Communication from the Commission to the Council, the European Parliament and the European Economic and Social Committee - an EU-Caribbean partnership for growth, stability and development {SEC(2006) 268}
Date: 2006-03-02
Institutions: European Commission
Subjects: Caribbean Islands, cooperation policy, development aid, economic development, economic growth, economic stabilisation

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 2.3.2006 
COM(2006) 86 final 

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL,  
THE EUROPEAN PARLIAMENT AND THE EUROPEAN ECONOMIC AND 
SOCIAL COMMITTEE 

AN EU-CARIBBEAN PARTNERSHIP FOR GROWTH, STABILITY  
AND DEVELOPMENT 

{SEC(2006) 268} 

EN 

   EN 

 
 
 
  
 
 
PART I 

1. 

INTRODUCTION 

Europe has strong historic ties with the Caribbean region, while EU member states still have 
close links with the region, notably through the French DOMs, and the particular relationship 
between  the  UK  and  the  Netherlands  and  the  OCT’s.1  Moreover  the  Caribbean’s  prominent 
role within the ACP group of states and its inclusion within the Cotonou Agreement constitute 
the basis of its special relationship with the EU. The EU-Caribbean partnership also needs to 
be  seen  in  the  context  of  the  wider  EU-LAC  strategic  partnership  forged  between  the  EU, 
Caribbean and Latin American States at their first joint Summit in Rio in 1999. 

The present Caribbean Communication2, covering the Caribbean ACP states3, is founded on 
the principles of the EU development policy, the 2005 European Consensus,4 and the Cotonou 
Agreement5, and builds on over 30 years of co-operation experience. The Communication – 
promoting an ethos of equality, partnership and ownership - outlines the future policy for EU-
Caribbean  relations.  The  objective  is  a  strong  mutually  beneficial  partnership  on  the 
international scene within which the two sides will work together towards the shared ideals of 
democracy  and  human  rights  and  in  the  fight  against  poverty  and  global  threats  to  peace, 
security  and  stability.  The  EU  will  also  assist  the  Caribbean  to  achieve  the  region’s 
development objectives and to respond to the many specific challenges facing the region. In 
enhancing the Caribbean’s own reform and development agenda, the objectives of the EU’s 
approach are based on three dimensions: 

– 

– 

– 

Shaping a political partnership based on shared values 

Addressing Economic and environmental opportunities and vulnerabilities 

Promoting social cohesion and combating poverty  

2. 

PARTNERS IN A SHARED VISION OF THE FUTURE  

The  EU’s  Caribbean  strategy  is  articulated  around  a  shared  vision  of  the  future  based  on  a 
history of shared values, in parallel with full optimisation of the opportunities of the Cotonou 
Agreement. On the one hand the EU’s overarching development objective is to assist all the 
countries  in  the  Caribbean  region  to  achieve  their  long  term  development  goals  in  a  self 
sustaining  manner,  and  in  a  climate  of  security  and  stability.  This  includes  also  supporting 
those Caribbean countries aiming to join the ranks of the developed states by 2020, upon the 

1 

2 
3 

4 
5 

"Départements  d'  Outre-Mer".  In  the  Caribbean,  France  has  3  DOMs,  namely  Guadeloupe,  French 
Guyana and Martinique. The DOMs, as the rest of the outermost regions, form an integral part of the 
EU. 
This Communication and all its annexes. 
Antigua  and  Barbuda,  Barbados,  Bahamas,  Belize,Dominica,  The  Dominican  Republic,  Grenada, 
Guyana  Haiti,  Jamaica,  St  Kitts  and  Nevis,  St  Lucia,  St  Vincent  and  the  Grenadines  ,  Suriname,  and 
Trinidad and Tobago, who are signatories to the Cotonou Agreement and Cuba which is a member of 
the ACP group but is not a signatory to Cotonou. 
European Consensus on Development, (July 2005), COM(2005)311. 
ACP-EU Partnership Agreement signed in Cotonou on 23 June 2000, and Revised in 2005.  

EN 

2 

   EN 

 
                                                 
expiry of the current Cotonou Agreement. On the other hand, the Commission believes that 
EU-  Caribbean  partnership  can  address  economical  and  political  strategic  issues  of  mutual 
interest at international level. (e.g.: peace, fight against drug trafficking, multilateralism.) 

The objective of the EU Communication on the Caribbean is to highlight how the challenges 
facing the Caribbean can be transformed into opportunities by focusing on the right ‘policy-
mix’.  Specifically,  a  structured  political  dialogue  with  the  region  and  mutually  agreed 
strategic policy objectives to be supported through the existing EU development cooperation 
and  instruments  must  be  used  more  effectively  alongside  Caribbean  endeavours  to  further 
develop its potentials and to prevent the region from becoming a pole of insecurity. This can 
best be achieved by ensuring that the EU encourages long lasting socio-economic growth in 
the  Caribbean.  In  parallel,  by  promoting  good  governance  in  the  financial,  tax  and  judicial 
areas  and  assisting  in  areas  such  as  countering  organised  crime,  migration  and  drug 
trafficking, the EU can prevent the Caribbean from becoming a fragile region. Leadership and 
local responsibility at the Caribbean level are crucial. 

3. 

CHALLENGES FACING THE CARIBBEAN 

The geo-political challenges 

An important challenge is for the Caribbean to build the right balance in its relationship with 
different  hemispheric  partners,  notably  with  the  US,  Brazil  and  Venezuela.  Most  Caribbean 
countries work at maintaining a well balanced relationship with bigger countries in the larger 
region. Given the differences that exist in the hemisphere, maintaining a balance that respects 
the interests of the small island states – without excluding the region from the major economic 
developments – is a major challenge. 

The EU stands behind the Caribbean objective to build regional unity in the Caribbean, with 
CARICOM6  being  the  axis  of  integration  and  CARIFORUM7  of  cooperation.  A  second 
objective is to develop links between the Caribbean and the wider region, including Central 
and Latin America. Central and Latin America offer extensive opportunities for the Caribbean 
but  are  also  competitors  in  some  commodity  sectors.  There  are  cases  of  territorial  disputes 
among countries of these regions. 

The  EU,  through  the  DOMs  is  present  in  the  Caribbean.  As  part  of  the  wider  integration 
process, cooperation between the ACP Caribbean grouping and the DOMs and OCTs should 
be reinforced. 

In  order  to  reinforce  the  outward  looking  integration  process  the  EU  will  focus  on  the  EU-
LAC strategic partnership. Overall the regional network of groupings can strongly reinforce 
interaction  and  synergy  which  should  lead  to  the  eventual  smooth  integration  of  the  region 
into the world economy. 

6 

7 

CARICOM : Caribbean Community. Members are Antigua and Barbuda, Barbados, Bahamas, Belize, 
Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, St Kitts and Nevis, St Lucia, St Vincent and 
the Grenadines , Suriname, and Trinidad and Tobago 
Caribbean Forum of ACP States: Members are all the members of CARICOM, except Montserrat, plus 
the Dominican Republic and Cuba. 

EN 

3 

   EN 

 
                                                 
Socio-economic and environmental challenges 

The  Caribbean  is  composed  of  small  mostly  island  states  with  small,  open  but  fragile 
economies, in many  cases based on a small  number of commodities, and located in an area 
notoriously prone to natural disasters. The insular nature of most of the Caribbean is perhaps 
the single most important factor creating limitations to the efforts of integration in the region 
and also adversely affecting the cost of energy, transport, communications and trade. 

The  Caribbean  region  as  a  whole  has  achieved  significant  levels  of  human  development, 
although there are significant differences in development within the region as it includes both 
Middle  (MIC)  and  Low  (LIC)  income  countries  as  well  as  the  poorest  country  in  the 
Hemisphere, Haiti. The average GDP per capita in 2005 was estimated at 3640 US$, however, 
since the 1970s, the average growth in the region has been slowing down in each decade8. To 
varying  degrees,  all  the  countries  in  the  region  remain  vulnerable  to  both  economic  and 
natural  shocks  and  face  common  socio-economic  and  environmental  challenges  including 
reduced social cohesion and in some cases significant poverty as in Haiti, Guyana and some 
OECS  countries,  unemployment  particularly  of  youths  and  displaced  agricultural  workers, 
migration  and  brain  drain,  a  relatively  high  rate  of  HIV/AIDS,  slow  rates  of  diversification 
from  traditional  sectors  and  productivity  and  competitiveness  problems,  high  levels  of 
indebtedness,  the  need  for  economic  reforms  and  restructuring  of  the  public  sector. 
Environmental  challenges  include  natural  disasters,  climate  change  and  management  of 
natural resources. Behind economic and social problems security and stability are also under 
threat  from  political  and  in  some  cases  ethnic  tensions,  criminality,  drugs  and  related  crime 
and armed violence..  

The Caribbean is a region at a crossroads. Bold leadership initiatives are required if the region 
is  to  face  all  these  challenges.  In  spite  of  what  may  appear  at  first  glance  from  economic 
indicators and of the ambition of some countries to achieve the status of developed countries 
by 2020, there are concerns that some Caribbean states may slip from Middle Income to Low 
Income  status  if  steps  are  not  taken  to  reverse  economic  trends  and  to  define  security  and 
stability strategies that will take fully into account the emerging global realities and address 
the challenges and opportunities ahead. 

Part II – From Challenges to Opportunities  

Whereas the EU was seen as the answer to the problems of the Caribbean ten years ago, today 
there is a perception that the EU-Caribbean relationship is strained, a situation also affected 
by  unavoidable  changes  in  preferential  trading  arrangements  and  difficulties,  both  in  the 
delivery and absorption, aspects of development co-operation. The common challenge for the 
EU and Member States is to address this perception. The ultimate aim of the EU is to assist 
the  Caribbean  to  positively  respond  to  the  challenges  in  the  region.  In  doing  so,  the  EU 
strategy  is  articulated  around  three  axes:  Shaping  a  political  partnership  based  on  shared 
values, addressing economic and environmental vulnerabilities and promoting social cohesion 
and  combating  poverty.  In  working  on  these  objectives  collectively  the  EU  can  assist  the 
Caribbean in its quest to fully transform into a region of opportunity. 

8 

“A time to choose - Caribbean Development in the 21st Century”, World Bank, April 2005. 

EN 

4 

   EN 

 
                                                 
4. 

SHAPING A POLITICAL PARTNERSHIP BASED ON SHARED VALUES 

A strong political partnership between the EU and the Caribbean - founded on shared values - 
is  central  to  further  enhancing  EU-Caribbean  relations  and  responding  collectively  to  the 
political challenges facing the Caribbean region. In developing this political partnership, more 
time needs to be devoted to such dialogue, both locally and at the regional international fora. 
In  the  Caribbean  the  EU  will  prioritise  its  relations  with  CARIFORUM  in  order  to  cover  a 
wide  range  of  issues  of  importance  to  both  sides  including  the  consolidation  of  democracy, 
human  rights,  gender  equality,  social  cohesion  and  decent  work  opportunities,  security, 
stability,  conflict  prevention,  migration,  drugs  and  regional  integration.  This  new  political 
dialogue will also interface with civil society so as to ensure all voices in society are listened 
to. 

The bi-annual EU-LAC Summit is a major opportunity for EU-Caribbean political dialogue at 
the  highest  level  for  addressing  the  evolving  relationship  between  the  Caribbean,  its 
geographical neighbours and the EU. In line with the EU’s political priority in the Caribbean, 
a new political dialogue will commence at the forthcoming EU-Caribbean Troika meeting in 
Vienna in May 2006. 

Within the framework of EU political dialogue with CARIFORUM and the LAC, there will 
be  an  opportunity  to  move  forward  on  issues  of  common  concern  including  a  focus  on  the 
wider  regional  integration  process,  the  consolidation  of  democracy,  human  rights,  social 
cohesion  and  decent  work  opportunities,  security,  stability,  conflict  prevention  and  drug 
trafficking.  Political  dialogue  can  also  be  of  particular  use  for  peace-building  and  peaceful 
transformation  policies  in  Haiti,  while  the  door  is  always  open  for  political  dialogue  with 
Cuba on areas where relations and support can be further enhanced within the framework of 
the Common Position adopted in 1996 and which has underpinned the EU’s policy approach 
towards Cuba9. 

Security has become a major priority worldwide in recent times as many countries have been 
victims of terror  attacks.  Ensuring security and the rule of law, with  equity, justice  and full 
respect for human rights, are now fully recognised as fundamental, shared priorities between 
the  EU  and  the  Caribbean  region.  To  this  end  the  EU  and  the  Caribbean  will  cooperate  in 
addressing  security  threats,  including  non-proliferation  of  weapons  of  mass  destruction 
(WMD), illicit Small Arms and Light Weapons (SALW) and combating terrorism. 

The EU should increasingly use regional and national development strategies and instruments 
to  address  the  root-causes  of  insecurity,  instability  and  conflict,  which  include  poverty, 
inequality  and  lack  of  social  cohesion.  Especially  in  certain  fragile  states  that  risk  slipping 
from middle to low income status, a culture of conflict prevention needs to be developed and 
fostered. Caribbean states themselves must also take responsibility for this task. To this end, 
CARICOM/CARIFORUM is encouraged to continue initiatives on the political front, such as 
electoral monitoring and special missions for the resolution of political issues which will be 
further supported by the EU in future. 

Good  and  effective  governance  is  recognised  by  the  Caribbean  as  a  crucial  prerequisite  for 
sustainable  development  and  is  another  of  EU’s  guiding  principles,  as  outlined  in  the  2003 

9 

The European Union’s relations with Cuba are governed by the Common Position of 2. December 1996 
defined by the Council on the basis of Article J.2 of the Treaty on the European Union (Official Journal 
n°  L 322 , 12/12/1996 P. 1 ) 

EN 

5 

   EN 

 
                                                 
Communication on Governance and Development.10 Central to good and effective governance 
is  the  strengthening  of  credible  institutions  –  such  as  parliaments,  the  judiciary  system  and 
public  financial  management  systems  –  both  at  national  and  regional  level.  The  EU  will 
systematically support these key institutions as central elements of the EU governance priority 
in  the  Caribbean.  However,  it  is  recognised  that  governance  is  not  only  about  institution 
building,  but  also  about  appropriate  policies  and  adequate  legal  and  regulatory  frameworks, 
both in the economic, social and political sphere. The EU will, therefore, continue to promote 
transparency  and  effective  exchange  of  information  between  authorities  in  order  to  fight 
corruption  as  well  as  corporate  and  financial  malpractices.  The  EU  will  also  promote  good 
governance in the financial, tax and judicial areas. 

The EU is committed to accelerating the process of ratification of the UN Convention against 
International Organised Crime and the UN Convention against Corruption. Moreover the EU 
will  encourage  the  adoption  and  implementation  of  international  standards  relating  to  the 
prevention  and  the  fight  against  money  laundering,  terrorism,  tax  fraud  and  tax  avoidance. 
The  EU  will  also  address  the  limited  institutional  and  technical  capacity  of  Caribbean 
countries to deal with organized crime and drugs in an effective and comprehensive manner, 
through the development of internal strategies as well as capacity building. 

Actions will include: 

-  Conducting an enhanced political dialogue within the EU-CARIFORUM and the EU-

LAC contexts on a broad range of issues of common concern. 

-  Actions to support good and effective governance 
-  Enhanced co-operation in international fora 

5. 

ADDRESSING  ECONOMIC 
VULNERABILITIES 

AND  ENVIRONMENTAL  OPPORTUNITIES 

AND 

In an increasingly interdependent and globalised world, a major objective of EU development 
policy is to assist developing countries to better harness the globalisation process. Therefore 
coherence  between  EU  trade  policy  and  EU  political  dialogue  with  the  Caribbean  must  be 
further harnessed in order to develop viable economic models for the region. To that end the 
EU  will  strongly  support  the  completion  and  operation  of  the  Caribbean  Single  Market  and 
Economy  (CSME)  as  both  an  element  of  regional  integration  and  the  establishment  of  the 
EPA  with  the  EU.  The  EU  will  contribute  to  strengthening  and  streamlining  of  existing 
regional  institutions  and  organs  in  view  of  guaranteeing  the  smooth  operation  of  the  single 
market.  Additionally,  the  Special  Development  Fund  (SDF)  and  the  Regional  Development 
Fund  can  help  facilitate  the  Caribbean  Single  Market  and  Economy.  Several  countries, 
including among the OECS are set to directly benefit from such solidarity-based instruments. 

A  well  defined  and  credible  integration  agenda  and  functioning  internal  market  are  the 
necessary  pillars  for  a  successful  outcome  of  the  EPA  negotiations  which  started  in  April 
2004. The EPA process will support Caribbean regional integration and provide rules based 
framework  to  help  increase  competitiveness,  diversify  exports  and  create  regional  markets 
thereby contributing to sustainable  economic development. It will also facilitate  adjustment, 
including  its  social  dimension,  to  trade  policy  reforms  and  address  the  significant  issue  of 
reducing  currently  high  levels  of  budgetary  dependence  upon  import  revenues.  This 

10 

Commission Communication on Governance and Development, Brussels, 20.10.2003; COM(2003) 615 
final. 

EN 

6 

   EN 

 
                                                 
integration process is of strategic importance to the future of the economy of the Caribbean 
region.  The  development  dimension  should  be  further  strengthened  so  as  to  better  help  the 
Caribbean region achieve strategic targets of global competitiveness. 

The  EU  will  step  up  its  trade  related  assistance  to  the  Caribbean  in  order  to  strengthen  in-
country and regional trade policy and negotiation capacity, to assist countries with negotiation 
and implementation of the WTO agreements and the EPA, as well as other concurrent trade 
negotiations.  The  EU  will  also  encourage  the  development  of  customs  and  trade  facilitation 
measures and use of international standards. The removal of current barriers to intra-regional 
trade and investment and the establishment of more stable, transparent and predictable rules 
and  reliable  institutions  will  contribute  significantly  to  the  growth  of  national  and  regional 
economies. 

In  this  context  key  to  successful  economic  diversification  and  structural  reform  is  the 
establishment and effective implementation of national long term strategies by the region and 
the  governments  of  the  Caribbean  states  -  with  the  private  sector,  including  social  partners 
fully  involved  in  the  design  of  such  strategies.  The  EU  will  assist,  if  required,  in  the 
elaboration  of  such  national  strategies.  The  key  to  a  successful  strategy  will  depend  on 
whether it manages to support the private sector in a real and meaningful way as the engine of 
economic progress. 

Support  should  be  given  to  the  Private  Sector  and  especially  small  and  medium  size 
enterprises  that  are  expected  to  be  the  driving  force  behind  sustainable  growth  and  job 
creation. The key objective of the EU will be to support the creation of the right environment 
for business development as well as for research and development and the ICT technologies 
within the region. 

The region's generally small open economies are especially vulnerable to global market forces 
and  in  particular  to  changes  affecting  the  stability  of  financial  markets.  This  is  why,  the 
development of financial services in this region has to go parallel with the development of an 
appropriate  regulatory  framework,  notably  in  order  to  prevent  and  combat  corporate  and 
financial malpractices. In the cooperation with the Caribbean, ACPs and OCTs, the EU will 
support good governance in the financial, tax and judicial areas, in particular with regard to 
transparency and effective exchange of information for tax purposes. This issue will also be 
addressed in the context of Economic Partnership Agreements (EPAs). 

The  European  Investment  Bank  can  also  play  a  vital  part  in  ensuring  successful  economic 
transition  in  the  region.  In  effect  this  means  supporting  efforts  on  structural  reforms  and 
economic diversification from traditional sectors to higher added value products and services. 

Interconnections  in  and  between  the  regions  must  be  supported  (regional  airports,  ports  and 
ICT).  This  requires  throughout  the  region  closer  coordination  of  transport  policies  and 
services and serious supply side reforms (e.g. the air transport sector). Safety aspects in the air 
and maritime transport are also of increasing importance. 

On Energy particular emphasis will be placed on renewable energies. Therefore, the EU will 
promote  cooperation  within  the  wider  Caribbean  region  in  order  to  share  best  practices  on 
how best to diversify energy sources. 

All EU aid, irrespective of source or instrument, should be channelled in a coherent way and 
will  be  committed  in  full  coherence  within  single  national  development  strategies.  For  EU 

EN 

7 

   EN 

 
development aid this will apply to development cooperation as well as all commodity specific 
instruments,  including  sugar  and  bananas,  which,  depending  on  the  specificities  of  each 
country, aim to promote competitiveness, assist economic diversification and provide for the 
social fallout from major changes in these traditional sectors.. 

Environment and natural resources represent an important asset for the region, the countries 
and, particularly, the poorer part of the local population. The links between environment and 
socio-economic development will be highlighted in EU support to the region. In addition to 
natural  disasters,  Caribbean  states  face  many  environmental  challenges  including  land 
degradation, deforestation, scarce water resources, fish stocks management, biodiversity loss, 
waste and toxic chemical management and more recently climate change, all of which impact 
strongly on the region’s economic and social development. The EU will continue to support 
actions  to  address  environmental  challenges  and  to  build  capacity  in  such  areas  as  climate 
change, mitigation and adaptation, and sustainable natural resource management. The EU will 
share its experience in global environmental issues with Caribbean Partners. The EU will also 
contribute to increase the region’s capacity in Natural Disaster Management at all levels, with 
emphasis  on  risk  reduction,  preparedness,  early  warning,  prevention  and  mitigation. 
Specifically rehabilitation, recovery and reconstruction require strengthening through new and 
faster disbursing arrangements involving pre-committed funding. 

Actions will include: 

-  Support for the completion of the Caribbean Single Market and Economy; 
-  Support  regional  integration  at  the  CARICOM  level  and  strengthened  regional 
cooperation at the CARIFORUM level and among CARIFORUM, DOMs and OCTS; 
-  Successful pursuit and conclusion of the negotiations to achieve an EU-CARIFORUM 
EPA by 2008, including trade related assistance and support to good governance in the 
financial, tax and judicial area; 

-  Support to structural reforms and broadly defined economic diversification, including 

interconnection and energy, and support to the Private Sector and Civil Society. 
-  Support for addressing natural disasters and other specific environmental challenges. 

6. 

PROMOTING SOCIAL COHESION AND COMBATING POVERTY 

Tackling  the  major  vulnerabilities  in  the  Caribbean  will  help  the  region  to  both  improve 
economic competitiveness and ensure better socio-economic cohesion. Specific emphasis will 
be  put  on  preventing  further  social  imbalances  and  environmental  pressures.  Moreover 
concerted efforts will be taken in order to tackle migration and reduce unemployment. All of 
these efforts must be pursued in a coordinated fashion within a coherent strategy. 

There are pockets of extreme poverty in the Caribbean region, despite the fact that Caribbean 
countries  are  generally  scoring  well  on  the  MDGs.  The  EU  will  support  the  efforts  of  the 
Caribbean  to  respond  to  chronic  poverty  through  support  strategies  aimed  at  improving 
sustainable basic livelihood. The EU will support national strategies encompassing inter alia 
(i) support to social safety nets and (ii) support to income generation for the poorest in rural, 
semi-urban and urban areas. In supporting this objective, the EU will continue to prioritise the 
work of civil society in the Caribbean. 

Support to tackle HIV/AIDS as well as other important endemic health problems in the region 
is a priority for the Caribbean. To this end the EU will continue to replenish the Global Fund 

EN 

8 

   EN 

 
 
to  Fight  AIDS,  Tuberculosis  and  Malaria,  while  the  EU  already  has  developed  a 
Communication on combating HIV/AIDS.11  

Regarding  health  care  issues  more  generally,  the  EU  will  support  the  regionalisation  of  co-
operation  between  health  services  in  the  region.  The  strengthening  of  health  care  systems 
throughout the region, with special emphasis on human resources and fair access and funding 
to  health  services,  by  increasingly  working  in  line  with  sector  wide  approaches  and  sector 
budget support, will be among the EU priorities. 

In the area of drugs, EU activity will be focused on the development and implementation of 
regional and national strategies addressing both the supply and demand reduction aspects of 
the problem and the associated issues of drug related crime and armed violence which is on 
the rise in the region. It is necessary to strengthen regional co-ordination of the various drug 
control programmes by reinforcing relevant, sustainable regional institutions. The long-term 
objective  is  to  ensure  full  integration  of  drug-related  policies  into  regional  development 
strategies as well as into the social, economic and political fabric of the Caribbean. First and 
foremost,  the  EU  will  focus  on  a  drug  prevention  policy,  with  emphasis  on  education  and 
awareness.  With  respect  to  demand  reduction,  the  EU  will  support  the  region’s  efforts  to 
increase  levels  of  surveillance,  training,  structures  (both  legal  and  operational),  and  co-
ordination in order to reduce demand for drugs. On the supply side the EU will support the 
region’s efforts to deepen its involvement in the international fight against drugs especially in 
strengthening co-ordination and cooperation with Latin American countries. 

The focus on education is also key to pulling sections of society out of the ‘poverty trap’, by 
providing  skills  necessary  for  economic  diversification  in  areas  such  as  the  service  sector. 
Working  towards  human  resource  and  knowledge  based  growth  will  also  support  the 
objective  of  improving  social  mobility  for  those  adversely  affected  by  the  ills  of  structural 
reform  and  economic  transition.  Brain-drain,  socio-economic  alienation  and  weak  social 
cohesion are realities for many in the Caribbean region. Providing the skill base and ‘know-
how’  to  take  advantage  of  economic  diversification  will  be  a  key  EU  mechanism  for 
overriding the social and socio-economic challenges faced today. The EU has long played an 
important role in supporting education in the Caribbean, especially at secondary, tertiary and 
University  level.  This  co-operation  will  continue  and  be  enhanced.  Following  on  from  the 
Guadalajara  EU-LAC  Summit,  the  EU  is  prioritising  the  creation  of  a  Common  Higher 
Education Area between Europe, Latin America and the Caribbean. 

Actions will include : 

-  Prioritising social cohesion and poverty reduction in development actions; 
-  Support to battle against HIV/AIDS and other endemic health problems; 
-  Enhanced cooperation in combating drugs, at the demand and supply level, and drug 

related crime; 

-  Human  resources  development  to  support  economic  diversification  and  reducing 

poverty and social exclusion. 

11 

COM (2005) 654 final 

EN 

9 

   EN 

 
                                                 
Part III 

7. 

BEING MORE EFFECTIVE 

Coordinated  efforts  are  needed  from  both  the  EU  and  Caribbean  side,  drawing  on  the  long 
experience  of  the  past,  in  order  to  build  a  more  structured  and  mature  cooperation  better 
adapted to the specificities of the Caribbean region. 

A number of structural problems impact on aid mobilisation and are also a source of tension 
in EU-Caribbean relations. The Caribbean countries benefit from EDF funding and also from 
a  number  of  other  budgetary  instruments  but  there  has  been  insufficient  coherence  and 
complementarity among the various strategies governing the use of these instruments and the 
range  of  actions  funded.  Additionally,  the  existence  of  a  large  number  of  small  projects 
covering  a  wide  range  of  sectors,  in  combination  with  often  cumbersome  procedural 
requirements,  places  an  unmanageable  burden  on  small  and  weak  national  and  regional 
implementing  bodies  and  government  institutions.  This  is  also  a  problem  for  the  EC 
Delegations in the region.  

Regional and National Support Strategies should have a higher degree of coherence and the 
resulting  Regional  and  National  Indicative  Programmes  should,  as  much  as  possible,  be 
mutually reinforcing. The principle of subsidiarity, reserving for the national or regional level 
what is best addressed at each level, should guide the selection of actions under the RIP and 
NIPs.  Budget  Support  at  national  level,  and  contribution  agreements  with  regional  bodies, 
should  be  utilised  as  a  general  rule.  Budget  support  programmes  offer  many  potential 
advantages,  including  encouraging  greater  ownership,  lowering  transaction  costs  and  more 
effective  use  of  aid.  Budget  support  will  also  strongly  assist  structural  transformation 
especially when delivered in a context characterized by the existence and implementation of a 
single sound national or regional development policy. As a matter of practice budget support 
will  be  provided  in  parallel  with  the  obligation  to  provide  transparent  and  accountable 
financial and administrative management of development funds. 

At the national level, EU assistance will be articulated around a single national development 
strategy which will encompass all EC instruments including EDF, special funding related to 
bananas,  sugar,  rice  and  rum  and  also  all  other  EC  budget  lines  and  facilities,  thereby 
addressing many of the problems encountered in commodity specific instruments such as the 
SFA for bananas. At regional level in close cooperation with the CARICOM/CARIFORUM 
secretariat, instruments such as the new Regional Development Fund could be considered as 
one of the potential conduits of the EU regional development assistance in the Caribbean. 

Synergies  between  ACP,  OCT  and  DOM  development  programmes  will  be  actively 
encouraged, as well as with EU programmes involving Latin America. 

The  European  Commission  has  proposed  a  simplified  structure  for  the  delivery  of  the 
Community’s  external  assistance  geared  towards  facilitating  coherence  and  consistency, 
improving  financial  and  administrative  procedures  and  facilitating  co-financing  with  other 
donors. The EC is also proposing a common format for a Joint Framework for multi-annual 
planning to be applicable to all EU Member States12. 

12 

COM (2006) 88 

EN 

10 

   EN 

 
                                                 
Moreover,  by  bringing  donor  aid  within  the  budgetary  framework,  budget  support 
programmes will allow Caribbean governments to have a more optimal mix between capital 
and recurrent expenditure.  

Actions will include : 

-  Promoting the use of single national and regional strategies to govern the use of all EU 

development aid irrespective of source or instrument; 

-  Using  Budget  Support  and  Contribution  Agreements  as  the  preferred  delivery 

instruments for development aid; 

-  Simplifying financial and administrative procedures for aid delivery and harmonising 

programming among EC and Member States. 

8. 

CONCLUSIONS – EU ADDED-VALUE IN THE CARIBBEAN REGION 

The  EU  and  the  Caribbean  have  a  long  standing  and  strong  partnership  that  is  based  on 
history and shared values. Over the years, this partnership has been important and beneficial 
to both sides. The Cotonou Agreement, which runs to 2020, offers a solid basis on which to 
further  strengthen  this  valued  relationship.  The  many  opportunities  offered  by  the  Cotonou 
Agreement  need  to  be  mobilised.  The  EU  and  the  Caribbean  will  work  as  partners  in  the 
global effort to support democracy, universal human rights, peace and stability in the world, 
and to combat the scourge of poverty.  

The  Caribbean  has  embarked  on  a  path  of  regional  integration,  wider  regional  cooperation, 
and  economic  diversification,  restructuring  and  reform,  as  a  means  towards  harnessing  the 
opportunities and minimising the negative effects of globalisation on its small and currently 
vulnerable states and as a way to achieve the Caribbean peoples’ high aspirations of human 
development. National Governments, civil society, private enterprise and regional structures 
in the Caribbean will obviously carry the responsibility for shaping their own future. Based on 
a shared vision of the future, and through an enhanced political partnership and the support of 
actions  to  address  the  region’s  socio-economic  and  environmental  vulnerabilities  and  to 
promote  social  cohesion  and  combat  poverty,  the  EU  will  be  a  steadfast  partner  for  the 
Caribbean in its efforts. The EU – Caribbean Troika meeting in the context of the EU-LAC 
Summit in May 2006 will mark the start of a renewed and broad political dialogue. 

EN 

11 

   EN 

 
ANNEX I 

AN EU-CARIBBEAN PARTNERSHIP FOR GROWTH, STABILITY AND 
DEVELOPMENT  

1. 

The overall context, geopolitical dynamics, independence to present day 

Most  of  the  Caribbean  countries13  gained  independence  in  the  1960s  from  the  European 
colonial  powers.  Countries  were  granted  independence  on  an  individual  basis  even  though 
integration  efforts  existed  since  the  1950s,  such  as  the  Caribbean  Federation14.  It  was  the 
height of the cold war and all regions of the world were important to the superpowers jostling 
for influence, allies and UN votes. 

The region is characterized by a strong diversity in its history and socio/cultural development 
and with great disparities in economic development and wealth distribution; ranging from the 
impoverished island of Haiti, to the wealthy Turks and Caicos Islands, and with varied forms 
of government ranging from Cuba’s socialism to the stable democracies of the majority of the 
archipelago. 

Several  of  the  smaller  islands  of  the  region  still  retain  close  links  to  their  former  colonial 
metropoles in the form of self governing overseas countries and territories in the case of the 
Netherlands and the UK and in the form of parts fully included in the national territory in the 
case of France. 

The  early  post  colonial  period  was  a  period  of  continued  strong  involvement  of  the  ex-
colonial  powers  which  also  extended  to  the  economic  life  of  the  region,  with  the 
establishment of preferential trade arrangements particularly in the area of commodities such 
as sugar, bananas and rum. 

Preferential arrangements with the EU, the US15 and Canada16, coupled  with  above  average 
aid  flows,  in  particular  from  the  former  colonial  powers  resulting  from  decolonization 
sentiments,  led  to  the  development  of  higher  standards  of  living  than  the  norm  in  other 
developing countries. 

This  period  was  also  characterised  by  isolationism  and  an  almost  exclusive  focusing  of 
external relations on relations with the former European metropoles, the USA and Canada. 

The end of the Cold War in the early 1990s meant that the Caribbean region lost geostrategic 
importance.  At  the  same  time,  there  has  been  a  gradual  erosion  of  preferential  trade 
arrangements, a diminishing of aid and an overall slowdown in growth which accentuated the 
fault lines in what is now coming to be seen as an inherently unsustainable system. 

In  terms  of  ranking  in  the  Human  Development  Index,  six  countries  are  placed  in  the  High 
Human  Development  cluster  and  with  the  exception  of  Haiti,  a  Least  Developed  Country 

13 
14 
15 

16 

Caribbean countries refer to the ACP Caribbean group of states. 
“CARICOM – Our Caribbean Community”, CARICOM Secretariat, 2005. 
The US Caribbean Basin Initiative (CBI) 
http://www.ustr.gov/trade_development/preference_programs/CBI/section_index.html) 
Canada’s CARIBCAN http://canadagazette.gc.ca/partII/1998/19980218/html/sor104-e.html) 

EN 

12 

   EN 

 
                                                 
(LDC), the  rest  are in the  Middle Human Development  cluster.  With  the  exception  of  Haiti 
the region as a whole is currently scoring reasonably well in the MDGs. However, there are 
concerns  that  current  levels  of  Human  Development  and  MDG  indicators  could  be 
unsustainable. 

Although  characterized  by  overall  satisfactory  levels  of  human  development,  poverty, 
inequality  and  reduced  social  cohesion  are  a  growing  reality.  Caribbean  countries  have 
experienced serious social problems in recent years.. Indeed, poverty levels range between 8 
and 35% with Haiti being the poorest country of the Hemisphere. Unemployment, inequality 
and the precarious situation and rights of indigenous populations in countries such as Belize, 
Guyana, Suriname and Dominica further aggravates the socio-economic situation. 

The Caribbean, with 2.4%, has the second highest incidence of HIV/AIDS after Sub Saharan 
Africa. The cost to the region of HIV/AIDS is estimated at 6% of GDP per annum17. 

Security and stability within the region are under threat from a resurgence of internal ethnic 
tensions, criminality, drugs, drug related crime and armed violence. 

Internal social, economic, and in some cases political problems are fuelling a rising migration 
sapping  the  region  of  much  needed  quality  human  resources.  Despite  an  overall  trend  of 
declining unemployment in the region especially in countries like Barbados and Trinidad & 
Tobago, where it dropped from more than 20% in the beginning of the 1990s to around 10% 
in the beginning of the year 2000, unemployment rates tend to remain stable in the rest of the 
Caribbean region. 

The Caribbean is a region at a crossroads. Bold leadership initiatives are required if the region 
is to face the political, economic and security challenges. 

There  are  concerns-  including  within  the  region  -  that  the  Caribbean  may  slip  from  Middle 
Income to Low Income country status if steps are not taken to reverse economic trends and to 
define  strategies  that  will  take  fully  into  account  emerging  global  realities  and  seize  the 
opportunities ahead. 

Regionalism  in  the  Caribbean  emerged  as  a  response  to  overcoming  the  development 
constraints of small size and is present in various forms from economic/political cooperation 
and association to economic and monetary union. 

CARICOM dates from the early 1970s18. Similarly to other regional organisations, including 
the  EU,  CARICOM  had  to  adjust  its  original  scope  and  membership  to  adapt  to  the  very 
different trade patterns, economic and political structures in the globalised world of today. 

The new regionalism in the Caribbean is one that reflects a shift, towards closer relationships 
between the countries of the wider Caribbean and Latin America. 

17 
18 

Haiti is reaching the African average of 5.6% of the population being infected with HIV/AIDS. 
“CARICOM – Our Caribbean Community”, CARICOM Secretariat, 2005. 

EN 

13 

   EN 

 
                                                 
2. 

Partners in a shared vision of the future 

The  EU  and  the  Caribbean  have  a  long-lasting  relationship  based  on  the  legacy  of  history, 
common values, economic and trade cooperation and an important volume of trade exchange. 
Colonisation  of  the  Caribbean  mainly  by  Britain,  France,  Spain  and  the  Netherlands  dates 
back to the 17th Century. 

The  EU  remains  very  present  in  the  region  particularly  through  its  member  states  who  still 
have close links with the region: France through their DOMs and the UK and the Netherlands 
through their OCTs, and through privileged bilateral relations between individual Caribbean 
states  and  EU  Member  states.  Notwithstanding  expressed  interest  from  all  sides,  effective 
economic  and  development  cooperation  has  not  fully  materialised  to  date.  While  efforts  are 
being undertaken in that direction there is clearly a need to do more. 

Since  the  UK  accession  to  the  EU  the  successive  EU-ACP  Conventions  have  become  the 
framework for relations between the Caribbean Region and the European Union. 

The  present  preferential  Cotonou  ACP  Agreement,  concluded  in  2000  and  revised  in  2005, 
combines  a  political  dimension  with 
in  a  single 
comprehensive  framework,  which  will  remain  in  place  until  2020.  However,  so  far  the 
political  dimension  of  Cotonou  has  remained  largely  under  utilised.  At  the  regional  level 
political dialogue in future will be prioritised at the annual CARIFORUM – EU  Ministerial 
meetings, while inter-regional level political dialogue will be intensified at the EU-LAC bi-
annual summits in a troika context. 

trade  and  development 

issues 

The  Caribbean  forum  of  ACP  States  CARIFORUM19  was  established  in  1990  to  provide  a 
mechanism for the 15 Caribbean ACP states to manage regional cooperation under the Lomé 
Convention  through  the  EDF.  CARIFORUM  has  grown  from  a  functional  cooperation 
instrument to a forum for political dialogue among the Caribbean ACP states and contributed 
to  the  accession  of  Haiti  into  CARICOM  (CARICOM  has  an  economic  integration  focus) 
with the future adherence of the Dominican Republic also a possibility. The technical function 
of  the  CARIFORUM  Secretariat  is  to  be  merged  with  the  CARICOM  Secretariat  reflecting 
the  importance  attached  by  the  CARIFORUM  members  to  deeper  regional  political 
cooperation. 

The EU-LAC strategic partnership links together the EU’s relations with Latin America and 
the Caribbean and creates a comprehensive common platform for dialogue and cooperation on 
political  and  socio-economic  issues.  Since  the  first  EU-LAC  Summit  in  Rio  in  1999,  the 
Summits  are  key  events  in  this  partnership.  The  next  EU-LAC  Summit  will  take  place  in 
Vienna  in  May  2006.  This  strategic  partnership  offers  significant  opportunities  for  the 
Caribbean in their efforts to expand their relations to the wider Caribbean and Latin America. 

CARIFORUM,  also  including  Cuba  as  a  member,  provides  a  useful  platform  for  strategic 
political dialogue. The EU’s position on Cuba is governed by the Common Position adopted 
in 1996. The essence of the EU’s policy towards Cuba is based on constructive engagement in 
the political and economic arena. Although Cuba was being actively considered for accession 

19 

Caribbean  Forum  of  ACP  States  CARIFORUM  comprises:  Antigua  &  Barbuda,  Bahamas,  Barbados, 
Belize,  Dominica,  Dominican  Republic,  Grenada,  Guyana,  Haiti,  Jamaica,  Montserrat,  St.  Kitts  & 
Nevis, St. Lucia, St. Vincent & the Grenadines, Suriname and Trinidad & Tobago. www.cariforum.org 

EN 

14 

   EN 

 
                                                 
to  the  Cotonou  Agreement  in  2003,  political  developments  related  to  human  rights  put  that 
process on hold and have severely strained relations between the two sides. 

The  Economic  Partnership  Agreements  (EPAs)  are  perhaps  the  most  innovative  element  of 
the  Cotonou  Agreement.  Caribbean  ACP  countries  (with  the  exception  of  Cuba),  have 
benefited  from  preferential  market  access  to  the  EU  under  the  Cotonou  Agreement  and  its 
predecessors. However, trade preferences alone are not able to provide the development the 
region  needs  and  the  Caribbean  share  of  EU  trade  has  been  in  long  run  decline.  Old  style 
preferential schemes based on assistance to commodities such like bananas, sugar etc proved 
that they were not sustainable with international trade. In addition, liberalisation and trade are 
phasing  out  and  redefining  the  rent-based  structure  of  the  economies  in  the  Caribbean.  In 
response to this, negotiations on an EPA with the Caribbean started on 16th April 2004 after 
over a year of ACP talks. The EPA process will build on the current preferences to support 
Caribbean  regional  integration  processes  and  provide  a  rules  based  framework  to  help 
increase  competitiveness,  diversify  exports  and  create  regional  markets.  Together  with  the 
enhancement  of  trade  capacity  this  new  trade  regime  under  the  EPA  will  contribute  to 
sustainable  economic  development.  It  will  also  facilitate  adjustment,  including  its  social 
dimension, to trade policy reforms. The EU is the biggest grant donor in the Caribbean, both 
at the national and regional level. The overall volume of all forms of European Community 
aid to the Caribbean since Lome III is estimated at € 2.800 Bn. 

The EU strongly supports regional integration in the Caribbean. Regional co-operation, since 
Lome  III  estimated  at  a  total  of  €  331  M,  has  progressed  steadily  from  simple  projects 
benefiting two or three countries prior to 1990s, to functional cooperation between the entire 
CARIFORUM group of states aiming at building confidence and fuelling regionalism (1990 – 
2000), to genuine regional integration programmes directly supporting CARICOM, and other 
regional institutions, and the completion of the Caribbean Single Market and Economy, since 
2000. 

Total allocations on the individual Caribbean countries are around € 1.800 Bn for from Lomé 
III  through  to  2007,  and  have  covered  a  wide  range  of  areas.  Levels  of  aid  vary  widely 
between countries with special emphasis on the poorer countries of the region and especially 
Haiti and Guyana. Substantial commodity related assistance has been provided to the region 
through  the  sugar,  banana,  rice  and  rum  preferential  arrangements,  estimated  at  a  total  of  € 
649 M (Sugar € 19.477 M , Banana € 216 M, Rum € 70 M, Stabex € 209 M and Sysmin € 134 
M)20. 

However,  EC  development  cooperation  has  been  hampered  by  a  plethora  of  intervention 
sectors, funding instruments and small projects collectively taxing the limited implementation 
capacity  of  national  and  CARICOM/CARIFORUM  institutions  as  well  as  that  of  EC 
competent services. 

Strategies  implemented  through  structural  measures  such  as  Stabex  and  the  Special 
Framework  of  Assistance  to  Traditional  Banana  Suppliers  (SFA  Budget  line),  were  not 
always coherent with the support strategy of the National Indicative Programme (NIP) of the 
countries  concerned  nor  were  they  sufficiently  geared  towards  encouraging  increased 
productivity and diversification. There was limited coherence between national and regional 
development  programmes.  The  Cotonou  Agreement,  in  spite  of  its  substantial  innovations, 

20 

See annex III 

EN 

15 

   EN 

 
                                                 
has  not  been  able  to  sufficiently  address  the  development  cooperation  bottlenecks  and  the 
streamlining of various instruments. 

Many  of  the  European  Member  States  have  strong  links  with  the  region,  and  UK’s 
Department  for  International  Development  (DFID)  is  among  one  of  the  most  active 
development partners in the region. In 2004 its estimated budget in the region was € 67 M and 
the main recipient countries included Montserrat, Jamaica and Guyana. 

A  number  of  Caribbean  countries  such  as  Dominica,  Haiti,  Dominican  Republic,  St  Lucia, 
Suriname and Cuba are benefiting from specific French development aid instruments. French 
cooperation has mainly been oriented towards economic and social infrastructure projects and 
the civil society. 90% of the development funds – approximately € 12 M/year- are channelled 
towards the so-called “Zone de Solidarité Prioritaire “ – Cuba, DR, Haiti and Suriname. 

The  Federal  Government  of  Germany  is  another  important  player  in  the  region  placing 
emphasis on poverty reduction, environmental and resource protection and modernisation of 
the government and society. The total budget in 2003 was estimated at € 35M. Main priority 
countries were Guyana, DR and Haiti. 

The  Netherlands  has  also  made  contributions  in  the  region,  notably  in  Suriname  where  bi-
lateral  development  ties  date  back  to  1975.  The  Dutch  government  is  its  main  donor  and  is 
mainly active in six sectors, in the field of good governance and in certain long-term projects. 
The  total  budget  in  2003  was  estimated  at  €  24  M.  The  main  priority  countries  were 
Suriname, Jamaica and Haiti. 

Spain  is  also  active  in  development  cooperation  with  the  Caribbean  both  at  bi-lateral  and 
regional levels. The total budget in 2004 was estimated at € 54 M. The main priority countries 
were DR, Cuba and Haiti. 

This listing is not considered exhaustive. 

European Foreign Direct Investment (FDI) in the region has always been significant. By the 
year 2003, the outward stock of European FDI in the Caribbean region, including Cuba, was 
estimated at € 13.7 Bn. 

3. 

Challenges facing the Caribbean  

The special characteristics of the Caribbean contribute to the vulnerability of the region and 
present  a  certain  number  of  interrelated  political,  economic  and  social  challenges  and 
opportunities. 

3.1. 

The geo-political challenges 

At the EU-LAC summit in Rio in 1999, participating countries made a joint pledge to set up a 
strategic partnership with a view to forging links in the political, economic and social spheres. 
The Caribbean states are a part of that strategic partnership and have strong ties with Central 
America and South America, enshrined in various agreements and through their membership 
of the Association of Caribbean States (ACS) 

Caribbean participation in broader hemispheric groupings, including CARIFORUM, the ACS 
and the FTAA, together with the creation of an EU- CARICOM free trade area and the EU-

EN 

16 

   EN 

 
LAC  strategic  partnership  will  strongly  reinforce  the  outward  looking  integration  process 
which should lead to the eventual smooth integration of the region into the world economy. 

The CARICOM members and the Dominican Republic are all established democracies with 
accountable  administrations,  free  press  and  stable  institutions.  Nevertheless  a  number  of 
potential  issues  could  overturn  this  perception  of  security  and  stability  with  severe 
implications on economic and social progress. 

Internal  threats  exist  in  the  form  of  tensions  between  ethnic  groups  in  some  countries, 
economic  downturn  also  causes  social  tension.  Issues  relating  to  unemployment,  instability, 
drugs and related criminality and armed violence, small arms and light weapon trafficking all 
negatively  impinge  on  the  social  fabric  and  the  political  life  of  the  region.  External  threats 
exist from territorial and border disputes between some CARICOM member states and with 
some other neighbouring countries. 

The  advent  of  globalisation  fortifies  the  need  for  widening  and  deepening  of  the  Caribbean 
Community itself and for the region to move towards a more outward looking relation with 
the  Latin  American  continent.  The  influence  of  individual  Caribbean  states  in  international 
organisations and fora is also quite important. 

Cuba also plays an active role in the various international and regional fora. Although it is a 
full member of the United Nations, its role is limited by the fact that Cuba is not a member of 
several multilateral institutions such as the IMF, the WB, IDB (Inter American Development 
Bank) or the OAS (Organisation of American States). 

With Venezuela, Cuba is promoting a Latin American alliance, the Iniciativa Bolivariana para 
las Americas (ALBA) which is seen as an alternative to the US-backed Free Trade Area of the 
Americas  (FTAA).While  the  FTAA  seeks  free  trade  across  the  Americas  as  a  whole,  the 
ALBA  proposes  full  integration  of  Latin  America  only,  including  the  elimination  of  trade 
barriers. 

The  EU-LAC  summits  of  Rio  in  1999,  Madrid  in  2002  and  Guadalajara  in  2004  have 
contributed  in  further  deepening  the  relations  between  the  Latin  America  countries  and  the 
Caribbean. The well established relations of Dominican Republic, a CARIFORUM member, 
with Latin America countries are also an asset. 

Central  and  Latin  America  offer  extensive  opportunities  for  the  Caribbean  but  are  also 
competitors  in  some  commodity  sectors  and  there  are  cases  of  territorial  disputes  among 
countries of these regions. The EU-LAC Summit process could offer valuable opportunities 
for political dialogue and conflict prevention. 

An important challenge here is for the Caribbean to find the right balance in its relationships 
between  its  different  hemispheric  partners.  Most  of  the  Caribbean  countries  try  to  maintain 
well  balanced  relations  with  all  big  countries  in  the  larger  region  where  it  geographically 
belongs. Given the differences that exist in the hemisphere, maintaining a balance respecting 
the  interests  of  the  very  small  islands  states  without  excluding  the  regions  from  the  major 
economic  developments  is  a  major  challenge.  In  the  longer  term,  the  Caribbean  has  to 
carefully consider and prepare for the impact from the evolution of the situation in Cuba. 

EN 

17 

   EN 

 
3.2. 

Economic challenges 

The  average  GDP  per  capita  for  Caribbean  countries  in  2005  was  estimated  at  3640  US$. 
There  are  however  within  the  region  significant  differences  between  the  countries  and  also 
significant inequalities in wealth distribution within the individual countries. The gap between 
the  richest  and  the  poorest  countries  has  tended  to  widen  over  the  last  forty  years  and 
divergence in GDP per capita levels has been stronger between the Caribbean economies than 
the  Latin  American  economies.  Nevertheless,  the  Caribbean  has  an  average  income 
inequality, measured by the GINI Coefficient at 0.38 which is lower than in Latin America. 
Countries  such  as  Haiti,  Dominican  Republic,  and  the  small  island  communities  of  St. 
Vincent  and  the  Grenadines,  Antigua  and  Barbuda  do  however  suffer  from  high  levels  of 
inequality than the average Caribbean State21. 

The  insular  nature  of  most  of  the  Caribbean  is  perhaps  the  single  most  important  factor 
creating  limitations  to  the  efforts  of  integration  of  many  small  economies  in  the  region  and 
also adversely affecting the cost of energy, transport, communications and trade. 

The Caribbean agricultural sector faces real challenges adjusting to structural changes in the 
global  economy.  Even  before  EU  market  reforms  many  traditional  Caribbean  exporters  of 
rice, sugar, rum and bananas were structurally in long term decline under price pressure from 
more  competitive  suppliers,  and  this  in  spite  of  substantial  EU  aid  and  trade  preferences. 
Preferential access to artificially high EU internal market prices is not a sustainable solution 
to problems of competitiveness, but the accelerating transition to a more diversified economy 
will be difficult. 

Diversification, particularly in rural areas, is a difficult challenge, and requires a progressive 
the  dominant  sectors,  while 
approach.  New  activities  can  be  developed  around 
simultaneously, if relevant, reinforcing their competitiveness and resilience. 

According  to  the  IMF,  external  current  account  deficits  for  the  Caribbean  are  projected  to 
worsen in the short term with the rise in oil prices and rising imports related to construction 
activity. Several countries are currently faced with macro-economic challenges, and fourteen 
Caribbean countries are among the thirty most indebted countries in the world. 

The Caribbean is the most tourism intensive region in the world. Direct and indirect impacts 
of  tourism  account  for  18%  of  total  GDP  in  the  region.  However,  tourism  has  not  created 
strong  linkages  within  national  economies.  Tourism  infrastructure  is  mostly  foreign  owned 
and  investment  is  being  driven  by  substantial  financial  and  tax  incentives  granted  by  the 
individual countries in competition with one another. 

The efforts of several Caribbean countries to promote offshore financial centres have met with 
problems  on  two  main  accounts,  namely  unfair  tax competition  and  lack  of  transparency  in 
several areas, including taxation and security against money laundering operations. However, 
offshore  business  opportunities  may  still  exist  in  other  sectors.  There  are  already  several 
offshore  medical  schools  in  the  Caribbean  all  geared  to  the  US  market.  If  adequately 
addressed offshore education should have the potential for further expansion. 

21 

Human Development Report 2005 

EN 

18 

   EN 

 
                                                 
Given the geographically dispersed nature of the Caribbean region interconnection including 
air,  sea  and  land  transport,  telecommunications  and  connectivity  and  energy  networks  is 
another crucial challenge in regional integration and economic cooperation but at present lack 
of progress in this sector constitutes a major constraint on economic growth22. 

The challenge of  integrated  regional  markets is at the heart of the  concept of the Economic 
Partnership  Agreements  (EPAs).  This  process  of  integration  and  of  fostering  trade  will 
continue to be accompanied by substantial and increasing support for building trade capacities 
and for the implementation of supply side reforms, as well as the promotion of customs and 
trade  facilitation  measures.  The  EPA  will  have  to  address  key  challenges  such  as  the 
dependence  of  Governments  on  unpredictable  tariff  revenues  and  integration  in  a  diverse 
region.  These  are  not  insignificant,  but  the  alternative  of  increasing  isolation  from 
international markets is the far greater risk to development. 

In order to mitigate the differences of economic development that exist among the members 
of  the  CSME  the  region  will  benefit  internally  from  a  Special  Development  Fund,  (SDF), 
operated  by  the  Caribbean  Development  Bank  (CDB)  and  the  newly  established  Regional 
Development Fund ( RDF). The setting up of this fund aims at supporting development of the 
less  prosperous  countries  and  regions  and  innovative  strategies  to  enhance  regional 
competitiveness. 

The Caribbean Single Market component of the CSME was launched in January 2006 by six 
Caribbean  States:  Barbados,  Belize,  Guyana,  Jamaica,  Suriname  and  Trinidad  and  Tobago; 
the OECS countries are expected to join in the coming months. 

To  come  to  grips  with  the  changing  international  situation  countries  need  to  embark  on 
structural reforms and socio-economic transition from their traditional sectors towards higher 
added  value  products  and  services.  Several  have  already  embarked  or  are  considering 
programmes  in  public  and  fiscal  sector  reform,  macroeconomic  stabilisation  programmes, 
economic  diversification,  more  effective  labour  markets,  enhanced  competitiveness,  and  a 
move  to  services  and  knowledge  based  economies.  All  these  require  strategic  planning  and 
investment 
transport  and 
telecommunications infrastructure. 

including  human  resources,  energy,  and 

in  many  areas, 

These reforms need to be intensified and speeded up or, current levels of development may be 
unsustainable, resulting in a slippage of some countries in the region from middle income to 
low income country status. 

The needs are large and beyond the capacity of individual governments and require external 
assistance. A regional approach is fundamental to dealing with these many challenges. 

3.3. 

Social challenges 

Economic downturn is making some governments unable to continue delivering past levels of 
basic  health  and  education  services.  Educational  attainment  is  slowing  in  many  islands  and 
public services are deteriorating23. 

22 

23 

“A  time  to  choose”  Caribbean  Development  in  the  21st  century,  a  document  by  the  World  Bank  in 
April 2005, p.xxxvi 
See annex IV. 

EN 

19 

   EN 

 
                                                 
Human  resources  have  always  been  considered  as  a  very  significant  part  of  the  region’s 
capital.  Throughout  the  region  the  level  of  education,  from  primary  education  through  to 
University  level,  has  always  been  a  source  of  pride.  In  recent  years  there  are  concerns  of  a 
decline  in  standards  based  in  part  on  economic  difficulties  and  on  substantial  migration  of 
education  professionals  attracted  by  higher  salaries  in  OECD  countries.  If  the  efforts  to 
transform the economies of the region from primary commodities production to a diversified 
knowledge based services economy and if the private sector, both local and potential external 
investment,  is  to  play  its  role  as  the  motor  of growth there will be an increasing need  for a 
pool of high quality professionals. In this relation, it is important to remember that brain drain 
is also a major constraint on the region’s overall human resources situation. 

Unemployed is an endemic concern in the region and unemployment rates tend to be higher in 
the  banana  producing  countries  between  15%  in  Jamaica  to  more  than  20%  in  the  banana 
producing Windward Islands. One constraint in the regional approach is the diversity within 
the region. 

Three countries (Cuba, Dominican Republic and Haiti) account for 80% of the population and 
have  very  different  development  and  political situations.  With  the  exception  of  Guyana  and 
Suriname, the countries are generally small, mostly island states with small open economies 
and  located  in  disaster  prone  areas  making  them  inherently  vulnerable  to  man-made  and 
natural shocks, both internal and external. 

Improved  health  care  in  particular  HIV/AIDS  is  considered  key  to  the  region’s  economic 
development, to its attempt to alleviate poverty and to achieve specific goals of public health 
reform  and  reaching  the  MDGs  and  other  international  development  commitments.  The 
disparities between countries and the levels of inequality within countries, including access to 
health care, points to the need to place emphasis on both the national and regional level. 

The  upgrading  of  the  health  care  services  would  also  contribute  to  improve  the 
competitiveness of the general tourism product, especially given the targeted high-end of the 
tourism market and the retiree group as an untapped, but promising expansion area. It should 
also  be  complementary  to  the  international  and  national  efforts  to  improve  the  social 
protection coverage of those excluded from existing systems.  

Drugs, associated crime and armed violence are vulnerabilities to be addressed as it threatens 
the political and social fabric of Caribbean society and hinders the creation of an environment 
conducive  to  investment  and  sustainable  growth.  The  Caribbean  is  not  a  drug  producing 
region at this time, but is considered an important transiting link for drugs. The Caribbean is 
considered  more  the  gateway  to  drugs  destined  for  Europe  as  against  Central  America  for 
drugs to the US. 

In  recent  years  a  number  of  strategies  to  tackle  these  problems  have  been  developed  in  the 
Caribbean, with US and EU support. 

The  EU,  Commission  and  a  number  of  Member  States,  has  been  the  main  financier  of  the 
1996 – 2001 Regional Plan of Action on Drugs Control - Barbados Plan of Action (BPA). 

Drugs  are  a  major  significant  issue  in  the  EU-LAC  strategic  partnership.  The  EU-LAC  Co-
ordination and Co-operation mechanism, based on the principles of shared responsibility, is a 
forum  for  dialogue  and  co-operation  between  the two  regions on the  problem of illicit  drug 
production, consumption and trafficking. 

EN 

20 

   EN 

 
The  regional  authorities  should  increase  their  efforts  to  plan,  co-ordinate,  supervise  and 
deliver  training  related  to  activities  to  reduce  supply  through  institutional  strengthening  and 
capacity  building.  Activities  could  include,  inter  alia,  legal,  legislative  and  regulatory 
frameworks,  intelligence  sharing  among  law  enforcement  agencies,  strengthening  of 
institutions,  maritime  cooperation,  police  and  judicial  co-operation,  combating  money-
laundering, the trafficking of small arms and light weapons and the control of precursors. 

3.4. 

Natural Disasters and the Environment Vulnerability 

The  Caribbean  is  currently  faced  with  several  structural  environmental  challenges  such  as 
climate  change,  and  limited  and  fragile  coastal,  marine,  biodiversity,  land  and  freshwater 
resources. 

Nature  is  a  blessing  and  a  curse  to  the  Caribbean  region.  The  natural  environment  has 
contributed significantly to the prosperity of the  agricultural  sector and is at the base of the 
region’s  comparative  advantage  in  the  tourism  sector,  where  tourism  actually  is  the  product 
on  offer.  The  vagaries  of  nature,  however,  in  the  form  of  hurricanes,  earthquakes,  volcanic 
activity and tidal waves, make the region one of the most disaster prone areas in the world, 
entailing high economic and social costs. 

The  Caribbean  is  twelve  times  as  exposed  to  disasters  as  the  world  average.  The  Eastern 
Caribbean countries are among the ten most disaster prone countries in the world. The impact 
of natural disasters on small island states is devastating as in the case of Grenada where the 
impact  of  Hurricane  Ivan  was  estimated  at  200%  of  GDP  as  compared  to  2%  average  of 
natural disasters elsewhere in the world. 

Land is certainly one of the most limited resources in the Caribbean. It is therefore the subject 
of  intense  pressures  from  human  activities.  Poor  land  use  and  land  management  as  well  as 
increasing  conflicts  for  the  access  to  land  (for  agriculture,  urbanization  or  other  activities) 
have  led  to  the  degradation  of  this  resource.  Erosion  and  land  degradation  are  particularly 
severe in coastal areas and in areas formerly covered by forests. 

Deforestation has been intense in the region and forests now only cover less than 20% of total 
land area. The ever increasing demand for wood for energy, housing, or timber exportation, or 
for  land,  maintains  a  high  pressure  on  the  remaining  forests.  The  Caribbean  region  is  also 
particularly rich in biodiversity, with many endemic species. Local conservation initiatives do 
exist, but regional action is needed if biodiversity loss is to be reduced. 

Land,  forests,  biodiversity:  all  are  resources  which  are  under  further  threat  from  climate 
change.  Climate  change  may  have  an  effect  on  the  vegetation  cover,  on  the  degradation  of 
land  or  on  the  coral  reefs  and  marine  resources,  therefore  affecting  agriculture,  fishing  and 
even tourism. Its potential effects on these important sectors for the local economies may have 
a  devastating  impact  on  local  fragile  economies.  Sea  level  rise  is  also  threatening  coastal 
areas,  and  estimates  varying  from  30  to  50  cm  rise  over  the  next  50  years  are  commonly 
accepted. Climate variability is also higher now and has led to more severe extreme climatic 
events like hurricanes and tropical storms. 

Water resources are also under heavy pressure. The  development  of  tourism  and  of  modern 
agriculture has led to over-extraction of water. Some Caribbean States are far below the limit 
of  1000  m3  of  available  water  per  capita  per  year,  under  which  countries  are  considered  as 

EN 

21 

   EN 

 
“water  scarce”.  Careful  and  sustainable  management  of  this  resource  is  thus  an  absolute 
necessity and needs to be actively promoted. 

Due  to  the  limited  size  of  their  economy  and  their  available  land,  waste  management  is 
usually a critical issue in the Caribbean states. Goods are imported with their package which 
remains  on  the  island.  The  increasing  share  of  non-biodegradable  waste  makes  it  more 
difficult to set up sustainable waste management schemes. A great challenge also lies in the 
way the region can handle the problem of hazardous waste and toxic chemicals. 

Sustainability  of  the  tourism-based  growth  is  fragile,  because  it  is  often  affected  by  events 
outside the region and beyond its control. In only a few hours, one hurricane can wipe out the 
entire tourism industry of one or more small islands. It is also increasingly being challenged 
by concerns over the conservation of the environment, by the need to upgrade available health 
care  facilities  as  well  as  by  insecurity  related  to  drugs,  drugs  related  crime  and  armed 
violence. 

4. 

The EU Strategy 

EU – Caribbean relations have suffered from a combination of factors: conflicting urgent and 
shifting  international  priorities  and  demands  on  both  sides,  the  changing  conditions 
surrounding commodities of interest to the region including sugar, bananas, rice and rum and 
difficulties in the implementation of aid. 

The  EU’s  overarching  development  objective  is  to  assist  all  the  countries  in  the  region  to 
achieve  their  long  term  development  goals  in  a  self  sustaining  manner.  This  includes  the 
generalized  achievement  of  MDGs  and  poverty  reduction,  the  consolidation  and  building 
upon the region’s Human Development achievements and the ambition expressed by some of 
the  Caribbean  MICs  to  join  the  ranks  of  the  developed  states  by  2020,  at  the  expiry  of  the 
current Cotonou Agreement. 

The specific identity and characteristics of the Caribbean region, its prominent role within the 
ACP group of states and its attachment to the Cotonou Agreement, constitute the basis of its 
special relationship with the EU and the need for a specific policy approach. 

The  objectives  will  be  achieved  through  a  new  enhanced  EU  –  Caribbean  Partnership 
composed  of  three  interrelated  facets,  shaping  political  partnership,  addressing  socio- 
economic  and  environmental  vulnerabilities  and  combating  poverty, 
inequality, 
HIV/AIDS and drugs. Given the EU’s position a major donor in the region, aid effectiveness 
will be addressed as a cross cutting issue. 

4.1. 

Shaping political partnership based on shared values 

For  the  EU  it  is  important  that  the  Caribbean  region  remains  attached  to  the  values  that  it 
shares with the EU and does not slip, through benign neglect and economic difficulties, into a 
pole of insecurity and instability. 

A strong political partnership with the EU, founded on a genuine political dialogue will help 
strengthen  the  Caribbean’s  position  on  the  international  scene,  and  offer  opportunities  for 
collaboration in the UN and other international fora on issues of common interest. Enhanced 
political  dialogue  is  also  a  key  to  increasing  the  confidence  between  the  EU  and  its  ACP 

EN 

22 

   EN 

 
partners needed to underpin the move towards greater budget and sector support financing and 
away from the traditional project approach. 

Regional integration and the forging of alliances with other regions in the wider Caribbean, 
including  the  EU’s  French  Departments  and  UK  and  Netherlands  OCTs  constitute  key 
priorities of the region. 

The EU is not only a donor of development aid, but also a political and commercial partner, 
and its relations with its Caribbean partners should include broad, concrete and constructive 
political  dialogue.  Political  dialogue  is  also  a  cornerstone  of  the  EU  –  LAC  strategic 
partnership. 

The EU is a strong international partner which can help the Caribbean Region consolidate its 
position  within  the  multilateral  system  and  offer  an  extra  dimension  to  the  close  links  the 
region enjoys with North America. 

While  individual  countries  have  specific  needs  and  national  development  policies,  growing 
regionalism in the Caribbean confirms the recognition that many common problems are best 
dealt at the regional level. 

– 

– 

CARICOM is considered the strongest manifestation of regional integrationist 
will at the political level in the Caribbean. 

CARIFORUM is considered the EU’s main intermediary for the wider level of 
political  dialogue  and  functional  co-operation  in  the  region.  The  upcoming 
fusion  of  the  Technical  functions  of  the  CARIFORUM  Secretariat  with  the 
CARICOM  Secretariat  will  ensure  an  enhanced  cooperation  and  coordination 
between the two entities. 

Therefore,  EU  Political  dialogue  should  be  pursued  at  the  CARIFORUM/  CARICOM  level 
and the annual EC-CARIFORUM ministerial meeting should be enhanced and broadened to 
cover issues beyond the narrow purview of regional cooperation. 

The  Caribbean  has  embarked  on  a  path  of  regional  integration,  wider  regional  cooperation, 
and  economic  diversification,  restructuring  and  reform,  as  a  means  towards  harnessing  the 
opportunities and minimising the negative effects of globalisation on its small and currently 
vulnerable states and as a way to achieve the Caribbean peoples’ high aspirations of human 
development. National Governments, civil society, private enterprise and regional structures 
in the Caribbean will obviously carry the responsibility for shaping their own future. Based on 
a shared vision of the future, and through an enhanced political partnership and the support of 
actions  to  address  the  region’s  vulnerabilities  and  to  promote  social  cohesion  and  combat 
poverty, the EU will be a steadfast partner for the Caribbean in its efforts. 

The  EU  will  also  continue  and  enhance  its  support  to  other  regional  institutions  linked  to 
CARICOM24 and promote policies that will encourage the integration of these institutions as 
an integral part of the political environment of CARICOM member states. 

The  EU  will  support  the  enlargement  of  CARICOM  to  include  other  Caribbean  states. 
Already the DR is considering its participation in the CSME which could lead eventually to 

24 

Including for example the CCJ, UWI, the CTO etc  

EN 

23 

   EN 

 
                                                 
full  membership  of  CARICOM.  The  long  term  position  vis-à-vis  Cuba  will  depend,  among 
other considerations, on the pace of transition in that country. 

Beyond  the  issue  of  Cuba,  political  dialogue  will  focus  on  wide  ranging  issues,  including 
conflict prevention in Haiti and Guyana. The Presidential and Parliamentary elections of the 
7th of February 2006 in Haiti are an encouraging step in the direction of the establishment of 
the democratic life of this country. 

The EU will support the region’s own stated policy of widening its links  to  its hemispheric 
neighbours within the Caribbean, and in Central and Latin America. 

– 

– 

The  opportunities  for  political  dialogue  offered  by  the  ACS  are  also  to  be 
considered,  especially  given  the  particular  status  of  a  number  of  EU  Member 
states in that body. 

The  bi-annual  EU-LAC  Summit  is  a  major  opportunity  for  EU-Caribbean 
political dialogue and substantial efforts should be addressed at maximising the 
benefits  from  the  evolving  relationship  between  the  Caribbean  and  its 
geographical neighbours. The biannual EU-LAC Summits are key events. They 
play a vital role in relations between the regions and are a unique opportunity 
to move forward on issues of common interest. 

For  the  forthcoming  Vienna  Summit  of  12  May  2006,  the  EU  considers  that  the  topics 
covered by the Guadalajara declaration – social cohesion, regional integration, multilateralism 
– remain important, but need to be fleshed out further. 

The EU also welcomes the organization of a business forum and encourages social partners 
and civil society to contribute to the Summit. 

Security,  stability  and  conflict  prevention  are  essential  prerequisites  for  sustainable 
development.  Security  has  become  a  major  priority  worldwide  in  recent  times  as  many 
countries  have  been  victims  of  terror  attacks.  Ensuring  security  and  the  rule  of  law,  with 
equity,  justice  and  full  respect  for  human  rights,  are  now  fully  recognised  as  fundamental, 
shared priorities. 

The  EU  and  the  Caribbean  should  cooperate  in  addressing  security  threats,  including  non-
proliferation of weapons of mass destruction and their means of delivery (WMD), trafficking 
and  spread  of  illicit  Small  Arms  and  Light  Weapons  (SALW),    illicit  drugs  trafficking  and 
combating terrorism. They should cooperate to reinforce the role of the UN in the multilateral 
fight  against  terrorism,  including  through  the  full  implementation  of  relevant  UN  Security 
Council Resolutions and the UN Convention on Suppression of the Financing of Terrorism, 
while ensuring respect for human rights in this context. 

The EU should increasingly use regional and national development strategies and instruments 
to  address  the  root-causes  of  conflict,  including  poverty,  inequality  and  lack  of  social 
cohesion  degradation  of  and  access  to  already  scarce  natural  resources,  ethnic  and  political 
violence, weak governance, human rights abuses and gender inequality. Especially in certain 
fragile  states  a  culture  of  conflict  prevention  needs  to  be  developed  and  fostered.  Conflict 
prevention is an implicit element in regional integration and co-operation, through awareness 
of  common  interest  and  mutual  confidence-building.  Regional  institutions  contribute  to 
structure the dialogue and interaction among members, acting as a peer pressure mechanism. 

EN 

24 

   EN 

 
CARICOM  has  initiatives  on  the  political  front,  such  as  electoral  monitoring  and  special 
missions for the  resolution of political  issues25. The EU will support these efforts and other 
bilateral  initiatives  at  conflict  resolutions  such  as  the  DR-Haiti  talks.  The  EU  is  a  strong 
international  voice  in  democratic  process  and  has  developed  specific  expertise  in  election 
observation. This tool will be used wherever necessary in the Caribbean region as a means of 
conflict prevention. 

Good  and  effective  governance  is  also  recognised  as  a  crucial  prerequisite  for  sustainable 
development.  Central  to  good  and  effective  governance  is  the  strengthening  of  credible 
institutions  –  such  as  parliaments,  the  judiciary  system  or  public  financial  management  and 
statistical  systems  –  both  at  national  and  regional  level.  The  EU  will  support  institutional 
capacity building efforts. Governance, however, is not only about institutions, but also about 
appropriate policies and adequate legal and regulatory frameworks and effective involvement 
of  civil  society  including  social  partners.  The  EU  should  therefore  continue  to  promote 
transparency  and  effective  exchange  of  information  between  authorities  in  order  to  prevent 
and  combat  corporate  and  financial  malpractices  and  corruption.  It  should  in  particular 
encourage  transparency  in  the  financial  and  banking  sectors,  as  well  as  administrative  and 
judicial cooperation permitting effective exchange of information. 

The EU should sustain and accelerate the process of ratification of the UN Convention against 
Corruption, a central part of which is the requirement that countries confiscate and repatriate 
illicit assets, and uphold the UN Convention against International Organised Crime. Moreover 
the EU should encourage the adoption and implementation of international standards relating 
to  the  fight  against  money  laundering,  terrorism,  tax  fraud  and  tax  avoidance.  The  EU  also 
encourages its international partners to sign and implement the main international instruments 
of crime prevention, like the UN Convention against Transnational Organized Crime and its 
protocols and the UN Convention against Corruption. The EU should also address the limited 
institutional and technical capacity of Caribbean countries to deal with organized crime and 
drugs  in  an  effective  and  comprehensive  manner,  through  the  development  of  internal 
strategies as well as capacity building. 

The  EU  should  also  continue  to  promote  human  rights  and  equal  opportunities  and  protect 
vulnerable  groups,  especially  women.  The  EU  will  support  gender  mainstreaming  and 
initiatives on gender equality in order to contribute to the implementation of the commitments 
in  the  MDGs,  the  Beijing  Platform  for  Action,  the  Cairo  Programme  of  Action  and  the 
Convention on the Elimination of All Forms of Discrimination against Women. 

ACP/DOM/OCT  Cooperation:  The  Caribbean  ACPs,  the  French  DOMs  and  the  UK  and 
Netherlands  OCTs  are  part  of  the  same  region  and  have  several  converging  interests.  EU 
policy is to ensure closer cooperation and policy dialogue between these different entities in 
the field of trade but also in other areas of common interest, such as migration, transport, ICT, 
education, environmental issues, risk prevention, health, justice and security. 

Both Cotonou, EU Member State national legislation26 and the Overseas Association Decision 
create a favourable environment supporting such a policy dialogue, yet so far there has been 
little progress in activating it. 

25 

26 

For  example,  conflict  resolution  in  Guyana  among  political  parties,  election  observation  in  all  its 
member states. 
In the case of the French DOMs 

EN 

25 

   EN 

 
                                                 
In 2005, the first Clovis Beauregard Conference was held in Martinique, co-sponsored by the 
European Commission, to promote ACP/DOM/OCT cooperation. This is a concrete step that 
should be encouraged in the future. Therefore and during the next funding period, efforts will 
be undertaken to co-ordinate ERDF and EDF financing. Specific funding will be allocated for 
the cooperation between the DOM and  the  ACP/OCT  from  the  ERDF,  in  the  framework  of 
the new objective “Territorial Co-operation”, and from the EDF, respectively. As regards to 
EPAs and despite their different institutional situation, the French outermost regions show a 
growing  interest  in  participating  in  the  benefits  of  the  agreement  as  another  partner  in  the 
region. 

4.2. 

Addressing economic and environmental opportunities and vulnerabilities 

Economically the long term vision is of a region that has achieved a fully integrated economy 
with  strong  links  to  its  wider  geographic  context  and  beyond.  In  an  increasingly 
interdependent and globalised world, a major objective of EU development policy is to assist 
developing  countries  to  better  harness  the  globalisation  process,  by  maximising  the  benefits 
derived and minimising the negative impacts. 

In the particular case of the Caribbean, this primarily means to contribute to their efforts on 
structural reforms and economic transition from their traditional sectors towards higher added 
value products and services and to come to grips with the changing international situation. 

Regional integration will increasingly represent a privileged area of future cooperation, where 
the European Union has a major role to play given its own historic experience. 

EU  will  strongly  support  the  completion  and  operation  of  the  Caribbean  Single  Market  and 
Economy (CSME) as an essential element of regional integration and for the establishment of 
the  Economic  Partnership  Agreement  with  the  EU.  The  recent  openness  of  the  Dominican 
Republic  to  become  a  member  of  the  CSME  even  though  it  is  not  a  full  member  of 
CARICOM represents perhaps another opportunity for the EU to assist the region in creating 
the conditions for such a major and challenging integration milestone to succeed. The EU will 
contribute  to  strengthening  and  streamlining  of  existing  regional  institutions  and  organs  in 
view of guaranteeing the smooth operation of the single market. The introduction of the single 
market by several CARICOM member states in January 2006 and the prospective for the rest 
of the CARICOM member states to join in the near future creates favourable conditions for a 
privileged partnership-based relationship between the European Community and CARICOM. 
Secondment  of  experts  from  Member  States  and  European  institutions  to  help  address 
institutional  functioning  as  well  as  other  concrete  technical  aspects  of  regional  integration, 
such  as  customs  and  trade  facilitations  measures,  could  be  an  area  of  future  regional 
cooperation. 

The Special Development Fund (SDF), the main home grown development instrument of the 
region  based  within  the  CDB,  and  the  new  Regional  Development  Fund  could  be  natural 
partners of the EU regional development assistance in the Caribbean. These solidarity based 
regional  level  funds  could  also  be  important  instruments  for  the  EU  to  channel  its  future 
assistance and reinforce the integration process. 

The timely conclusion of the EPAs process is a strategic area of importance to the future of 
the Caribbean region. A well defined and credible integration agenda and functioning internal 
market  are  the  necessary  pillars  for  a  successful  outcome  of  the  EPA  negotiations.This 
integration process is of strategic importance to the future of the economy of the Caribbean 

EN 

26 

   EN 

 
region.  The  development  dimension  should  be  further  strengthened  so  as  to  better  help  the 
Caribbean  region  achieve  strategic  targets  of  global  competitiveness.  The  EPA,  which  will 
properly take account of existing asymmetries between the two areas, shall allow the region to 
maintain  and  even  improve  its  access  to  the  EU  market.  The  EU’s  policy  will  be  to  further 
strengthen  the  development  dimension  of  EPAs  so  as  to  better  help  the  Caribbean  region 
achieve their  strategic targets of global competitiveness. As it enters its third phase, the EU 
will  intensify  its  support  to  the  EPA  process  so  as  to  make  sure  that  an  agreement  is 
concluded  by  2007.  In  this  context,  it  will  promote  progressive  integration  of  financial 
markets  as  well  as  the  development  of  an  appropriate  regulatory  framework  based  on 
transparency. 

Trade  related  assistance  is  being  provided  to  the  Caribbean  to  strengthen  in-country  and 
regional  trade  policy  and  negotiation  capacity,  to  assist  countries  with  the  negotiation  and 
implementation  of  the  WTO  agreements  and  EPAs,  as  well  as  other  concurrent  trade 
negotiations. 

The removal of current barriers to intra-regional trade and investment and the establishment 
of  more  stable,  transparent  and  predictable  rules  and  reliable  institutions  will  contribute 
significantly to the growth of national and regional economies. 

In  order  to  be  able  to  benefit  more  from  increased  opportunities  to  trade  and  to  ensure  that 
benefits from increased trade are distributed more evenly, trade needs to be better integrated 
into  national  development  strategies  and  in  particular  into  poverty  reduction  strategies.  The 
EU  should  assist  the  region  in  this  process  so  as  to  enable  Caribbean  governments  to 
effectively use trade as a policy tool to reduce poverty. 

The EU strongly encourages and supports efforts to expand trade and economic links to the 
wider  Caribbean  region  and  notably  the  French  DOMs  and  the  UK  and  NL  OCTs,  and  to 
Central and Latin America. 

Programmes  for  the  restructuring  of  traditional  sectors  and  enhancing  competitiveness  and 
promoting economic diversification have been put in place for bananas, rice, rum and sugar. 

In its proposal for reform, the Commission committed itself to accompanying the adaptation 
process  required  in  those  countries.  In  this  context  a  Regulation  on  “Establishing 
Accompanying  Measures  for  Sugar  Protocol  Countries  Affected  by  the  Reform  of  the  EU 
Sugar Regime” was adopted in 2005, outlining actions to be funded under the budget 2006-
2013.  Support  will  be  provided  on  the  basis  of  National  Adaptation  Strategies,  prepared  by 
the  Sugar  Protocol  countries.  Foreseen  measures  could  include:  (i)  Supporting  sustainable 
improvement of the competitiveness of the cane sector, (ii) Promoting diversification of sugar 
dependent  areas  (iii)  Addressing  broader  adaptation  needs,  including  mitigation  of  social 
impacts. 

Key  to  the  successful  mitigation  of  exogenous  economic  shocks  is  comprehensive  national 
strategies  for  restructuring  and  recovery  including  the  social  dimension,  fully  embedded 
within  overall  national  and  regional  development  strategies.  Such  national  and  regional 
strategies for reform should accommodate the provision of EU aid through general or sectoral 
budget  support  at  regional  and  national  level.  This  would  further  strengthen  national  and 
regional institutions as well as democratic accountability. It would also reinforce coherence in 
strategic  planning  and  programming  and  coordination  of  the  development  cooperation 
between the European Community, CARICOM and the individual countries. 

EN 

27 

   EN 

 
Support should be provided to the civil society and the non-state actors (NSA). Support will 
mainly be aimed at enhancing the capacity building efforts of the civil society and the non-
state actors including social partners. 

Support  should  be  provided  to  the  private  sector  and  especially  small  and  medium  size 
enterprises  that  are  expected  to  be  the  driving  force  behind  sustainable  growth  and  job 
creation. 

EU Research and Development Policy: The EU Research Framework Programmes encourage 
international  cooperation  with  Caribbean  countries  and  value  the  potential  to  reinforce  the 
partnership with that region. 

Caribbean countries will benefit from new mechanisms which are being put in place under the 
7th  EU  Research  Framework  Programme  (2007-2013)  such  as  exchange  of  researchers  and 
coordination of the bi-lateral cooperation programmes vis-à-vis EU Member States and Third 
Countries.  Moreover,  Science  and  Technology  Promotion  Platforms  recently  launched  with 
Latin-America  and  the  Caribbean  region  will  further  develop  these  possibilities  in  a  wide 
regional context. 

The EU has supported in the past and will continue its support if required to the CARTAC, 
the  Caribbean  Technical  Assistance  Centre,  spearheaded  by  the  IMF,  which  provides 
technical assistance on economic and fiscal reform. 

The  EIB  which  has  a  solid  track  record  of  development  activities  in  the  region  should  also 
continue its activities in support of regional integration, private sector and the socio-economic 
infrastructure in the Caribbean. 

Interconnection, whether in the form of air, sea and land transportation is a major element in 
regional integration and cooperation. The EU has a history of support to the sector of regional 
transport through the funding of airports, ports, maritime transport, roads and through support 
to institutional aspects of the transport sector. Interconnectivity programmes, possibly linking 
with existing programmes in the DOMs and in Latin America will be encouraged. 

EU  policy  will  be  to  continue  its  support  in  the  area  of  interconnection,  including 
infrastructure, to encourage the efforts of the individual countries and of the region to enhance 
their  intra-region  transport,  ensure  the  closer  coordination  of  their  transport  policies  and 
liberalise the air transport sector. 

Support will also be considered in the areas of energy interconnection, including grid-access 
to electricity from renewable energy sources and of energy efficiency e.g. by cutting systems 
losses. 

Helping the Caribbean region in their efforts to come to grips with the changing international 
situation  and  with  the  need  to  embark  on  structural  reforms  and  economic  transition  from 
their traditional sectors towards higher added value products and services is a key objective. 
In order to achieve this goal, the Caribbean must modernise their states, redefine their overall 
public  sector,  reform  their  government  finances,  reduce  dependence  upon  import  revenues 
and enhance competitiveness to improve the investment climate so as to create the conditions 
of sustainable and jobs creating growth. 

Key to successful socio-economic transition is the establishment and effective implementation 
of national long term strategies by the region and the Governments of  the  Caribbean states. 

EN 

28 

   EN 

 
These  National  strategies  must  be  the  basis  for  all  donor  cooperation  on  the  regional  and 
national  level.  All  EU  aid,  irrespective  of  source  or  instrument,  will  be  committed  in  full 
coherence  with  national  development  strategies.  For  EC  development  aid  this  will  apply  to 
10th EDF development cooperation as well as all commodity specific instruments, including 
but not limited to sugar and bananas, and STABEX. 

The EU will continue and strengthen its support to the sectors of Environmental Management 
and  Natural  Disaster  Management,  with  emphasis  on  climate  change  adaptation  and 
mitigation, early warning, prevention, recovery and rehabilitation. 

The EU will support the current efforts of the Caribbean to engage into a proactive agenda to 
jointly  manage  structural  environmental  challenges  such  as  climate  change,  chemicals  and 
wastes,  as  well  as  limited  and  fragile  coastal,  marine,  biodiversity,  land  and  freshwater 
resources.  Institutional  and  legislative  framework  improvement,  capacity  building  and  civil 
society and local population’s involvement will form part of the strategy. 

Cooperation  in  international  fora  relative  to  climate  change  and  environmental  management 
will be enhanced. 

EU  support  to  the  tourism  sector  must  also  incorporate  the  environmental  dimension  and 
particularly  waste  management  and  coastal  zone  development.  The  EU  has  supported  the 
creation  of  environmentally  managed  areas  such  as  the  Iwokrama  project  in  Guyana  and 
national parks creation in Grenada, Dominica and elsewhere. 

The  EDF  funded  Caribbean  Regional  Environment  Programme  with  the  Caribbean 
Environment  Corporation  aimed  at  strengthening  of  regional  capacity  in  conservation, 
management  and  sustainable  development  of  regional  amenity  areas  (marine,  terrestrial, 
watersheds), illustrated that institutional weaknesses exist in regional bodies which need to be 
addressed. The EU will therefore also contribute to the building of institutional capacity for 
environmental management. 

CARIFORUM  could  be  supported  to  train  adequate  numbers  of  professionals,  to  develop  a 
regional  action  plan,  to  adopt  common  approaches  to  natural  resource  management,  global 
warming and climate  change,  to  strengthen regional institutional capacities and promote the 
sustainable use of its biodiversity for commercial purposes. 

Environmentally  friendly  renewable  energies  could  offer  the  Caribbean  much  in  terms  of 
enhancing the environment but also in economic terms. The EU will promote the pursuit of 
opportunities in the renewable energies sector, including the promotion of cooperation within 
the wider Caribbean region and the sharing of best practices and knowhow amongst partner 
countries. In the second half of 2006 the Finnish presidency of the EU will in the context of 
the Energy and Environment Partnership with Central America (EPP) organise a conference 
under the name "European Union Meets Latin America on Renewable Energies" in which the 
EU will strongly support active Caribbean participation. 

The Energy sector in the Caribbean will be eligible for support from the Energy facility, and 
particular emphasis will be placed on promoting renewable energies. 

The  EU  will  contribute  significantly  to  increase  the  region’s  capacity  in  Natural  Disaster 
Management  at  all  levels,  with  emphasis  on  risk  reduction,  preparedness,  early  warning, 
prevention, mitigation and recovery, rehabilitation and reconstruction. 

EN 

29 

   EN 

 
Early  warning,  especially  in  the  case  of  hurricanes,  is  technically  feasible  and  the  region’s 
capacity  has  been  enhanced  through  the  8th  EDF  Radar  Warning  System  (€13.2  million, 
2003-06). This programme will contribute to mitigate the economic, social and environmental 
losses  arising  from  adverse  weather  conditions,  to  improve  weather  data  for  sensitive 
productive activities and to develop early warning and public awareness systems. 

The  EU  will  assist  the  Caribbean  region  in  developing  and  implementing  its  strategy  for  a 
comprehensive disaster management plan. Such a plan must be holistic in scope also covering 
issues such as building codes, insurance, rapid response mechanisms including in the area of 
public security, telecommunications etc. 

Support will give continuity to the programmes developed by ECHO, through the DIPECHO 
programme, and earlier EDF funding in association with CDERA and other strategic partners. 
DIPECHO  (Disaster  Preparedness  ECHO)  has  been  contributing  to  the  improvement  of 
capacity  in  the  protection  and  preparedness  of  communities  at  risk,  with  focus  on  the 
interrelationship of the various levels of action (local, provincial, national and regional) and 
on  initiatives  that  can  be  reproducing,  and  on  the  co-ordination  of  donor  efforts.  Cross 
fertilisation  of  best  practices  with  the  French  DOM  and  other  EU  OCTs,  will  be  strongly 
supported. 

The  EU  will  seek  means  of  streamlining  responses  to  natural  disasters.  Emergency  aid 
through  international  partners  is  immediately  allocated  and  rapidly  delivered,  however,  the 
phase  of  rehabilitation,  recovery  and  reconstruction  requires  strengthening.  New  and  faster 
disbursing  arrangements  will  be  actively  considered  within  a  pre-committed  financing 
arrangement. 

Regional approaches to Natural Disaster Management are an imperative in the Caribbean. The 
size  of  most  countries  is  such  that  disasters  can  affect  over  90%  of  the  country,  as  in  the 
recent case of Grenada, necessitating immediate external assistance from the region. 

Natural  Disaster  Management  was  one  of  the  four  priority  areas  retained  for  Caribbean 
ACP/OCT/DOM co-operation.. 

Exchanges of experience and know-how with countries of the wider Caribbean, notably Cuba, 
will also be actively promoted in the context of regional cooperation. 

The EU Natural Disaster Facility that has been decided in 2005 and which will be a part of the 
10th EDF development finance arrangements of the Cotonou Agreement will be a major step, 
particularly in addressing the area of preparedness. Bridging funding has been agreed to cover 
the  period  until  the  coming  into  force  of  the  new  funding  and  to  assist  in  the  design  of  the 
facility itself. 

4.3. 

Promoting Social Cohesion and Combating Poverty 

Tackling  the  major  vulnerabilities  in  the  Caribbean  region  will  help  the  countries  to  both 
improve  their  economic  competitiveness  and  ensure  a  better  socio-economic  cohesion.  The 
EU’s overarching development objective is to assist all the countries in the region to achieve 
their long term development goals in a self sustaining manner. This includes the generalized 
achievement of MDGs and  poverty reduction,  reversing the trend of HIV/AIDS  prevalence, 
the consolidation and building upon the region’s Human Development achievements and the 

EN 

30 

   EN 

 
ambition expressed by some of the Caribbean MICs to join the ranks of the developed states 
by 2020, at the expiry of the current Cotonou Agreement. 

Support to the efforts of the individual Caribbean states and of the region to tackle HIV/AIDS 
as well as other important endemic health problems in the region, including malaria, dengue 
fever,  acquired  diabetes  and  cardiovascular  problems,  is  a  political  priority  of  EU 
development cooperation. 

The  EU  will  support  interventions  for  health  by  strengthening  health  systems,  with  special 
emphasis on human resources, and by increasingly working through sector wide approaches 
and sector budget support. 

The EU is supporting the replenishment of the Global Fund to Fight AIDS, Tuberculosis and 
Malaria with a view to maximising benefits for developing countries. In addition, the EU is 
contributing  to  the  development  of  new  drugs  and  vaccines  against  communicable  diseases, 
inter  alia  through  the  European  and  Developing  countries  Clinical  Trials  Partnerships 
(EDCTP).  In  response  to  the  Council’s  request27,  the  Commission  will,  together  with  the 
Member  States,  develop  a  roadmap  on  possible  joint  action  based  on  the  European 
Programme for Action to confront HIV/AIDS, malaria and tuberculosis28. The EU will, in this 
context,  promote  synergies  and  provide  a  coherent  and  coordinated  response  to  the  three 
diseases  across  relevant  policy  areas29.  In  this  sense,  the  Commission  has  adopted  a 
Communication on combating HIV/AIDS within the European Union and the Neighbouring 
countries. 30 

The  EU  has  been  at  the  forefront  of  international  efforts  to  ensure  access  to  essential 
medicines  for  developing  countries.  These  efforts  contributed  to  the  adoption  of  the  Doha 
Declaration on TRIPs and public health in November 2001, which confirms the right of WTO 
members to use flexibilities in the TRIPs Agreement, including issuing compulsory licenses 
of  pharmaceutical  products,  for  reasons  of  public  health.  The  EU  will  also  support  a  better 
linkage  between  the  fight  against  communicative  diseases  and  the  strengthening  of  health 
services with special attention to vulnerable groups. 

The EU will support the regionalisation of co-operation in health services. There are already 
examples  of  a  regional  approach  to  the  health  sectors  within  for  example  the  OECS  where 
there is a joint pharmaceuticals procurement programme aiming at economies of scale and the 
new  St  Lucia  Hospital  is  intended  to  provide  certain  specialities  for  the  sub  region.  This  is 
also the case with certain other medical facilities in the region and in the French DOM. 

27 

28 
29 

30 

Council  conclusions  of  24  May  2005  on  “A  European  programme  for  action  to  confront  HIV/AIDS, 
malaria and tuberculosis through external action” 
Commission Communication of 24 April 2005 (COM (2005) 179 final). 
Selected  areas  of  action  include  affordable  pharmaceutical  products,  regulatory  capacity,  human 
resources in the health sector, and research and development of new tools and interventions. 
COM (2005) 654 final 

EN 

31 

   EN 

 
                                                 
EU support will be focused on the development and implementation of regional and national 
strategies  addressing  both  the  supply  and  demand  reduction  aspects  of  the  problem  and  the 
associated issues of drugs related crime. It is necessary to strengthen regional co-ordination of 
the various drug control programmes by reinforcing relevant, sustainable regional institutions. 
Long-term  objectives  are  to  ensure  full  integration  of  drug-related  policies  into  regional 
development  strategies  as  well  as  into  the  social,  economic  and  political  fabric  of  the 
Caribbean. 

With respect to demand reduction, the EU will support the region’s efforts to increase levels 
of  epidemiological  surveillance,  specialised  training  of  professionals,  revise  national  and 
regional action plans, place  priority on public health, education and research, link treatment 
and  law  enforcement,  provide  specialised  training  and  develop  national  and  regional 
institutional capacities, and co-ordination of demand reduction projects. Regional capacity in 
drugs  control  will  be  developed,  enabling  the  regional  institutions  to  plan,  co-ordinate  and 
monitor demand reduction efforts throughout the region. 

On the supply side the EU will support the region’s efforts to deepen its involvement in the 
international  coordination  against  drugs  trafficking,  improve  regional  capacities  to  disrupt 
flows, increase regional co-operation, expand regional co-ordination in anti-money laundering 
and provide specialised training and institutional capacity development. 

Increased  co-ordination  and  co-operation  with  Latin  American  and  other  countries  and 
regions are key to the success of efforts in the area of drugs. Full engagement by all partners 
in  the  Co-ordination  and  Co-operation  Mechanism  on  Drugs  between  the  European  Union, 
Latin America and the Caribbean will facilitate the achievement of this objective. 

The  EU  has  long  played  an  important  role  in  supporting  education  in  the  Caribbean, 
especially at secondary, tertiary and University level. This co-operation will continue and be 
enhanced. 

The  successful  EU-supported  Caribbean  Examination  Council  (CXC)  programme  of 
harmonisation  of  secondary  level  education  qualifications  will  be  supported  in  its  ongoing 
extension beyond the original English speaking zone. 

Intra-regional University co-operation will be promoted, especially across linguistic frontiers. 
Such  cooperation  has  already  been  the  subject  of  a  successful  7th  EDF  University  level 
programme between the University of the West Indies and the Universities of the Dominican 
Republic and Haiti. 

Civil  society  and  the  non-state  actor  University  co-operation  will  also  be  promoted  in  the 
widest  sense,  eventually  including  Universities  in  the  French  DOMs,  the  Dutch  OCTs  and 
beyond  with  Universities  in  Europe  and  in  Latin  America.  Twinning  operations  will  be 
promoted. 

Means  of  enhancing  the  quality  of  tertiary  and  university  education  through  networking, 
mobility of students and scholars and institutional support and innovation, including the use 
of  ICT  and  the  establishment  of  a  communications  infrastructure  for  the  research  and 
development sector should be supported. 

EN 

32 

   EN 

 
Enhancing  the  quality  and  effectiveness  of  human  resources  and  enabling  knowledge-based 
growth  in  order  to  improve  learning  skills  and  thus  better  address  the  needs  of  increasing 
knowledge-based  activity,  including  services  constitute  an  indispensable  element  of  the 
region’s  development  progress  in  which  sectoral  budget  support  should  be  considered  an 
important  component.  The  effective  use  of  ICTs  and  support  to  the  private  sector  including 
through  the  Investment  Facility  administered  by  the  EIB,  are  essential  ingredients  for 
improving  productivity  and  competitiveness.  The  Caribbean  diaspora  in  Europe  is  a  natural 
ally in the efforts of modernisation and re-positioning of the economy in the Caribbean. 

Tertiary, or post  secondary education, should be supported, possibly in partnership with the 
private  sector  in  order  to  provide  the  appropriate  professional  skills  in  high  demand  in  the 
the  area  of  Information  and 
restructured  economies  of 
Communication Technology (ICT). 

the  region,  especially 

in 

Distance  learning  is  a  key  element  in  the  Caribbean  region  given  its  insular  and 
geographically dispersed nature. 

Following on from the Guadalajara EU-LAC Summit, the EU is prioritising the creation of a 
Common Higher Education Area between Europe, Latin America and the Caribbean. The aim 
is  to  ensure  that  a  substantial  number  of  teachers  and  students  are  invited  to  visit  European 
universities  during  the  period  2007-2013.  It  will  be  the  EU  policy  to  promote  the  fullest 
possible participation of the Caribbean region in these initiatives. 

In the context of the 7th RTD Framework Programme that will come into force in 2007, the 
EU should facilitate networking between researchers from non-EU countries working in the 
EU and research organisations in their countries of origin. The co-operation with the research 
centres of the French outermost regions should also be encouraged in this framework. 

Sectoral Budget support, wherever possible, should be considered as a privileged instrument 
for interventions in the education sector. 

5. 

Being more effective  

A number of structural problems impact on aid mobilisation and are also a source of tension 
in EU-Caribbean relations. The Caribbean countries benefit from EDF funding and also from 
a  number  of  other  budgetary  instruments  but  there  has  been  insufficient  coherence  and 
complementarity among the various strategies governing the use of these instruments and the 
range  of  actions  funded.  Additionally,  the  existence  of  a  large  number  of  small  projects 
covering  a  wide  range  of  sectors,  in  combination  with  often  cumbersome  procedural 
requirements,  places  an  unmanageable  burden  on  small  and  weak  national  and  regional 
implementing  bodies  and  government  institutions.  This  is  also  a  problem  for  the  EC 
Delegations in the region.  

Coordinated  efforts  are  needed  from  both  the  EU  and  Caribbean  side,  drawing  on  the  long 
experience  of  the  past,  in  order  to  build  a  more  structured  and  mature  cooperation  better 
adapted to the specificities of the Caribbean region. 

Regional  and  National  Support  Strategies  should  have  a  high  degree  of  coherence  and  the 
resulting  Regional  and  National  Indicative  Programmes  should,  as  much  as  possible,  be 
mutually reinforcing. The principle of subsidiarity, reserving for the national or regional level 
what is best addressed at each level, should guide the selection of actions under the RIP and 

EN 

33 

   EN 

 
NIPs.  Budget  Support  at  national  level,  and  contribution  agreements  with  regional  bodies, 
should  be  utilised  wherever  possible.  Budget  support  programmes  offer  many  potential 
advantages,  including  encouraging  greater  ownership,  lowering  transaction  costs  and  more 
effective  use  of  aid.  Budget  support  will  also  strongly  assist  structural  transformation 
especially when delivered in a context characterized by the existence and implementation of a 
single sound national or regional development policy. As a matter of practice budget support 
will  be  provided  in  parallel  with  the  obligation  to  provide  transparent  and  accountable 
financial and administrative management of development funds. 

At the national level, EU assistance will be articulated around a single national development 
strategy which will encompass all EC instruments including EDF, special funding related to 
bananas,  sugar,  rice  and  rum  and  also  all  other  EC  budget  lines  and  facilities.  Instruments 
such  as  the  new  Regional  Development  Fund  could  be  considered  as  one  of  the  potential 
conduits of the EU regional development assistance in the Caribbean. 

Synergies  between  ACP,  OCT  and  DOM  development  programmes  will  be  actively 
encouraged, as well as with EU programmes involving Latin America. 

The  European  Commission  has  proposed  in  early  2006  a  common  format  for  a  Joint 
Framework for multi-annual planning to be applicable to all EU Member States plus an EU 
action plan to monitor implementation of coordination. 

EN 

34 

   EN 

 
ANNEX II 

Brief Overview of existing regional Organisations and bi-lateral actors in the Caribbean 
area 

The Organisation of Eastern Caribbean States (OECS)31 is the inner circle of Caribbean 
economic/monetary  integration,  incorporating  seven  of  the  smaller  Caribbean  states. 
Established in 1981, its main objective is economic integration among its member states. The 
OECS has a single currency and an Eastern Caribbean Central Bank. 

The  Caribbean  Community  CARICOM32  was  created  in  1973  by  the  Treaty  of 
Chaguaramas. The completion of the Caribbean Single Market and Economy (CSME) is the 
current  major  leap  forward  in  regional  integration  for  the  CARICOM  Group.  The  CSME 
recently  came  into  being  on  January  30th,  2006,  through  the  affiliation  of  a  core  group  of 
states. The OECS member states have delayed accession due to concerns over their ability to 
fully  benefit  from  the  Single  Market.  The  Regional  Development  Fund  is  being  created  to 
address  these  concerns.  Functional  collaboration  efforts  have  resulted  in  a  number  of  very 
successful regional ventures. 

For CARIFORUM see Annex I  

For LAC see Annex I 

The Dominican Republic has a Free Trade agreement with CARICOM, signed in 1998. Of 
late there is renewed debate over the possibility that the Dominican Republic would possibly 
participate  in  the  Caribbean  Single  Market  and  Economy.  The  Dominican  Republic  is  also 
involved  in  the  Caribbean  EPA  negotiations  with  the  EU.  Its  participation  in  the  Central 
American Free Trade  Area  (CAFTA)  also offers opportunities for  building bridges between 
the different regional economic integration processes. 

Cuba: is the only country of the ACP group that is not member of the Cotonou agreement. 
Cuba,  however,  is  member  of  the  CARIFORUM  group,  which  provides  a  platform  for 
continuous  dialogue  with  that  country.  A  number  of  Trade  and  Economic  cooperation 
agreements  exist  between  Cuba  and  the  Caribbean.  While  the  two  sides  have  substantial 
differences  in  matters  of  democratic  governance  and  human  rights  there  is  a  measure  of 
political cooperation. 

The Caribbean has traditionally supported calls in international bodies to lift the US embargo 
on Cuba and have strongly supported its integration into CARIFORUM and the ACP group. 

Cuban  development  assistance  is  crucial  to  the  Caribbean  in  the  health  sector.  Many 
Caribbean students train in Cuba which also supports technical assistance to health in many of 
the  Caribbean  countries  with  over  1,000  medical  doctors  and  nurses  in  the  region  counter-
balancing the brain drain to Europe and the USA. 

31 

32 

Antigua and Barbuda, Dominica, Grenada, Montserrat, St Kitts and Nevis, St Lucia and St Vincent and 
the Grenadines. Anguilla and the BVI are associate members. 
Caribbean Community CARICOM: www.caricom.org 

EN 

35 

   EN 

 
                                                 
The existing objectives of the EU policy with Cuba are to foster civil society development in 
its widest possible sense, strengthening institutional capacities and assisting in administrative, 
legal and economic reform. 

Both the EU and the Caribbean have to consider the present and the evolution of the situation 
in Cuba. The regional context, through Cuba’s membership of the CARIFORUM group will 
offer an effective platform for addressing related political and economic issues. 

Relations with Central America 

The Caribbean shares many goals and challenges with Central America arising from the fact 
that  both  the  Caribbean  and  Central  America  include  small  developing  nations.  Belize,  a 
member  of  CARICOM  is  also  a  member  of  the  Central  American  Integration  System.  A 
CARICOM  –  Central  America  Forum  has  existed  since  1992  to  promote  closer  relations. 
Costa Rica and CARICOM also concluded a Free Trade Agreement in 2003.Bananas are, of 
course, one of the major issues on which Central America and the Caribbean do not see eye to 
eye. 

The  Association  of  Caribbean  States  (ACS)  established  in  1994  comprises  25  Caribbean 
and Central American Member States.33 The objectives of the ACS are the strengthening of 
the  regional  co-operation  and  integration  process,  with  a  view  to  creating  an  enhanced 
economic  space  in  the  region;  preserving  the  environmental  integrity  of  the  Caribbean  Sea 
which is regarded as the common patrimony of the peoples of the region and promoting the 
sustainable development of the Greater Caribbean.  

An  issue  of  concern  is  that  of  the  relations  between  Belize  and  Guatemala.  Guatemala 
recognised  Belize's  independence  in  1992,  but  the  relations  between  the  two  countries  have 
been  strained  by  a  dispute.  Guatemala  claims  rights  over  a  portion  of  the  Belizean  territory 
which Belize rejects, in addition to an extension of its exit to the Caribbean Sea. Belize has 
shown flexibility on the exit to the Sea, but less on the territorial claims. Under the auspices of 
the OAS and, after protracted negotiations, dialogue was again engaged leading in September 
2005  to  an  “Agreement  on  a  Framework  for  Negotiations  and  Confidence  Building 
Measures” (CBM). This is to serve as a basis for the talks toward a final settlement between 
the  two  countries  and  includes  a  wide  variety  of  topics,  ranging  from  the Adjacency Zone 
where  the  OAS  operates  to  the  migrations  of Guatemalans  in  the  border  area  and  the 
possibility of a juridical settlement. 

Belize has become an observer member of the San Jose Political dialogue mechanism which 
vis a vis political dialogue shall cover all aspects of mutual interest and any other international 
issues. 

33 

ACS Member States: Antigua and Barbuda, Bahamas, Barbados, Belize, Colombia, Costa Rica, Cuba, 
Dominica, Dominican Republic, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, 
Mexico, Nicaragua,  Panama,  St  Kitts  and Nevis,  St Lucia,  St  Vincent  and  the  Grenadines,  Suriname, 
Trinidad and Tobago, and Venezuela. Associate Member: Aruba, France (on behalf of French Guiana, 
Guadeloupe  and  Martinique)  and  the  Netherlands  Antilles.  Observer  Countries:  Argentina,  Brazil, 
Canada, Chile, Ecuador, Egypt, Finland, India, Italy, the Kingdom of the Netherlands, Korea, Morocco, 
Peru, Russia, Spain, Turkey, Ukraine, and the United Kingdom. 

EN 

36 

   EN 

 
                                                 
Relations with Latin America 

Venezuela  -Caribbean  relations  are  currently  characterised  by  efforts  to  enhance  trade  and 
investment. Venezuela has a border dispute with Guyana, and over the Aves Island, a sand bar 
located just 70 miles to the west of Dominica. 

Petrocaribe, launched in June 2005 is an oil trade pact, under which Venezuela has agreed to 
finance US$ 17 billion in oil sales during the next ten years in the region. Caribbean countries 
buy oil on market value but only a certain amount is needed up front; the remainder can be 
paid through a 25 year financing agreement on a rate of 1% interest. In addition it allows for 
nations to pay part of the cost with other products provided to Venezuela, such as bananas, 
rice, and sugar. 12 of the 15 members of CARICOM plus Cuba and the Dominican Republic 
signed  the  agreement  on  September  7th.  Haiti  may  soon  join.  There  are  political  and 
economic concerns on the sustainability of the scheme and as to its impact on regional unity 
given that Trinidad & Tobago are oil producers and had specific arrangements to supply the 
CARICOM region. 

The  Rio  Group.  The  Caribbean  is  represented  in  the  Rio  Group  through  the  Dominican 
Republic  and  Guyana  (acting  for  CARICOM).  The  Rio  Group  offers  possibilities  to  the 
Caribbean  to  reach  out  and  engage  their  Latin  American  neighbours  in  the  key  areas  of 
expanding political cooperation among the member states; coordinating common positions on 
international  issues;  cooperation  within  regional  organizations  addressing  problems  and 
conflicts,  improving  inter-American  relations  and  the  joint  exploration  of  new  fields  of 
cooperation. 

Brazil has not had a big presence in the Caribbean until the advent of the Lula Government 
which  saw  a  renewed  diplomatic  offensive  to  establish  ties  between  the  two  regions.  Brazil 
borders Suriname and Guyana and there have been efforts in the past to establish a Brazilian 
outlet for its northern provinces through the funding of a road link. Wildcat Brazilian miners 
operate  in  southern  Guyana  and  Suriname.  Brazil  is  in  charged  of  all  UN  security  forces  in 
Haïti. 

The Organisation of American States. 

Central  America  and  the  Caribbean  hold  regular  consultations  in  the  context  of  the 
Organization  of  the  American  States  (OAS)  and the  two  regions  have  been  collaborating  in 
the context of the FTAA. 

The  Caribbean  states  represent  40%  of  the  membership  of  the  OAS  and  therefore  are  a 
considerable  political  force  within  the  organisation.  With  the  Caribbean’s  fifteen  votes,  the 
OAS offers a platform for the region to make its voice heard. The OAS collaborates closely 
with CARICOM on election observation missions within the region. 

Relations with the US and Canada 

The United States Since 2001 the US have launched a new initiative qualifying the region as 
part of their “third border” reversing somewhat a trend which saw a declining US interest in 
the  region  accompanied  by  a  drop  in  USAID  development  activities.  Notwithstanding  the 
importance  of  the  relationship  with  the  US  in  terms  of  trade,  investment,  tourism,  migrant 
transfers  etc,  they  are  also  significant  divergence  of  views  on  a  number  of  issues  including 
Cuba, Taiwan, Haiti, unilateralism, the ICC and other issues. 

EN 

37 

   EN 

 
The US has traditionally been one of the favoured destinations of migration, both legal and 
illegal, for the Caribbean. Caribbean diaspora communities are a consequential political force 
in  several  US  states.  The  US  policies  of  active  recruitment  of  certain  professions  in  the 
regions such as teachers and medical personnel, contributes significantly to the brain drain. 

In terms of security, drugs and crime, the main concerns of the US include drugs trafficking 
from  Latin  America,  money  laundering,  terrorism  finance  and  the  possibility  of  the  rise  of 
radical  groups  in  the  region  possibly  related  to  areas  where  there  is  a  substantial  Muslim 
segment  in  the  population.  The  US  policy  to  expel  and  repatriate  all  persons  of  Caribbean 
origin,  even  second  generation  resident  in  the  US  if  they  are  convicted  of  any  crime,  is 
contributing to increasing violent criminality in the region. 

After years of steady contraction USAID development aid operations are again on the rise. 
Country offices which had been shut down are being re-opened and generally USAID is more 
active  and  visible  on  the  ground  especially  in  relation  to  Natural  Disaster  Relief  and 
emergency Aid. 

Trade  programs  have  been  established  known  collectively  as  the  Caribbean  Basin  Initiative 
(CBI), and are intended to facilitate the economic development and export diversification of 
the Caribbean Basin economies. 

The FTAA: The effort to unite the economies of the Americas into a single free trade area 
began at the Summit of the Americas, which was held in December 1994 in Miami, U.S.A. 
The  Heads  of  State  and  Government  of  the  34  countries  in  the  region  agreed  to  construct  a 
Free Trade Area of the Americas (FTAA) in which barriers to trade and investment will be 
progressively  eliminated.  The  initial  target  for  the  completion  of  negotiations  towards  this 
agreement was the year 2005. However, this target was not achieved and negotiations are still 
on-going. 

As the proposed agreement includes draft intellectual property provisions that would restrict 
access to affordable medicines included in the World Trade Organisation (WTO) Agreement 
on Trade-Related Aspects of Intellectual Property Rights (TRIPS) special attention needs to 
be paid to the FTAA negotiations. 

Canada is a long standing friend of the Caribbean. Canada and the Caribbean enjoy a long 
history of close commercial, investment, cultural and political ties. Canada is also home to a 
very large Caribbean diaspora which is gradually evolving as a political force. 

In  1986  Canada  established  CARIBCAN,  an  economic  and  trade  development  assistance 
programme for the Commonwealth Caribbean countries and territories. Under the programme 
96% of Caribbean exports enter Canada duty free. 

Canadian businesses, especially in the financial services sector have established themselves in 
the Caribbean benefiting from taxation treaties with certain Caribbean countries. 

Within  the  FTAA  the  Caribbean  perceives  Canada  as  being  an  ally  supporting  the  region’s 
concerns related to its impact and issues regarding small economies and small states. 

EN 

38 

   EN 

 
With about C$2.7 billion in aid since 1963, the Caribbean is the highest per capita recipient of 
Canadian Official Development Assistance. CIDA currently provides about C$80 million in 
assistance to the region each year.34  

Other International relations actors 

China has diplomatic relations with 1135 countries in the region. Recent years have seen an 
increased  activity  in  China  –  Caribbean  relations.  China’s  increased  interest  and  support  to 
Cuba is seen by Cuba as a crucial element in its foreign relations. China’s Caribbean policy is 
articulate around basic axes: the Taiwan issue, cooperation in the UN, investment and trade 
interests  and  cultural  exchanges.  China  is  gradually  emerging  as  a  major  donor  in  the 
Caribbean and has recently earmarked US 1 billion for the region. China is a member of the 
Caribbean  Development  Bank  since  1998  with  a  5.77%  capital  stake.  Areas  of  assistance 
include agriculture, maritime transport infrastructure etc and also include showcase projects, 
especially  sports  facilities  related  to  the  all  important  cricket  sector  and  particularly  the 
Cricket World cup which will be hosted by the Caribbean in 2007. 

According to Chinese statistics, the trade volume between China and the Caribbean in 2004 
totalled  US$  2  billion,  a  42.5%  year-on-year  increase.  Importantly,  several  Caribbean 
countries have been listed as “official” tourism destinations for Chinese tourists which could 
mean a major boost in tourism revenues. 

Japan has mostly bilateral ties with individual countries although recently cooperation with 
CARICOM  was  launched  through  a  partnership  for  Stability  and  Development  which  will 
provide  support  for  economic  and  social  development.  Fisheries  are  an  area  of  substantial 
interest in the relations with the region. 

The  Bretton  Woods  Institutions;  the  IMF  and  the  World  Bank  are  also  operational  in  the 
Caribbean.  In  the  case  of  the  Latin  America  and  the  Caribbean,  the  Inter  American 
Development Bank (IDB) augments the work conducted at the World Bank level. The IMF 
supports  economic  reform  in  some  Caribbean  countries  whereas  all  of  them  are  subject  to 
regular  Article  IV  IMF  consultations.  Over  the  years  loans  have  been  granted  to  a  broad 
spectrum  of  projects  in  the  Caribbean  region  such  as  economic  and  social  infrastructure 
disaster management, debt relief, water and sanitation, land management reforms, information 
technology equipment and capacity building and others. 

The ILO is also present in the region. The number of ratifications in the region of core labour 
standards conventions and other international labour conventions is increasing. However the 
effective  application  requires,  as  in  other  regions,  additional  efforts  in  terms  of  better 
enforcement,  more  effective  labour  market  governance,  social  dialogue  and  technical 
cooperation. 

34 
35 

Source: CIDA 
Although  the  Dominican  Republic,  Haiti,  St  Kitts  and  Nevis  and  St.  Vincent  and  the  Grenadines 
continue  to  have  relations  with  Taiwan,  China  is  actively  pursuing  the  development  of  relations  with 
them as well maintaining commercial missions in both Haiti and the DR. 

EN 

39 

   EN 

 
                                                 
Overview of total EC aid to the Caribbean ACP States since Lome III36 

ANNEX III 

Caribbean ACP 
States 
allocations in 
millions € 

Antigua & 
Barbuda  
Bahamas  
Barbados  
Belize  
Dominica  
Dominican 
Republic  
Grenada  
Guyana 
Haiti  
Jamaica  
St. Kitts & 
Nevis.  
St. Lucia  
St. Vincent & 
the Grenadines 
Suriname  
Trinidad & 
Tobago  
Total 
Caribbean ACP 
States 
Regional 
allocations  
Rum39 
Grand Total 
Caribbean ACP 
States 

6th EDF  

7th EDF 

8th EDF 

9th EDF 

EDF TOTAL37 

SYSMIN 

STABEX 

BANANA38 

SUGAR 

TOTAL 

(1986-1990) 

(1991-1995) 

(1996-2000) 

(2000-2007) 

(1986-2007) 

4.500.000  
4.000.000  
5.000.000  
8.000.000  
6.000.000  

0  
5.500.000  
22.100.000  
0  
40.200.000  

3.500.000  
6.000.000  

3.500.000  
4.400.000  
5.000.000  
9.000.000  
5.500.000  

85.000.000  
6.500.000  
32.800.000  
112.500.000  
49.700.000  

4.500.000  
4.500.000  
8.000.000  
9.500.000  
6.500.000  

106.000.000  
6.500.000  
32.000.000  
148.000.000  
60.000.000  

3.000.000  
4.500.000  
6.800.000  
8.800.000  
15.700.000  

176.000.000  
7.400.000  
48.000.000  
239.000.000  
100.000.000  

15.500.000  
17.400.000  
24.800.000  
35.300.000  
33.700.000  

367.000.000  
25.900.000  
134.900.000  
499.500.000  
249.900.000  

2.500.000  
5.000.000  

3.000.000  
6.000.000  

4.000.000  
19.500.000  

13.000.000  
36.500.000  

7.000.000  
24.000.000  

5.400.000  
27.000.000  

6.000.000  
32.500.000  

21.000.000  
19.100.000  

39.400.000  
102.600.000  

15.000.000  

18.100.000  

21.000.000  

17.900.000  

72.000.000  

0 
0 
0 
0 
0 

23.353.363 
0 
15.973.504 
0 
94.936.162 

0 
0 

0 
0 

0 

0 
0 
0 
0 
45.125.771,64 

0 
15.972.927,96 
0 
35.611.523,63 
9.405.120,72 

0 
74.736.647,58 

63.779.648,19 
0 

0 
0 
0 
21.770.000 
41.810.000 

0 
0 
4.000.000 
0 
33.640.000 

0 
56.805.000 

40.510.000 
17.470.000 

0 
0 
2.074.000 
2.702.000 
0 

0 
0 
5.037.000 
0 
4.641.000 

2.531.000 
0 

0 
0 

15.500.000  
17.400.000  
26.874.000  
59.772.000  
120.635.771  

390.353.363  
41.872.927,96  
159.910.504  
535.111.523  
392.522.282  

15.531.000,00  
168.041.647  

143.689.648  
120.070.000  

0 

0 

2.492.000 

74.492.000  

150.800.000  

371.900.000  

454.000.000  

690.700.000  

1.667.400.000  

134.263.029 

244.020.116 

216.005.000 

19.477.000 

2.281.776.668 

71.000.000 

105.000.000 

90.000.000 

57.000.000 

323.000.000 
70.000.000 

2.674.776.668 

36 
37 
38 
39 

Grants and loans  
NIP (Eurostat) 
Banana Budget line 210318 
Allocated to WIRSPA (West Indies Rhum and Spirits Procedures Association) 

EN 

40 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
  
  
  
  
 
 
 
 
 
 
                                                 
ANNEX IV 

Caribbean Socioeconomic and Vulnerability Table 

Population  GDP per capita 

(2005) 

GDP growth % 
(1998-2003) 

Total public 
debt (% of 
GDP) 

Government 
expenditures (% of 
GDP) 

Overall fiscal 
balance (% of 
GDP) 

23.6 M 

3640 US$ 

2 

96 

32 

- 6 

FDI 

(% of GDP, 
1998-2003) 

Under five 
mortality rate 
(per 1000 births 
in 2002) 

% of population 
without access 
to water 

HIV/AIDS (% 
of population 
aged 15-49) 

% of girls to boys 
in primary and 
secondary 
education in 2001 

Gross 
primary 
completion 
(%) 

6 

34 

10 

2.4 

103 

93 

EN 

41 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNEX V 

Selected Economic Indicators40 

Govt 
Expenditure 

(% of GDP) 
1998-
03 

1990-
97 

Overall Fiscal 
Balance  

(% of GDP) 
1998-
03 

1990-
97 

Caribbean ACP States 

Population 

GDP  
per Capita 

(in thousands 
per 2003) 

(US$ - 2003) 

Antigua & Barbuda  

Bahamas  

Barbados  

Belize  

Dominica  

Dominican Republic  

Grenada  

Guyana 

Haiti  

Jamaica  

St. Kitts & Nevis.  

St. Lucia  

St. Vincent & the Grenadines 

Suriname  

Trinidad & Tobago  

73 

314 

270 

256 

79 

8,745 

80 

765 

8,326 

2,651 

42 

149 

120 

436 

1,303 

11,124 

16,691 

9,651 

3,891 

3,554 

1,825 

4,103 

911 

460 

2,962 

7,641 

4,048 

3,329 

2,470 

7,836 

Total Public 
Debt 

(% of GDP) 

1997 
102 

2003 
142 

46 

62 

41 

61 

23 

42 

211 

n.a. 

103 

86 

36 

48 

24 

52 

48 

84 

100 

122 

56 

113 

179 

44 

142 

171 

69 

73 

44 

54 

n.a 

n.a 

27 

n.a 

35 

16 

31 

38 

9 

28 

30 

27 

31 

n.a 

28 

29 

n.a 

37 

31 

41 

18 

37 

44 

10 

35 

43 

29 

33 

36 

26 

-5 

-2 

-3 

-6 

-3 

-3 

-4 

-4 

-4 

0.2 

-2 

-1 

-1 

-4 

0.2 

Current 
Account 
Balance 
(% of GDP) 
1998
1990
-03 
-97 
-10.4 
-4.4 

-3.6 

-10.6 

2.8 

-5.0 

-8 

--2 

-5 

-11 

-4.0 

-15.1 

-8 

-3 

-7 

-6 

-4 

-9 

-18.4 

-14.8 

-3.3 

-2.0 

-17.2 

-24.3 

-17.3 

-14.5 

-1.8 

-2.9 

-1.2 

-8.0 

-11 

-19.2 

-25.9 

-3 

-4 

-6 

-2 

-11.5 

-12.8 

-17.8 

-16.9 

1.0 

1.9 

-9.0 

2.4 

Public 
investment  

Foreign Direct 
Investments  

(% of GDP) 

(% of GDP) 

1990-
97 

1998-
03 

1990-
97 

n.a. 

n.a. 

23 

n.a. 

11 

11 

19 

15 

25 

18 

10 

8 

10 

18 

12 

18 

n.a. 

n.a. 

24 

40 

13 

19 

46 

15 

27 

37 

17 

21 

42 

16 

7 

1 

1 

3 

11 

2 

8 

13 

0 

3 

12 

8 

13 

-4 

7 

1998-03 
6 

3 

1 

3 

5 

5 

14 

7 

0.2 

6 

20 

3 

12 

-3 

7 

40 

IMF and World Bank (WDI) 

EN 

42 

EN 

 
  
 
 
 
 
 
 
                                                 
ANNEX VI 

EN 

43 

EN 

 
  
 
ANNEX II 

List of abbreviations 

Africa, Caribbean and Pacific States 
Association of Caribbean States 
Iniciativa Bolivariana para las Americas 
Caribbean Community and Common Market 
Forum of Caribbean ACP States 
Caribbean Technical Assistance Centre 
Caribbean Basin Initiative 
Caribbean Basin Trade Partnership Act of 2000 
Caribbean Development Bank  
Caribbean Disaster Emergency Response Agency  
Common External Tariff 
Caribbean Forum for Development 
Canadian International Development Agency 
Caribbean Information Technologies 
Caribbean Knowledge and Learning Network 
Caribbean Regional Negotiating Machinery 
Caribbean Single Market and Economy 
Country Strategy Paper 
Caribbean Tourism Organization 
Caribbean Examination Council 
Disaster Preparedness ECHO  
UK’s Department for International Development 
French overseas departments 
Eastern Caribbean Currency Union 
Economic Commission for Latin America 
European Development Fund  
European Investment Bank 
Economic Partnership Agreement 
European Union – Latin American and Caribbean 
Food and Agricultural Organization 
Foreign Direct Investment 
Free Trade Agreement 
Free Trade Area of the Americas 
Free Trade Zones 
Gross Domestic Product 
Gross National Product 
Human Development Indicators 
Heavily Indebted Poor Countries 
Information and Communication Technology 
Inter-American Development Bank  
International Labour Organization 
International Monetary Fund 
Latin America and the Caribbean 
Least-Developed Countries 
Low-Income Countries  
More Developed Countries 

ACP 
ACS 
ALBA 
CARICOM 
CARIFORUM 
CARTAC 
CBI 
CBTPA 
CDB 
CDERA 
CET 
CFD 
CIDA 
CIT 
CKLN 
CRNM 
CSME 
CSP 
CTO 
CXC 
DIPECHO 
DFID 
DOM 
ECCU 
ECLAC 
EDF 
EIB 
EPA 
EU-LAC 
FAO 
FDI 
FTA 
FTAA 
FTZ 
GDP 
GNP 
HDI 
HIPIC 
ICT 
IDB 
ILO 
IMF 
LAC 
LDC 
LIC 
MDC 

EN 

44 

   EN 

 
MDG 
MIC 
NAFTA 
OAS 
ODA 
OECD 
OECS 
OCT 
R&D 
RDF 
RNM 
RSP 
SALW 
SDF 
SMEs 
TRIPs 
USAID 
WDI 
WMD 
WHO 
WTO 

Millennium Development Goals 
Middle-Income countries  
North American Free Trade Agreement 
Organization of American States 
Official Development Assistance 
Organization for Economic Cooperation and Development 
Organization of Eastern Caribbean States 
Overseas Countries and Territories  
Research and Development 
Regional Development Fund  
Regional Negotiating Machinery 
Regional Strategy Paper 
Small Arms and Light Weapons 
Special Development Fund  
Small and Medium Size Enterprises 
Agreement on Trade-Related Aspects of Intellectual Property Rights  
United States Agency for International Development 
World Development Indicators 
Weapons of Mass Destruction 
World Health Organization 
World Trade Organization 

EN 

45 

   EN