

(a)the OCTs concerned shall be responsible in the first instance for detecting and correcting financial irregularities;

(b)however, in the event of shortcomings by the OCT concerned, if the OCT fails to remedy the situation and attempts at conciliation are unsuccessful, the Commission shall take action to reduce or withdraw the balance of the overall allocation corresponding to the financing decision of the programming document.

PART V - FINAL PROVISIONS


Article 88

Delegation of powers to the Commission

1. The Commission shall be empowered to adopt delegated acts in accordance with Article 89 in order to amend the procedural rules of origin and related definitions in Annex II and the Appendices of Annex II for the purpose of taking into account technological development and changes in customs and trade legislation.

2. To ensure effective assessment of progress of this Decision towards the achievement of its objectives, the Commission shall be empowered to adopt delegated acts in accordance with Article 89 in order to amend Article 3 of Annex I to review or complement the indicators where considered necessary and to supplement Annex I with provisions on the establishment of a monitoring and evaluation framework.

Article 89

Exercise of the delegation

1. The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.

2. The power to adopt delegated acts referred to in Article 88 shall be conferred on the Commission for a period of five years from 1 January 2021. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the five-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the Council opposes such extension not later than three months before the end of each period.

3. The delegation of power referred to in Article 88 may be revoked at any time by the Council. A decision to revoke shall put an end to the delegation of power specified in that Decision. It shall take effect on the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

4. Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making.

5. As soon as it adopts a delegated act, the Commission shall notify it to the Council.

6. A delegated act adopted pursuant to Article 88 shall enter into force only if no objection has been expressed by the Council within a period of two months of notification of the act to the Council or if, before the expiry of that period, the Council has informed the Commission that it will not object. That period shall be extended by two months at the initiative of the Council.

Article 90

Committee procedure

1. The Commission shall be assisted by a committee (the ‘OCT Committee’). That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

2. For the purpose of Articles 10(6) and 16(8) of Annex II, the Commission shall be assisted by the Customs Code Committee established by Article 285(1) of Regulation (EU) No 952/2013 of the European Parliament and of the Council (27). That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

3. For the purpose of Article 2 of Annex III and Article 5 and 6 of Annex IV, the Commission shall be assisted by the Committee established by Article 4(1) of Council Regulation (EC) No 260/2009 (28). That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

4. Where reference is made to this paragraph, Article 4 of Regulation (EU) No 182/2011 shall apply.

5. Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

6. Where reference is made to this paragraph, Article 8 of Regulation (EU) No 182/2011, in conjunction with Article 4 thereof, shall apply.

7. Where the opinion of the committee is to be obtained by a written procedure, the procedure shall be terminated without result when, within the time limit for delivery of the opinion, the chair of the committee so decides or a simple majority of committee members so requests.

Article 91

Information, communication and publicity

1. The recipients of Union funding shall acknowledge the origin of those funds and ensure the visibility of the Union funding, in particular when promoting the actions and their results, by providing coherent, effective and proportionate targeted information to multiple audiences, including the media and the public.

2. The Commission shall implement information and communication actions relating to the Programme, and to actions taken pursuant to the Programme and to the results obtained.

3. Financial resources allocated to the Programme shall also contribute to the corporate communication of the political priorities of the Union, insofar as those priorities are related to the objectives laid down in Article 3.

Article 92

European External Action Service clause

This Decision shall apply in accordance with Decision 2010/427/EU.

Article 93

Repeal and transitional provisions

1. Decision 2013/755/EU is hereby repealed with effect from 1 January 2021.

2. This Decision shall not affect the continuation or modification of actions initiated pursuant to Decision 2013/755/EU, which shall continue to apply to those actions until their closure.

3. The financial envelope for the Programme may also cover technical and administrative assistance expenses necessary to ensure the transition between the Programme and the measures adopted pursuant to Decision 2013/755/EU.

4. If necessary, appropriations may be entered in the Union budget beyond 2027 to cover the expenses provided for in Article 80 to enable the management of actions not completed by 31 December 2027.

Article 94

Entry into force

This Decision shall enter into force on the day following its publication in the Official Journal of the European Union.

It shall apply from 1 January 2021.