Proposal for a COUNCIL DECISION on the association of the overseas countries and territories with the European Community ('Overseas')

(presented by the Commission)

Summary

PART ONE: GENERAL PROVISIONS

Chapter 1: Guidelines

Article 1 Aim, objectives and principles

Article 2 Basic elements

Article 3 The least-developed OCTs

Chapter 2: The institutional framework: trilateral partnership and bilateral management

Article 4 Trilateral partnership

Article 5 ACP-EC Joint Assembly

Article 6 Bilateral management

Chapter 3: The actors

Article 7 Principles

Article 8 The different actors involved

Article 9 Responsibilities of the actors

PART TWO: THE AREAS OF EC-OCT COOPERATION

Article 10 The areas

Article 11 Productive sectors

Article 12 Trade development

Article 13 Trade in services

Article 14 Trade-related areas

Article 15 Social sectors

Article 16 Regional cooperation and integration

Article 17 Cultural and social cooperation

PART THREE: THE INSTRUMENTS OF EC-OCT COOPERATION

Title I. Development finance cooperation

Chapter 1: General provisions

Article 18 Objectives

Article 19 Principles

Article 20 Guidelines

Article 21 Scope of financing

Article 22 Eligibility for financing

Article 23 Programming and implementation

Article 24 EDF-OCT Committee

Chapter 2: Resources made available to the OCTs

Article 25 Financial assistance

Chapter 3: Private sector investment support

Article 26 Investment promotion

Article 27 Investment support and financing

Chapter 4: Additional support in the event of fluctuations in export earnings

Article 28 Additional support

Chapter 5: Support for other actors of cooperation

Article 29 Objectives and financing

Chapter 6: Support for humanitarian and emergency aid

Article 30 Objectives and means

Chapter 7: Implementation procedures

Article 31 Technical assistance

Article 32 Financial control

Chapter 8: Transition from previous EDFs to the 9th EDF

Article 33 Implementing the previous EDFs and the transitional phase

Title II: Economic and trade cooperation

Article 34 Objective

Chapter 1: Arrangements for trade in goods

Article 35 Free access for originating products

Article 36 Transhipment of non-originating products in free circulation in the OCTs

Article 37 Quantitative restrictions and measures having equivalent effect: prohibitions

Article 38 Hazardous, non-hazardous and radioactive waste

Article 39 Measures adopted by the OCTs

Article 40 Surveillance clause

Article 41 Safeguard measures

Chapter 2: Trade in services

Article 42 Objective

Article 43 General principles of establishment and the provision of services

Article 44 Subsequent amendments

Article 45 Maritime transport

Chapter 3: Trade-related areas

Article 46 Current payments and capital movements

Article 47 Competition policies

Article 48 Protection of intellectual property rights

Article 49 Standardisation and certification

Article 50 Trade and the environment

Article 51 Trade and labour standards

Article 52 Consumer policy and consumer health protection

Chapter 4: Monetary and tax matters

Article 53 Tax carve-out clause

Article 54 Tax and customs arrangements for EC-funded contracts

Article 55 Taxation of savings income

PART FOUR: ARRANGEMENTS APPLICABLE TO INDIVIDUALS

Article 56 Professional qualifications

Article 57 Vocational training

Article 58 Programmes open to the OCTs

Article 59 Euro-Info Correspondence Centres (EICC)

Article 60 Citizenship of the Union

PART FIVE: FINAL PROVISIONS

Article 61 Change of status

Article 62 Review

Article 63 Entry into force

Article 64 Publication

Annexes

Annex IA // List of OCTs

Annex IB // List of OCTs considered the least developed

Annex IIA // Community financial assistance: allocation by instrument

Annex IIB // Community financial assistance: European Investment Bank

Annex IIC // Community financial assistance: EIB-managed Investment Facility

Annex IID // Community financial assistance: Additional support in the event of short-term fluctuations in export earnings

Annex IIE // Community financial assistance: Budgetary aid for developing countries

Annex IIF // Community financial assistance: Community programmes open to the OCTs

Annex III // Concept of "originating products" and methods of administrative cooperation

Annex 1 to ANNEX III // Introductory note to the list in Annex 2 to Annex III

Annex 2 to ANNEX III // List of working or processing required to be carried out on non-originating materials in order that the product manufactured can obtain originating status

Annex 3 to ANNEX III // Form for movement certificate

Annex 4 to ANNEX III // Invoice declaration

Annex 5A to ANNEX III // Supplier declaration for products having preferential origin status

Annex 5B to ANNEX III // Supplier declaration for products not having preferential origin status

Annex 6 to ANNEX III // Information Certificate

Annex 7 to ANNEX III // Form for application for a derogation

Annex IV // Conditions for the import into the Community of products not originating in the OCTs but in free circulation in the OCTs and methods of administrative cooperation relating thereto

Annex 1 to ANNEX IV // EXP. 1 transhipment certificate

Annex V // Movements of hazardous and radioactive waste

Annex VI // Euro-Info Correspondence Centres (EICC)

EXPLANATORY MEMORANDUM

OCT 2000

Proposal for a Decision of the Council: 'Overseas'

1. Background

Council Decision 91/482/EEC of 25 July 1991 on the association of the OCTs with the EC, [1] as amended by Council Decision 97/803/EC of 24 November 1997 [2] and extended by Council Decision 2000/169/EC of 25 February 2000 [3] is applicable until 28 February 2001.

[1] OJ L 263, 19.9.1991, p.1.

[2] OJ L 329, 29.11.1997, p. 50.

[3] OJ L 55, 29.2.2000, p. 67.

The attached proposal for a Decision is intended to succeed it with effect from 1 March 2001.

The broad lines of the new Decision were traced out by Declaration No 36 on the overseas countries and territories annexed to the Final Act of the Treaty of Amsterdam: a "Declaration concerning the Overseas Countries and Territories" was in fact inserted in the Final Act by the Conference. In it, the Intergovernmental Conference compares the development of the Community and the OCTs since 1957 and invites the Council, acting in accordance with Article 136 of the Treaty establishing the European Community, to review the association arrangements by February 2000, with a fourfold objective:

-promoting the economic and social development of the OCTs more effectively;

-developing economic relations between the OCTs and the European Union;

-taking greater account of the diversity and specific characteristics of the individual OCTs, including aspects relating to freedom of establishment;

-and ensuring that the effectiveness of the financial instrument is improved".

In the light of the above Declaration, the proposal is based mainly on the texts and the results of the consultations below:

-the resolution adopted unanimously by Parliament on 11 February 1999 on the basis of an own-initiative report of the Committee on Cooperation and Development;

-Commission communication COM(1999) 163 final of 20 May 1999 entitled "the Status of OCTs associated with the EC and options for 'OCT 2000'", in which the Commission described the OCTs and their status under Community law, discussed the basic issue of the association of the OCTs with the EC and set out the options for 2000;

-consultations with the four Member States to which the twenty OCTs are linked, and

-in particular, the top-level meeting with the authorities of the twenty OCTs held in Brussels on 29 and 30 April 1999 in the framework of the Commission/Member State/OCT partnership.

2. Presentation

Conceptually and semantically, it draws on the EC-South Africa agreement and the Cotonou Agreement with the ACP States.

As in the Cotonou Agreement, the text is condensed (67 articles instead of the 242 in the previous Council Decision) with much of the detail put in the annexes.

3. Structure

The structure of the document is simple, comprising five parts:

I. Part One: General Provisions

Following an initial reminder of the principles and objectives contained in Part Four of the Treaty (Articles 182 to 187), the emphasis is on the diversity of the OCTs, in particular the least developed OCTs.

Reference is made to the institutions of the trilateral partnership, to which the OCTs attach great importance.

II. Part Two: Areas of Cooperation

A new item is introduced here (post-Lomé) in that development finance cooperation also covers trade in services and trade-related areas to help the OCTs adjust to the changing world economy.

III. Part Three: Instruments of Cooperation

A - Title I. Development finance cooperation

The overall amounts were decided at the same time as the ACP EDF funding by the Internal Agreement concerning the 9th EDF.

Four types of resources:

-programmable allocations (OCTs and regional cooperation)

-investment facility (= Cotonou)

-additional support in the event of fluctuations in export earnings, emergency and refugee aid, supplementary allocations for the most efficient OCTs (Cotonou)

-EIB own resources loans.

Lastly, a fifth resource (budgetary) is explicitly mentioned: eligibility for general measures financed by the budget headings open to the developing countries (emergency aid, AIDS, etc.).

Both the European Parliament (11.2.1999) and the OCTs, backed by their Member States (30.4.1999), wanted:

-a special OCT fund in the budget,

-ERDF-type management.

As the 2000-2006 financial perspectives have already been adopted, the earliest starting date for the solution of a special OCT fund would be 2007.

However, it is already proposed to use the ERDF-inspired procedure for implementation of the programmable allocation ('9th EDF'). This represents a major change.

1. This innovation has been introduced, in particular, in response to the very critical comments made at the Partnership meeting in April 1999 about the implementation of the previous Association decisions. These working methods, which are modelled on ERDF procedures, are to be the subject of specific implementing provisions in the "Overseas" Decision. This proposal covers the general guidelines for such provisions, which must take particular account of the on-going reorganisation in the Commission's RELEX services.

This approach is based on the principles of partnership, complementarity and subsidiarity:

-it is implemented on the basis of development objectives, strategies and priorities adopted by the competent OCT authorities,

-it is flexible and tailored to the situation of each OCT.

The competent OCT authorities prepare and submit to the Commission a draft Single Programming Document (SPD), which is adopted by a single financing decision of the ad hoc EDF-OCT Committee once the consultation stage has been completed.

Implementation is the responsibility of the OCT concerned; the general implementing rules are established by the Commission and annexed to each SPD.

To assess the effectiveness of the Community measures, a series of audits and ex-ante, mid-term and ex-post evaluations is provided for. The OCT concerned has primary responsibility for the financial supervision of the operation, but the Commission has powers of coercion in the event of shortcomings on the part of the OCT concerned.

2. The methodological approach proposed involves the introduction of two new features:

-the "Investment Facility", reimbursable aid to promote commercially viable enterprises in the private sector or enterprises in the public sector that support the development of the private sector

-additional support in the event of fluctuation in export earnings; the support mechanism is triggered when various conditions are met.

B. - Title II. Economic and trade cooperation

Trade in products, trade in services, trade-related areas.

1. The main aspects of the proposal with regard to products are:

(a) Full freedom of access, as there has been since 1991, to the EC market (unlike the ACP States) for products originating in the OCTs, subject to the special provisions for two especially sensitive CAP sectors (rice and sugar).

This is the only case in all the Community agreements, hence the importance of ACP-OCT cumulation of origin which concerns two different access regimes and has therefore given rise to flows of ACP products via the OCTs: the principle of restrictions on cumulation, thrashed out by the Council at the end of 1997, for the two sensitive products (rice and sugar) is therefore maintained. The proposal also involves setting aside a quota for the least-developed OCTs within the quantity limit on rice (160 000 t) and opening a tariff quota for butter.

These changes take due account of experience acquired since the adoption of Decision 91/482/EC. It has been difficult to achieve a balance between the principle of free access to the Community market for OCT products on the one hand and the objectives of the common agricultural policy on the other. In some cases, the Commission and the Council have had to impose safeguard measures, which in turn have generated a large number of legal actions in the Court of Justice or the Tribunal of First Instance (more than 30 cases to date).

The Commission considers that a long term solution for this problem can be found by granting market access subject to certain pre-determined conditions, rather than by preserving a theoretically completely free regime, subject to the risk of exceptional safeguard measures. Such an approach would in particular guarantee operators stable and predictable market access conditions.

For the moment, the OCTs may maintain customs duties (non-discriminatory and most favoured nation, except vis-à-vis other developing countries). This situation might be subject to a joint review in the negotiations on the establishment of the regional free trade agreements provided for in the Cotonou Agreement, in particular with regard to relations between the OCTs and some of the Community's outermost regions.

(b) Apart from the restrictions on cumulation decided in 1997, origin rules have not changed since 1985. Since the Essen European Council, they have been subject to the general harmonisation of preferential rules of origin basically involving a new, simplified and modernised presentation designed to keep up with technological change.

In a few cases the proposed changes consist of new procedures (invoice declarations as proof of origin) as well as some improvements (minimum operations) designed to encourage traders who make a genuine contribution to local development.

Minimal operations do not actually confer OCT origin and, moreover, are excluded from cumulation. The list of minimal operations has been updated accordingly to take account of the objectives of local development and origin rule harmonisation.

Finally, it is also proposed to align the procedure for the technical up-dating of rules of origin on the procedure laid down in the Customs Code for other preferential arrangements.

(c) Free access to the EC market for non-originating products in free circulation in the OCTs after the EC customs duty has been paid in the OCT concerned (known since 1991 as transhipment).

This development instrument was invented in 1991 and is unique to the OCTs, consisting of a budget transfer to the OCT budget (and a shortfall to be made good in the EC budget). But, as some OCTs are suspected of having refunded some of the customs duties to operators or granting them transport subsidies to compensate their distance from the EC market, a 'state aids'-type clause has been added: the Commission may authorise 'state' aid or OCT aid in exceptional cases subject to a committee opinion.

2. On trade in services, besides the fact that it will come under development finance cooperation, as mentioned above, the arrangements for establishment and the provision of services are the main feature:

-the Community may not discriminate between OCTs;

-the OCTs may not discriminate between Member States;

-OCTs may give preference to their inhabitants; the clause requiring the Commission's prior approval has been deleted: this principle can be seen as the corollary of allowing the OCTs to maintain customs duties on EC products.

As in the past, the Community may not discriminate against OCT companies, firms or nationals on its market with the rider that this 'national treatment' is granted to them only in the context of undertakings entered into under GATS to avoid the Community being forced to extend such favourable treatment across the board to all WTO members. Likewise, to help OCTs which have entered into undertakings under GATS avoid the same pitfall, it is clearly stated that non-discrimination against Community companies, firms and nationals on the OCT markets is without prejudice to any such undertakings under GATS.

In the field of trade in services, the new references to GATS will have the effect of bringing the Decision into line with OCT rules. Although they depart somewhat from the principle of non-discrimination as set out in the Treaty (Article 183(5)), that principle only in fact applies, according to the same Article, subject to special provisions adopted by the Council which has already allowed exceptions to it in favour of OCTs allowing them to give preference to their own nationals (see third indent above).

On the subject of trade in goods, the Treaty provides for the abolition of customs duties in EC-OCT trade while at the same time allowing the OCTs to levy duties which meet the needs of their development and industrialisation or produce revenue for their budgets.

The issue of the Association's compatibility with WTO rules is of particular concern as the Community has reaffirmed its solidarity with the OCTs and also expressed the importance it attaches to undertakings entered into under the WTO. The question must therefore be seen in this dual perspective.

Even if the OCTs could waive the customs duties which the Treaty allows them to levy, the sudden introduction of reciprocity under this new proposal would be inappropriate. On political, if not legal grounds (see CJEC judgments), the OCTs can claim treatment that is no less favourable than that accorded to the ACP States. Given as well that the OCTs are small vulnerable islands, it is better to wait until the end of the preparatory Cotonou period before broaching the question of reciprocity in EC-OCT trade

Such a review will have to take account of changes in EC-ACP trade arrangements. The inclusion of some OCTs - far from being an option for all of them - in future economic partnership agreements between ACP States and the EC might be one scenario requiring a review of the Decision.

IV. Part Four: Rights of individuals

This covers features specific to the OCTs in the light of various legal cases or "internal" policies already open to OCT nationals since 1991: certain Community programmes (e.g. Erasmus, Socrates), Euro-Info Correspondence Centres, EU citizenship for nationals having full citizenship of a Member State, etc.

V. Part Five: Final provisions

In view of the substantial changes foreseen for the association arrangement after 2006, such as the move to budgetary funding and the anticipated negotiation of the ACP/EC free trade agreements, it is proposed that the new Decision should apply until 31 December 2007, when the 9th EDF also expires.

Lastly, a review clause has been added so that there is prior agreement on the eventual need to bring the rules on trade and services into line with the WTO (see III above).

For these reasons, the Commission submits the attached proposal to the Council for adoption.

Proposal for a

COUNCIL DECISION

on the association of the overseas countries and territories with the European Community ('Overseas')

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, hereinafter referred to as the Treaty, and in particular Article 187 thereof,

Having regard to the proposal from the Commission, [4]

[4]

Whereas:

(1) Council Decision 91/482/EEC of 25 July 1991 on the association of the overseas countries and territories, hereinafter referred to as the 'OCT', with the EEC, [5] as amended by Council Decision 97/803/EC of 24 November 1997 and extended by Council Decision 2000/169/EC of 25 February 2000, [6] is applicable until 28 February 2001. Article 240(4) thereof states that the Council, acting unanimously on a proposal from the Commission, shall establish the provisions to be laid down for the subsequent application of the principles set out in Articles 182 to 186 of the Treaty.

[5] OJ L 263, 19.9.1991, p. 1.

[6] OJ L 55, 29.2.2000, p. 67.

(2) Declaration No 36 concerning the OCT, annexed to the final act of the Amsterdam Conference, invites the Council, acting in accordance with Article 187 of the Treaty, to review the association arrangements with the OCTs with a fourfold objective:

-promoting the economic and social development of the OCTs more effectively;

-developing economic relations between the OCTs and the European Union;

-taking greater account of the diversity and specific characteristics of the individual OCTs, including aspects relating to freedom of establishment;

-and ensuring that the effectiveness of the financial instrument is improved.

(3) On 11 February 1999 the European Parliament adopted a resolution on relations between the OCTs, the ACP States and the outermost regions of the European Union [7] on the basis of the report by the Committee on Development and Cooperation. [8]

[7] PE 276.723.

[8] PE 228.210, 1.12.1998.

(4) In its communication of 20 May 1999 entitled "the Status of OCTs associated with the EC and options for 'OCT 2000'", [1] the Commission examined the features and the development of the OCT-EC association since 1957, noted the basic principles and the current situation of the association and sketched out alternative policies for it for the period beginning 1 March 2000.

[1] COM (1999) 163 final, 20.5.1999, volumes I and II.

(5) In accordance with Article 10 of Decision 91/482/EEC, the competent OCT authorities informed the Commission of the amendments or additions they desired in future, notably at a meeting held in the context of the partnership on 29 and 30 April 1999, attended by the Commission, the four Member States to which the OCTs are linked and the 20 OCTs concerned.

(6) The second paragraph of Article 182 of the Treaty states that the twofold aims of the association of the OCTs with the Community are 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.

(7) The third paragraph of Article 182 of the Treaty adds that the "purpose of the association shall be to further the interests and prosperity of the inhabitants of these countries and territories in order to lead them to the economic, social and cultural development to which they aspire".

(8) Article 183 of the Treaty also lists the objectives of the association, referring in particular to trade, the financial contributions of Member States to the development of the OCTs and the rights of individuals.

(9) Though not third countries, the OCTs do not form part of the single market and must comply with the obligations imposed on non-member countries in respect of trade, notably rules of origin, health and plant health standards and safeguard measures, as the Court of Justice of the European Communities has confirmed.

(10) As a general rule, when the Council adopts measures under Article 187 of the Treaty, it must take account both of the principles laid down in Part Four of the Treaty and of the other principles of Community law. [2] It should also take account of experience acquired in the implementation of the trade arrangements of Decision 91/482/EEC.

[2] Judgment of the Court of 8.2.2000, Case C-17/98, point 38.

(11) These arrangements provide for duty-free access for products originating in the OCTs and rules of origin allowing cumulation with products originating in the ACP States, which are subject to different arrangements, or in the Community. This causes or threatens to cause serious disruption to the functioning of certain common market organisations under the common agricultural policy, in particular those for rice and sugar. Such disruption has on a number of occasions led the Commission and the Council to adopt safeguard measures.

(12) By limiting the scope for use of cumulation of origin, the changes made in relation to rice at the mid-term review of the Decision [3] have helped maintain access for OCT products to the Community market on terms conducive to its balance.

[3] Council Decision 97/803/EC, OJ L 329, 29.11.1997, p. 50.

(13) However, as regards sugar, the rise in OCT exports made from sugar of ACP or Community origin to a heavily oversupplied market has resulted in a greater reduction in the quota for Community producers and therefore a greater loss of guaranteed income for them.

(14) The market surplus situation means that any additional imported quantity causes disruption on the market and impacts on both producers and the Community budget. It is impossible to tell when this situation can be remedied and when additional imports can take place without the risk of disruption.

(15) Moreover, in view of the minimal, low value-added operations that currently suffice to obtain the status of a product originating in the OCTs in the sugar sector, the contribution of these exports to the development of the territories can only be small at best and, without a doubt, out of all proportion to the disruption caused to the Community sectors concerned.

(16) For the above reasons, origin rules should therefore be adopted which exclude the possibility of ACP/OCT/EC cumulation for sugar.

(17) Provision should also be made to ensure that Community products enjoying financial benefits to encourage their export outside the Community cannot be re-imported by means of the cumulation procedure.

(18) Furthermore, all the OCT rules of origin should be updated, in the interests of the operators and administrations concerned, to take account of technical progress and the policy adopted by the Community of origin-rule harmonisation. Likewise, the procedure should be simplified to enable the necessary technical amendments to the rules to be made more easily in future.

(19) The OCTs are not part of the Community territory and secondary legislation derived from the Treaty does not therefore apply in them, barring express provisions to the contrary. OCT nationals and products within the Community must nevertheless comply with the Community rules in force.

(20) Most OCT nationals are citizens of the Union and must accordingly enjoy the advantages and comply with the obligations that apply to citizenship thereof, notwithstanding specific provisions adopted in that regard.

(21) In the interests of efficiency, simplification and recognition of the management capacities of the OCT authorities, the financial resources granted to the OCTs should be managed more on the basis of partnership by applying procedures based on the rules in force for the structural funds.

(22) For this purpose, the procedures delegate the main responsibility for programming and implementing cooperation to the OCTs in particular. Cooperation will be conducted predominantly in conformity with OCT territorial regulations and will underpin Community and in particular Commission support for the monitoring, evaluation and audit of the operations programmed.

(23) Global changes, reflected in the continuing process of trade liberalisation, broadly implicate the Community, the OCTs' principal trading partner, as well as their ACP neighbours and other economic partners. In the market access equation, the level of tariffs plays an increasingly reduced role while trade in services and trade-related areas assume an ever greater importance in the relationship between the OCTs and their economic partners. That relationship should therefore be fostered, while retaining the broad outline of the current trade arrangements, and the conditions for the gradual integration of those OCTs who so wish into the regional and global economy simplified by helping them to increase their capacity to handle all these new areas.

(24) This Decision must be without prejudice to any obligations entered into by the OCTs or on their behalf within the WTO framework. Account should also be taken of the great importance to the Council of the undertakings entered into in the context of the WTO and the coherence between them and this Decision.

(25) In accordance with Article 2 of Council Decision 1999/468/EC of 28 June 1999, laying down the procedures for the exercise of implementing powers conferred on the Commission, the measures necessary for the implementation of this Decision should be adopted by use of the management procedure provided for in Article 4 of that Decision. However, as this concerns the implementation of the 9th EDF, the voting and the majority must be as laid down in Article 21 of the Internal Agreement between representatives of the Governments of the Member States, meeting within the Council, on the financing and administration of Community Aid under the Financial Protocol to the Partnership Agreement between the African, Caribbean and Pacific States and the European Community and its Member States signed in Cotonou (Benin) on 23 June 2000 and the allocation of financial assistance for the Overseas Countries and Territories to which Part Four of the EC Treaty applies, [4] hereinafter the "Internal Agreement".

[4] Doc.10688/00 ACP 114 FIN 313 PTOM 21 OJ L...p.....

(26) The measures necessary for the implementation of Article 27(2) shall be adopted by use of the consultative procedure laid down in Article 3 of Decision 1999/468/EC.

(27) The measures necessary for the implementation of Annex III shall be adopted by use of the procedure laid down in Article 249 of Regulation (EC) No 2913/92 of 12 October 1992 establishing the Community Customs Code. [5]

[5] OJ L 302, 19.10.1992, p.1.

(28) In accordance with Council Decision 1999/95/EC of 31 December 1998, [6] the euro is the currency of St Pierre and Miquelon and Mayotte;

[6] OJ L 30, 4.2.1999.

(29) The Council must produce an innovative response to all the abovementioned new factors which is both consistent and tailored to the variety of situations. A new status for the association, known as 'Overseas', can provide such a response,

HAS DECIDED AS FOLLOWS:

PART ONE

GENERAL PROVISIONS OF THE ASSOCIATION

OF THE OCTs WITH THE EC

Chapter 1

Guidelines

Article 1

Aim, objectives and principles

1. The association of the OCTs with the EC shall be based on the aim set out in Article 182 of the Treaty, namely to promote the economic and social development of the OCTs and to establish close economic relations between them and the Community as a whole.

It shall pursue the objectives laid down in Article 183 of the Treaty in accordance with the principles set out in Articles 184 to 188 of the Treaty by focusing on the reduction and eventual eradication of poverty and on sustainable development and gradual integration into the regional and world economies.

2. The association relates to the OCTs listed in Annex IA.

3. In accordance with Article 188 of the Treaty, this Decision shall apply to Greenland subject to the specific provisions set out in the Protocol on the special arrangements for Greenland annexed to the Treaty.

Article 2

Basic elements

1. The OCT-EC association shall be based on the principles of liberty, democracy, respect for human rights and fundamental freedoms and the rule of law. These principles, on which the Union is founded in accordance with Article 6 of the Treaty on European Union, shall be common to the Member States and the OCTs linked to them.

2. Within the limits of the powers conferred upon the Community by the Treaty, any measures decided by the Council on the basis of Article 13 thereof with a view to combating discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation, shall be applicable, mutatis mutandis, to the OCTs in the areas of cooperation to which this Decision refers.

3. The Member States to which the OCTs are linked shall be responsible for ensuring that the principles referred to in paragraphs 1 to 3 above are complied with in their territories.

4. The Member States shall cooperate with the Commission to ensure that Community funds are used in accordance with the principles of sound financial management.

Article 3

The least-developed OCTs

1. The Community shall accord special treatment to the least-developed OCTs and to those unable to take advantage of the regional cooperation and integration referred to in Article 16.

2. To respond to such difficulties, development finance cooperation shall comprise, inter alia, special treatment when determining the volume of financial resources and the conditions attached thereto in order to enable the least-developed OCTs to overcome structural and other obstacles to their development. It shall pay special attention to improving the living conditions of the poorest sections of the population in the context of poverty alleviation.

3. The OCTs considered the least developed for the purposes of this Decision are listed in Annex IB. This list shall be amended by decision of the Council, acting unanimously on a proposal from the Commission, where the economic situation of an OCT undergoes a significant and lasting change, necessitating its inclusion in the category of least-developed OCTs or where its inclusion in that category is no longer warranted.

Chapter 2

The institutional framework:

Trilateral partnership and bilateral management

Article 4

Trilateral partnership

1. With the aim of enabling the OCT authorities to take a full part in the application of the principles of the EC-OCT association, while respecting the powers of the respective authorities of the Member States concerned, the association shall use a consultation procedure based on the principle of partnership between the Commission, the Member State and the OCTs.

This trilateral consultation shall hereinafter be referred to as the 'partnership'.

2. The partnership shall deal with all issues of principle arising from relations between the OCTs and the Community.

3. The following two bodies shall be established to this end:

(a) OCT association working parties having an advisory capacity and comprising the three partners referred to above may be convened at the request of one of the three partners on a regional basis or by group of OCTs linked to a particular Member State.

The working parties may be set up on an ad hoc basis with whatever membership is the most appropriate to deal with specific matters.

(b) An OCT-EU forum for dialogue, hereinafter referred to as the 'OCT Forum', shall meet annually to bring together OCT authorities, representatives of the Member States to which the OCTs are linked and the Commission.

The other Member States shall be informed of the proceedings of the annual OCT Forum meetings. Such information shall be provided:

-before the meeting: the Commission shall send the agenda;

-after the meeting: the Commission shall draw up a report on the proceedings.

These other Member States may, where appropriate, be represented at the meeting if one of the items on the agenda is of particular interest to them.

4. The Commission shall chair the working parties and the OCT Forum and provide the secretariat.

A representative of the European Investment Bank, hereinafter referred to as the 'Bank', shall be present at meetings when matters concerning it are on the agenda.

5. The opinions of the working parties and the OCT Forum shall, where appropriate, be the subject of Commission decisions, within the limits of its powers, or of proposals from the Commission to the Council with a view to implementation of new elements of the OCT-EC association or its amendment on the basis of Article 187 of the Treaty.

Article 5

ACP-EC Joint Assembly

The competent OCT authorities shall be informed of the agenda, resolutions and recommendations of the ACP-EC Joint Assembly.

At the request of these authorities, the Joint Assembly may invite members of the OCT parliaments as observers to its biannual plenary sessions.

Article 6

Bilateral management

The Commission and the competent OCT authorities shall ensure the routine management of this Decision on a bilateral basis, notably as regards development finance cooperation and cooperation in the area of trade and services.

The Member States to which the OCTs are linked shall inform the Commission within three months of the entry into force of this Decision of the competent national or local authorities referred to in the various articles of the Decision.

Chapter 3

The actors

Article 7

Principles

1. The OCT authorities shall assume primary responsibility for the formulation of development strategies and the preparation of cooperation programmes together with the Community and the Member State to which the OCT is linked.

2. The Community shall recognise that local public and private actors play a key role in achieving the objectives listed in Article 183 of the Treaty.

3. In implementing these guidelines the parties shall have as their guiding principles transparency, subsidiarity and the need for efficiency.

Article 8

The different actors involved

1. The actors of development shall include in particular:

-the OCT authorities;

-the local authorities within the OCTs;

-civil society, social, business and trade associations, public service providers and local, national or international NGOs.

2. The recognition of non-governmental actors shall depend on their capacity to meet the needs of the local population, their expertise and their having democratic and accountable organisation and management.

3. Non-governmental actors shall be identified by agreement between the relevant OCT authorities and the Community 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 process for preparing and implementing cooperation strategies.

Article 9

Responsibilities of the actors

For the purposes of implementing the objectives listed in Article 183 of the Treaty, non-governmental actors identified pursuant to Article 8(3) may play a role in:

-information and consultation;

-the preparation and implementation of cooperation programmes;

-decentralised cooperation in the context of responsibilities delegated for the purpose of supporting local development initiatives.

PART TWO THE AREAS OF EC-OCT COOPERATION

Article 10

The areas

The Community shall contribute to the development of those areas in the OCTs listed in this Title in accordance with the priorities established in the development strategies for each OCT or, where appropriate, in the form of regional measures.

Article 11

Productive sectors

Cooperation shall support sectoral policies and strategies that facilitate access to productive activities and resources, in particular :

(a) Agriculture: agricultural policy and institution building, diversification, irrigation, seed multiplication, crop protection measures, fertiliser production, equipment, agro-processing, livestock and cattle breeding, animal husbandry, extension and research; marketing; storage and transportation; food security; agricultural credit; land settlement and reform, land use and registration policy, technology transfer, irrigation and drainage infrastructure, other support services.

(b) Forestry: forestry policy and institution building, including use of trees to conserve the environment in erosion and desertification control; afforestation; forest management, including the rational utilisation and management of timber exports; issues relating to tropical rain-forests; research and training.

(c) Fisheries: fishing policy and institution building, fish stock protection and rational management of fish stocks; fish farming and artisanal fisheries; fishery transport; cold storage and fish marketing and preservation.

(d) Rural development: rural policy and institution building, integrated rural development projects/programmes; assistance and projects targeted at people, production and marketing in rural areas; rural infrastructure.

(e) Industry: sectoral policy and institution building; craft industries; agro-industries and other manufacturing sectors, transport equipment industry; technological research and development; quality control; development and expansion of SME and micro-enterprises.

(f) Mining: sectoral policy and institution building, technological research and development; small-scale mining, etc.

(g) Energy: energy policy and institution building; power generation (non-renewable and renewable); efficient use of energy resources; energy research and training; encouraging private sector involvement in power generation and distribution.

(h) Transport: transport policy and institution building; transport by road, rail, air, sea or inland waterway and storage facilities.

(i) Communication: communication policy and institution building; telecommunications and media.

(j) Water: water policy and institution building; protecting water resources, waste management, water supplies in rural and urban areas for domestic, industrial or agricultural purposes; storage, distribution and management of water resources.

(k) banking, finance and business services: financial sector policy and institution building, business services; privatisation, equity participation and marketing; support to trade, commerce and business associations (including export promotion agencies); financial and banking institutions.

(l) technology development and application: policy and institution building; concerted action at local, national and/or regional level for the promotion of science and technology activities and their application to production and promotion of computer literacy in the public and private sectors.

Article 12

Trade development

1. The Community shall implement measures for the development of trade at all stages up to final distribution of the product.

The object is to ensure that the OCTs derive the maximum benefit from the provisions of this Decision and may participate under the most favourable conditions in the Community, domestic, sub-regional, regional and international markets by diversifying the range and increasing the value and the volume of OCT trade in goods and services.

2. In addition to developing trade between the OCTs and the Community, particular attention shall be given to operations designed to increase the OCTs' self-reliance and improve regional cooperation in trade and services.

3. Within the instruments provided for in this Decision and in accordance with the provisions set out in relation thereto, operations shall be undertaken at the request of the competent OCT authorities, particularly in the following areas:

(a) support for the definition of appropriate macroeconomic policies necessary for trade development;

(b) support for the creation or reform of appropriate legal and regulatory frameworks as well as for the reform of administrative procedures;

(c) the establishment of coherent trade strategies;

(d) support for OCTs in developing their internal capacities, information systems and awareness of the role and importance of trade in economic development;

(e) support for strengthening the infrastructure related to trade and in particular support for the OCTs' efforts to develop and improve supportive service infrastructure, including transport and storage facilities, in order to ensure their effective participation in the distribution of goods and services and in order to enhance the flow of exports from the OCTs;

(f) development of human resources and professional skills in the field of trade and services, in particular in the processing, marketing, distribution and transport sectors for the Community, regional and international markets;

(g) support to private sector development and, in particular, to small and medium-sized enterprises for product identification and development, market outlets and export-oriented joint ventures;

(h) support for OCT actions aimed at encouraging and attracting private investment and joint venture operations;

(i) the establishment, adaptation and strengthening of organisations in the OCTs dealing with the development of trade and services, particular attention being paid to the special needs of organisations in the least-developed OCTs;

(j) support for OCTs aiming to improve the quality of their products, adapt them to market requirements and diversify their outlets;

(k) support for OCT efforts to penetrate third country markets more effectively;

(l) market development measures including increasing contacts and exchange of information between economic operators in OCTs, ACP States, the Member States of the Community and in third countries;

(m) support for OCTs in the application of modern marketing techniques in production-oriented sectors and programmes, in particular in areas such as rural development and agriculture;

(n) the establishment and development of insurance and credit institutions in the field of trade development.

4. Support for OCTs' participation in trade fairs, exhibitions and trade missions should be carried out only where such events form an integral part of overall trade and market development programmes.

5. Participation of the least-developed OCTs in various trade activities shall be encouraged by special provisions, inter alia, the payment of travel expenses of personnel and costs of transporting exhibits, on the occasion of their participation in local, regional and third-country fairs, exhibitions or trade missions, including the cost of the temporary construction and/or renting of exhibition booths and stalls. The least-developed OCTs shall be granted special aid to assist in the preparation and/or purchase of promotional materials.

Article 13

Trade in services

1. The Community agrees to develop and finance infrastructure and human resources in accordance with the priorities established under the development strategies for each OCT.

2. The Community shall contribute to the development and promotion of cost-effective and efficient maritime transport services in the OCTs, by:

(a) promoting the efficient shipment of cargo at economically and commercially meaningful rates;

(b) implementing good policies and competition rules;

(c) facilitating greater OCT participation in international shipping services;

(d) encouraging regional programmes of maritime transport and trade development;

(e) increasing local private sector involvement in shipping activities.

The Community and the OCTs undertake to promote shipping safety, security of crews and the prevention of pollution.

3. The Community shall step up cooperation with the OCTs so as to ensure regular improvement and growth in air traffic, promote trade, tourism and the export of agricultural products with high economic value to the EU market.

This will involve:

(a) examining all means of reforming and modernising the OCT air transport industries;

(b) promoting their commercial viability and competitiveness;

(c) encouraging higher levels of private sector investment and participation and a greater exchange of knowledge and good business practice;

(d) providing passengers and exporters in all countries with access to global air transport networks.

4. Safety must be ensured in the air transport sector and the relevant international standards introduced and implemented. To that end, the Community shall assist the OCTs, in accordance with the provisions set out in this Decision, to:

(a) implement air navigation safety systems, including the CNS/ATM system;

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

(c) develop infrastructures and human resources;

(d) ensure that any measures taken in this field are based on advice from the relevant international organisations and that they will be effective and sustainable in the long term.

5. Proper attention must be paid to minimising the environmental impact of air transport, in particular by means of appropriate environmental impact studies.

6. In many aspects of air transport, regional solutions may offer scope for greater cost effectiveness and economies of scale. To that end, the Community undertakes to support and encourage actions on a regional level where appropriate.

7. Since telecommunication and active participation in the information society are prerequisites for the successful integration of the OCTs into the world economy, the Community and the OCTs therefore reconfirm their respective commitments under existing multilateral agreements, in particular the WTO Agreement on Basic Telecommunications.

8. The Community shall support the efforts of the OCTs, in accordance with the provisions set out in this Decision, to increase their capacity in this field. Cooperation shall, inter alia, extend to the following areas:

(a) promoting consultations between competent telecommunications bodies in the OCTs and the Community with a view to encouraging development of a competitive telecommunications environment bringing rates closer to costs;

(b) establishment of a dialogue on different aspects of the information society, including regulatory aspects and communications policy;

(c) information exchanges and possible technical assistance on regulation, standardisation, conformity testing and certification of information and communications technologies and the use of frequencies;

(d) dissemination of new information and communications technologies and the development of new facilities, particularly in relation to interconnection of networks and interoperability of applications;

(e) promotion and implementation of joint research in the field of new technologies related to the information society;

(f) design and implementation of programmes and policies to raise the awareness of the economic and social benefits deriving from the information society.

9. Cooperation shall, in particular, be directed towards greater complementarity and harmonisation of communication systems at local, national, regional, inter-regional and international level and their adaptation to new technologies.

10. The Community shall support measures and operations to develop and support tourism. These measures shall be implemented at all levels, from the identification of the tourist product to the marketing and promotion stage.

The aim shall be to support the efforts of the relevant authorities of the OCT to derive maximum benefit from local, regional and international tourism in view of tourism's impact on economic development and to stimulate private financial flows from the Community and other sources into the development of tourism in the OCTs. Particular attention shall be given to the need to integrate tourism into the social, cultural and economic life of the people, as well as to respect for the environment.

Specific tourism development measures shall be aimed at the definition, adaptation and development of appropriate policies at local, regional, sub-regional and international levels. Tourism development programmes and projects shall be based on these policies on the basis of the following four components:

(a) human resource and institutional development, inter alia:

-professional management development in specific skills and continuous training at appropriate levels in the private and public sectors to ensure adequate planning and development;

-establishment and strengthening of tourism promotion centres;

-education and training for specific segments of the population and public/private organisations active in the tourism sector, including personnel involved in sectors that support tourism;

-inter-OCT and OCT-ACP cooperation and exchanges in the fields of training, technical assistance and the development of institutions.

(b) The development of products including, inter alia:

-identification of the tourism product, development of non-traditional and new tourism products, adaptation of existing products including the preservation and development of cultural heritage, ecological and environmental aspects, management, protection and conservation of flora and fauna, historical, social and other natural assets, development of ancillary services;

-promotion of private investment in the OCTs' tourist industries, including the creation of joint ventures;

-production of crafts of a cultural nature for the tourist market.

(c) market development including, inter alia:

-assistance for the definition and execution of objectives and market development plans at local, sub-regional, regional and international levels;

-support for the OCTs' efforts to gain access to services for the tourist industry such as central reservation systems and air traffic control and security systems;

-marketing and promotional measures and materials in the framework of integrated market development plans and programmes with a view to improved market penetration, aimed at the main generators of tourism flows in traditional and non-traditional markets as well as specific activities such as participation at specialised trade events, such as fairs, production of quality literature, films and marketing aids;

(d) research and information including, inter alia:

-improving tourism information and collecting, analysing, disseminating and utilising statistical data;

-assessment of the socio-economic impact of tourism on the economies of the OCT with particular emphasis on the development of linkages to other sectors in the OCT and the surrounding regions, such as food production, construction, technology and management.

Article 14

Trade-related areas

1. The Community shall help reinforce, within the development strategies of each OCT, the capacity of the OCTs to handle all areas related to trade, including where necessary improving and supporting the institutional framework.

2. The Community shall cooperate with the OCTs in the introduction of the general principles on protection and promotion of investments.

3. The Community shall also help to reinforce cooperation with the OCTs with a view to formulating and supporting effective competition policies with the appropriate competition agencies that progressively ensure the efficient enforcement of the competition rules by both private and state enterprises. Cooperation in this area shall, in particular, include assistance in the drafting of an appropriate legal framework and its administrative enforcement with particular reference to the least developed OCTs.

4. The Community shall continue to foster cooperation with the OCTs and extend it, in particular, to the following areas:

(a) the preparation of laws and regulations for the protection and enforcement of intellectual property rights, the prevention of the abuse of such rights by rightholders and the infringement of such rights by competitors, the establishment and reinforcement of local, national and regional offices and other agencies including support for regional intellectual organisations involved in enforcement and protection, including the training of personnel;

(b) the conclusion of agreements aimed at protecting trademarks and geographical indications for products of particular interest.

5. The Community shall assist the OCTs in their efforts with regard to standardisation and certification aimed at promoting compatible systems between the Community and the OCTs. Cooperation shall comprise the following in particular:

(a) measures to promote greater use of international technical regulations, standards and conformity assessment procedures, including sector-specific measures, in accordance with the level of economic development of the OCTs;

(b) cooperation in the area of quality management and assurance in selected sectors of importance to the OCTs;

(c) support for OCT capacity building initiatives in the fields of conformity assessment, metrology and standardisation;

(d) developing links between OCT and European standardisation, conformity assessment and certification institutions.

6. The Community shall help strengthen cooperation with the OCTs with regard to human, animal and plant health measures with a view to building public and private sector capacity in this area.

7. Bearing in mind the Rio Principles and with a view to reinforcing the mutual supportiveness of trade and environment policies, the Community shall enhance cooperation with the OCTs. The aim of cooperation shall in particular be to:

(a) establish coherent local, national, regional and international policies;

(b) reinforce quality controls of goods and services related to the environment;

(c) improve environment-friendly production methods in relevant sectors.

8. The Community shall cooperate with the OCTs in relation to labour standards. Cooperation in this area shall mainly consist of:

(a) exchanges of information on respective labour laws and regulations;

(b) assistance in the formulation of labour legislation and strengthening of existing legislation;

(c) educational and awareness-raising programmes (aimed at eliminating child labour);

(d) enforcement of labour legislation and regulations.

9. The Community shall cooperate with the OCTs in the area of consumer policy and consumer health protection by:

(a) improving institutional and technical capacity in this area;

(b) establishing rapid-alert systems of mutual information on dangerous products;

(c) exchanging information and experiences on the establishment and operation of post-market surveillance of products and product safety;

(d) improving information provided to consumers on prices, characteristics of products and services offered;

(e) encouraging the development of private consumer associations and contacts between consumer-interest representatives;

(f) improving compatibility of consumer policies and systems;

(g) notifying enforcement of the legislation and promoting cooperation in investigating harmful or unfair business practices;

(h) implementing exports prohibitions on the trade of goods and services the marketing of which has been prohibited in their country of production.

Article 15

Social sectors

1. The Community shall contribute, within the development strategies of each OCT, to human and social development measures. Cooperation could in particular support programmes in the following sectors.

2. Education policy and institution building (buildings and materials); language and teacher training; primary education; secondary education and vocational training; higher education (including sector-specific education activities, e.g. agricultural training).

In education, the focus should be on widening access to and improving the quality of basic education by constructing more schools, rehabilitating existing classrooms and providing educational materials, teacher training, and bursaries for poor students.

3. Health sector reform activities, health policy and institution building; medical education, training and research, health infrastructure; HIV/AIDS; etc.

In the health sector, projects should help to provide primary and preventive care services, particularly family planning and child and maternal health services, etc.

4. Population policy and family planning; mother and child care, including support for projects on the nurturing and development of the next generation - the children.

5. Increase the efficiency of policies to prevent the production, distribution and trafficking of all kinds of drugs, narcotics and psychotropic substances, preventing and reducing drug abuse, taking into account work done in this context by international bodies.

Cooperation shall comprise the following:

(a) training, education, health promotion and rehabilitation of addicts, including projects for the reintegration of addicts into work and social environments;

(b) measures to encourage alternative economic opportunities, for example programmes for the alternative development of areas used for the illicit production of narcotic plants, linked to effective enforcement measures;

(c) technical, financial and administrative assistance relating to the monitoring of precursors trade, and the establishment of standards equivalent to those adopted by the Community and international authorities concerned, notably by the ex-Chemical Action Task Force;

(d) technical, financial and administrative assistance relating to the prevention, treatment and reduction of drug abuse;

(e) technical assistance and training, and the establishment of standards to prevent money laundering equivalent to those adopted by the Community and other international bodies, in particular the ex-Financial Action Task Force (FATF);

(f) exchange of relevant information for the implementation of points 1 to 5.

6. Water policy and institution building; water resources protection; waste management (water for agriculture or energy will be covered under the relevant sector) etc.

In the water supply and sanitation sector, the aim should be to provide services in under-served areas. Funding that supports increasing access to drinking water supply and sanitation services contributes directly to human resources development by improving the state of health (and thus increasing the productivity) of people who do not already have access to these services; the continuing need to extend basic services in water, sanitation, and transport to both urban and rural populations must be addressed in environmentally sustainable ways.

7. The Community shall cooperate with the OCTs in the sustainable use and management of their biodiversity resources.

Cooperation in this area may, in particular, extend to:

(a) supporting the elaboration, updating and implementation of national biodiversity strategies and action plans;

(b) facilitating the establishment of local, regional and sub-regional mechanisms for the exchange of information and the monitoring and assessment of progress in the implementation of the Convention on Biological Diversity (CBD);

(c) developing and maintaining up-to-date databases on OCT biodiversity resources;

(d) implementing appropriate measures relating to the access of biodiversity/genetic resources;

(e) promoting the conclusion of agreements with the private sector for the use of the country's genetic resources, so that local communities may effectively benefit from the economic revenue derived from such agreements and so that the use of genetic resources does not harm the protection and conservation of the biodiversity;

(f) assisting the OCTs to participate actively in the policy-making process and negotiations under the CBD.

8. Housing and integrated urban development projects and programmes, etc.

In urban development, efforts should focus on building or rehabilitating roads and other basic infrastructure, including low-income housing.

Article 16

Regional cooperation and integration

Cooperation shall ensure that effective aid is provided in order to achieve the objectives and priorities established by the competent OCT authorities in the framework of regional and sub-regional cooperation and integration.

1. Regional cooperation shall cover operations agreed on between:

-two or more or all OCTs;

-one or more OCTs and one or more neighbouring ACP or non-ACP States;

-one or more OCTs and one or more ACP States or one or more of the most remote regions referred to in Article 299(2) of the Treaty (Guadeloupe, Guyana, Martinique, Reunion, the Canary Islands, Azores and Madeira);

-two or more regional bodies of which OCTs are members;

-one or more OCTs and regional bodies of which OCTs, ACP States or overseas departments are members.

2. The objectives of cooperation in this context shall be to:

-foster the gradual integration of the OCTs into the world economy;

-accelerate economic cooperation and development within the regions of the OCT and between them and the regions of the ACP States;

-promote the free movement of persons, goods, services, capital, labour and technology;

-accelerate economic diversification and the coordination and harmonisation of regional and sub-regional cooperation policies;

-promote and foster inter-OCT and intra-OCT trade as well as trade with the most remote regions, ACP States or third countries.

3. In the context of regional integration, the aim of cooperation shall be to:

-build and enhance the capacity of regional cooperation and integration organisations and institutions to promote regional cooperation and integration;

-encourage the least developed OCTs to take part in the development of regional markets and benefit therefrom;

-implement sectoral reform policies at regional level;

-liberalise trade and payments;

-stimulate cross-border foreign and domestic investment and other regional or sub-regional economic integration initiatives;

-take account of the net transitional cost of regional integration on budget revenue and balance of payments.

4. Cooperation shall, in the area of regional cooperation, cover a wide variety of functional and thematic fields which specifically address common problems and take advantage of economies of scale, including:

-infrastructure (particularly transport and communications infrastructure and related safety problems), energy;

-the environment, water resource management;

-health, education and training;

-research and scientific and technical cooperation;

-regional disaster preparedness and alleviation initiatives;

-other areas, e.g. arms controls, drugs, organised crime, money laundering, fraud and corruption.

5. Cooperation shall also support inter-regional, inter-OCT and inter-ACP cooperation schemes and initiatives.

Article 17

Cultural and social cooperation

Cooperation shall contribute to the self-reliant development of the OCTs, a process centred on man himself and rooted in each people's culture. The human and cultural dimension must embrace all areas and be reflected in all development projects and programmes. Cooperation shall back up the policies and measures adopted by the competent OCT authorities to enhance their human resources, increase their own creative capacities and promote their cultural identities. It shall foster participation by the population in the process of development.

Cultural and social cooperation shall be expressed through:

-the taking into account of the cultural and social dimension;

-promotion of cultural identities and intercultural dialogue, with particular reference to preserving the cultural heritage, the production and dissemination of cultural products, cultural events and information and communication;

-operations to enhance human resources, notably covering education and training, scientific and technical cooperation, the role of women in development, health and combating drug abuse, population and demography.

PART THREE

INSTRUMENTS OF EC-OCT COOPERATION

TITLE I

DEVELOPMENT FINANCE COOPERATION

Chapter 1

General provisions

Article 18

Objectives

The objective of development finance cooperation shall be, through the provision of adequate financial resources and appropriate technical assistance, to:

(a) support and promote the OCTs' own efforts to achieve sustainable social, cultural and economic development on the basis of mutual interest and in a spirit of interdependence;

(b) help raise the standard of living of the peoples of the OCTs;

(c) promote measures likely to mobilise the capacity for initiative of communities, groups, associations and individuals and their participation in the design and implementation of development programmes;

(d) contribute to the fullest participation of the population in the benefits of development in the interests of poverty alleviation;

(e) contribute to the development of the capacity of the OCTs to innovate, adapt and transform local technologies and to master appropriate new technologies;

(f) contribute to sustainable exploration, conservation, processing and exploitation of the OCTs' natural resources in order to enhance their efforts to industrialise and achieve economic diversification;

(g) provide support for and promote the optimal development of human resources in the OCTs;

(h) facilitate an increase in the financial flows to the OCTs that meet their evolving needs and support the efforts of the OCTs to harmonise international cooperation for their development through cofinancing of operations with other financing agencies or third parties;

(i) promote direct private investment in the OCTs, support the development of a healthy, prosperous and dynamic OCT private sector and encourage local, national and foreign private investment flows into the productive sectors in the OCTs;

(j) encourage inter-OCT and OCT-ACP regional cooperation, solidarity and integration;

(k) permit the establishment of more balanced economic and social relations and better understanding between the OCTs, ACP States, Member States of the Community and the rest of the world, with a view to assisting the integration of the OCTs into the world economy;

(l) enable OCTs faced with serious economic and social difficulties of an exceptional nature resulting from natural disasters or extraordinary circumstances having comparable effects to benefit from emergency assistance;

(m) help the least-developed OCTs to overcome the specific obstacles which hamper their development efforts.

Article 19

Principles

Development finance cooperation shall be based on the principles of partnership, complementarity and subsidiarity:

(a) it shall be implemented on the basis of and be consistent with the development objectives, strategies and priorities established by the relevant authorities of the OCTs, in conformity with this Decision and in particular Article 1 thereof, with due regard to their respective geographical, social and cultural characteristics, as well as their specific potential;

(b) it shall be provided on highly concessional terms;

(c) it shall ensure that resource flows are accorded on a predictable basis;

(d) it shall be flexible and tailored to the situation in each OCT;

(e) in application of the principle of partnership, Community activities shall be decided in close consultation between the Commission, the OCT concerned and the Member State to which it is linked; such partnership shall be conducted in full compliance with the respective institutional, legal and financial powers of each of the partners;

(f) in application of the principle of complementarity, Community resources shall be allocated to support the budgets of the OCT concerned and the Member State to which it is linked or by way of a contribution to their activities;

(g) in application of the principle of subsidiarity, the authorities of the OCT concerned shall be responsible for implementing operations without prejudice to the powers of the Commission to ensure that Community funds are used in accordance with the principles of sound financial management.

Article 20

Guidelines

1. The relevant authorities of the OCTs shall be responsible for:

(a) establishing the strategy and priorities on which the single programming document, hereinafter referred to as the 'SPD', are based;

(b) in the framework of sectoral planning, identifying projects and programmes and establishing back-up measures to ensure the sustainability and viability of the proposed schemes;

(c) preparing project and programme dossiers;

(d) preparing, negotiating and concluding contracts;

(e) implementing and managing projects and programmes;

(f) maintaining projects and programmes and ensuring their sustainability.

2. The relevant authorities of the OCTs and the Community shall be jointly responsible for:

(a) establishing guidelines for development finance cooperation, where necessary in the framework of the partnership;

(b) adopting the Single Programming Document;

(c) ensuring equality of conditions for participation in invitations to tender and contracts;

(d) monitoring and evaluating the effects and results of projects and programmes;

(e) ensuring the proper, prompt and efficient execution of projects and programmes.

3. The Commission shall be responsible for taking the financing decision on the overall allocation corresponding to the SPD, in accordance with the procedure referred to in Article 24 below.

4. Unless otherwise provided in this Decision, all decisions requiring the approval of a party to the association shall be approved, or be deemed approved, within 6 months of notification by the other party.

Article 21

Scope of financing

Within the framework of the strategy and the priorities established by the OCT concerned at local or regional level, support may be given to operations helping to achieve the objectives set out in this Decision.

The following activities shall fall within its scope:

(a) sectoral policies and reforms;

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

(c) technical cooperation programmes;

(d) humanitarian aid and emergency relief operations;

(e) additional support in the event of fluctuations in export earnings from exports of goods and services.

Article 22

Eligibility for financing

1. The following entities or bodies shall be eligible for financial support provided under this Decision:

(a) OCTs;

(b) regional or inter-State bodies to which one or more OCTs belong and which are authorised by their relevant authorities;

(c) joint bodies set up by the Community and the OCTs to pursue certain specific objectives.

2. Subject to the agreement of the relevant authorities of OCTs concerned, the following shall also be eligible for support:

(a) local, national and/or 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 firms of the OCTs;

(c) enterprises of a Community Member State to enable them, in addition to their own contribution, to undertake productive projects in the territory of an OCT;

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

(e) actors of decentralised cooperation and other non-state actors from OCTs and from the Community, 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 30.

Article 23

Programming and implementation

The Commission shall adopt the implementing provisions for this part of the Decision and for Annexes II A to D within 12 months of its entry into force, in accordance with the procedure laid down in Article 24 and after consulting the OCTs in the framework of the partnership procedure.

The provisions shall include in particular :

(a) the procedure for preparing the SPD and its essential elements;

(b) the procedures and criteria for the follow-up, audit, ex-ante, mid-term and ex-post evaluation, review and implementation of the SPD, including those in relation to the Commission's participation in these activities;

(c) the preparation of periodical or other such reports.

The financial and accounting procedures shall be laid down in the 9th EDF Financial Regulation.

Article 24

The EDF-OCT Committee

1. The Commission shall, where appropriate, be assisted by the Committee created by the Internal Agreement between representatives of the Governments of the Member States, meeting within the Council, on the financing and administration of Community Aid under the Financial Protocol to the Partnership Agreement between the African, Caribbean and Pacific States and the European Community and its Member States signed in Cotonou (Benin) on 23 June 2000 and the allocation of financial assistance for the Overseas Countries and Territories to which Part Four of the EC Treaty applies, [7] hereinafter the "Internal Agreement".

[7] Doc.10688/00 ACP 114 FIN 313 PTOM 21 OJ L...p.....

2. When exercising the powers conferred on it by this Decision, the Committee shall be known as the "EDF-OCT Committee". The internal rules of procedure of the Committee created by the Internal Agreement referred to in paragraph 1 shall apply to the EDF-OCT Committee.

3. The EDF-OCT Committee shall focus its work on the substantive issues of development cooperation at OCT and regional level. In the interests of coherence, coordination and complementarity, it shall monitor the implementation of the single programming documents.

4. The Committee shall give its opinion on:

(a) draft SPDs and any amendments to them;

(b) the implementing provisions for this part of the Decision and for Annexes II A to D.

5. The representative of the Commission shall submit to the Committee a draft of the measures to be taken. The Committee shall deliver its opinion on the draft within a time limit laid down by the chairman. The opinion shall be delivered by the majority laid down in Article 21(4) of the Internal Agreement. The votes of the representatives of the Member States within the Committee shall be weighted in the manner set out in paragraph 3 of that Article. The chairman shall not vote.

6. The Commission shall adopt the measures, which shall be immediately applicable. However, if the measures are not in accordance with the Committee's opinion, the Commission shall forthwith communicate them to the Council. The Commission may in such cases defer the application of the measures decided on for a period to be specified in each basic instrument. This period shall in no case exceed three months following the date of the communication.

7. The Council, acting by the majority and in accordance with the weighting referred to in paragraph 5, may take a different decision within the period provided for in paragraph 6.

8. The Commission shall inform the Committee of the follow-up, evaluation and audit of SPDs.

Chapter 2

Resources made available to the OCTs

Article 25

Financial assistance

1. The overall amount of Community financial assistance for the purposes of Chapter 1 of this Title, its allocation, financing terms and arrangements for the period 1 March 2001 to 31 December 2007 can be found in Annex II A to D and in Chapter 3 below, without prejudice to the provisions to be adopted by the Commission as laid down in Article 24.

Financial assistance under this Decision may be used to cover the total cost of both the local and foreign expenditure of projects and programmes, including financing of recurrent costs.

2. OCTs are also eligible for financing under the legislation in force in favour of the developing countries listed in Annex II E and for the Community programmes listed in Annex II F.

Chapter 3

private sector investment support

Article 26

Investment promotion

The relevant authorities of the OCT and the Community, recognising the importance of private investment in the promotion of their development cooperation and acknowledging the need to take steps to promote such investment, shall:

(a) implement measures to encourage participation in their development efforts by private investors who comply with the objectives and priorities of EC-OCT development cooperation and with the appropriate laws and regulations;

(b) accord fair and equitable treatment to such investors;

(c) take measures and actions which help to create and maintain a predictable and secure investment climate as well as enter into negotiations on agreements which will improve such a climate;

(d) promote effective cooperation amongst OCT economic operators and between them and those of the Community in order to increase the flow of capital, management skills, technology and other forms of know-how;

(e) seek to promote a greater flow of private resources between the Community and the OCTs by contributing, inter alia, to the removal of obstacles which impede OCT operators' access to international capital markets, including those of the Community;

(f) create an environment which encourages the development of financial institutions and the mobilisation of resources which are essential to capital formation and the growth of entrepreneurship;

(g) promote the development of enterprises by taking such steps as are necessary to improve the business environment and, in particular, foster a legal, administrative and incentive framework which is conducive to the emergence and development of dynamic private sector enterprises including grassroots operations;

(h) strengthen the capacity of local institutions in the OCTs to provide the range of services which can encourage greater local participation in industrial and business activity.

Article 27

Investment support and financing

Cooperation will provide long-term financing to help promote private sector growth and mobilise national and foreign capital to that effect. To this end, cooperation shall in particular provide:

(a) grants to cover technical and financial assistance in support of human resource development, institutional capacity building, or other forms of institutional aid linked to a specific investment; measures designed to make enterprises more competitive and build the capacity of private financial and non-financial intermediaries; measures to facilitate and promote investment and activities to improve competitiveness;

(b advisory and consultancy services to help create an investment-friendly climate and a stock of information to help guide and encourage capital flows;

(c) grants funded by the Investment Facility;

(d) loans from the European Investment Bank's own resources.

The conditions applicable to the Investment Facility and the abovementioned loans are laid down respectively in Annex II B and C to this Decision.

Chapter 4

Additional support in the event of fluctuations in export earnings

Article 28

Additional support

1. In order to mitigate the adverse effects of any instability in export earnings, in particular in the agricultural and mining sectors, which might jeopardise the attainment of the development objectives of the OCT concerned, a system of additional support shall be instituted within the financial allocation.

2. The purpose of support in the event of short-term fluctuations in export earnings is to safeguard macroeconomic and sectoral reforms and policies that are at risk as a result of a drop in revenue and remedy the adverse effects of instability of export earnings from agricultural and mining products.

3. The dependence of the OCT economies on exports, in particular in the agricultural and mining sectors, shall be taken into account in the allocation of resources in the year of application. In this context, the least developed OCTs shall receive more favourable treatment.

4. The additional resources shall be provided in accordance with the specific modalities of the support mechanism as set out in Annex II D on Terms and Conditions of Financing.

5. The Community shall also provide support for market-based insurance schemes designed for OCTs seeking to protect themselves against the risk of fluctuations in export earnings.

Chapter 5

Support for other actors of cooperation

Article 29

Objectives and financing

In order to respond to the development needs of local communities and encourage all actors of decentralised cooperation which are in a position to contribute to the autonomous development of the OCTs to put forward and implement initiatives, EC-OCT cooperation shall support such development operations within limits laid down by the OCTs concerned and by the Member States responsible for these OCTs, and within the framework of the SPD provisions.

1. In this context cooperation shall support:

(a) funding of local microprojects which have an economic and social impact on the life of the people, meet a demonstrated and observed priority need and are undertaken at the initiative and with the active participation of the local community which will benefit therefrom;

(b) decentralised cooperation financing, in particular where it combines the efforts and resources of organisations from the OCTs and their counterparts from the Community. This form of cooperation shall make available for the development of the OCTs the capabilities, innovative operating methods and resources of the actors of decentralised cooperation.

2. Microprojects and decentralised cooperation activities may be funded from the financial resources of this Decision. Projects or programmes under this form of cooperation may be a way of achieving the specific objectives of the SPD or the results of initiatives by local communities or decentralised actors.

Contributions to the funding of microprojects and decentralised cooperation shall come from grants, in which case the contribution shall not normally exceed three-quarters of the total cost of each project. The balance shall be financed:

(a) for microprojects, by the local community concerned, in kind or in the form of services or cash and adapted to its capacity to contribute;

(b) for decentralised cooperation, by the actors of decentralised cooperation, provided that the financial, technical, material and other resources brought in by such actors is not, as a general rule, less than 25% of the estimated cost of the project/programme;

(c) in exceptional cases where both microprojects and decentralised cooperation are concerned, by the competent authorities of the OCT concerned, either in the form of financial contribution or through the use of public equipment or the supply of services.

The procedures applicable to projects and programmes financed in the context of microprojects or decentralised cooperation shall be as set out in this Decision, notably with regard to the SDP implementing provisions.

Chapter 6

Support for humanitarian and emergency aid

Article 30

Objectives and means

Humanitarian and emergency aid shall be granted to OCTs faced with serious economic and social difficulties of an exceptional nature resulting from natural disasters or extraordinary circumstances having comparable effects. Humanitarian and emergency aid shall be maintained as long as necessary to deal with the urgent problems which arise in such situations.

Humanitarian and emergency aid shall be granted solely on the basis of the needs and interests of disaster victims.

1. The aim of humanitarian and emergency aid shall be to:

(a) save human lives in crisis and post-crisis situations caused by natural disasters or extraordinary circumstances having comparable effects;

(b) help finance the transport of aid and efforts to ensure that it is accessible to those for whom it is intended, by all logistical means available;

(c) implement short-term rehabilitation and reconstruction measures in order to establish conditions as soon as possible for the people concerned to be integrated or reintegrated;

(d) respond to needs arising as a result of people being displaced (refugees, displaced persons and returnees) following natural or manmade disasters so as to meet all the requirements of refugees and displaced persons (wherever they may be) for as long as is necessary and facilitate their voluntary resettlement;

(e) help the OCTs to develop or perfect systems of disaster prevention and preparedness, including prediction and early-warning systems, with a view to reducing the consequences of disasters.

2. Similarly aid may be granted to OCTs taking in refugees or returnees to meet acute needs not covered by emergency assistance.

3. Aid provided for by this Article shall be financed under Council Regulation (EC) No 1257/96 of 20 June 1996 on humanitarian aid. [8] However, it may exceptionally be financed, at the request of the OCT concerned, from the overall grant allocation (SPD) in addition to the funding from the budget heading concerned.

[8] OJ L 163, 2.7.1996, p.1.

4. Humanitarian and emergency aid operations shall be undertaken at the request of the OCT affected, the Commission or local or international non-governmental organisations. Such assistance shall be administered and implemented under procedures that facilitate rapid, flexible and effective operations. The Commission shall adopt the necessary provisions to apply the above principles.

chapter 7

implementation procedures

Article 31

Technical assistance

1. On the initiative of or on behalf of the Commission, studies or technical assistance measures may be financed in order to ensure the preparation, monitoring, evaluation and supervision necessary for implementing this Decision.

Such studies or technical assistance measures shall be financed by the overall grant allocation.

2. On the initiative of the OCT, studies or technical assistance measures may be financed in relation to the implementation of the activities contained in the SPD, subject to the Commission's opinion.

Such studies or technical assistance measures shall be financed from the allocation of the OCT concerned.

Article 32

Financial control

1. The OCT concerned shall bear primary responsibility for the financial supervision of the operation. This shall be carried out, where appropriate, in coordination with the Member State concerned, 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 OCT concerned so as to ensure that the Community funds are used correctly and effectively;

(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, OCT and, where appropriate, the Member State to which it is linked, shall cooperate on the basis of administrative arrangements at annual or biannual meeting to coordinate programmes, methodologies and the implementation of controls.

4. With regard to financial corrections:

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

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

Chapter 8

Transition from previous EDFs to the 9th EDF

Article 33

Implementing the previous EDFs and the transitional phase

1. Commitments made in the framework of the 6th, 7th and 8th EDFs before the entry into force of this Decision and the 9th EDF Internal Agreement shall continue to be executed following the rules applicable to those EDFs.

For a transitional period until 31 December of the second year following the year when this Decision or the Internal Agreement, whichever is the latest, comes into force, the officials responsible for managing and implementing European Development Fund resources, i.e. the EDF Chief Authorising Officer, the OCT Local Authorising Officer and the Commission's Head of Delegation, shall remain responsible for the management and implementation tasks assigned to them by Council Decision 91/482/EC, as amended by Decision 97/803/EC.

Before this date, the Commission shall adopt measures, following consultations with the OCTs and the Member States to which they are linked, to facilitate a smooth transition between those rules and the new procedures for implementing development finance cooperation contained herein.

2. Any balances remaining from previous EDFs on the date of entry into force of this Decision and of the Internal Agreement, as well as any amounts that shall be decommitted at a later date from ongoing projects under these Funds, shall be transferred to the 9th EDF and used in accordance with the conditions laid down in this Decision.

Any resources thus transferred to the 9th EDF that previously had been allocated to the indicative programme of an OCT or region shall remain allocated to that OCT or to regional cooperation.

Any other remaining balances not allocated to an indicative programme shall be transferred to the non-committed amount of the 9th EDF. The overall amount of this Decision, supplemented by the transferred balances from previous EDFs, shall cover the period 2000-2007. This paragraph shall apply in particular to any remaining balances of the overall amounts referred to in Articles 118 and 142 of Decision 91/482/EEC concerning, respectively, the stabilisation of export earnings from agricultural commodities (Stabex) and the special financing facility (Sysmin).

TITLE II ECONOMIC AND TRADE COOPERATION

Article 34

Objective

The objective of economic and trade cooperation shall be to promote the economic and social development of the OCTs , in particular by establishing close economic relations between them and the Community as a whole.

The implementation of such cooperation must be consistent with the objectives of the other common policies.

Chapter 1

Arrangements for trade in goods

Article 35

Free access for originating products

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

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

Article 36

Transhipment of non-originating products in free circulation in the OCTs

1. Products not originating in the OCTs but which are in free circulation in an OCT and are re-exported as such to the Community shall be accepted for import into the Community free of customs duties and taxes having equivalent effect providing that they:

- have paid, in the OCT concerned, customs duties or taxes having equivalent effect of a level equal to, or higher than, the customs duties applicable in the Community on import of these same products originating in third countries eligible for the most-favoured-nation clause;

- have not been the subject of an exemption from, or a refund of, in whole or in part, customs duties or taxes having equivalent effect, without prejudice to paragraph 2;

- are accompanied by an export certificate.

2. Without prejudice to paragraph 1 above, the Commission may, following a duly substantiated request from the competent authorities of the OCT concerned, exceptionally authorise OCT public financial aid to traders using the transhipment procedure.

The Commission shall take a decision in the light of the objectives referred to in this Title. It shall be assisted by an advisory committee composed of the representatives of the Member States and chaired by the representative of the Commission. The advisory procedure shall be as set out in Article 3 of Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission, [9] in compliance with Article 7(3) thereof.

[9] OJ L 184, 17.7.1999, p. 23.

3. The provisions of paragraphs 1 and 2 shall not apply to:

- the agricultural products listed in Annex II to the Treaty nor to products covered by Council Regulation (EEC) No 3448/93 of 6 December 1993 laying down the trade arrangements applicable to certain goods resulting from the processing of agricultural products; [10]

[10] OJ L 318, 20.12.1993, p. 18.

-products subject, on import into the Community, to quantitative restrictions or limitations;

-products subject, on import into the Community, to anti-dumping duties.

4. The conditions for entry into the Community of products not originating in the OCTs but in free circulation in an OCT, and the methods of administrative cooperation relating thereto, are laid down in Annex IV.

Article 37

Quantitative restrictions and measures having equivalent effect: prohibitions

1. The Community 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 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 and commercial property.

Such prohibitions or restrictions shall in no case constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction of trade generally.

Article 38

Hazardous, non-hazardous and radioactive waste

The Community undertakes, for its part, to make every effort to ensure that international movements of hazardous and non-hazardous waste and radioactive waste are generally controlled, and emphasises the importance of efficient international cooperation in this area.

With this in view, the Community shall prohibit all direct or indirect export of such waste, with the exception of exports of non-hazardous waste destined for recovery operations, to the OCTs while at the same time the relevant authorities of the OCTs shall prohibit the direct or indirect import into their territory of such waste from the Community or from any other country, without prejudice to specific international undertakings concerning these two areas that have been made, or may be made in future, in the competent international forums.

The relevant authorities of the OCTs shall monitor strictly the implementation of the prohibition measure referred to above.

1. These provisions shall not prevent a Member State to which an OCT has chosen to export waste for processing from returning the processed waste to the OCT of origin. In case of re-export to an OCT, a specimen of the consignment note, bearing the stamp of authorisation, shall accompany each shipment.

2. As regards the Community, and without prejudice to paragraph 1 above, Council Regulation (EEC) No 259/93 of 1 February 1993 on the supervision and control of shipments of waste within, into and out of the European Community [11] shall apply.

[11] OJ L 30, 6.2.1993, p. 1.

As regards those OCTs which, due to their constitutional status, are not Party to the Basle Convention, it falls within the competence of their authorities to expedite adoption of the necessary internal legislation and administrative regulations to implement this control.

3. As regards imports into the Community from the OCTs of hazardous waste and of non-hazardous waste destined for final disposal, Articles 1 to 12 and 25 to 39 of Regulation (EEC) No 259/93 shall apply.

4. The term 'hazardous waste' within the meaning of this Article shall cover categories of products listed in Annexes 1 and 2 to the Basle Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal.

As regards radioactive waste, the applicable definitions and thresholds shall be those which will be laid down in the framework of the International Atomic Energy Agency (IAEA). In the meantime, the applicable definitions and thresholds shall be those specified in Annex V.

Article 39

Measures adopted by the OCTs

1. In view of the present development needs of the OCTs, the relevant authorities of the OCTs may retain or introduce, in respect of imp