WORLD TRADE
ORGANIZATIONWT/REG106/R/B/1
G/L/374
2 May 2000
(00-1754)
Original:  English
ASSOCIATION OF CERTAIN OVERSEAS COUNTRIES AND TERRITORIES
WITH THE EUROPEAN COMMUNITY
Biennial Report on the Operation of the Agreement
Communication from the European Community
The report below presents the information rece ived from the Permanent Delegation of the
European Commission, dated 21 March 2000.  It is organized in accordance to the Standard Format
for Information on Regional Trade Agreements (WT/REG/W/6).
_______________
I. BACKGROUND INFORMATION ON THE AGREEMENT
1. Membership and dates of signature,  ratification and entry into force
Under the Treaty of Rome, the Overseas Countr ies and Territories (OCTs) are linked to the
Community under a specific Association, which is set out in Part Four of the Treaty (Articles 182-188
of the EC Treaty).  The purpose of this Association is to promote the economic and social
development of the countries and territories and to establish close economic relations between them
and the Community as a whole.
In the 1990s, the Association underwent modifications on two occasions: in 1991 and in
1997.  Council Decision 91/482/EEC of 25 July 1991 was adopted for a period of ten years subject to
a mid-term review, which resulted in some  amendments by Council Decision 97/803/EC of
24 November 1997.  Neither of these Decisions affected the principles underlying the arrangements
governing trade between the European Community and the OCTs.
There have been no changes during the 1990s to the list of OCTs which are associated with
the EC (see Annex 1).  There are currently 20 such OCTs, linked to four European Union (EU)
Member States (Denmark, France, the Netherlands and the United Kingdom).
4. Trade data
In the 1990s there was a steady increase in EC-OCT trade, although this was partly accounted
for by the movement of vehicles, aircraft, vessels and associated transport equipment that is
automatically registered as “imports” and “exports” (see Annex 2).  If these items are left aside, the
OCTs mainly exported ferro-alloys, oil, and shri mps and prawns to the EC, while EC exports were
highest for machinery and mechanical appliances, etc (section XVI).
The overall share of the OCTs in the total tr ade of the EC is very limited.  In 1998, total
imports from the OCTs were 1,456 million ECUs and total exports were 3,117 million ECUs.  These
figures represent 0.21 per cent and 0.43 per cent respectively of total EC imports from and exports to
all third countries.WT/REG106/R/B/1
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II. TRADE PROVISIONS
1. Import restrictions &
2. Export restrictions
As the EC market had long been open to OCT products, the Council decided in 1991 to
abolish all remaining import duties and quantitative restrictions on OCT products exported to the EC.
In 1997, Part IV of the EC Treaty was amended to specify that “customs duties on imports into the
Member States of goods originating in the countries and territories shall be prohibited in conformity
with the prohibition of customs duties between Member States”.
3. Rules of origin
At the same time, the 1991 Council Decision maintained the existing definition of “OCT
products” for the purposes of the rules of origin.  In particular, it maintained the provisions allowing
cumulation of origin with the African, Caribbean and Pacific (ACP) Group of States.1  However, as a
result of the different conditions of access to the EC market under the EC/OCT and the EC/ACP
arrangements, this gave rise to a rapid increase in exports to the EC of rice from ACP countries,
which had undergone some working or processing in the OCTs.  In view of the serious difficulties
that this caused for the rice sector in the EC, safeguard measures under the relevant Council decision,
aimed at creating a framework conducive to regular trade flows, were taken in 1993 and again in1997. Council Decision 97/803/EC provided a structural solution to this situation.  It also
re-confirmed the free access of all OCT products to the EC market (i.e. absence of all duties or
quotas).
III. GENERAL PROVISIONS OF THE AGREEMENT
5. Institutional framework
The Council Decision of 1991 introduced a European Commission/Member State/OCT
partnership, involving close consultation – if possible on an annual basis – between the
European Commission, the Member State responsible for an individual OCT and the relevant local
authorities of the OCTs.  This partnership is aimed at increasing the level of participation of elected
representatives of the population concerned, while respecting the constitutions of the Member States
responsible for the OCT.  A major partnership conference involving all OCTs was held in Brussels on
29-30 April 1999 as a basis for preparation of a proposal from the Commission to the Council of
Ministers on the Association of the OCTs from 2000.
IV. OTHER
Trade in Services
With the long-term aim of progressively liberalising trade in services, in 1997 the EC decided
to apply to the OCTs its undertakings under the General Agreement on Trade in Services (GATS).
The OCTs would afford nationals, companies or enterprises of the EC’s Member States treatment no
less favourable than that extended to third countrie s.  With regard to the right of establishment and
provision of services, both the EC Member States and the OCTs are obliged to treat each other’s
                                                     
1 These provisions are intended to promote regional  integration and trade between the ACP States and
the OCTs.WT/REG106/R/B/1
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Page 3
nationals and companies or enterprises on a non-discriminatory basis, in line with Part IV of the
Treaty establishing the EC, with the possibility fo r OCTs to request limited derogations to aid their
inhabitants and local activities.  The Commission and the Member States concerned have also started
work with a view to producing a list of professi onal qualifications acquired in the OCTs by OCT
nationals that could be recognised in the Member States.WT/REG106/R/B/1
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ANNEX 1
Overseas Countries and Territories associated with the European Community
Country having special relations with the Kingdom of Denmark
/g167 Greenland
Overseas Territories of the French Republic
/g167 New Caledonia
/g167 French Polynesia
/g167 French Southern and Antarctic Territories
/g167 Wallis and Futuna Islands
Territorial Collectivities of the French Republic
/g167 Mayotte
/g167 Saint Pierre and Miquelon
Overseas Countries of the Kingdom of the Netherlands
/g167 Aruba
/g167 Netherlands Antilles (Bonaire, Curaçao, Saba, Sint Eustatius, Sint Maarten)
Overseas Countries and Territories of the United Kingdom of Great Britain and Northern Ireland
/g167 Anguilla
/g167 Cayman Islands
/g167 Falkland Islands
/g167 South Georgia and South Sandwich Islands
/g167 Montserrat
/g167 Pitcairn
/g167 Saint Helena, Ascension Island, Tristan da Cunha
/g167 Turks and Caicos Islands
/g167 British Antarctic Territory
/g167 British Indian Ocean Territory
/g167 British Virgin IslandsWT/REG106/R/B/1
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Page 5ANNEX 22
Table 1 - EU Imports from World and the OCTs, 1980-1998
(Million ECU)
SITC: 0 1 2 3 4 5 6 7 8 9 TOTAL
1980 (EU 9)
      WORLD 23,908 1,929 27,501 85,384 1,579 11,374 37,648 37,853 22,176 20,502 269,853
      OCTs 77 0 75 - 4 1 183 3 1 1 347
1984 (EU 10)
      WORLD 33,643 2,810 36,139 107,594 2,803 19,968 48,969 71,432 34,537 24,205 382,100
      OCTs 158 0 80 0 9 1 136 6 3 1 395
1988 (EU 12)
      WORLD 32,221 2,152 35,752 47,393 1,499 25,067 59,078 106,689 49,968 27,937 387,757
      OCTs 297 1 110 35 3 2 187 41 10 10 697
1992 (EU 12)
      WORLD 34,580 3,215 32,218 65,183 1,748 33,888 69,355 146,277 76,771 23,900 487,135
      OCTs 275 1 44 100 3 5 113 75 12 4 631
1996 (EU 15)
      WORLD 41,305 3,599 34,829 75,910 2,423 44,328 75,479 189,056 93,962 20,131 581,065
      OCTs 409 3 79 143 5 2 270 530 13 7 1,459
1997 (EU 15)
      WORLD 44,248 4,072 40,131 85,155 2,554 51,485 87,685 229,346 108,779 17,690 672,413
      OCTs 365 4 79 156 6 2 220 756 12 8 1,608
1998 (EU 15)
      WORLD 45,198 4,458 39,370 64,843 2,891 55,290 94,672 264,153 116,092 22,676 709,643
      OCTs 307 3 65 84 2 2 182 782 20 9 1,456
                                                     
2 The source for all the tables is Eurostat (COMEXT).WT/REG106/R/B/1
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Page 6Table 2 - EU Exports to World and OCTs, 1980-1998
(Million ECU)
S I T C :0 123 4 56789 T O T A L
1980 (EU 9)
      WORLD 13,662 3,422 4,327 10,071 717 23,228 46, 455 84,154 21,333 13,716 221,084
      OCTs 57 23 5 70 3 37 89 154 73 12 524
1984 (EU 10)
      WORLD 21,120 5,784 7,319 18,087 1,343 38,465 65,412 129,088 39,835 24,806 351,259
      OCTs 106 48 6 51 6 58 134 274 115 23 822
1988 (EU 12)
      WORLD 19,588 6,205 7,602 8,232 1,158 44,449 65, 673 141,249 48,507 20,256 362,917
      OCTs 116 91 11 34 4 93 193 474 225 38 1,279
1992 (EU 12)
      WORLD 24,887 8,778 8,068 10,552 1,491 54,200 71,091 180,838 59,247 16,939 436,091
      OCTs 147 118 9 50 5 124 192 803 235 29 1,711
1996 (EU 15)
      WORLD 30,646 10,339 11,414 15,431 1,998 79,14 4 102,957 283,081 79,287 12,695 627,011
      OCTs 182 148 11 63 6 149 217 1,242 304 28 2,369
1997 (EU 15)
      WORLD 33,504 12,374 13,084 17,109 2,575 93,04 6 114,927 331,113 88,686 13,717 721,109
      OCTs 205 184 11 130 7 164 254 1,612 369 21 2,977
1998 (EU 15)
      WORLD 31,772 12,005 11,554 13,833 2,831 95,88 5 112,815 343,435 89,424 16,869 730,423
      OCTs 224 167 11 89 7 176 268 1,702 407 40 3,117WT/REG106/R/B/1
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Page 7Table 3 - EU Trade with OCTs by HS Section
(Million ECU)
EXPORTS IMPORTS
SECTION 1988 1992 1996 1997 1998 SECTION 1988 1992 1996 1997 1998
TOTAL 1,279 1,711 2,369 2,977 3,117 TOTAL 697 631 1,459 1,608 1,456
I 45 63 76 83 84 I 216 174 175 212 212
II 15 13 14 20 22 II 2 19 137 69 15
III 5 6 7 9 9 III 3 3 5 6 2
IV 148 188 240 285 284 IV 81 84 103 89 85
V 39 53 67 134 94 V 77 100 149 157 86
VI 82 114 138 151 163 VI 2 5 2 2 2
V I I 3 8 4 0 5 15 45 3 V I I 0 0 0 0 0
VIII 6 6 9 6 6 VIII 1 1 1 2 1
IX 18 16 17 20 19 IX 0 0 0 0 0
X 4 5 5 2 5 85 96 2 X 1 0 8 7 4
XI 49 49 59 59 63 XI 7 7 4 5 6
XII 9 10 13 15 16 XII 0 0 0 0 0
XIII 28 31 39 41 53 XIII 0 0 0 0 0
XIV 49 45 75 129 155 XIV 8 2 148 105 96
XV 100 99 109 136 125 XV 244 151 180 181 138
XVI 266 282 389 363 416 XVI 10 11 17 16 19
XVII 211 526 860 1,258 1,292 XVII 32 64 513 739 763
XVIII 31 37 44 52 59 XVIII 3 3 9 8 14
XIX 2 1 2 6 3 XIX 0 0 0 0 0
XX 60 53 60 66 74 XX 0 0 1 0 1
XXI 20 12 13 11 36 XXI 6 5 7 10 11WT/REG106/R/B/1
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Page 8Table 4 - EU Trade with World by HS Section
(Million ECU)
EXPORTS IMPORTS
SECTION 1988 1992 1996 1997 1998 SECTION 1988 1992 1996 1997 1998
TOTAL 362,917 436,091 627,011 721,109 730,423 TOTAL 387,757 487,135 581,065 672,413 709,643
I 7,060 8,001 9,980 10,897 10,062 I 8, 349 10,300 10,897 12,227 13,296
II 6,372 8,511 8,819 9,757 9,145 II 17,55 5 17,353 23,130 25,437 24,992
III 1,341 1,673 2,286 2,977 3,156 III 1,542 1,781 2,250 2,390 2,693
IV 13,817 19,194 24,510 27,744 27,279 I V 13,638 15,595 18,511 19,019 19,518
V 9,723 12,152 17,487 19,630 16,711 V 55,920 73,081 84,793 95,737 75,508
VI 37,393 46,951 68,968 81,772 85,215 V I 22,179 29,303 39,774 46,234 49,432
VII 15,521 16,914 23,128 27,148 27,504 V II 10,125 13,862 17,132 19,323 21,043
VIII 4,119 4,084 7,159 7,375 6,435 VIII 6,121 5,701 7,590 8,498 8,224
IX 1,771 2,035 4,045 4,927 5,182 IX 9, 615 10,926 9,118 10,973 11,434
X 7,937 10,271 18,033 19,764 19,803 X 17,605 19,227 11,110 11,996 12,571
XI 20,244 25,208 31,611 34,724 35,221 X I 28,639 39,478 47,467 55,248 57,903
XII 3,440 4,526 5,922 6,313 6,043 XII 3,325 5,451 7,029 8,308 8,274
XIII 7,153 8,120 11,257 12,916 12, 894 XIII 2,593 3,883 4,386 5,090 5,648
XIV 13,026 12,425 16,992 19,285 17,990 X IV 17,526 15,037 21,620 23,890 26,981
XV 30,826 30,864 42,214 46,944 45,623 X V 26,101 29,345 33,661 40,312 44,472
XVI 93,666 120,842 193,730 226,482 234,539 XVI 81,389 106,397 146,298 173,122 195,378
XVII 46,674 59,351 89,086 104,705 110,049 XVII 25,240 40,386 42,797 56,275 68,476
XVIII 14,107 17,067 23,982 28,129 29,109 XVIII 14,869 19,652 24,343 27,814 29,926
XIX 402 388 1,097 1,326 1,656 XIX 118 194 466 603 510
XX 7,819 9,378 13,350 15,177 15,242 XX 6 ,655 12,072 14,394 17,529 19,046
XXI 8,204 5,727 13,354 13,115 11,565 XXI 5,733 5,511 14,298 12,387 14,318
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