Green paper - Future relations between the EU and the overseas countries and territories {SEC(2008) 2067}
Date: 2008-06-25
Institutions: European Commission
Subjects: EU relations, cooperation policy, development aid, overseas countries and territories, sustainable development, trade policy

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 25.6.2008 
COM(2008) 383 final 

GREEN PAPER 

Future relations between the EU and the Overseas Countries and Territories 

{SEC(2008) 2067} 

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GREEN PAPER 

Future relations between the EU and the Overseas Countries and Territories 

1. 

INTRODUCTION 

Under  Part  Four  of  the  Treaty  establishing  the  European  Community  (the  EC  Treaty),  the 
overseas  countries  and  territories  (the  OCTs)  are  closely  associated  with  the  European 
Community. Historically, the list of OCTs mainly included countries and territories that have 
in the meantime become independent sovereign countries, most of them ACP countries. This 
explains  why  the  logic  applied  to  cooperation  between  the  EU  and  the  OCTs  is  to  a  large 
extent identical to that applied to cooperation between the EU and the ACP states, despite the 
fact that the OCTs are covered by a separate legal base in the EC Treaty.  

However, such parallelism does not correspond to the reality in the field, the specific social, 
economic  and  environmental  challenges  faced  by  the  OCTs  today,  and  the  close  historical, 
institutional  and  political  ties  between  the  OCTs  and  the  EU.  Furthermore,  it  does  not  take 
into  account  the  potential  of  OCTs  as  strategically  important  outposts,  spread  all  over  the 
world,  as  proponents  of  the  EU’s  values.  In  addition,  the  wider  international  context  has 
evolved,  in  particular  as  a  consequence  of  globalisation,  the  ongoing  liberalisation  of 
international trade and also the increased regional integration of the ACP countries. All these 
factors require a thorough renovation of the partnership between the OCTs and the EU. 

Against  this  background,  the  OCTs  and  the  four  Member  States  to  which  they  are  linked 
(Denmark,  France,  the  Netherlands  and  the  United  Kingdom)  have  since  2003  called  for 
better recognition of the OCTs’ specific situation. At the same time, the Commission as well 
as  an  increasing  number  of  Member  States  have  expressed  reservations  as  regards  the 
amalgamation  of  the  OCT-EC  association  and  the  Community’s  development  cooperation 
policy with its emphasis on the fight against poverty and the millennium development goals. 
For  its  part,  the  Commission  has  already  since  2005  suggested  building  a  new  relationship 
based  on  the  OCTs’  and  the  EU’s  membership  of  the  same  family,  rather  than  the  OCTs’ 
development needs per se. 

Consequently, the Commission wishes to carry out a holistic review of the relations between 
the EU and the OCTs and to consider a substantial revision of the OCT-EC association. It is 
the  intention  to  examine  how  to  step  away  from  the  classic  development  cooperation 
approach,  while  enhancing  the  competitiveness  of  the  OCTs  and  their  gradual  integration 
within the regional and world economies, taking into account not only the challenges they are 
facing  but  also  their  potential.  In  order  to  pave  the  way  towards  such  a  modernisation,  the 
Commission  has  adopted  this  Green  Paper,  which  should  facilitate  a  global  and  transparent 
discussion on the future relations between the EU and the OCTs, in particular as regards the 
overall philosophy that should underpin these relations in the longer term.  

The aim of the present Green Paper is therefore not to set out a new policy or establish new 
financial  instruments  or  detailed  procedures,  but  to  examine  a  series  of  challenges  and 
opportunities  and  to  obtain  input  from  interested  parties  before  defining  a  new  partnership 
between  the  EU  and  the  OCTs,  in  particular  in  view  of  the  expiry  of  the  current  Overseas 
Association Decision at the end of 2013.  

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2. 

PRELIMINARY INFORMATION ON THE OCTS  

2.1. 

The  21  OCTs:  association  with  the  Community,  diversity  and  common 
characteristics 

According to  the EC  Treaty,  the OCTs are non-European countries and territories that have 
special relations with Denmark, France, the Netherlands and the United Kingdom. They are 
associated with the European Community with a view to promoting their economic and social 
development and establishing close economic relations between them and the Community as 
a  whole.  The  EC  Treaty  states  that  the  association  of  the  OCTs  with  the  Community  ‘shall 
serve primarily to further the interests and prosperity of the inhabitants of these countries and 
territories  in  order  to  lead  them  to  the  economic,  social  and  cultural  development  to  which 
they aspire’.  

The countries and territories concerned are listed exhaustively in Annex II to the EC Treaty. 
In total, 21 OCTs are listed: Greenland, New Caledonia and Dependencies, French Polynesia, 
French Southern and Antarctic Territories, Wallis and Futuna Islands, Mayotte, Saint-Pierre 
and Miquelon, Aruba, Netherlands Antilles (i.e. Bonaire, Curaçao, Saba, Sint Eustacius, Sint 
Maarten),  Anguilla,  Cayman  Islands,  Falkland  Islands,  South  Georgia  and  the  South 
Sandwich  Islands,  Montserrat,  Pitcairn,  Saint  Helena  and  dependencies,  British  Antarctic 
Territory, British Indian Ocean Territory, Turks and Caicos Islands, British Virgin Islands and 
Bermuda. However, the arrangements for association have never been applied to Bermuda in 
accordance with the wishes of the Government of Bermuda.  

The  OCTs  are  constitutionally  linked  to  a  Member  State,  but  without  being  part  of  the 
Community as such. In fact, based on Article 299(3) of the EC Treaty, the provisions of the 
Treaty  in  principle  do  not  apply  to  the  OCTs,  except  Part  Four  of  the  Treaty,  which  deals 
exclusively with the OCT-EC association. Hence, there is a fundamental difference between 
the OCTs and the outermost regions referred to in Article 299(2) of the EC Treaty. Unlike the 
OCTs, the outermost regions not only are constitutionally linked to a Member State, but also 
form  an  integral  part  of  the  Community  and  are  bound  in  principle  by  the  entirety  of  the 
Community  acquis.  It  is  therefore  not  appropriate  to  make  any  quantitative  or  qualitative 
comparison between the OCTs and the outermost regions in terms of benefits received from 
the EU and obligations towards the EU. 

There are huge differences between the OCTs themselves in terms of the degree of autonomy 
vis-à-vis the Member States to which they are linked, but also in the economic and social field 
and as regards their geographical characteristics and climate. However, despite the immense 
diversity  between  the  OCTs,  they  do  share  common  characteristics:  none  of  them  is  a 
sovereign  country,  they  are  all  parliamentary  democracies,  they  are  all  islands,  the  size  of 
their  populations  is  very  small  and  their  ecological  richness  is  extraordinary  compared  to 
continental  Europe.  They  are  all  relatively  vulnerable  to  external  shocks  and  are  in  general 
dependent  on  a  narrow  economic  base  that  mostly  revolves  around  services.  They  are  also 
heavily reliant on imports of goods and energy. In general, exports of goods from the OCTs to 
the EU or within their respective geographical regions remain limited. 

A more detailed outline of the OCTs’ diversity and common characteristics is attached in the 
Commission  staff  working  Paper  in  Annex  I  to  the  present  Green  Paper.  Moreover,  an 
overview  of  the  individual  OCTs  with  statistical  data  is  attached  in  the  Commission  staff 
working Paper Annex II. 

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2.2. 

The  current  OCT-EC  association:  the  Overseas  Association  Decision  of  27 
November 2001 

Whereas Part Four of the EC Treaty (Articles 182 to 188) contains the basic provisions on the 
association of the OCTs with the Community, the detailed rules and procedures for the OCT-
EC association are laid down by the Council pursuant to Article 187 EC, through successive 
‘Overseas  Association  Decisions’  adopted  since  19641.  These  detailed  provisions,  namely 
those of the Overseas Association Decision of 27 November 20012, can be divided into two 
main categories: provisions on development finance cooperation and provisions on economic 
and trade cooperation. A summary of these provisions can be found in the Commission staff 
working paper attached in Annex III to the present Green Paper.  

The Overseas Association Decision’s present provisions on development finance cooperation 
are  intended  to  promote  the  sustainable  development  of  the  OCTs,  with  the  focus  on  the 
reduction,  prevention  and,  eventually,  eradication  of  poverty.  Accordingly,  development 
finance cooperation with the OCTs has until now been financed from the EDF, which is the 
financing instrument also used for development finance cooperation with the ACP states. 

Whereas  the  current  Overseas  Association  Decision  was  initially  applicable  until  31 
December 2011, its duration has been extended until 31 December 2013 following technical 
amendments  made  in  2007,  in  order  to  coincide  with  the  duration  of  the  10th  European 
Development  Fund  (EDF)  covering  the  period  2008  to  2013  and  the  multiannual  financial 
framework  for  the  period  2007  to  2013.  However,  these  technical  amendments  remain 
without prejudice to later revision of the decision before its expiry in 2013, in particular for 
the subsequent application of the principles set out in Part Four of the EC Treaty as regards 
the OCT-EC association3. 

3. 

FUTURE PERSPECTIVES FOR OCT-EU RELATIONS 

Because of the close link between the OCTs and the Community through the related Member 
States, the trade regime applicable to the OCTs — as summarised in Annex III to this Green 
Paper — is one of the most favourable ever granted by the Community. This close link also 
explains  why  the  per  capita  level  of  Community  financial  assistance  to  the  OCTs  is 

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An  Implementing  Convention  annexed  to  the  Treaty  of  Rome  of  25  March  1957  determined  the 
particulars and procedure for the association of the OCTs with the Community for the first five years 
following  the  entry  into  force  of  the  Treaty,  i.e.  until  31  December  1962.  Subsequently,  the  detailed 
provisions and procedure for the EC-OCT association were laid down in Decisions with a duration of 
five  years,  adopted  by  the  Council  on  25  February  1964,  29  September  1970,  29  June  1976,  16 
December 1980 and 30 June 1986. On 25 July 1991 and on 27 November 2001, the Council adopted 
further decisions on the association of the OCTs with the Community, each with a validity of ten years. 
However,  the  duration  of  the  Overseas  Association  Decision  of  27  November  2001  was  extended  in 
2007 until 31 December 2013, to coincide with the duration of the 10th European Development Fund 
and the multiannual financial framework for 2007-2013. 
Decision 2001/822/EC of the Council of 27 November 2001 on the association of the overseas countries 
and  territories  with  the  European  Community  (OJ  L  314,  30.11.2001,  p.  1).  Decision  as  amended  by 
Decision 2007/249/EC (OJ L 109, 26.4.2007, p. 33). 
See Article 62 of the revised Overseas Association Decision, as well as recital 14 of Council Decision 
2007/249/EC. 

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significantly  higher  than  the  ACP  average4.  The  somewhat  specific  procedures  for 
development finance cooperation in comparison with the rules applicable to cooperation with 
ACP states, and the OCTs’ eligibility for Community programmes5, are also directly linked to 
this  special  relationship,  which  is  based  on  the  solidarity  between  Europe  and  the  OCTs 
referred to in the preamble of the EC Treaty. 

According to the preamble of the EC Treaty, to which Article 182 of the EC Treaty regarding 
the  association  of  the  OCTs  with  the  Community  refers,  the  High  Contracting  Parties  that 
decided  to  create  the  European  Community  intended  ‘to  confirm  the  solidarity  which  binds 
Europe and the overseas countries’ and desired ‘to ensure the development of their prosperity, 
in accordance with the principles of the Charter of the United Nations’.  

However, the solidarity underpinning the OCT-EC association and in particular the readiness 
of  the  Community  to  promote  the  sustainable  development  of  the  OCTs  by  providing 
significant  financial  assistance  has  regularly  been  called  into  question.  In  this  respect, 
reference is made in particular to the fact that the situation has now changed considerably, as 
the introduction of the concept of solidarity between the Community and the OCTs stemmed 
from a time where this related to the mostly African colonies of the Member States and to the 
European  Customs  Union  replacing  the  previous  bilateral  trade  arrangements  with  these 
former colonies.  

Upon the signature of the Treaty of Amsterdam on 2 October 1997, the representatives of the 
governments of the then 15 Member States acknowledged that the initial arrangements for the 
association  of  the  OCTs  with  the  Community  could  no  longer  deal  effectively  with  the 
challenges  of  OCT  development.  However,  they  also  solemnly  restated  that  the  purpose  of 
association  was  to  promote  the  economic  and  social  development  of  the  OCTs  and  to 
establish  close  economic  relations  between  them  and  the  Community  as  a  whole6.  Whereas 
the  OCT-EC  association  arrangements  were  reviewed  subsequently  and  a  number  of 
innovations  were  introduced  by  the  Overseas  Association  Decision  of  2001,  namely  as 
regards  the  financial  instrument,  the  overall  approach  towards  the  OCTs  remained 
nevertheless  closely  inspired  by  the  ACP-EC  Partnership  Agreement  and  its  classic 
development  cooperation  logic  based  on  the  fight  against  poverty,  despite  the  mismatch 
between such an approach and the OCTs’ contemporary situation. 

Against  this  background,  the  present  state  of  affairs  is  called  into  question  by  different 
stakeholders,  ranging from the Commission, the OCTs and the Member States to which the 
OCTs  are  linked,  to  Member  States  without  OCTs.  On  the  one  hand,  there  is  a  need  to 
examine  thoroughly  how  the  OCT-EC  association  could  be  adapted  to  the  OCTs’  specific 
situation, the particular challenges they face, their actual or potential importance for the EU as 
a whole and the reality of today’s globalised world. On the other hand, and especially since 
the  enlargement  of  the  EU  on  1  May  2004,  questions  are  being  asked  about  the  interest  of 
having the Community promote the sustainable development of the OCTs, in particular where 

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Under the 10th EDF (2008-2013), the average per capita level of Community financial assistance to the 
OCTs is approximately six times higher than the average per capita level for of Community financial 
assistance to the ACP states. 
Pursuant to Article 58 of the Overseas Association Decision. See also Annex III to the present Green 
Paper. 
Declaration  No  36  on  the  Overseas  Countries  and  Territories  annexed  to  the  Final  Act  of  the 
Conference of the representatives of the governments of the Member States that adopted the Treaty of 
Amsterdam (OJ C 340, 10.11.1997).  

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an OCT’s per capita GNP is close to the Community average or where a Member State has 
ceased to provide direct bilateral development assistance to some of its own OCTs. 

Therefore,  the  Commission  wishes  to  launch,  with  the  present  Green  Paper,  a  global  and 
transparent discussion on the future relations between the EU and the OCTs, in particular as 
regards  the  overall  philosophy  that  should  underpin  these  relations  in  the  longer  term.  The 
issues raised here relate to the grounds, objectives and nature of the solidarity between the EU 
and  the  OCTs.  Moreover,  more  specific  issues  regarding  the  trade  regime  applicable  to  the 
OCTs and the OCTs’ specific characteristics are dealt with in the Commission staff working 
paper attached in Annexes IV and V to the present Green Paper.  

The  challenges  set  out  below  do  not  relate  to  the  quantity  or  source  of  future  Community 
financial  assistance  to  the  OCTs  and  thus  remain  without  prejudice  to  the  outcome  of  the 
future negotiations on the multiannual financial framework for the period 2013-2020 and on 
the  budgetisation  of  the  EDF.  Neither  do  they  relate  to  how  the  Commission  will 
administratively  manage  Community  financial  assistance  in  the  future,  which  is  a  question 
regarding the internal organisation of the Commission. 

3.1. 

Partnership between the Community and the OCTs 

3.1.1.  The impact of the special relationship between the OCTs and the related EU Member 

States 

Even  though  Article  182  EC  qualifies  them  as  non-European  and  the  Community  acquis  is 
not applicable to them, simply considering the OCTs as if they were just third parties would 
not correspond to the reality in the field. Indeed, while the OCTs do not form an integral part 
of the EU, they are a part of or at least closely related to an EU Member State, which means 
that they cannot be uncoupled from the EU and, in a sense, are ‘part of its ultimate frontiers’. 

To start with, an entire part of the EC Treaty itself is dedicated to the association of the OCTs 
with the Community and lays down the basis for treating the OCTs as if they were not just 
third countries. Under the structure of the EC Treaty, the OCT-EC association does not form 
part  of  the  Community’s  development  cooperation  or  the  Community’s  external  action  in 
general. 

Moreover, by virtue of their history and their special relations with Member States of the EU, 
the  OCTs  form  an  integral  part  of  a  society  that  respects  the  values  on  which  the  EU  is 
founded and the principles resulting from the common constitutional traditions of the Member 
States,  such  as  respect  of  human  dignity,  liberty,  democracy,  equality,  the  rule  of  law  and 
respect of fundamental rights. These values and principles, which the EU also promotes vis-à-
vis third countries, are put in practice in the OCTs. 

In addition, unlike with third countries, all OCT nationals are in principle European citizens in 
the sense of Article 17 of the EC Treaty, which states that every person holding the nationality 
of a Member State is a citizen of the Union. More precisely, all nationals of Greenland and the 
French and Dutch OCTs also have the nationality of the related Member State automatically. 
As from 21 May 2002, the citizens of all the British OCTs are also British citizens, but they 
can  renounce  it  in  favour  of  remaining  British  overseas  territories  citizens  only  and  are  not 
obliged  to  have  a  passport  describing  them  as  a  British  citizen.  As  European  citizens,  OCT 
nationals  are  in  principle  also  entitled  to  the  rights  conferred  by  Union  citizenship  (as  laid 
down  in  Articles  18  to  22  of  the  EC  Treaty),  such  as  the  right  to  move  and  reside  (but  not 
work)  freely  within  the  territory  of  the  Member  States.  Moreover,  OCT  nationals  can  be 

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granted the right to vote for and participate in the election of the European Parliament, subject 
to the conditions defined by the related Member States in compliance with Community law. 
This is, for example, the case for nationals of the French OCTs.  

For Saint-Pierre and Miquelon and Mayotte, their special link with the EU is also reflected by 
the use of the euro in these OCTs, even though their monetary regime is not specified in the 
EC Treaty as they do not form part of the Community7. There are no other OCTs that use the 
euro at present, but the French OCTs in the Pacific are examining the possible replacement of 
their currency by the euro8.  

It may also be noted that, even though the general provisions of the EC Treaty do not apply to 
the OCTs in the absence of a express reference, the jurisdiction of the Court of Justice of the 
European Communities covers preliminary rulings requested under the EC Treaty by a court 
whose jurisdiction covers an OCT, as well as proceedings instituted under the conditions laid 
down in the EC Treaty by plaintiffs from an OCT against acts adopted by the Community. 

Some OCTs are evolving towards closer integration with their related Member States, which 
are considering asking the Council to modify the treaties in order to integrate these territories 
within  the  Community  as  outermost  regions.  However,  the  Community  remains  neutral 
towards  the  possible  evolution  in  the  internal  relations  between  the  OCTs  and  their  related 
Member States, and towards the differences between the OCTs as regards the constitutional 
relations with their related Member States, in particular the tendency in most OCTs towards 
greater  autonomy  and  independence.  Such  issues  are  the  exclusive  domain  of  the  Member 
States concerned and their own OCTs. Only if an OCT became fully independent would its 
nationals  in  principle  cease  to  be  European  citizens  and  its  close  link  with  the  EU  via  the 
related Member State disappear.  

Without prejudice to any such future evolution, the aspects highlighted above show that the 
status  of  the  OCTs  in  relation  to  the  Community  differs  from  that  of  any  third  country, 
including third countries associated with the Community by specific agreements, such as the 
ACP states or the countries covered by the Community’s Neighbourhood Policy. Nonetheless, 
the OCTs do not form part of the Community, irrespective of the question whether or to what 
extent the law of the related Member State applies in a given OCT.  

The  question  therefore  is  where  to  situate  the  OCTs  as  regards  their  relations  with  the 
Community, bearing in mind, on the one hand, that the relations between the Community and 
its members (including the outermost regions) cannot be applied as such to the OCTs and that, 
on  the  other  hand,  the  association  of  the  OCTs  with  the  Community  is  not  to  affect  the 
constitutional relations between the OCTs and the Member States to which they are linked. 

Question 1: How should the solidarity between the Community and the OCTs be translated 
at  policy  level,  taking  into  account  the  special  relationship  of  the  OCTs  with  the 
Community?  

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See Council Decision 1999/95/EC of 31 December 1998 concerning the monetary arrangements in the 
French territorial communities of Saint-Pierre-et-Miquelon and Mayotte (OJ L 30, 4.2.1999, p. 29). 
France announced in 2003 that a request for the introduction of the euro in French OCTs in the Pacific 
would  be  submitted  to  the  European  institutions  only  if  each  of  these  three  OCTs  agrees  to  the 
introduction of the euro. In this context, Wallis and Futuna declared that it will align on the decision to 
be taken by French Polynesia and New Caledonia. In 2006, the Assembly of French Polynesia adopted 
a  resolution  in  favour  of  the  introduction  of  the  euro,  whereas  New  Caledonia  has  not  yet  taken  any 
decision. 

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3.1.2.  A contemporary interpretation of the purpose of the OCT-EC association  

According  to  Article  182  EC,  the  purpose  of  the  OCT-EC  association  is  to  promote  the 
economic  and  social  development  of  the  OCTs  and  to  establish  close  economic  relations 
between them and the Community as a whole.  

Article  1  of  the  current  Overseas  Association  Decision  clarifies  that  the  objectives  of  the 
OCT-EC  association  are  pursued  by  focusing  on  the  reduction,  prevention  and,  eventually, 
eradication  of  poverty  in  the  OCTs  and  on  sustainable  development  (including  its 
environmental  pillar)  and  gradual  integration  within  the  regional  and  world  economies.  The 
attention paid to combating poverty and the application of a development cooperation logic to 
the  Community’s  financial  cooperation  with  the OCTs  often  leads  to  identification  between 
OCTs  and  ACP  countries,  in  particular  because  the  financial  instrument,  i.e.  the  EDF,  is 
identical. 

However, the current focus on the fight against poverty is seen more and more by the OCTs 
and  the  Member  States  to  which  they  are  linked  as  an  obstacle  to  tackling  the  OCTs’ 
vulnerability  as  micro-island  economies  in  the  most  efficient  way,  especially  because  the 
Community’s development finance cooperation with the OCTs is currently based on a set of 
standards  that  are  similar  to  those  applied  to  development  cooperation  with  ACP  countries 
and  that  do  not  fully  reflect  the  OCTs’  specificity  in  terms  of  their  extreme  smallness, 
institutional and constitutional situations,  geographical and climatic diversity, their differing 
levels  of  development,  and  the  importance  attached  to  innovation,  entrepreneurship  and 
competitiveness. 

The  integration  of  the  OCTs  within  the  Community’s  development  cooperation  is  also  the 
subject of increased criticism from Member States without OCTs and from ACP countries, as 
illustrated  during  the  negotiations  on  the  10th  EDF  Internal  Agreement,  for  instance.  The 
main reason for this criticism is that the OCTs benefit from development aid financed from 
the  EDF,  even  though  certain  OCTs  can  hardly  be  considered  as  ‘developing  countries’,  no 
OCT  is  qualified  as  a  low  income  territory9,  they  are  not  part  of  the  ACP-EC  Partnership 
Agreement  and  they  are  not  covered  by  the  provisions  of  the  EC  Treaty  on  development 
cooperation. In addition, the level of aid per capita granted to the OCTs and financed from the 
EDF is significantly higher than the ACP average10, which is due to the fact that the OCTs are 
more closely linked with the EU than the ACP countries, but is not related to the OCTs’ needs 
as such. 

On the one hand, it seems indeed reasonable that development cooperation should in the first 
place benefit the countries that need it most. On the other hand, it is unfair to focus solely on 
per capita income as an indicator of the OCTs’ needs, as this would fail to take into account 
their  vulnerability  as  micro-island  economies  and  in  particular  the  fact  that  their  small  size 
and  their  dependence  on  a  very  narrow  economic  base  severely  affect  their  institutional 
capacities and their development potential. Moreover, it should be borne in mind that several 
OCTs  are  heavily  dependent  on  financial  transfers  from  their  related  Member  States,  which 
ensures a relatively high level of social and public service but may also result, for example, in 
a very large and predominant public sector and an underdeveloped private sector.  

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According  to  the  Development  Assistance  Committee  of  the  Organisation  for  Economic  Cooperation 
and  Development  (OECD/DAC).  See  Annexes  I  and  II  attached  to  the  present  Green  paper  for  more 
details. 
See footnote 4 above. 

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Nevertheless, the challenges related to the OCTs’ vulnerability as micro-island economies do 
not  necessarily  require  a  classical  development  cooperation  approach.  On  the  contrary,  the 
sustainable  development  of  the  OCTs  in  today’s  globalised  world  seems  best  served  by 
increasing  their  competitiveness  and  their  gradual  integration  within  regional  and  world 
markets,  taking  due  account  not  only  of  the  challenges  they  face,  like  high  production  and 
transport costs, diseconomies of scale and a relative lack of institutional capacity, but also of 
their potential, such as their expertise in certain areas, the relatively high level of education of 
their  populations  compared  to  neighbouring  countries,  or  the  availability  of  certain  natural 
resources.  Moreover,  environmental  concerns  merit  special  attention  given  both  the  OCTs’ 
fragility in the face of climate change and their potential based on their biodiversity. 

In  order  to  take  into  account  the  OCTs’  vulnerability,  it  would  not  be  a  durable  solution  to 
resort simply to making exceptions to the current rules and procedures instead of defining a 
real  strategy  towards  the  OCTs,  because  merely  making  exceptions  to  the  Community’s 
development policy would undermine the coherence of this policy as set out in the European 
Consensus on Development11. Moreover, this would be diametrically opposed to the positions 
expressed  by  a  number  of  Member  States  without  OCTs.  It  is  thus  essential  to  have  a 
discussion first on policies, not procedures. 

Question 2: Do you agree that we should move to a new approach with the OCTs distinct 
from the classical development cooperation approach (based on the fight against poverty)? 
If so, what kinds of actions  would you propose in order to better promote the sustainable 
development of the OCTs and thestrengthening of their competitiveness and resilience? 

11 

Joint  statement  by  the  Council  and  the  representatives  of  the  governments  of  the  Member  States 
meeting  within  the  Council,  the  European  Parliament  and  the  Commission  on  European  Union 
Development Policy: ‘The European Consensus’ (OJ C 46 of 24.2.2006, p. 1). 

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3.1.3.  Mutual interests 

The OCTs are located in more or less remote geographical regions all over the world. Despite 
their location outside the EU’s external borders, the OCTs and the Member States to which 
they are linked often point to the strategic importance of the OCTs as the ‘ultimate frontiers of 
Europe’ or the ‘outposts of the EU’, namely because they are part of or at least closely linked 
to an EU Member State. This raises a double question: What is the actual strategic importance 
of the OCTs for the EU as a whole? And what kind of responsibilities should this entail for 
the OCTs as regards the role they could play within their regions? 

In the Caribbean, Pacific and Indian Ocean regions, the OCTs are neighbours of ACP states. 
Like the French outermost regions in the Caribbean and Indian Ocean, some of these OCTs 
have know-how that is not always available in their neighbouring countries and could usefully 
be  shared  with  these  countries.  Similarly,  OCTs  could  also  actively  contribute  to  the 
promotion  of  the  ‘European’  values  that  they  share  on  an  as  wide  as  possible  geographical 
basis in their respective regions.  

The idea has been put forward to help establish ‘centres of experience and expertise’ in the 
OCTs, facilitating the OCTs’ role as bridgeheads between the EU and their respective regions. 
This could, for example, relate to the implementation and promotion of high standards in the 
field  of  the  environment,  the  rule  of  law,  good  governance,  respect  for  human  rights, 
including  minority  rights,  the  promotion  of  good  neighbourly  relations,  or  the  principles  of 
market economy, innovation and sustainable development.  

Also relevant are the ecological richness and different climatic conditions in the OCTs, which 
could  offer  great  research  potential.  This  is  already  the  case  in  some  OCTs,  like  in  French 
Polynesia, where scientific projects on biodiversity are being implemented involving research 
institutes  from  France  and  the  United  States.  Regarding  Greenland,  the  exploitation  of 
hydrocarbons and other minerals and the possibility of new sea routes across the North Pole 
could bring new opportunities. 

However,  the  present  partnership  between  the  Community  and  the  OCTs  can  hardly  be 
considered as one based on reciprocal interests. In fact, the actual responsibilities incumbent 
upon  the  OCTs  are  limited  to  those  of  aid  partners  and  beneficiaries  of  a  non-reciprocal 
preferential trade regime. The partnership between the European Community and Greenland12 
could in a certain sense be considered as an exception, even though the actual responsibilities 
of Greenland in areas other than fisheries remain fairly minor (without prejudice to the policy 
dialogue with regard to the programme for the sustainable development of Greenland). 

The  actual  responsibilities  for  the  OCTs  under  the  current  partnership  indeed  remain  quite 
limited.  For  example,  the  Overseas  Association  Decision  clarifies  that  the  objectives  of  the 
OCT-EC  association  are  pursued  by  focusing,  among  other  things,  on  the  OCTs’  gradual 
integration  within  the  regional  and  world  economies.  In  this  respect,  the  decision  also 
encourages inter-OCT and OCT-ACP regional cooperation, solidarity and integration, as well 
as the establishment of more balanced economic and social relations between the OCTs, ACP 
countries, Member States and other parts of the world. At the same time, the OCTs have on 
numerous occasions pointed to the role they could play as competitive bridgeheads between 

12 

See Council Decision 2006/526/EC of 17 July 2006 on relations between the European Community on 
the one hand, and Greenland and the Kingdom of Denmark on the other (OJ L 208, 29.7.2006, p. 28). 

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the  EU  and  their  respective  regions,  which  the  Commission  has  welcomed.  However,  this 
implies  increased  cooperation  within  their  respective  regions  and  with  the  EU,  the  effective 
transfer of know-how and the implementation of high-quality standards. Yet, even though the 
decision  contains  provisions  allowing  for  and  insisting  on  regional  cooperation  between  the 
OCTs and their neighbours (whether the Community’s outermost regions, ACP states or other 
third countries), it does not provide actual incentives or responsibilities to do so, and, so far, 
the  results  remain  rather  limited  in  spite  of  the  resources  made  available  to  the  various 
partners concerned.  

Another example of limited responsibilities under the present OCT-EC association relates to 
the  OCTs’  environmental  legacy.  Besides  the  significance  of  the  OCTs’  environmental 
sustainability for their own well-being, the preservation of the OCTs’ biodiversity is of major 
importance for the Community and for the world at large, given its international dimension in 
terms  of  research,  the  sustainable  exploitation  of  natural  resources  and  the  fight  against 
climate  change.  However,  the  current  Overseas  Association  Decision  does  not  confer  any 
responsibilities  on  the  OCTs  to  engage  effectively  in  environmental  protection  and 
conservation activities according to Community standards, in the monitoring of the regularity 
of  fisheries  activities,  in  effective  pollution  control  measures  and  adequate  emergency 
response  capacities  where  new  commercial  possibilities  could  be  exploited,  or  in  scientific 
cooperation with European research institutes and teams from Member States other than those 
to which the OCTs are linked. Several OCTs do adhere to exemplary environmental standards 
that are equivalent to Community standards, but this cannot be said to be general practice in 
all the OCTs, which often show patterns of unsustainable ecosystem use. 

All  the  OCTs  are  characterised  by  a  biodiversity  that  is  much  richer  than  in  continental 
Europe  as  a  whole.  These  insular  and  isolated  countries  and  territories  constitute  privileged 
locations for the development of endemic species, whether animal or vegetable and terrestrial 
or maritime: for example, New Caledonia has more than 2 000 endemic plants and more than 
1  600  fish  species.  200  coral  species  have  been  identified  in  Mayotte.  The  OCTs  are  also 
important  places  for  migrating  species:  a  very  large  proportion  of  black-browed  albatrosses 
reproduce  in  the  Falkland  Islands,  in  South  Georgia,  and  in  the  archipelagos  of  Crozet  and 
Kerguelen (which are part of the French Southern and Antarctic Territories), Greenland hosts 
25  species  of  marine  mammals,  and  humpback  whales  migrate  to  French  Polynesia  to 
reproduce.  The  OCTs  are  thus  of  major  importance  for  world  biodiversity.  Sustainable  use 
and  protection  of  this  biodiversity  would  benefit  from  better  scientific  documentation  and 
access to research results. The Commission is of the opinion that the biodiversity and other 
natural  assets  of  the  OCTs  could  be  the  basis  for  strengthened  cooperation  in  the  field  of 
research and conservation. 

The  OCTs’  potential  as  regards  biodiversity  is  already  recognised  at  international  level, 
through the development of scientific projects to gain a better understanding of ecosystems, 
the  way  they  interact  and  their  importance  for  the  worldwide  environmental  balance.  These 
research  projects  also  aim  to  find  solutions  to  safeguard  this  potential,  which  is  highly 
threatened,  for  example  by  the  introduction  of  non-endemic  species  that  destroy  existing 
habitats  or  supplant  endemic  vegetation  (like  goats  in  Bonaire  and  Curacao,  miconia  in 
French Polynesia and New Caledonia, etc), or by the impact of climate change on corals. The 
international  community  feels  increasingly  concerned  about  the  loss  of  biodiversity.  In  its 
communication of 22 May 2006 entitled ‘Halting the loss of biodiversity by 2010 and beyond 
— Sustaining ecosystem services for human wellbeing’, the European Commission for its part 
emphasises that ‘effective action in the biodiversity-rich overseas countries and territories of 
Member States is vital to the EU’s credibility in this international arena’. 

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The Commission is also keen to develop a more active partnership with the OCTs as regards 
cooperation in other areas such as economic policy, enterprise, employment and social policy, 
trade and investment, infrastructure (including with regard to the Galileo system, as OCTs are 
potential or real candidates for the development of ground infrastructures), research, maritime 
affairs  and  governance  of  the  sea,  energy  supply,  energy  efficiency  and  renewable  energy 
sources,  good  governance  (including  in  the  tax,  financial  and  judicial  area),  civil  society 
development, cultural exchanges, the media, education and training, migration, and the fight 
against organised crime, trafficking of human beings, terrorism, money laundering, tax fraud, 
tax evasion, drugs and illegal, unreported and unregulated fishing, as well as administrative, 
police  and  judicial  cooperation.  Moreover,  cooperation  in  the  field  of  both  sea  and  air 
transport — including as regards the Common Aviation Area — can significantly contribute 
to the integration of OCTs within their region and to a closer relationship between the OCTs 
and the Community. 

In any event, the possibilities for action in the mutual interest of a given OCT and the EU (and 
neighbouring  developing  countries)  depend  on  that  OCT’s  potential  and  willingness  to 
develop  and  share  certain  assets,  and  on  the  attractiveness  of  these  assets  for  the  EU, 
neighbouring  countries  or  other  potential  partners,  as  well  as  on  the  EU’s  readiness  to 
cooperate  more  actively  in  the  domain  in  question  with  that  OCT.  In  this  respect,  it  is 
essential to take into account the OCTs’ enormous diversity, and in particular the situation of 
OCTs  that  are  extremely  isolated  because  of  geographical,  political  or  other  reasons.  An 
important challenge also relates to the role and influence of certain countries in the different 
regions in which the OCTs are located — like the United States, Brazil and Venezuela in the 
Caribbean, or the United States, Japan, China, Australia and New Zealand in Pacific.  

In  2003,  the  OCTs  and  the  Member  States  to  which  they  are  linked  indicated  that  moving 
towards a genuine partnership should be accompanied by the conclusion of an agreement (to 
be supplemented if necessary by individual protocols) instead of the adoption of a decision by 
the Council. However, the present Green Paper does not examine such considerations, since 
Article 187 of the EC Treaty explicitly provides that the detailed rules and procedures for the 
OCT-EC association are to be laid down by the Council. 

Question 3: How could the partnership between the OCTs and the EU become more active 
and  reciprocal,  in  the  mutual  interest  of  both  partners?  Which  actual  responsibilities 
should this entail for the OCTs or the Member States to which they are linked (within the 
limits of their constitutional competences)?  

Question  4:  What  are,  in  your  view,  the  most  important  domains  of  mutual  interest  for 
cooperation between the OCTs and the EU?  

Question 5: What could be the advantage for the OCTs of increased regional cooperation 
and integration? How could a transfer of knowledge and know-how between the OCTs and 
their neighbours be encouraged? 

Question  6:  What  is  your  opinion  on  a  possible  reinforcement  of  the  political  dialogue 
between  the  EU,  an  OCT  and  the  Member  State  to  which  it  is  linked,  in  particular  in 
situations where the interests of the EU and the OCT concerned would differ?  

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3.2. 

The trade arrangements between the Community and the OCTs 

No review of the present trade arrangements between the Community and the OCTs can take 
place  without  taking  into  account  the  changes  in  the  wider  world,  which  affect  the 
Community and the OCTs themselves, as well as the OCTs’ principal trading partners and in 
particular their ACP neighbours. The Community has for many years consistently supported 
regional economic integration as a priority for the ACP states, because integration regionally 
and  within  multilateral  trading  systems  offers  new  trade  opportunities  that  could  lead  to 
economic  growth  and  thus  a  path  out  of  poverty  for  these  countries.  This  is  also  the 
underlying  rationale  of  the  development  cooperation  logic  of  the  Economic  Partnership 
Agreements (EPAs) negotiated with the ACP states.  

It is also a fact that the theoretical benefits offered to the OCTs by the current OCT-EC trade 
regime  in  terms  of  preferential  access  to  the  Community  market  are  eroding  as  a  result  of 
progressive trade liberalisation on a global and regional scale. This is an inevitable process for 
which  the  OCTs  need  to  prepare,  in  particular  because  the  OCTs  already  benefit  from  the 
most generous tariff regime ever granted by the Community, which leaves no real room for 
improving the their preferential access to the EU market.  

In this context, the Commission has since 2003 invited the OCTs located in an ACP region 
and  the  Member  States  to  which  they  are  linked  to  examine  their  position  on  the  regional 
economic integration of these OCTs with their neighbouring ACP countries, and what these 
OCTs stand to lose or gain from participating in such regional economic integration. This is 
also  of  particular  relevance  with  regard  to  rules  of  origin  and  namely  cumulation  of  origin 
between OCTs and ACPs. 

In  addition,  a  modernisation  of  the  rules  of  origin  (primarily  regarding  fisheries  products), 
tailored  to  the  OCTs’  specific  situation,  or  the  strengthening  of  the  OCTs’  capacities  to 
comply with obligations on imports of goods into the Community, for example in the sanitary 
and  phytosanitary  field  (which  also  represents  a  key  element  in  the  EPAs),  could  help 
maximise  the  benefits  that  the  OCTs  derive  from  the  OCT-EC  trade  regime  despite  the 
decreasing  theoretical  value  of  their  tariff  preferences.  In  the  same  vein,  the  current 
transhipment procedure should be subject to a critical assessment. 

With  reference  to  the  Commission  staff  working  paper  attached  in  Annex  IV  to  the  present 
Green Paper, the Commission would like to know your view on the following questions : 

Question 7.1: What are in your view the benefits of greater regional economic integration 
that  could  present  an  advantage  for  certain  OCTs  in  response  to  globalisation  and  the 
erosion of their trade preferences vis-à-vis the Community?  

Question  7.2:  How  could  the  OCTs  engage  in  wider  regional  trade  and  how  could  the 
Community facilitate this? 

Question 8.1: What is your view on the added value for OCTs of OCT-ACP cumulation of 
origin?  

Question  8.2:  By  which  OCTs  and  how  often  is  OCT-ACP  cumulation  used?  Does  it 
involve the sourcing of raw materials from ACP states and their transformation on the spot 
in OCTs?  

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Question 8.3: How can the modernisation of the rules of origin be adjusted to the specific 
situation of the different OCTs?  

Question 9.1: What is in your view the added value of cooperation with the OCTs in trade-
related areas in response to globalisation and the erosion of their trade preferences vis-à-
vis the Community?  

Question 9.2: How could the OCT-EC association contribute to improving the situation in 
OCTs more actively in this regard? 

Question 10.1: What is your opinion on the real added value of the existing transhipment 
procedure in the current Overseas Association Decision?  

Question  10.2:  How  could  the  OCT-EC  association  be  adapted  to  better  promote  the 
development of transport (air, road and harbour) infrastructure? 

Question 10.3: Do you have suggestions regarding other ways to help make well-developed 
but under-utilised harbour infrastructure in OCTs more competitive?  

3.3. 

The OCTs’ specific characteristics 

On 2 October 1997, the Conference of the representatives of the governments of the Member 
States  that  adopted  the  Treaty  of  Amsterdam  made  a  declaration  on  the  OCTs  in  which  it 
called  for  a  review  of  the  OCT-EC  association  arrangements  with  the  objective  of,  among 
other  things,  taking  greater  account  of  the  diversity  and  specific  characteristics  of  the 
individual  OCTs13.  Consequently,  the  2001  Overseas  Association  Decision  introduced  a 
number  of  innovations  in  this  respect.  Whereas  until  the  8th  EDF,  programmable  aid  was 
divided among the French, Dutch and British OCTs as a group, leaving it up to the Member 
States  concerned  to  allocate  these  resources  between  their  own  OCTs,  the  2001  Overseas 
Association Decision introduced the allocation of Community financial assistance directly to 
individual  OCTs  and  provided  for  greater  subsidiarity  as  regards  the  management  of  the 
financial  instrument.  It  also  included  provisions  on  the  needs  of  the  most  isolated  and  least 
developed OCTs. However, based on the experience acquired since then, a number of further 
challenges  concerning  the  OCTs’  vulnerability  and  diversity  should  now  critically  be 
assessed, without prejudice to the questions raised above.  

More precisely, with reference to the Commission staff working paper attached in Annex V to 
the  present  Green  Paper,  the  Commission  would  like  to  know  your  view  on  the  following 
questions: 

Question  11:  How  should  the  Community’s  promotion  of  the  sustainable  development  of 
the OCTs relate to their actual vulnerability as micro-island economies?  

Question 12: What is your opinion on the establishment of an index to measure the relative 
vulnerability of the OCTs, allowing comparison not only between the OCTs, but also with 
other countries and territories? If such an index is to be established, which criteria should 
be used?  

13 

Declaration  No  36  on  the  Overseas  Countries  and  Territories  annexed  to  the  Final  Act  of  the 
Conference of the representatives of the governments of the Member States that adopted the Treaty of 
Amsterdam (OJ C 340, 10.11.1997).  

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Question  13:  In  view  of  the  exposure  of  many  OCTs  to  natural  disasters,  how  should 
Disaster Risk Reduction be included in future OCT-EU relations? 

Question 14: How could the OCT-EC association be adapted to take greater account of the 
OCTs’  diversity  without  increasing  the  administrative  burden  for  the  OCTs  and  the 
Commission?  

4. 

CONCLUSIONS 

The  EC  Treaty  states  that  the  purpose  of  the  association  of  the  OCTs  with  the  European 
Community is to promote the economic and social development of the OCTs and to establish 
close  economic  relations  between  them  and  the  Community  as  a  whole.  Moreover,  it  lays 
down the trade-related objectives and basic principles of this association. However, within the 
limits  of  the  EC  Treaty,  there  is  a  very  large  room  for  manoeuvre  to  modernise  relations 
between the EU and the OCTs, in order to adapt them to the reality in the field, the specific 
situation of the OCTs as micro-island economies scattered all over the world and the potential 
they offer, as well as the wider international context and regional realities, while fully taking 
into account the unique status of the OCTs in relation to the Community. 

In order to pave the way towards the future, the present Green Paper is intended to spark a 
broad  public  discussion  on  a  number  of  essential  questions  regarding  any  substantial 
modernisation of the OCT-EC association, so that the Commission will eventually be able to 
determine the appropriate policy response on best possible informed basis, with the objective 
of  defining  a  new  long-term  strategy  for  the  association  of  the  OCTs  with  the  Community, 
which  will  fully  or  partly  replace  the  current  one  when  the  present  Overseas  Association 
Decision expires on 31 December 2013. This remains without prejudice to a possible revision 
of the Decision before the end of 2011, in accordance with its Article 62. 

The period of public consultation will commence on 1 July 2008 and end on 17 October 2008. 

The European Commission invites you to submit your contribution using the electronic form 
that you can find on its website at the following address:  

http://europa.eu/yourvoice/consultations/index_en.htm 

Received contributions will be analysed carefully by the Commission in order to pave the way 
towards the definition of a new policy towards the OCTs. More precisely, contributions will 
be examined to see whether, and to what extent, the views expressed can be accommodated in 
future policy proposals pertaining to the OCTs. Received contributions will be published on 
the  Internet,  together  with  the  identity  of  the  contributor,  unless  the  contributor  objects  to 
publication of the personal data on the grounds that such publication would harm his or her 
legitimate  interests.  In  this  case  the  contribution  may  be  published  in  anonymous  form. 
Otherwise  the  contribution  will  not  be  published  nor  will,  in  principle,  its  content  be  taken 
into  account.  Organisations  are  asked  to  identify  themselves.  The  Commission  will 
acknowledge  receipt  of  the  contributions  received,  but  without  necessarily  providing  an 
individual response with regard to their content. 

In  order  to  provide  adequate  feedback  to  responding  parties  and  to  the  public  at  large, 
explanatory  memoranda  accompanying  legislative  proposals  or  a  communication  by  the 
Commission  on  relations  between  the  EU  and  the  OCTs  will  include  the  results  of  this 
consultation and an explanation as to how its results were taken into account. 

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You are encouraged to use the electronic response form, which will make it easier to process 
your opinions during this consultation. 

You may, however, also send a written contribution to the following address: 

Green Paper on the future relations between the EU and the OCTs 

European Commission 

Directorate-General Development and Relations with African, Caribbean and Pacific States 

DG DEV/D/1 

SC-15 07/130 

B-1049 Brussels 

For enquiries, you can also send an email to: DEV-DIR-D@ec.europa.eu 

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