WORLD TRADE  
ORGANIZATION  WT/REG106/R/B/3 
G/L/689 8 September 2004 
 
(04-3761) 
Committee on Regional Trade Agreements Original:   English 
  
 
ASSOCIATION OF CERTAIN OVERSEAS COUNTRIES AND TERRITORIES 
WITH THE EUROPEAN COMMUNITY  
  
 The following communication, dated 3 September 2004, is being circulated at the request of the Permanent Delegation of the European Commission. 
 
_______________ 
 
Biennial Report on the Operation of the Agreement 
 
 
Communication from the European Communities 
 
 
I. BACKGROUND INFORMATION ON THE AGREEMENT 
1. Membership And Dates Of Signature, Ratification And Entry Into Force 
 Under the Treaty establishing the European Community (EC), the Overseas Countries and 
Territories (OCTs) are linked to the Community under a specific Association, which is set out in Part 
Four of the Treaty. The purpose of this Associ ation is to promote the economic and social 
development of the countries and territories and to  establish close economic relations between them 
and the EC as a whole. 
  
 The Association was reviewed in 2001 and Council Decision 2001/822/EC adopted on 27 November 2001. The decision is applicable until 31 December 2011. It does not change the principles underlying the arrangements governing trade between the EC and the OCTs.   There have been no changes to the list of OC Ts which are associated with the EC (see   
Annex 1). There are currently 20 such OCTs, linked to four EC Member States (Denmark, France, the 
Netherlands and the United Kingdom).  
2. Type Of Agreement 
3. Scope 
 The 2001 Association does not contain any amendments compared to previous decisions on 
Association.  
4. Trade Data 
 Since the last biennial report, trade has sli ghtly decreased by 3.4 per cent. In 2002, total 
imports from the OCTs to the EC were 1 billion euro s and total exports were 2.7 billion euros. The 
overall share of the OCTs in the total trade of the EU remains highly limited at 0.2 per cent. Further 
statistical information is provided in annex 2. WT/REG106/R/B/3 
G/L/689 Page 2 
 
 
 II. TRADE PROVISIONS 
1. Import Restrictions 
2. Export Restrictions 
 The 2001 Association confirms existing trade provisions, notably the duty-free and quota-free 
access for all products originating in the OCTs. No export restrictions apply. 
 
3. Rules Of Origin  
 The 2001 Association confirms and updates th e existing definitions of “OCT products” for 
the purposes of the rules of origin . This maintains provisions allowing cumulation of origin with the 
African, Caribbean and Pacific (ACP) Group of Stat es, intended to promote regional integration and 
trade between the ACP States and the OCTs, but seeks to prevent the mere re-importation of agricultural products into the EC, and envisages th e gradual phasing out of cumulation for sugar and 
sugar mixes in view of their relatively minor contribution to OCT development. 
 4. Standards 
 The 2001 Association contains a new provision envisaging closer cooperation in the field of 
standardisation, certification and quality assuran ce, to remove unnecessary technical barriers and 
reduce differences in those areas,  so as to facilitate trade. 
 
5. Safeguards 
 The 2001 Association leaves the possibility of safeguard measures in case of serious 
disturbances or when external financial stability is  jeopardised, priority being given to measures as 
would least disturb the Association. No safeguard measures are in force.  
6. Anti-Dumping And Countervailing Measures 
7. Subsidies And State-Aid 
8. Sector-Specific Provisions 
9. Other  
 The 2001 Association does not contain any amendments compared to previous decisions on 
Association.  III. GENERAL PROVISIONS OF THE AGREEMENT 
1. Exceptions And Reservations 
 The 2001 Association contains a standard provision  on prohibitions or restrictions justified on 
grounds of public morality or publ ic policy, the protection of health and life and national treasures, 
conservation of natural resources, and indus trial or commercial property protection. 
  WT/REG106/R/B/3 
 G/L/689 
 Page 3 
 
 
 2. Accession 
3. Dispute Settlement Procedures 
4. Relations With Other Trade Agreements 
 The 2001 Association does not contain any amendments compared to previous decisions on 
Association. 
 
5. Institutional framework 
 The 2001 Association maintains the European  Commission/Member State/OCT partnership, 
involving close consultation between the European Commission, the Member State responsible for an 
individual OCT and the relevant local authorities of  the OCTs.  This partnership now includes annual 
meetings of an OCT-EC Forum for dialogue, brin ging together representatives of the European 
Commission and all OCTs and Member States involved.   IV. OTHER 
 Trade In Services
 
  The 2001 Association confirms provisions on tr ade in services and rules of establishment. 
With the long-term aim of progressively liberalising trade in services, the EC applies 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 Memb er States treatment no less favourable than that 
extended to third countries.  With regard to th e right of establishment a nd provision of services, both 
the EC Member States and the OCTs are obliged to treat each other’s nationals and companies or 
enterprises on a non-discriminatory basis, in line with  Part IV of the Treaty establishing the EC, with 
the possibility for OCTs to aid their inhabitants and local activities.   
  
  WT/REG106/R/B/3 
G/L/689 Page 4 
 
 
 ANNEX 1 
 
Overseas Countries And Territories Associ ated With The European Community
 
 
 
Country having special relations with the Kingdom of Denmark 
 
• Greenland  
 
Territories of the French Republic 
 
• New Caledonia and Dependencies  
• French Polynesia  
• French Southern and Antarctic Territories 
• Wallis and Futuna Islands  
• Mayotte  
• St Pierre and Miquelon  
 Overseas Countries of the Kingdom of the Netherlands 
 
• Aruba  
• Netherlands Antilles (Bonaire, Curaçao, Saba, Sint Eustatius, Sint Maarten)  
 
Overseas Countries and Territories of the United Kingdom of Great Britain and Northern Ireland 
 
• Anguilla  
• Cayman Islands  
• Falkland Islands  
• South Georgia and South Sandwich Islands  
• Montserrat  
• Pitcairn  
• Saint Helena, Ascension Is land, Tristan da Cunha 
• Turks and Caicos Islands  
• British Antarctic Territory  
• British Indian Ocean Territory  
• British Virgin Islands 
  
 WT/REG106/R/B/3
G/L/689
Page 5EU15-OCTs Imports/Exports, 1999-2002
 
EU15 trade 1999 - 2002 with OCTs (million Euro)  
imports exports balance total trade
1999 2000 2001 2002 1999 2000 2001 2002 1999 2000 2001 2002 1999 2000 2001 2002
1011 Extra-EU1527-Jul-04
841 1,132 941 1,018 2,502 2,718 2,860 2,652 1,661 1,586 1,919 1,634 3,344 3,850 3,801 3,669
of which:
01 Animals & animal products 207 233 239 294 88 100 107 96 -119 -133 -132 -198 295 333 346 389
02 Vegetable products 91 51 41 3 2 42 42 93 0 1 41 01 51 6 3 33 94 34 3
03 Animal or vegetable fats 4322 9989 5767 1 3 1 2 1 0 1 1
04 Prepared foodstuffs 131 136 94 110 207 211 213 244 76 75 119 134 338 348 307 354
05 Mineral products 133 202 118 113 118 173 64 77 -15 -29 -54 -36 250 375 182 189
06 Chemical products 7634 1 7 9 2 0 4 2 2 8 2 4 5 1 7 2 1 9 8 2 2 5 2 4 1 1 8 6 2 1 1 2 3 1 2 4 9
07 Plastics & rubber 0012 5 9 6 6 6 2 6 6 5 9 6 5 6 2 6 4 5 9 6 6 6 3 6 8
08 Hides & skins 1222 5777 4555 6899
09 Wood & wood products 0000 2 2 1 8 1 6 2 4 2 1 1 7 1 5 2 4 2 2 1 8 1 6 2 5
10 Wood pulp products 1121 6 7 6 8 7 2 7 9 6 5 6 7 7 0 7 8 6 8 6 9 7 3 8 1
11 Textiles & textile articles 4468 6 1 6 6 7 4 7 6 5 7 6 2 6 8 6 8 6 5 7 0 8 0 8 4
12 Footwear, headgear 0000 1 5 1 5 1 6 1 8 1 5 1 5 1 6 1 8 1 5 1 5 1 6 1 8
13 Articles of stone, plaster, cement, asbestos 0000 4 6 4 8 4 4 5 1 4 6 4 8 4 4 5 0 4 6 4 8 4 4 5 1
14 Pearls, (semi-)precious stones, metals 73 74 36 32 140 166 160 96 67 92 123 64 213 240 196 128
15 Base metals & articles thereof 129 237 208 190 140 143 151 161 11 -94 -57 -29 269 381 359 350
16 Machinery & mechanical applicances 21 16 15 23 439 491 538 514 418 475 522 492 460 508 553 537
17 Transportation equipment 99 179 166 198 715 721 871 648 616 543 705 450 814 900 1,037 846
18 Instruments - measuring, musical 1 1896 5 4 5 9 7 0 7 3 4 4 5 1 6 1 6 8 6 5 6 7 7 9 7 9
19 Arms & ammunition 0000 2222 2222 3223
20 Miscellaneous 1233 7 8 9 1 8 9 9 7 7 7 8 9 8 6 9 4 7 9 9 3 9 1 1 0 1
21 Works of art 1312 2111 0 - 100 3423
Other 81 02 21 4 3 33 33 83 7 2 62 21 72 3 4 14 36 05 1
Source : Eurostat COMEXT 10 September 2003 (Statistical regime 1) TRADE/F/1  José ÁlvarezTotalOCTs 
 WT/REG106/R/B/3 
G/L/689 
Page 6 
EU15-OCTs Imports/Exports, 2002 and comparison with extra-EU15
balance balance
M Euro % Total M Euro % Total M Euro M Euro % Total M Euro % Total M Euro imports exports
27-Jul-04
1,031 100.0% 2,661 100.0% 1,630 918,798 100.0% 868,524 100.0% -50,274 0.1% 0.3% 2.58
of which:
01 Animals & animal products 294 28.5% 96 3.6% -198 15,949 1.7% 11,195 1.3% -4,754 1.8% 0.9% 0.33
02 Vegetable products 13 1.3% 30 1.1% 17 26,010 2.8% 11,625 1.3% -14,385 0.1% 0.3% 2.23
03 Animal or vegetable fats 2 0.2% 9 0.3% 7 2,317 0.3% 2,339 0.3% 22 0.1% 0.4% 4.34
04 Prepared foodstuffs 110 10.6% 244 9.2% 135 23,791 2.6% 27,732 3.2% 3,941 0.5% 0.9% 2.23
05 Mineral products 113 10.9% 77 2.9% -36 147,537 16.1% 29,272 3.4% -118,266 0.1% 0.3% 0.68
06 Chemical products 4 0.4% 245 9.2% 241 67,920 7.4% 126,606 14.6% 58,685 0.0% 0.2% 60.37
07 Plastics & rubber 2 0.2% 66 2.5% 65 25,724 2.8% 36,740 4.2% 11,016 0.0% 0.2% 38.67
08 Hides & skins 2 0.2% 7 0.3% 5 10,253 1.1% 9,177 1.1% -1,076 0.0% 0.1% 3.83
09 Wood & wood products 0 0.0% 24 0.9% 24 13,546 1.5% 7,637 0.9% -5,908 0.0% 0.3% 54.16
10 Wood pulp products 1 0.1% 79 3.0% 78 15,485 1.7% 25,167 2.9% 9,682 0.0% 0.3% 53.14
11 Textiles & textile articles 8 0.8% 76 2.9% 68 66,360 7.2% 38,688 4.5% -27,671 0.0% 0.2% 9.13
12 Footwear, headgear 0 0.0% 18 0.7% 18 11,422 1.2% 6,862 0.8% -4,560 0.0% 0.3% 511.33
13 Articles of stone, plaster, cement, asbestos 0 0.0% 51 1.9% 51 7,809 0.8% 15,368 1.8% 7,559 0.0% 0.3% 111.44
14 Pearls, (semi-)precious stones, metals 32 3.1% 96 3.6% 64 33,805 3.7% 26,743 3.1% -7,062 0.1% 0.4% 3.00
15 Base metals & articles thereof 190 18.4% 162 6.1% -28 49,836 5.4% 52,420 6.0% 2,584 0.4% 0.3% 0.85
16 Machinery & mechanical applicances 23 2.2% 517 19.4% 494 235,463 25.6% 270,216 31.1% 34,754 0.0% 0.2% 22.73
17 Transportation equipment 198 19.2% 649 24.4% 451 76,013 8.3% 92,269 10.6% 16,257 0.3% 0.7% 3.28
18 Instruments - measuring, musical 6 0.6% 74 2.8% 68 38,860 4.2% 41,363 4.8% 2,504 0.0% 0.2% 12.67
19 Arms & ammunition 0 0.0% 2 0.1% 2 955 0.1% 1,197 0.1% 242 0.0% 0.2% 5.75
20 Miscellaneous 3 0.3% 99 3.7% 95 28,770 3.1% 18,637 2.1% -10,132 0.0% 0.5% 28.46
21 Works of art 2 0.2% 1 0.1% 0 2,949 0.3% 4,098 0.5% 1,150 0.1% 0.0% 0.76
Other 27 2.6% 37 1.4% 10 18,025 2.0% 13,172 1.5% -4,853 0.1% 0.3% 1.39
Source : Eurostat COMEXT 10 September 2003 (Statistical regime 1) TRADE/F/1  José ÁlvarezOCTs
imports exports imports exports market shares Exp-Imp 
ratio
1011 Extra-EUROCTs / Total
TotalEU15 trade 2002 with OCTs EU15 trade 2002 with Extra-EUR
 
__________