Commission staff working document accompanying the Communication on regional integration for development in acp countries - The Regional Strategy Papers and Indicative programmes of the 10th European Development Fund {COM(2008) 604} {SEC(2008) 2539}
Date: 2008-10-01
Institutions: European Commission
Subjects: ACP countries, aid policy, developing countries, development aid, economic integration, least-developed country, sustainable development

EN 

EN 

   EN 

 
 
COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 1.10.2008 
SEC(2008) 2538 

COMMISSION STAFF WORKING DOCUMENT 

accompanying the 

COMMUNICATION ON REGIONAL INTEGRATION FOR DEVELOPMENT IN 
ACP COUNTRIES  

The Regional Strategy Papers and Indicative Programmes of the 
10th European Development Fund 

{COM(2008) 604} 
{SEC(2008) 2539} 

EN 

   EN 

 
 
 
  
 
 
 
 
 
TABLE OF CONTENTS 

1. 

2. 

2.1. 

2.2. 

2.3. 

2.4. 

2.5. 

2.6. 

3. 

3.1. 

3.2. 

3.3. 

3.4. 

3.5. 

3.6. 

4. 

4.1. 

4.2. 

4.3. 

4.4. 

4.5. 

4.6. 

5. 

5.1. 

5.2. 

5.3. 

5.4. 

5.5. 

Overview ...................................................................................................................... 4 

West Africa .................................................................................................................. 6 

Situation in the region .................................................................................................. 6 

Issues and challenges for the regional integration process .......................................... 6 

State of play and way forward for the regional integration process ............................ 7 

Proposal for a regional strategy between the EC and West Africa .............................. 9 

EC response strategy .................................................................................................. 10 

Main elements of the regional indicative programme ............................................... 10 

Eastern and Southern Africa ...................................................................................... 13 

Situation in the region ................................................................................................ 13 

Issues and challenges for the regional integration process ........................................ 14 

State of play and way forward for the regional integration process .......................... 14 

Proposal for a regional strategy between the EC and Eastern and Southern Africa and 
the Indian Ocean ........................................................................................................ 16 

EC response strategy .................................................................................................. 16 

Main elements of the regional indicative programme ............................................... 17 

Southern African Development Community (SADC) ............................................... 19 

Situation in the region ................................................................................................ 19 

Issues and challenges for the regional integration process ........................................ 20 

State of play and way forward for the regional integration process .......................... 20 

Proposal for a regional strategy between the EC and SADC..................................... 21 

EC response strategy .................................................................................................. 21 

Main elements of the regional indicative programme ............................................... 22 

Central Africa............................................................................................................. 24 

Situation in the region ................................................................................................ 24 

Issues and challenges for the regional integration process ........................................ 24 

State of play and way forward for the regional integration process .......................... 25 

Proposal for a regional strategy between the EC and Central Africa ........................ 27 

EC response strategy .................................................................................................. 27 

EN 

2 

   EN 

 
5.6. 

Main elements of the regional indicative programme ............................................... 27 

6. 

6.1. 

6.2. 

6.3. 

6.4. 

6.5. 

6.6. 

7. 

7.1. 

7.2. 

7.3. 

7.4. 

7.5. 

7.6. 

Caribbean ................................................................................................................... 29 

Situation in the region ................................................................................................ 29 

Issues and challenges for the regional integration process ........................................ 29 

State of play and way forward for the regional integration process .......................... 30 

Proposal for a regional strategy between the EC and the Caribbean ......................... 31 

EC response strategy .................................................................................................. 32 

Main elements of the regional indicative programme ............................................... 32 

Pacific......................................................................................................................... 34 

Situation in the region ................................................................................................ 34 

Issues and challenges for the regional integration process ........................................ 35 

State of play and way forward for the regional integration process .......................... 36 

Proposal for a regional strategy between the EC and the Pacific .............................. 38 

EC response strategy .................................................................................................. 38 

Main elements of the regional indicative programme ............................................... 39 

EN 

3 

   EN 

 
1. 

OVERVIEW  

The 10th EDF regional strategies and programmes are the primary instrument of EC support to 
ACP  regional  integration.  These  documents,  which  are  the  result  of  a  political  dialogue 
between the EC and ACP regions, include:  

–  A joint analysis of the state of play of regional integration;  

–  A joint assessment of the challenges confronting each ACP region;  

–  A joint response strategy including, in the RIP, priorities for the allocation of EC financial 

resources.  

The  framework  for  the  Regional  Strategies  is  based  on  the  ACP-EC  Partnership 
Agreement,  in  particular  the  part  relating  to  regional  cooperation  and  regional  integration, 
including  the  economic  cooperation  pillar  which  envisages  the  conclusion  of  the  Economic 
Partnership Agreements (EPAs). 

The  European  Consensus  on  Development  of  20  December  2005  underlined 
the 
multidimensional  character  of  poverty  eradication  and  indicated  the  following  sectors  of 
Community  intervention  according  to  their  contribution  to  poverty  alleviation:  the  link 
between  trade  and  development;  the  support  for  regional  integration  and  cooperation;  the 
importance of economic infrastructure; food security and rural development; governance and 
support for economic and institutional reforms; conflict prevention.  

In  the  case  of  Africa,  the  Joint  EU-Africa  Strategy  adopted  in  December  2007  underpinned 
the EU-Africa Partnership on the basis of the principles of solidarity and partnership between 
equals,  which  shall  be  realised  through  a  strengthened  political  dialogue.  In  this  regard,  the 
EU-Africa Partnership on trade, regional integration and infrastructure presents three types of 
priority efforts in which regional organizations play a crucial role: support for the strategy of 
African  integration;  increasing  African  capacity  in  the  fields  of  regulation,  standards  and 
quality control; and implementing the EU-Africa Partnership on infrastructure.  

Other important strategic documents that have informed the new regional strategies under the 
10th  EDF  are  the  Global  Climate  Change  Alliance  initiative  and  the  EU  Aid  for  Trade 
strategy. 
The  10th  EDF  shows  a  strongly  increased  emphasis  on  regional  integration.  While  the 
overall EDF substantially increased from the 9th to the 10th EDF, the regional envelope almost 
doubled  to  €1.78  billion,  reflec ting  EU-ACP  consensus  on  the  importance  of  regional 
integration for development.  

The  new  RSPs/RIPs  will  respond  to  the  challenges  jointly  identified  by  the  EC  and  each 
region,  and  respond  broadly  to  five  main  priorities:  strengthening  regional  institutions; 
building  regional 
integrated  markets;  supporting  business  development;  connecting 
infrastructure  networks;  developing  regional  policies  for  sustainable  development.  More 
precisely, they will:  

–  Provide,  in  all  regions,  support  for  regional  mechanisms  to  foster  peace  and  stability, 
prevent  and  manage  conflicts,  and  fight  security  threats  (such  as  organised  crime),  thus 
furthering a broadly-defined regional human security agenda. In West, Southern and East 

EN 

4 

   EN 

 
 
Africa, EDF support will help strengthen the regional pillar of the pan-African architecture 
of peace and security. 

–  Pay  particular  attention  to  regional  economic  integration,  with  almost  75%  of  the 

indicative appropriation (i.e. €1.3 billion) likely to be  devoted to this area. 

–  Within  the  regional  economic  integration  agenda,  focus  on  specific  regional  priorities, 
with  an  emphasis  on  the  completion  of  more  integrated  markets;  the  development  of 
productive  capacities;  and  the  improvement  of  infrastructure  networks  and  enhanced 
regional  cooperation  for  the  promotion  of  sustainable  energy  policies.  There  will  be  a 
particular  focus  on  EPA  support  measures:  almost  half  of  the  Caribbean  RIP  would  be 
allocated to their EPA commitments. 

–  Reflect  the  diversity  of  ACP  regions  in  terms  of  their  priorities  for  sustainable 
development. This applies, in particular, to the second focal sector in the Pacific (fisheries) 
and  in  Central  Africa  (forestry).  Support  for  food  security  and  agriculture  is  foreseen  in 
West Africa, and for land, water and marine resources management in East Africa. 

–  Support  good  regional  governance,  with  an  emphasis  on  capacity-building  for  non-state 

actors.  

The following sections give a more detailed overview of each RSP/RIP. However, Regional 
Strategy Papers are being finalised. The information provided here is without prejudice to the 
formal adoption of the programmes by the Commission. 

EN 

5 

   EN 

 
2. 

WEST AFRICA  

The  formulation  of  the  strategy  and  the  regional  programming  covers  the  region  of  West 
Africa, comprising the 15 Member States of the Economic Community Of Western African 
States  (ECOWAS)  and  Mauritania.  Poverty  levels  in  West  Africa  remain  alarming.  The 
attainment of the Millennium Development Goals (MDGs) remains, in light of current trends, 
difficult to reach. The region comprises 13 LDCs (Least Developed Countries). Similarly, the 
16 countries of the region are characterised by severe economic vulnerability, a low GDP per 
capita and basic social indicators lower than the average for sub-Saharan Africa. ECOWAS 
and  the  West  African  Economic  and  Monetary  Union  (WAEMU)  are  the  two  Regional 
Organisations (ROs) mandated for the 10th EDF regional programming, which also includes 
Mauritania, although not a member state of either ECOWAS or WAEMU. 

2.1. 

Situation in the region  

Among the major difficulties that the region faces, nothing has led to more destabilisation and 
impoverishment  in  all  respects  than  armed  conflict.  Indeed,  nine  of  the  fifteen  ECOWAS 
member states were identified in 2006 as being in a situation of "fragility" owing to conflict. 
New challenges are also emerging in the region related to organised crime (drug trafficking, 
human trafficking, money laundering, terrorist networks).  

It  is  urgent  to  consolidate  democracy  and  achieve  a  high  level  of  social  and  political 
cohesion  in  order  to  prevent  conflicts.  During  the  last  fifteen  years,  the  majority  of  the 
countries  of  the  region  have  attempted  to  take  up  this  challenge  and  embarked,  at  different 
levels,  on  a  process  of  democratisation.  The  practice  of  democratic  pluralism  has  gradually 
settled in the region with the holding of free elections, constitutional reforms to limit the term 
of  the  presidential  office  and  consolidate  the  division  of  powers,  freedom  of  opinion  and 
greater  respect  of  human  rights.  In  addition,  the  resolution  of  the  conflicts  in  Liberia  and 
Sierra Leone and the ongoing crisis resolution in Côte d'Ivoire mark a new chapter in peace 
and  political  stability  at  the  regional  level.  Important  progress  remains  to  be  achieved 
however.  

Boosted by the rise in the price of raw materials, the absence of "active conflicts", increased 
macroeconomic  stability  and  a  considerable  increase  in  official  development  aid,  robust 
economic growth in West Africa has been maintained in recent years. However, West Africa 
remains a fragmented and slightly integrated region, with the EU remaining its main trading 
partner.  

2.2. 

Issues and challenges for the regional integration process  

The region faces major challenges which are both political and economic. In political terms, 
West Africa is a region with certain countries still undergoing a fragile democratic transition, 
others  in  the  process  of  crisis  resolution  or  in  a  post-conflict  situation,  where  open  or 
embryonic conflicts severely impede development and cross-border criminality develops.  

In  economic  terms,  the  fragmentation  of  the  economic  area,  the  lack  of  infrastructure  for 
development  and  a  weak  industrial  base  associated  with  low  competitiveness  levels,  are 
factors that hinder regional integration, economic growth and poverty reduction. In the longer 
term,  the  structural  rise  in  prices  of  energy  and  agricultural  products,  as  well  as  climate 
change, will constitute a political, as well an economic, challenge.  

EN 

6 

   EN 

 
There is however a strong political will in the region to persevere with the process of regional 
integration.  The  main  objective  is  to  promote  peace,  stability,  democracy  and  good 
governance in the region and to create a broad, open and competitive economic area.  

This  in  itself,  coupled  with  the  challenge  of  opening  to  the  outside  world,  represents  a 
challenge. It is in this context that the region perceives the opportunities and challenges of an 
Economic Partnership Agreement (EPA) with the EU. The EPA has to serve as a catalyst 
for  development,  underpinned  by  enhanced  trade  relations  and  development  cooperation 
which  contributes  to  the  consolidation  of  regional  integration  and  growth  for  sustainable 
development of the countries of the region.  

2.3. 

State of play and way forward for the regional integration process  

ECOWAS  and  the  WAEMU  share  the  same  objective  of  regional  integration  and  have 
decided  to  implement  jointly  a  "strategy  of  acceleration  of  the  integration  process  in  West 
Africa". This strategy envisages a co-operation mechanism and convergence between the two 
regional  organisations.  It  is  articulated  in  the  West  Africa  Regional  Growth  and  Poverty 
Reduction strategy paper drawn up by the two regional organisations. The four priorities of 
the common Regional Strategy are:  

–  Conflict management and the promotion of democracy and good governance to strengthen 

social cohesion and the effectiveness of policies;  

–  Deepen integration of the economic area to reduce trade costs and increase competitiveness 

in order to accelerate diversification and enhance growth;  

–  Development/interconnectivity  of  infrastructure  and  harmonisation  and  coordination  of 
sectoral policies in support of the integration of the economic area and the enhancement of 
its competitiveness;  

–  Strengthening  of  human  capital  and  facilitation  of  mobility  through  a  common  space  in 

order to support growth and make it distributive.  

The  common  objectives  of  the  document  were  translated  into separate priority action plans, 
but which are complementary and convergent between ECOWAS ("Vision 2020: Towards the 
people's ECOWAS") and WAEMU ("Programme Economique Régional"). 

Important progress has been made in the implementation of the priority pillars of the regional 
strategy and the new phase of EC-West Africa cooperation should allow the consolidation of 
the acquis and the deepening of the integration process.  

"Conflict Prevention, Promotion of Democracy and Governance" 

The  relationship  between  conflict  prevention,  conflict  management,  peace  and  security 
features explicitly in the agenda of ECOWAS, which has become particularly proactive and 
has gained considerable experience in "Preventive Diplomacy and Mediation". This proactive 
approach, which is conducted in co-operation with the United Nations, the European Union 
and the African Union, came to the fore in the management of the conflicts in Côte d'Ivoire, 
Togo, Sierra Leone and recently in Guinea, although the reaction time and decision-making 
could  be  improved.  Two  protocols  (incorporated  in  the  revised  Treaty)  on  Non-aggression 
and Mutual Assistance in defence matters, constitute the historical basis of regional policies 
with regard to security, peace, conflict prevention and conflict management.  

In  the  field  of  security,  ECOWAS  has  adopted  the  Convention  on  Small  Arms  and  Light 
Weapons. This has resulted in the setting-up of a "light weapons" unit and an operational unit 

EN 

7 

   EN 

 
ECOSAP  in  Bamako.  The  Heads  of  State  of  the  region  have  approved  the  establishment  of 
the  ECOWAS  Standby  Force  (ESF)  which  forms  part  of  the  African  Standby  Force  (ASF) 
under the umbrella of the African Union.  

In  the  field  of  governance,  ECOWAS  strengthened  its  expertise  in  electoral  assistance  and 
monitoring and has created a special unit for this purpose. The organisation seeks, in the long 
term, to engage its member states in a process of harmonising their constitutions and electoral 
legislation. ECOWAS now has a Common Approach on Migration which was adopted by the 
Heads of State Conference in 2008.  

In the fight against organised crime, ECOWAS has advanced several initiatives including a 
regional fund and an operational unit. In the fight against money laundering and the financing 
of  terrorism,  the  GIABA  (Groupe  Inter-Gouvernemental  d'Action  Contre  le  Blanchiment  de 
l'Argent en Afrique) is now operational. Finally, ECOWAS is preparing a common approach 
on human trafficking, in particular the trafficking of children.  

"Deepening Integration of the Economic Area"  

One of the major achievements was the establishment of a WAEMU customs union, which 
came into force on 1 January 2000. The harmonisation of the trade liberalisation schedules of 
ECOWAS  and  WAEMU,  based  on  the  WAEMU  TEC,  decided  at  the  ECOWAS  Heads  of 
State  Conference  in  January  2003,  also  constitutes  an  important  step  forward  and  should 
allow for the creation of a regional customs union in the short term.  

The realisation of the ECOWAS customs union, initially scheduled for 1 January 2008, was 
deferred. In order to move to a customs union for the  whole  of West  Africa, a balance  will 
have to be found between countries that want to liberalise certain products to keep consumer 
prices down and those that want to protect them to protect local production.  

The establishment of a common market is less advanced. There are difficulties at four levels: 
the  need  to  strengthen  internal  liberalisation;  the  significant  gap  between  the  adoption  of 
agreements  and  protocols  at  the  regional  level  and  the  reluctance  of  Member  States  to 
implement them  effectively at the national level; the continuing existence  of tariff  and  non-
tariff barriers in the majority of states; and the lack of regional interconnectivity in transport 
and telecommunications.  

The dismantling of internal tariffs and the reduction of non-tariff barriers constitute the two 
major  elements  for  free  movement  of  goods  within  the  region.  As  a  result  of  the 
harmonisation of the trade liberalisation schedules of ECOWAS and WAEMU in 2003, tariff 
preferences  are  based  on  rules  of  origin  common  to  both  institutions.  The  Convention  of 
Interstate  Road  Transit  (TRIE  –  Transit  Routier  Inter-États)  offers  a  common  regional 
legislative framework for cooperation in road transport.  

In the field of investment and the free movement of services, the region has made important 
progress  in  financial  integration,  particularly  in  the  WAEMU  area  which  has  set  up  an 
integrated financial market. Regional organisations have deployed resources and are making 
efforts  to  develop  micro-finance  to  facilitate  saving  and  access  to  credit  for  the  poor.  The 
insufficient  level  of  mutual  recognition  of  university  degrees  presents  a  genuine  obstacle  to 
access to the service market, as West African countries increasingly enjoy a critical mass of 
experts able to export their services both within and without the region.  

Important progress has been achieved in the area of the free movement of persons. However 
protection  of  the  rights  of  residency  and  establishment  remain  weak,  requiring  the 
harmonisation of national legislation relating to the labour market and property rights.  

EN 

8 

   EN 

 
The  standardisation  and  quality  control  activities  are  very  often  limited  to  microscopic 
examination and often focus only phytosanitary aspects. Only some countries have capacities 
in  the  fields  of  standardisation  and  accreditation.  At  the  regional  level,  the  extension  of  the 
"WAEMU  Quality  Programme",  when  fully  operational,  should  allow  the  adoption  of  a 
framework  for  establishing  a  regional  system  of  accreditation/certification,  standardisation 
and quality promotion.. With regard to trade-related rules (competition, intellectual property 
and public procurement), the work is at the preliminary stage of harmonising and developing 
a regional legislative framework.  

"Sectoral Policies and Development and Interconnectivity of Infrastructure"  

ECOWAS formulated an agricultural policy (ECOWAP), adopted in January 2005, aiming 
to  ensure  the  region's  food  security  and  sanitary  quality  as  well  as  enhancing  regional 
production.  ECOWAS  and  CILSS  (Comité  permanent  Inter  Etats  de  Lutte  Contre  la 
Sécheresse  dans  le  Sahel)  signed,  in  December  2006,  a  memorandum  of  understanding  of 
which  the  objective  is  to  make  CILSS  the  technical  implementation  agency  of  ECOWAS 
programmes.  WAEMU,  for  its  part,  adopted  the  Agricultural  Policy  of  the  Union  (PAU, 
2001)  which  aims  to  contribute  in  a  sustainable  way  to  meet  the  alimentary  needs  of  the 
population, the economic development of the Member States and poverty reduction.  

Regarding  the  development  of  interconnectivity,  road  transport  remains  the  overriding 
priority. ECOWAS adopted a "Priority Road Transport Programme" (PTRP – Programme de 
Transport  Routier  Prioritaire),  the  objective  of  which  is  to  facilitate  trade  and  to  accelerate 
regional  economic  integration.  More  recently,  and  in  accordance  with  the  NEPAD  action 
plan,  ECOWAS  and  WAEMU  have  implemented  a  Regional  Facilitation  Programme  of 
Transport  and  Inter-state  Road  Transit.  In  the  field  of  telecommunications,  the  regional 
organisations  launched  actions  with  the  aim  of  harmonising  legislative  and  regulatory 
frameworks.  Moreover,  ECOWAS  launched  its  second  programme,  Intelcom  II,  for  the 
rehabilitation  and  modernisation  of  connections  between  the  Member  States.  WAEMU  has 
formulated a Regional Economic Programme (REP) in which infrastructure represents 70% of 
actions foreseen in the first five-year period. 

In  the  field  of  energy,  ECOWAS  aims  to  strengthen  cooperation  and  the  harmonisation  of 
energy  policies  of  the  Member  State  through  the  implementation  of  a  programme  for  the 
development, generation and distribution of electricity on a regional level (WAPP) and a from 
West  Africa  Gazoduc  project  connecting  Nigeria  to  Togo,  Benin  and  Ghana.  Meanwhile, 
WAEMU  has  formulated  a  Community  energy  programme,  the  main  components  of  which 
are the promotion of renewable energy, the interconnectivity of electrical supply networks and 
the adoption of an integrated energy planning system.  

The  upgrading  and  improvement  of  companies'  competitiveness  constitute  the  two  major 
components of the private sector policy.  

2.4. 

Proposal for a regional strategy between the EC and West Africa  

The  overall  objective  is  to  contribute  to  the  deepening  of  the  process  of  regional  economic 
integration  of  West  Africa  and  its  gradual  inclusion  in  the  global  economy,  enhancing  their 
growth  and  improving  their  competitiveness.  Community  aid  is  based  on  the  aim  of 
convergence  of  both  integration  processes  (ECOWAS  and  WAEMU),  while  respecting  the 
pragmatic and flexible approach of the region that allows different speeds of integration. 

EN 

9 

   EN 

 
2.5. 

EC response strategy 

The strategy is based on the three pillars of the partnership between the EU and the region: 
political dialogue as reflected by the ministerial troïkas; cooperation relating to development 
through  support  for  the  integration  agenda  and  to  commercial  matters  as  reflected  by  the 
EPAs.  The  objective  is  to  support  the  deepening  of  the  region's  integration  agenda,  and  to 
facilitate the application of community commitments. An important role will have to be given 
to the regional aspects of the EPA programmes for development in the regional development 
strategy. 

Regional integration and EPA 

The  region  is  to  be  assisted  in  the  consolidation  and  convergence  of  the  customs  unions  of 
WAEMU and ECOWAS, as well as in the strengthening of the common market through, i.a. 
macroeconomic  stability,  growth,  implementation  of  free  movement  of  goods,  services  and 
persons, and facilitation of inter-state payments.  

Certain sectoral policies that are a priority for the consolidation of the common market could 
be strengthened: energy, agriculture and food security, environment and transport.  

The  region  is  also  to  be  supported  in  implementing  the  EPA  effectively  to  benefit  from  the 
opportunities  it  offers  and  to  reduce  the  possible  costs  resulting  from  its  implementation. 
Account should be taken of the acquis of the negotiations of the EPA with the region of West 
Africa regarding the development dimension of the Agreement and areas already agreed with 
the region and  with  the two  signatory countries of the interim agreement, Côte  d'Ivoire and 
Ghana. Implementation modalities of the accompanying measures approved by both signatory 
countries  of  the  interim  agreement  for  the  period  before  the  signature  of  a  regional  EPA 
should  be  envisaged.  Moreover,  support  could  be  envisaged  to  maximise  benefits  at  the 
regional  level  of  the  implementation  of  the  Action  Plan  drawn  up  under  the  Special 
Partnership between Cape Verde and the EU.  

Peace, security and good governance  

The  overall  objective  is  to  contribute  to  a  significant  improvement  of  governance  and  of 
regional  stability  through:  support  for  ECOWAS  capacity  in  the  areas  of  safeguarding 
regional  stability  and  conflict  prevention,  coupled  with  an  in-depth  political  dialogue;  a 
regional  policy  on  migration;  the  fight  against  proliferation  of  small  arms  and  other 
munitions; electoral assistance and observation; and promotion of good governance and fight 
against terrorism.  

2.6.  Main elements of the regional indicative programme 

The RIP total indicative  allocation for West Africa amounts to €598 million. This envelope 
will be distributed as follows: 

Focal  area  1:  Deepening  of  regional  integration,  enhancement  of  competitiveness  and  EPA 
(€419 million)  

This focal area is divided into the following components:  

–  support to the implementation of reforms and adjustments related to the establishment of 
the customs union and the common market (including the free circulation of people and of 
capital) and the consolidation of macroeconomic stability. Actions related to the customs 
union  include  the  implementation  of  the  common  tariff,  trade  facilitation  and  the 
modernisation of the customs administrations. 

EN 

10 

   EN 

 
–  support 

the 

implementation  of 

the  expected  benefits 
(implementation  of  rules  on  SPS,  TBT,  intellectual  property,  competition,  public 
procurement, investment, services) and minimising the cost of adjustment (contribution to 
the absorption of the net fiscal impact, in complementary with fiscal reform); 

the  EPA  by  maximising 

–  strengthening  the  competitiveness  of  the  productive  sector  (based  on  the  regional  study 

prepared with the support of UNIDO; 

–  support to food security at regional level; 

–  strengthening of the institutional capacities of regional organisations;  

–  support the policy for regional interconnectivity (including co-financing with NIPs for key 

transnational infrastructure).  

Focal area 2: Strengthening of good governance and regional stability (€120 million) 

This focal area is divided into the following components:  

–  support  to  the  establishment  of  the  ECOWAS  Standby  Force  (ESF)  and  in  particular  its 

civil aspects;  

–  support  to  the  formulation  and  implementation  of  a  regional  policy  with  regard  to 
migration  in  connection  with  the  policies  of  freedom  of  movement  and  of  combating 
human trafficking;  

–  support  to  the  implementation  of  the  regional programme  of  tackling  the  proliferation  of 

small arms and other munitions; 

–  support  to  the  ECOWAS  in  electoral  assistance  policies  and  in  preparation  of  electoral 

observation missions; 

–  support to actions and initiatives of ECOWAS and African Union in the promotion of good 
governance,  the  fight  against  terrorism,  actions  in  the  field  of  SSR/DDR,  money 
laundering and trafficking of drugs and humans. 

This  implementation  of  this  focal  area  will  be  coupled  with  an  in-depth  political  dialogue 
aiming at the promotion of democratic values, respect for human rights, the rule of law and 
good governance. 

Non-focal area (€59 million) 

Regional policies in the area of human development (enhancement of research and of regional 
institutions  in  the  areas  of  health,  education  and  culture),  environment  and  sustainable 
management of natural resources (e.g. energy) will be supported, as well as non-state actors 
and the monitoring and management of the RIP and of the technical cooperation facility. 

Implementation methods  

The  implementation  of  the  programme  will  be  based  on  the  procedures  of  the  recipient 
(contribution  agreements),  on  the  one  hand,  and  the  importance  of  financing  mechanisms 
specific to the region, such as a regional fund for EPA established in accordance with the aid-
effectiveness  principles  of  the  Paris  Declaration,  on  the  other.  This  fund  shall  channel 
financing  for  the  implementation  of  this  strategy,  in  particular  the  "EPA  programmes  for 
development".  

EN 

11 

   EN 

 
Co-financing with the European Regional Development Fund (ERDF) will be considered to 
enhance  the  co-operation  between  the  region  and  the  EU's  relevant  outermost  regions 
(Madeira, Açores and Canarias).  

EN 

12 

   EN 

 
3. 

EASTERN AND SOUTHERN AFRICA AND THE INDIAN OCEAN 

The Member States which form part of the ESA-IO region are heterogeneous in terms of size, 
economic  structure,  as  well  as  resources  endowment.  They  however  share  a  common 
objective to address poverty reduction through regional economic integration and trade.  

The Regional Organisations (ROs) which are concerned with the ESA-IO RSP are COMESA, 
EAC,  IGAD  and  IOC.  The  four  ROs  have  decided  to  pursue  the  collaboration  they  started 
under the 9th EDF, to jointly prepare and implement the 10th EDF RSP/RIP for the ESA-IO 
region.  

Substantial  progress  has  been  made  in  ESA-IO  countries  towards  MDGs  with  targets 
achieved  on  goals  covering  education,  child  health,  safe  water  provision  and 
telecommunications. 

However,  despite  these  advances,  it  is  highly  unlikely  that  the  rate  of  progress  may  be 
sufficient  to  reach  the  targets  by  the  due  date  (i.e.  2015).  Moreover,  in  planning  terms, 
reported  progress  made  on  many  of  these  targets  needs  to  be  re-examined  in  light  of  the 
expected  34%  increase  (about  115  million)  in  the  population  in  ESA/IO  countries  by  2015. 
This  will  affect  the  extent  to  which  economic  growth  can  be  translated  into  improved 
standards of living, and provision for improvement in basic facilities such as food, housing, 
schools, jobs, water and sanitation, energy production and access, waste management and the 
protection of the natural environment. 

3.1. 

Situation in the region  

The ESA region has particularly complex regional, political, social and economic dimensions. 
These include the confluence of various cultures and religions; autonomy or territorial claims 
(many of them related to ethnic and religious identity); disputed borders, population growth, 
climate  change  and  related  pressures  on  natural  resources;  proliferation  of  small  arms  and 
light  weapons  (SALW)  and  arms  trafficking  across  the  region.  As  a  result,  during  the  post-
independence period the region has suffered from numerous intra-regional conflicts. The four 
Regional  Organisations  (ROs)  of  COMESA,  EAC,  IGAD  and  IOC  have  been  actively 
involved in developing and implementing conflict prevention and arbitration systems. 

On the political side, and as a general rule, most one-party governments have been replaced 
with  democratic  systems  and  multi-party  democracies.  Election  processes  have  been 
strengthened, though efforts are still needed on credibility and legitimacy.  

Poverty  reduction  is  seen  as  the  major  economic  challenge  for  the  region  and  is  the  overall 
focus of the region’s economic policies. For poverty reduction to take place there is a need to 
have  sustainable  economic  growth  in  a  peaceful  environment  coupled  with  equitable 
distribution of wealth. Minimum but  not  sufficient,  conditions  for  economic  growth  include 
diversifying the export base; reducing costs of doing business (partly through improving the 
efficiency  of  the  transport,  communications  and  energy  sectors);  and  creating  an  enabling 
environment for the private sector to invest and operate.  

EN 

13 

   EN 

 
3.2. 

Issues and challenges for the regional integration process  

The economic integration agenda is being developed in parallel through COMESA and EAC, 
with the ultimate goal in both ROs to achieve a full customs union, a common market and a 
monetary union. In this context, the role of IGAD and IOC is to promote their sub-regional 
specificities,  such  as  small  islands  vulnerable  economies,  the  importance  of  sustainable 
management  of  natural  resources  (notably  coastal  and  marine  resources),  and  ensuring 
productivity gains in agriculture to guarantee food security. An important constraint lies in the 
limited  energy  supply.  Despite  the  existence  of  high  potential  for  energy  generation,  the 
COMESA region is facing serious energy deficits and high energy costs. 

The  political  agenda  is  explicitly  considered  by  EAC,  which  aims  at  achieving  a  political 
federation.  In  addition,  COMESA  and  IGAD  have  a  mandate  to  address  peace  and  security 
under the broader umbrella of the AU, while EAC and IOC also address issues of peace and 
security. Ultimately, in the ESA-IO region the process of convergence in these agenda would 
allow  the  attainment  of  the  AU  objective  of  an  African  Economic  Community  in  the  long 
term. 

The decision taken by the region to remain united as a negotiating party for a comprehensive 
ESA  EPA  and  EAC  EPA  constitute  a  challenge  and  a  further  opportunity  to  strengthen  the 
process  of  regional  integration.  A  deeper  and  well  functioning  regional  internal  market, 
progressively  and  asymmetrically  opened  to  the  EU,  can  contribute  to  generate  economic 
growth. 

3.3. 

State of play and way forward for the regional integration process  

Over  recent  years,  Africa  has  established  a  continental  Peace  and  Security  framework,  the 
African  Peace  and  Security  Architecture  (APSA),  based  on  the  AU  Protocol  on  Peace  and 
Security.  The  APSA  includes  several  components,  namely  the  AU  Peace  and  Security 
Council (PSC), the Panel of the Wise, the Continental Early Warning System (CEWS) and the 
African Standby Force (ASF).  

Sub-Regional  Organisations  (SRO)/Regional  Mechanisms  (RMs)  such  as  the  ESA-IO  ROs 
are  pillars  and  building  blocks  of  the  APSA.  Their  relevant  structures  (e.g.  regional  early 
warning systems) are to feed into the continental set-up and the linkages with the AU are of 
paramount importance.  

To  accelerate  regional  economic  integration,  ESA-IO  Member  States  recognise  the  need  to 
increase  commitment  in  linking  economic  integration  measures  like  CUs  and  Common 
Markets with a minimum of joint legislative and political structures. In this respect, EAC has 
adopted a comprehensive political integration agenda. 

EAC’s  ultimate  objective  is  to  establish  a  Political  Federation.  So  far,  EAC  has  undertaken 
sensitization  and  consultation  meetings  in  Member  States  since  2007,  and  EAC  countries 
have  signed  a  MoU  on  defence  which  will  be  translated  into  a  protocol.  Multi  sectoral 
committees  have been formed on human rights, electoral councils, anti corruption bodies in 
view to come up with a common framework for the region. People’s views and consensus is 
the  cornerstone  to  sustainable  political  federation.  This  work  is  taken  forward  by  the  East 
African Legislative Assembly. 

EN 

14 

   EN 

 
The  COMESA  Treaty  recognises  that  peace  and  security  are  fundamental  pre-requisites  to 
social  and  economic  development  and  also  vital  to  the  achievement  of  regional  economic 
integration objectives of the Common Market. 

COMESA's  role  in  addressing  issues  of  peace  and  security  currently  focuses  on  conflict 
prevention  through  preventive  diplomacy.  COMESA  has  held  annual  consultations  between 
different  stakeholders  such  as  parliamentarians  and  civil  society  in  issues  of  peace  and 
security. COMESA has now embarked on two key programmes: Post Conflict Reconstruction 
and  Development  (PCRD)  and  Early  Warning,  aiming  at  strengthening  the  capacity  of 
national institutions in promoting peace and security. 

IGAD  also  plays  role  in  this  area,  as  its  mandate  was  expanded  in  1996  to  include  co-
operation  in  political  affairs,  the  promotion  and  maintenance  of  peace  and  security,  and 
humanitarian  affairs.  Notably,  conflict  prevention,  management  and  resolution  is  a  priority 
area, and Member States of IGAD have signed a Protocol on Conflict Early Warning and a 
Response  Mechanism.  IOC’s  role  in  political  cooperation  has  been  expanded  in  2008  to 
include the promotion and maintenance of peace and security. 

Convergence of the Trade Agenda 

All  ROs  recognise  the  need  for  co-ordination  and  harmonisation  of  trade  policies  and 
programmes.  The  Summits  of  COMESA,  EAC  and  SADC  have  since  2001  initiated  this 
process  through  specific  declarations  which  led  to  the  establishment  of  a  Tripartite 
Mechanism including a Task Force at the Secretariat level. Following several meetings of the 
Tripartite  Task  Force,  a  Tripartite  summit  is  planned  for  October  2008.  The  Summit  is 
expected  to  provide  political  impetus  for  a  more  pro-active  harmonisation  of  the  regional 
agendas and programmes. 

From a technical point of view, there is potential to harmonise the trade regimes of COMESA 
and EAC. Although COMESA’s CET is based on a four band tariff structure, two of them are 
zero-rated and correspond to the same categories of products that are covered by EAC’s first 
tariff band which is also zero rated. If COMESA and EAC are to merge their CUs, they will 
also have to adopt the same CET and CTN.  

COMESA, with EAC and SADC, see the need to address the issue of non-tariff barriers and 
their removal if the cost of trade is to be decreased. The organisations are working on a NTB 
monitoring mechanism, with significant inputs from non-state actors, which will allow NTBs 
to  be  recorded  and  eliminated.  In  a  similar  vein,  continued  efforts  are  required  to  adjust  to 
international  SPS  standards,  in  order  to  improve  the  region’s  access  to  markets  in  the 
developed world, in particular regarding agricultural products.  

COMESA and EAC use the same Rules of Origin which apply to all tariff lines and which are 
based  on  either  wholly  produced  or  substantial  transformation  criteria.  Controls  on  the 
issuance  of  certificates  of  origin  and  validation  procedures  are  in  operation.  There  is  also  a 
dispute settlement mechanism used, with the final level of recourse being the COMESA and 
EAC Courts of Justice. 

EN 

15 

   EN 

 
3.4. 

Proposal  for  a  regional  strategy  between  the  EC  and  Eastern  and  Southern 
Africa and the Indian Ocean 

The  overall  objective  is  to  contribute  to  the  eradication  of  poverty  in  member  countries  by 
supporting economic growth and developing trade. The specific objectives are to support the 
regional integration agendas of the ROs; to strengthen regional cooperation and to support the 
integration of the region into the global economy.  

In accordance with the principle of alignment, the RSP will support the strategies of the ESA 
region. The focus of the response strategy is therefore on:  

Consolidating the regional economic integration agenda.  

To  achieve  this  objective,  interventions  will  focus  on  trade  policy  issues,  addressing  supply 
side constraints, adjustment costs and building productive capacities; and deepening regional 
integration  by  preparing  for  a  common  internal  market  and  a  monetary  union  by  achieving 
free  movement  of  people  and  labour,  right  of  establishment,  macroeconomic  convergence, 
and supporting sectoral policies. For both these themes, the development matrices would be 
taken into account. 

Promoting political integration and cooperation in the region, also by addressing peace and 
security and good governance. 

The  response  strategy  is  consistent  with  other  ongoing  processes,  in  particular  the  EPA 
negotiations with their development agenda and the Horn of Africa Initiative.  

The Strategy also takes into consideration the harmonisation process among ROs leading to 
policy convergence.  

3.5. 

EC response strategy 

In  supporting  the  region's  agendas,  the  RSP  will  focus  on  deepening  regional  economic 
integration and furthering the regional political cooperation agenda also foreseeing a series of 
flanking  measures  aimed  at  assisting  the  region  to  tackle  regional  political  problems  in  a 
coordinated fashion. More precisely: 

Deepening regional integration  

Support  will  go  at  fully  implementing  the  customs  unions  and  moving  towards  a  common 
internal market (and eventually monetary union) through the implementation of the necessary 
regulatory framework, providing financial support for the trade liberalisation process and its 
possible economic and fiscal costs.  

It  will  also  aim  at  leveraging  funds  for  trade-related  infrastructure  to  deepen  regional 
integration  and  ensure  the  sustainable  management  of  the  natural  resources  (e.g.  energy)  of 
the region as a core asset for livelihood systems so that it provides a basis for sustainable food 
security.  

Strengthening the political integration/cooperation process  

EN 

16 

   EN 

 
The aim is to build a coherent regional view on the concept of good governance, establishing 
regional  mechanisms  for  early  warning,  conflict  prevention,  management  and  resolution, 
post-conflict reconstruction, and overall capacity building in the areas of peace and security. 

3.6.  Main elements of the regional indicative programme 

The RIP total indicative allocation for the ESA-IO amounts to € 645 million. This envelope 
will be distributed as follows1: 

Focal area 1: Regional economic integration (€548 million) 

This focal area is divided into the following components:  

–  Trade-related assistance and capacity-building: assistance to the ROs in implementing their 

economic integration mandates;  

–  Alleviation of the impact of economic and fiscal adjustments on public expenditure;  

–  Support to private sector development;  

–  Infrastructure:  development  of  a  comprehensive  regional 

transport,  energy  and 
communication  policy  and  development  of  infrastructure  proposals  on  the  basis  of  the 
regional Transport and Communication Strategy and Priority Investment Plan; 

–  Improvement  of  land  and  water  resources  management  to  develop  agricultural  and  food 

production;  

–  Improvement of the capacity of the region in deriving economic benefits from its marine 

resources and managing it in a sustainable way;  

–  Conservation of natural resources and sustainable management of environment and energy 

resources.  

Focal area 2: Regional political integration/cooperation (€64 million)  

This focal area is divided into the following components:  

–  Support to the regional pillar of the pan-African architecture of conflict prevention, peace 

and security;  

–  Support to post conflict reconstruction for conflicts with a regional dimension;  

–  Launch of a structured dialogue with regional partners on governance and security.  

Non-focal area (€32 million)  

1  This  distribution  includes  €  30  million  earmarked  for  activities  under  the  Initiative  for  CEPGL  (Communauté 
Economique des Pays des Grands Lacs / Great Lakes Economic Community Countries), in complementarity with the 
support under the Central Africa RIP. 

EN 

17 

   EN 

 
                                                 
 
–  Assisting the region in knowledge development and capacity building (including for non-
state actors and cooperation between education institutions in the region and fostering co-
operation between academic and economic fields); 

–  Enhancing capacity development of ROs and improve inter-regional coordination support 

to IRCC)  

Implementation methods 

Two financing mechanisms will be employed. Contribution Agreements will be used  where 
appropriate. In all other cases (notably taking into account the size and the nature of projects), 
traditional financing agreements will be the preferred financing mechanism.  

The ROs may collaborate with other countries or regions as well as Overseas Countries and 
Territories  (OCTs)  and  Outermost  Regions  (OR)  of  the  EU  to  implement  projects  in  the 
context  of  this  Regional  Indicative  Programme.  Specific  attention  will  be  given  to  the 
development  of  a  concerted  EDF  and  European  Regional  Development  Fund  (ERDF) 
programming,  with  a  view  to  strengthen  ACP/OR  functional  cooperation  at  ESA  regional 
level.  

The  ROs  may  also  participate  in  projects  of  other  regions,  notably  neighbouring  regions. 
Adequate funding for such participation shall be made available in the framework of this RIP. 
The  region  itself  may  co-operate  in  pan-African  and  intra-ACP  cooperation  schemes, 
including those involving non-ACP developing countries. 

EN 

18 

   EN 

 
4. 

SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)  

The SADC Regional Strategy Paper and the Regional Indicative Programme will support the 
fourteen countries of the Southern African Development Community2 (SADC); they may also 
support the Southern African Customs Union3 (SACU) whose members are all also members 
of  SADC  and,  in  specific  cases,  non-state/civil  society  actors.  The  region  is  composed  of  a 
highly  diverse  set  of  countries  in  terms  of  size,  level  of  development  and  economic 
specialization; seven are LDCs. Overall, achieving the MDG by 2015 remains a very difficult 
challenge: about 45 % of the population (250 million people) still lives on $1 a day.  

In  respect  of  most  other  ACP  regions,  Southern  Africa  presents  a  highly  complex 
configuration  of  regional  organizations  membership.  Most  notably,  eight  of  the  SADC 
fourteen members are also members of either COMESA or EAC. 

The  three  organizations  are  in  the  process  of  discussing  the  implications  of  such  situation 
within  a  tripartite  dialogue.  In  the  meantime,  providing  support  to  regional  economic 
integration  requires  that  this  reality  be  taken  into  account  and  that  consistent  and  balanced 
solutions are identified for all countries and regional organizations involved. 

4.1. 

Situation in the region  

After  several  decades  of  political  confrontation  and  instability,  Southern  Africa  is  now  a 
relatively  peaceful  and  stable  region  with  a  positive,  albeit  still  limited,  economic  growth 
trend.  However  challenges  persist  in  the  area  of  democracy,  peace  and  security,  notably  in 
Zimbabwe,  where  the  political  situation  and  the  dramatic  economic  crisis  impacts  on  the 
region and has provoked significant migration flows. In Angola and the Democratic Republic 
of  Congo,  post-conflict  situations  give  also  rise  to  specific  issues  such  as  the  need  for 
repatriation of refugees and internally displaced people. 

The region is also the worst affected in the world by HIV/AIDS, which has greatly reduced 
life expectancy. 

Economic growth and convergence have been positive for the last five years, although below 
the targets necessary to achieve the MDG, which would require a higher rate of investment. 
Furthermore  the  sustainability  of  economic  growth  is  compromised  by  the  fact  that  the 
economies  of  the  majority  of  Member  States’  are  poorly  diversified  and  depend  mostly  on 
natural  resources.  All  in  all,  translating  the  economic  gains  of  the  last  years  into  poverty 
reduction  remains  an  overarching  challenge  in  the  region.  Despite  being  relatively  well 
endowed in natural resources, SADC is one of the poorest regions in the World. Further, some 
of the countries in the region rank also among the most unequal in the world.  

The  global  increase  of  food  prices  has  aggravated  and  already  pervasive  problem  of  food 
insecurity in the region, affecting in particular the most vulnerable groups of the population. 
SADC's advancement towards reaching the MDG on hunger is substantially off track. More 
than a third of the population is undernourished. Although efforts to address food insecurity 
have  been  undertaken,  new  environmental,  economic  and  social  shocks  have  hit  the  region 
placing a large number of people, whose coping strategies have eroded further, under threat.  

2 

3 

The  15  members  to  SADC  are:  South  Africa,  Botswana,  Lesotho,  Namibia,  Swaziland,  Angola, 
Mozambique, Zimbabwe, Zambia, Malawi, DRC, Tanzania, Mauritius and Madagascar (LDC in bold). 
Seychelles reintegrated SADC at the August 2008 Summit. 
Botswana, Lesotho, Namibia, Swaziland and South Africa. 

EN 

19 

   EN 

 
                                                 
4.2. 

Issues and challenges for the regional integration process  

The region faces a number of economic and political challenges that in the coming years will 
determine its progress in the fight against poverty and toward higher sustainable development: 

–  The solution of the current Zimbabwe political and economic crisis, that can be crucially 

facilitated by actions at the regional level; 

–  The strengthening of the business and investment environment, including through support 

for physical infrastructure. 

–  The  streamlining  of  the  regional  integration  agenda  across  the  different  organizations 
involved.  Multiple  national  memberships  of  regional  economic  communities  continue  to 
pose  a  challenge  for  defining  a  reliable  regional  Agenda  and  eventually  achieving  closer 
economic integration.  

The negotiations of Economic Partnership Agreements between the SADC countries and the 
EC have taken place against this background of multiple memberships of regional economic 
communities: less than half of the current SADC membership chose to be part of the SADC 
EPA group. In 2008, Malawi, Zambia, Zimbabwe, Madagascar, Mauritius and Seychelles are 
negotiating the EPA within the Eastern and Southern Africa grouping (ESA), Tanzania with 
the Eastern African Community (EAC) and DRC with the Central Africa configuration.  

As  for  the  SADC  EPA  group,  Botswana,  Lesotho,  Namibia,  Swaziland  (BLNS)  and 
Mozambique initialled an Interim EPA with the EC at the end of 2007. In 2008 negotiations 
have continued with these countries –plus South Africa and Angola- with the aim to conclude 
a full EPA by the end of 2008. In the SADC Interim EPA, the BLNS countries, all members 
of  SACU,  agreed  to  open  their  markets  on  the  basis  of  the  tariff  regime  included  in  the 
bilateral agreement between the EU and South Africa (the TDCA) envisaging to achieve more 
than  86%  of  trade  coverage  by  2015.  Mozambique  will  liberalise  substantially  its  traded 
goods  within  10  years  (2018).  Botswana,  Lesotho,  Swaziland  and  Mozambique  have  also 
agreed to continue negotiations on services and investment in 2008.  

Another  key  factor  will  be  the  role  adopted  by  South  Africa,  the  region's  economic  and 
political  heavyweight.  Its  strong  involvement  is  essential  to  give  a  positive  impulse  and 
direction to the regional process. 

In the face of these challenges, the SADC secretariat is constrained by insufficient human and 
financial resources. As a result, the secretariat's ability to meet the extensive requirements of 
its mandate and implement the region's integration Agenda is hampered. 

4.3. 

State of play and way forward for the regional integration process  

SADC  is  an  intergovernmental  organization  funded  in  1992  on  the  basis  of  the  former 
Southern  African  Development  Co-Ordination  Conference  (SADCC).  The  regional 
integration agenda and policy perspectives of the region are reflected in the SADC Regional 
Indicative  Strategic  Development  Plan  (RISDP)  and  the  Strategic  Indicative  Plan  for  the 
Organ on Peace and Security (SIPO) both launched in 2003. These documents reflect the two 
parallel  tracks  of  SADC  integration  project:  a  trade  integration  track  (a  market-driven 
economic project with an emphasis on trade and investment) and a development integration 
track (a politically-driven process that deals with political and security issues). 

EN 

20 

   EN 

 
The RISDP reaffirms the commitment to good political, economic and corporate governance 
within a democratic environment, the participation of civil society, the respect for the rule of 
law and the participation in the AU NEPAD programme. 

The SIPO establishes the roadmap and legal instruments for the implementation of the Organ 
and  the  Protocol  on  Politics,  Defence  and  Security  Cooperation,  embodying  a  range  of 
policies  and  institutional  mechanisms  at  the  regional  level  for  promoting  and  maintaining 
peace and stability. 

On  trade  integration,  the  SADC  countries  established  a  free  trade  area  in  August  2008, 
liberalizing  85%  of  all  products  by  the  end  of  the  year  and  the  remaining  15%,  including 
sensitive products, by the end of 2012. The RISDP sees the FTA as a first step towards the 
establishment  of  a  customs  union  in  2010  and  a  common  market  in  2015.  As  EAC  (where 
Tanzania is a member) is already an operational customs union and COMESA plans to launch 
its  customs  union  in  2008,  potentially  including  eight  SADC  members,  inter-regional 
coordination is crucial in this area. 

SADC has adopted or is in the process of adopting or ratifying more than thirty Protocols and 
other  agreements  notably  on  Transports,  Communications,  Standards,  Fisheries,  Taxation, 
Macroeconomic Convergence, Finance and Investment. The choice of proceeding via specific 
Protocols  rather  than  on  the  basis  of  a  single  coordinated  Treaty  implies  that  progress  in 
implementation varies between the different areas covered.  

4.4. 

Proposal for a regional strategy between the EC and SADC  

The main objective is to increase economic growth and reduce poverty in the SADC region 
through  higher  levels  of  regional  economic  integration.  The  specific  objective  is  the  wider 
economic integration agenda of the full SADC membership notably through the planned Free 
Trade  Area  and  SADC  Customs  Union  and  the  successful  implementation  of  the  Economic 
Partnership  Agreement  for  the  SADC  group.  In  addition  the  strategy  aims  to  reinforce  the 
political  stability,  integration  and  democratic  momentum  of  the  region.  Both  objectives  are 
consistent with the AU-EU Strategy for Africa and working plan and the SADC RISDP and 
SIPO. 

4.5. 

EC response strategy 

Interventions  are  foreseen  under  two  main  areas:  regional  economic  integration  and  trade; 
political cooperation. More precisely: 

Regional economic integration and trade 

The  aim  is  to  assist  SADC  countries  to  meet  the  challenges  of  the  implementation  of  the 
SADC  Free  Trade  Area,  Customs  Union  and  the  SADC-EU  Economic  Partnership 
Agreement.  There  will  be  two  components.  The  first  will  support  implementation  of  the 
SADC-EU  EPA  in  those  SADC  countries  that  are  members  of  the  SADC  EPA  group, 
consistently  with  the  prioritised  needs  identified  by  the  Regional  Preparatory  Task  Force 
(RPTF).  The  second  component  will  provide  wider  support  to  SADC  economic  integration 
and trade policies, including investment promotion, regional infrastructure and food security.  

Regional political cooperation 

Investment  will  go  in  the  embedding  of  governance,  peace  and  security,  which  are  vital  to 
support and strengthen the recent achievements in the region. Support will also be granted to 
the regional  pillar  of the Pan-African architecture  of conflict  prevention, peace  and security 
and associated flanking policies. Most activities will take the form of capacity building in the 
context of regional governance including a regional political integration programme. 

EN 

21 

   EN 

 
4.6.  Main elements of the regional indicative programme 

The RIP total indicative allocation for SADC amounts to €116 million. This envelope will be 
distributed as follows: 

Focal area 1: Regional economic integration (€92.8 million) 

This focal area is divided into the following components:  

–  Trade Integration: simplification of the rules of origin in the context of the SADC Protocol 
on Trade; cooperation on customs matters (assist SADC countries to meet the requirements 
of  the  WCO  Framework);  capacity-building  for  sanitary  and  phyto-sanitary  control; 
upgrading of Standards Bodies; support for the removal of technical barriers to trade.  

–  Support  for  structural  reforms  in  SADC:  agriculture  and  livestock;  fisheries  (including 
fisheries management through research monitoring, control and surveillance); sectors with 
potential  for  smallholders  (for  instance:  small  scale  farming  and  cattle  holding, 
fishing/aquaculture, horticulture, small scale mining, handicraft); assessment of the impact 
of  revenue  losses  and  improvement  of  revenue  collection  methods  (including  possibly 
additional financial support to counterbalance net revenue losses); facilitation of economic 
adjustments  required  by  the  implementation  of  regional  integration  policies  (including 
social and economic costs of adjustment).  

–  Infrastructure  development:  support  the  region  in  developing  its  policy  environment  and 
projects  derived  from  the  SADC  Regional  Infrastructure  Development  Master  Plan, 
notably in the field of energy, transport, and telecommunication, and in implementing the 
SADC Protocol on Transport, Communications and Meteorology.  

–  Food security policy and information management: assist SADC in fulfilling its facilitating 
and  coordinating  functions  through  the  Agricultural  Information  Management  System 
(AIMS).  

–  Capacity  building:  support  measures  identified  by  an  Institutional  Assessment  as  being 
necessary  to  raise  the  Secretariat’s  administration,  financial  management  and  technical 
levels of capacity to standards commensurate with its role as the executive arm of a major 
African economic community. This includes in particular support to the Secretariat for the 
implementation of trade agreements, the assistance of SADC National Committees and the 
mainstreaming of gender and HIV issues.  

Focal area 2: Regional political cooperation (€17.4 million)  

This focal area is divided into the following components:  

–  Good governance: this includes capacity building assistance for the further implementation 

of the SADC Principles and Guidelines Governing Democratic Elections.  

–  Regional  pillar  of  pan  African  architecture  of  peace  and  security:  accompanying  the 
operationalisation  of  the  SADC  Stand-by  Force  by  ad-hoc  training  of  police  forces; 
strengthening  the  capacity  of  the  Regional  Early  Warning  Centre  in  terms  of  logistics, 
technical tools and professional skills; mediation: training of mediators and experts.  

–  Disaster management 

EN 

22 

   EN 

 
Non-focal area (€5.8 million)  

–  Technical Cooperation Facility  

–  Support to non-state actors  

Implementation methods 

Based  on  the  recommendations  of  the  2007  Institutional  Assessment  study,  a  major 
assumption  is  that  SADC  will  become  eligible  to  receive  assistance  through  Contribution 
Agreements  by  2010  (subject  to  the  Secretariat  being  assessed  as  having  the  capacity  to 
implement  a  Contribution  Agreement  or  having  put  in  place  measures  that  would  provide 
such capacity). 

Should the SADC Development Fund (Article 24 of the SADC Treaty) become successfully 
operational  within  the  time  span  of  the  10th  EDF,  the  feasibility  of  channelling  financial 
support to it will be assessed.  

Without  prejudice  to  the  programming  arrangements  concluded  between  the  EC  and  South 
Africa, contributions from the European Programme for Reconstruction and Development in 
South Africa, which South Africa has earmarked or will earmark for regional activities in its 
Multi-annual  Indicative  Programmes,  may  complement  the  resources  from  the  EDF  for 
regional activities under this Regional Indicative Programme.  

In addition, one of the prime policy measures to be taken by SADC to implement its regional 
strategy  is  close  cooperation  with  the  other  regional  organisations  which  are  involved  in 
economic  integration  activities  -  notably  the  Common  Market  of  East  and  Southern  Africa 
(COMESA)  -  with  a  view  to  coordinate  the  implementation  of  the  respective  Regional 
Indicative  Programmes  of  the  SADC  and  the  East  and  Southern  Africa  (ESA)  regions. 
Coordination is ensured through the Interregional Coordination Committee in which SADC is 
participating and the dedicated SADC-COMESA-EAC Tripartite task force.  

Coordination  will  also  continue  to  be  pursued  with  the  National  Indicative  Programmes  of 
SADC Member States.  

EN 

23 

   EN 

 
5. 

CENTRAL AFRICA 

The 10th FED for Central Africa covers a geographical region of 5.4m km², and represents a 
population  of  about  90  million  people.  The  region  includes  8  countries:  the  6  countries  of 
CEMAC (Cameroon, Republic of Congo, Gabon, Equatorial Guinea, CAR - Central African 
Republic,  Chad)  as  well  as  the  Democratic  Republic  of  Congo  (DRC)  and  São  Tomé  e 
Principe (members of CEEAC). The region corresponds to that of the EPA negotiating group.  

The  group  of  Central  African  countries  will  probably  not  attain  the  MDGs.  Among  the  8 
countries,  there  are  3  middle-income  countries  (Cameroon,  Congo-Brazzaville  and  Gabon; 
Equatorial Guinea is still classified as an LDC despite growing income levels).  

5.1. 

Situation in the region  

The political situation in Central Africa is fragile, and the conflicts in the Great Lakes region 
and Darfur constitute a factor of instability. In addition to international initiatives, such as the 
European Mission to Chad and CAR (EUFOR), initiatives are undertaken by the region, such 
as  the  CEEAC  mission  in  CAR  and  the  establishment  of  a  regional  capacity  in  the  field  of 
peace  and  security  by  CEEAC.  The  region  needs  progress  in  terms  of  governance.  Several 
countries of the region are considered amongst the most corrupt (Transparency International). 

In economic terms, Central Africa is characterised by an abundance of natural resources such 
as wood, oil, metals and other mining commodities. Some of these economies are integrated 
to  global  markets  mainly  through  exports  of  fossil  fuels,  which  represent  nearly  40%  of 
regional  GDP.  Intra-regional  trade  is  very  weak.  The  main  obstacles  to  sustainable  growth 
are: a)  a narrow  production base with low productivity,  sensitive to external shocks,  b)  low 
employment creation and low level of investment; c) an unattractive business environment; d) 
severe access problems for landlocked countries; 

Transport  in  the  region  is  principally  based  on  the  road  network,  but  there  are  no  reliable 
connections between the capitals, and the cost of transport is extremely high. Insular countries 
also have problems with interconnectivity and aviation security. The energy sector of region's 
countries is characterised mainly by (i) a high hydro-electric potential, (ii) a low percentage of 
the  population  with  access  to  basic  energy  services,  (iii)  important  oil  resources  (Congo, 
Guinea,  Gabon,  Cameroon  and  Chad).  Despite  the  abundance  of  energy  sources,  producers 
and consumers face high costs and access difficulties.  

Concerning environment, Central Africa's forests contain the most important source of bio-
diversity  in  Africa  with  a  large  number  of  rare  or  endangered  species.  The  situation  is 
threatened  by  forest  fragmentation  due  to  agriculture,  exploitation  for  forestry  and  mining, 
and demographic growth. The forestry sector represents between 5 and 13% of GDP, and on 
average 10% of the basin's external trade.  

5.2. 

Issues and challenges for the regional integration process  

The region faces challenges which require important efforts from all regional actors and the 
support  of  the  international  community.  A  challenge  of  particular  importance  is  the  weak 
engagement  of  member  states  and  the  importance  of  short  term  national  interests  over 
medium term regional interests. 

Stability  and  security  is  a  priority  linked  with  a  substantial  improvement  of  political 
governance. The intervention capacity of CEEAC in this domain has still to be improved, and 
capacity building will have to be continued. 

EN 

24 

   EN 

 
Several  challenges  exist  for  economic  integration.  The  implementation  of  regional  norms 
and reforms is incomplete at national level. It will therefore be necessary to work towards the 
effective  implementation  of  the  CEMAC  customs  union  (and  its  extension  to  the  DRC  and 
São  Tomé  e  Principe)  as  well  as  the  free  circulation  of  people  and  the  establishment  of  an 
effective  common  market.  To  do  so  regional  organisations  need  to  be  strengthened  by 
improving their capacities and governance.  

Despite the importance of monetary stability, regional integration does not seem to have had a 
significant  effect  on  growth,  diversification  and  competitiveness  of  the  region  These  poor 
results  could  be  explained  by  the  persistence  of  several  obstacles  to  an  effective 
implementation  of  regional  integration,  including:  fragmentation  of  infrastructure  and  basic 
services  (including  transport  and  energy)  ;  the  persistence  of  non  tariff  barriers  to  trade;  an 
adverse  business  environment  ;  weak  access  to  credit  (despite  over-liquidity  of  banks);  and 
insufficient professional capacity.  

The  challenge  of  deepening  regional  integration  is  allied  with  the  challenge  of  opening  the 
economy to the world. Following the signature of the interim EPA by Cameroon at the end of 
2007,  the  negotiations  to  complete  a  full  regional  agreement  continue.  Accompanying 
measures include strengthening of capacities, improvement of productive sectors, deepening 
of regional integration and improving business environment. A contribution is also foreseen 
to help mitigate the net fiscal impact of trade liberalisation, along with fiscal reforms.  

Environmental  challenges  are  the  preservation  of  protected  areas  and  the  reduction  of 
deforestation; improvement of transparency and governance of natural resource sectors, and 
effective implementation of legislation and the fight against illegal exploitation.  

Regional solidarity should take into account the different economic and political situations of 
countries in the region. The effective payment of contributions by member states to regional 
institutions  would  be  a  first  step  of  regional  solidarity.  A  subsequent  challenge  is  the 
mobilisation of funds at regional level as well as from development partners to support the 
regional integration process.  

Capacity and implementation issues: An  improvement in the capacity of the two regional 
organisations  –  CEMAC  and  CEEAC  –  to  rationalise  their  agendas,  find  synergies  together 
and advance towards a progressive convergence remains an essential condition for the success 
of the region in its development efforts. The strengthening of integration must be conceived 
as a process which contains both deepening and enlargement: (i) the deepening of CEMAC to 
create a solid core and an effectively integrated zone based on the current regional integration 
process and (ii) the enlargement of this zone to include DRC and São Tomé e Principe, and 
convergence with CEEAC in order to attain the critical mass necessary for a regional market. 
Particular attention should be given to the creation of condition for the effective integration of 
DRC. 

Finally,  even  if  the  partial  overlap  of  the  two  institutions  risks  slowing  down  the  regional 
integration  process,  its  position  in  the  centre  of  the  continent  constitutes  a  high  potential  to 
open  to  the  rest  of  Africa  and  a  role  for  the  development  of  the  continent,  in  particular  for 
trans-African corridors. 

5.3. 

State of play and way forward for the regional integration process  

Regional integration in Central Africa is characterised by overlapping mandates and weak co-
ordination of two regional institutions, and insufficient ownership of the regional integration 
process by member states.  

EN 

25 

   EN 

 
CEMAC  (Communauté  Économique  et  Monétaire  de  l'Afrique  Centrale)  was  created  in 
1994.  The  regional  integration  is  still  limited,  with  advances  in  norms,  but  not  enough  in 
terms  of  effective  implementation.  Important  institutional  reforms  have  been  undertaken, 
which  are  likely  to  have  a  positive  impact  on  the  institutional  framework.  CEMAC  is 
developing a regional economic programme with an action plan for 2015 and foresees the 
re-launch of FODEC (Fond de développement communautaire) which will dispose of 20% of 
the profits of the Bank of Central African States (BEAC) to finance integration projects. 

CEMAC is the most advanced organisation in economic integration in Central Africa. It is a 
customs union as well as a monetary union, but its implementation is neither complete nor 
uniform.  This  overall  problem  risks  affecting  the  customs  union  and  the  institution's 
credibility.  The  harmonisation  process  with  DRC  and  São  Tomé  e  Principe  (which  are  not 
part of CEMAC but are in CEEAC and in the Central Africa EPA group) has started, but must 
be strengthened. The same problems of incomplete implementation and distortions exist in the 
fiscal  area  and  in  the  free  circulation  of  people.  In  the  area  of  trade-related  rules  some 
initiatives are being developed on competition and technical norms, but no common action is 
foreseen yet in other areas such as intellectual property and public procurement.  

CEEAC (Communauté Économique des États d'Afrique Centrale) was created in 1983, and 
currently unites 10 countries (Angola, Burundi, Cameroon, CAR, Congo, Gabon, Equatorial 
Guinea,  Chad,  DRC  and  Sao  Tome  e  Principe).  CEEAC  suffered  a  crisis  during  the  '90s, 
largely  caused  by  conflicts  in  7  of  the  then  11  member  states.  Since  1999,  CEEAC  has 
gradually restarted its activities, notably in the area of conflict prevention. The priorities for 
2015 are (i) peace and security, (ii) infrastructure (notably transport) and (iii) energy, water 
and environment. CEEAC has just endorsed a document of strategic vision for 2025, but the 
institution is still in the initial phase of structuring and recruiting personnel. The CEEAC Free 
Trade  Area  was  launched  in  2004  and  is  being  progressively  implemented  with  a  view  to 
harmonise the process with CEMAC. For free movement of persons, a regulation exists for 
certain categories of community nationals, and a convention on mutual assistance and judicial 
co-operation has been adopted.  

Beyond  economic  and  trade  integration,  the  development  of  sectoral  approaches  is  taking 
place under the leadership of both CEMAC and CEEAC: a) for transport, a master plan in 
Central  Africa  was  adopted  in  2003;  and  for  inland  navigation  issues  the  CICOS 
(Commission International du Bassin Congo-Oubangui-Sangha), was created as a specialised 
institution of CEMAC b) for energy a regional approach is also developed, with the creation 
in 2003 of the PEAC ("pool énergétique de l'Afrique Centrale") which has become a body of 
CEEAC.  c)  for  industry,  a  regional  approach  is  proposed  by  CEMAC,  but  there  is  still  an 
effort to be made for the application of business rules (OHADA treaty) and for the reduction 
of  administrative  burdens  d)  for  environment  the  approach  is  strongly  integrated  by  the 
creation of COMIFAC (Conference des Ministres en charge des forêts d'Afrique Centrale) for 
the orientation, co-ordination and decision making of sub-regional initiatives. A convergence 
plan  was  adopted  and  a  treaty  came  into  force  in  2006.  In  October  2007,  CEEAC  gave  the 
status of "specialised institutions" to COMIFAC and COREP (Comité Régional des pêches du 
Golfe de Guinée). e) for agriculture and food security (an area which becomes increasingly 
important in the region) a regional approach is currently being developed. 

Cooperation  for  macro-economic  stability  is  particularly  well-developed  in  CEMAC,  even 
though  the  multilateral  surveillance  mechanism  is  not  yet  sufficiently  effective.  The 
unavailability of reliable and harmonised data is an important obstacle, and a regional statistic 
Fund  has  just  been  created.  The  harmonisation  of  public  finances  is  an  area  for  further 
improvement for future years. 

EN 

26 

   EN 

 
With  regard  to  political  integration,  CEEAC  was  designated  by  the  African  Union  as 
reference  organisation  for  Central  Africa  for  the  continental  architecture  of  peace  and 
security.  It  created  a  Peace  and  Security  Council  for  Central  Africa  (COPAX).  Non-
aggression  and  mutual  assistance  pacts  were  signed  by  member  states  in  1996  and  2000 
respectively.  A  department  for  human  integration,  peace,  security  and  stability  was 
established  at the  Secretary General  level. An  early warning  mechanism  (MARAC) and  the 
multinational  force  of  Central  Africa  (FOMAC)  are  currently  being  implemented.  Within 
CEMAC,  a  non-aggression,  solidarity  and  mutual  assistance  pact  between  members  was 
concluded in February 2005. The multinational force of CEMAC (FOMUC) has been present 
on the territory of CAR from 2002 to June 2008 in a peace operation financed by the EC and 
France to maintain peace and security. This force is now under the responsibility of CEEAC. 

5.4. 

Proposal for a regional strategy between the EC and Central Africa  

The  general  objective  is  to  contribute  to  an  inclusive  economic  growth,  contributing  to 
poverty reduction. The specific objective is to support the regional integration process of the 
Central  African  region  in  a  context  of  good  governance  as  its  integration  in  the  world 
economy. The strategy will support the process of rationalisation and convergence launched 
by the two regional organisations. EC response strategy 

5.5. 

EC response strategy  

The response strategy will cover two focal sectors: 

Support to economic and trade agenda  

In supporting trade and economic regional integration, the objective is to deepen the regional 
economic integration process, to support integration of the region in the world economy and 
to  implement  EPAs  (accompanying  measures)  The  Strategy  will  support  economic 
diversification,  competitiveness,  business  environment  and  infrastructure  and  the  sectoral 
strategies (including environment)  

Political integration 

The support aims at the consolidation of regional stability. It will contribute to strengthening 
the capacity of the region in the area of peace and security (consolidation of the early warning 
system, political and diplomatic actions, support to civil society, training) in synergy with the 
support given at pan-African level. 

5.6.  Main elements of the regional indicative programme 

The RIP total indicative allocation for Central Africa amounts to € 165 million. This envelope 
will be distributed as follows: 

Focal  area  1:  Support  to  economic  and  trade  agenda  (including  natural  resource 
management at regional level) (amount: 85-90%) 

This focal area is divided into the following components  

–  The  implementation  of  a  regional  integration  agenda:  harmonisation  and  internal 
liberalisation (implementation of a common market) and external (common external tariff 
and liberalisation) and contribute to mitigate the costs related to these reforms. 

–  Support  to  economic  growth  and  diversification,  and  improvement  of  competitiveness, 

business environment, and physical infrastructures (transport , energy);  

EN 

27 

   EN 

 
–  Sectoral policies: environment, agriculture, interconnectivity, higher education, etc 

Focal area 2: Support to the political integration agenda of the region (amount: 5-8%) 

The support will continue and develop the results of ongoing cooperation and accompany the 
development of the capacity of CEEAC in the area of conflict prevention and resolution.  

Non focal area: Institutional support and technical cooperation facility. Moreover, an amount of € 
15 million is earmarked for activities under the Initiative for CEPGL (Communauté Economique 
des  Pays  des  Grands  Lacs  /  Economic  Community  of  the  Great  Lakes  Countries),  in 
complementarity with the support under the ESA RIP.  Implementation methods 

CEMAC  and  CEEAC  should  continue  their  efforts  to  refine  their  synergies  and 
complementarities. The aim is to optimise the effectiveness of co-operation while advancing 
in the harmonisation and rationalisation process launched by the AU. A dialogue mechanism 
between CEMAC and CEEAC will be established in the framework of implementation of the 
RIP and support will be given for this. 

A  fund  managed  by  the  region  could  be  established  to  manage  part  of  the  resources  of  the 
RIP.  

For  other  development  partners,  synergy  at  regional  level  is  being  explored  with  Member 
States  (support  for  the  regional  economic  programme  of  CEMAC  and  also  for  peace  and 
security), with the World Bank and the African Development Bank (mainly for the facilitation 
of transport and institutional support to regional organisations) and with other partners for the 
environment in the framework of the partnership for forests in the Congo basin. 

EN 

28 

   EN 

 
6. 

CARIBBEAN 

6.1. 

Situation in the region  

The  Caribbean  region  consists  mainly  of  small  island  states  and  suffers  from  the  many 
disadvantages  that  derive  from  small  size  (narrow  range  of  resources;  high  dependence  on 
international trade, and hence vulnerability to global developments). The Caribbean states are 
also  more  vulnerable  than  many  other  developing  countries  due  to  the  interaction  of  the 
following  socio-economic  and  natural  characteristics:  limited  land  resources  and  difficulties 
in  waste  disposal  management;  geographic  remoteness  and  isolation;  limited  diversification 
and very open economies; weak institutional capacity and high costs of basic infrastructure; 
environmental/ecological vulnerability. 

The  countries  of  the  region  are  predominantly  multi-party  democracies,  and  hold  regular 
national elections, with well developed local government structures. This has been confirmed 
by the numerous successful election processes conducted in the Caribbean throughout 2005-
2008  allowing  incumbent  governments  to  return  to  office  or  changes  of  governments. 
Transitions  to  new  governments,  where  there  have  been  changes,  have  been  smooth. 
Nevertheless, the need to support the regional institutions persists. 

National  administrations  and  democratic  institutions  are  in  place  and  generally  well 
consolidated. These democratic institutions are entrenched in the constitutions of most of the 
Member  States.  In  some  instances,  the  institutions  require  capacity  development  to 
successfully  carry  out 
their  work  programmes. 
Accountability  structures  are  in  place  and  are  operational  in  most  CARIFORUM  Member 
States. They are part of the formal national governance structures. 

their  mandates  and 

implement 

to 

An overall growth of 3.9% was reported for 2007, with growth rates ranging between 7.5% in 
the Dominican Republic and 1% in Dominica. A slow down compared to the previous year in 
which the surge in commodity prices, and significant public and private investment ahead of 
the Cricket World Cup had boosted the economic performance and led to impressive growth 
rates,  e.g.  in  the  case  of  Trinidad  and  Tobago  of  12%  or  Antigua  and  Barbuda  (11%).  The 
slowdown  can  be  attributed  largely  to  global  financial  shocks  and  rising  food,  oil  prices. 
While  the  outlook  for  2008  is  positive  for  most  countries,  inflationary  pressures  and  the 
slowdown  in  the  global  economy  emanating  from  developments  in  the  US,  including  the 
depreciation  of  the  US  dollar,  are  likely  to  pose  downside  risk  to  any  projections  with  the 
notable exception of exports to the area of Euro influence.  

6.2. 

Issues and challenges for the regional integration process  

Considerable  challenges  for the  regional integration process remain, both at the level of the 
OECS, CARICOM and Cariforum. 

The  gains  made  by  the  OECS  would  be  consolidated  through  the  creation  of  an  integrated 
system of governance. The Economic Union will provide an appropriate platform from which 
the ultimate objective of political union among the Member States of the OECS can be easily 
visualised and the effort required for its attainment can be better assessed. 

In the context of the CSME the free movement of services entails the removal of all barriers 
to the right of establishment, and the free movement of persons entails providing for the free 

EN 

29 

   EN 

 
movement of specified skills, contingent rights, facilitation of travel and an equivalence and 
accreditation infrastructure. 

All of these initiatives are to be complemented by the harmonisation of laws in all the relevant 
areas. These laws are to be enacted into legislation in each Member State. 

The  purpose  of  creating  the  Single  Economy  is  to  establish  a  single  economic  space  in 
CARICOM.  The  key  policy  perspectives  are  the  adoption  of  common  sectoral  programmes 
and the establishment of common support measures. The sectoral programmes and enabling 
environment  will  focus  on  industry,  micro  and  small  enterprise  development,  services, 
tourism,  agriculture,  transportation  and  energy.  Common  support  measures  will  involve 
Human  Resource  Development,  Research  and  Development,  Environmental  Protection, 
Intellectual  Property  Rights,  Investment  Policies  and  Incentives,  Macro-Economic  Policies, 
Monetary  Policy,  Financial  Infrastructure,  Social  Infrastructure  and  Public/Private  Sector 
relations. 

The  European  Commission  and  15  CARIFORUM  countries  initialled  an  Economic 
Partnership Agreement (EPA) on 16 December 2007. CARIFORUM and its Member States 
will need to put in place the institutional, legal and other frameworks in order to be able to 
fully  implement  EPA  provisions.  This  will  require  existing  and  new  technical  and  financial 
EU support within the context of future EDF cycles, EU Member States and other donors. In 
the  Joint  Declaration  on  Development  Co-operation,  annexed  to  the  EPA  agreement,  the 
Member  States  of  the  European  Union  have  confirmed  their  intention  to  ensure  that  an 
equitable  share  of  Member  States’  Aid  for  Trade  commitments  will  benefit  the  Caribbean 
ACP  States,  including  for  funding  programmes  related  to  the  implementation  of  this 
Agreement.  In  that  same  Joint  Declaration,  both  CARIFORUM  and  the  EU  agreed  on  the 
benefits  to  be  derived  from  regional  development  mechanisms,  including  a  regional 
development  fund,  accessible  to  all  CARIFORUM  States,  to  mobilise  and  channel  EPA 
related development support. 

The  initialisation  of  the  EPA  in  December  2007  calls  for  regional  integration  to  be  firmly 
established;  this  means  that  the  CARIFORUM  countries  are  under  considerable  pressure  to 
continue  making  substantive  adjustments  in  a  number  of  areas  to  ensure  the  de  facto 
implementation of a progressive liberalisation.  

State of play and way forward for the regional integration process  

6.3. 
The  Organisation  of  Eastern  Caribbean  States  (OECS)4  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. In 
2006, they announced plans for full economic union with a new proposal for an OECS treaty 
outlining the steps to be followed in establishing an economic union. 

The  next  circle  and  main  pillar  of  regional  integration  in  the  Caribbean  region  is  the 
Caribbean  Community,  or  CARICOM.  The  three  main  areas  of  activity  of  this  regional 
organisation  are:  economic  co-operation;  co-ordination  of  foreign  policy;  and  functional 
cooperation including health, education, youth, sports, science and tax administration.  

4 

Antigua and Barbuda, Dominica, Grenada, Montserrat, St Kitts and Nevis, St Lucia and St Vincent and 
the Grenadines. Anguilla and the British Virgin Islands are associate members. 

EN 

30 

   EN 

 
                                                 
Virtually  all  Members  States  (12  out  of  14)  CARICOM  are  engaged  into  a  Regional 
Integration  process  aiming  at  establishing  a  CARICOM  Single  Market  &  Economy 
(CSME). The CSME, which contributes to deepening the integration process based on both 
market and economic integration, has taken shape under the Revised Treaty of Chaguaramas 
and  is  essentially  about  the  creation  of  a  seamless  economic  space.  When  completed,  the 
CSME  will  provide  for  the  free  movement  of  goods,  services,  capital,  labour  and  right  of 
establishment and harmonised laws and regulations affecting commerce.  

The  establishment  of  CSME  has  been  a  two-stage  process.  In  2006,  the  Single  Market 
component of the CSME was launched and will be devoted, during 2008 and 2009, to achieve 
harmonization  in  several  areas  of  economic  policy,  including  the  broadening  of  monetary 
cooperation  and  establishment  of  a  single  currency,  as  well  as  unified  tax  and  incentive 
systems. In a second stage, a full monetary union will be established between 2010 and 2015, 
and structural policies will be coordinated in several sectors. 

A third organisation, CARIFORUM, was created in 1992 as a political group to conduct the 
relations  with  the  EU  and  including  not  only  the  CARICOM  Member  States,  but  also  the 
Dominican  Republic,  Haiti  and  Suriname  (both  non-members  at  the  time)  and  Cuba.  Since 
then, CARIFORUM has expanded its activities in a range of sectoral and thematic policies. 

CARIFORUM actively implements measures to improve efficiency and pursue deregulation 
and regional co-ordination in transport and communications and related areas. In respect of 
agriculture  and  fisheries,  CARIFORUM  members  pursue  strategies  of  rationalisation, 
increasing  competitiveness  levels,  export  diversification  and  adherence  to  international 
standards.  CARIFORUM  continues  to  pursue  initiatives  in  the  manufacturing  sector  to 
increase  international  competitiveness  and  to  promote  and  support  the  development  of 
international business, ICT and tourism. 

The  Region  pursues  policies  intended  to  spread  the  benefits  of  tertiary  and  university  level 
education.  The  region  is  committed  to  poverty  eradication,  achieving  the  MDGs  and 
empowerment of vulnerable groups, gender inequality, the exposure of its youth and its rich 
culture.  Its  approach  to  youth  issues  must  seek  to  focus  on  HIV/AIDS  and  illegal  drugs, 
training for remunerative employment and empowerment.  

CARIFORUM  Member  States  will  undertake  accompanying  measures  which  integrate 
disaster  and  environment  management  and  pursue  good  governance  strategies  which 
promote  economic,  social  and  human  development  and  provide  an  environment  in  which 
people can prosper.  

The special CARICOM summit on security has decided on a range of measures, including an 
Action Plan to curb the high levels of crime in the region. Closely linked to this is also the 
strengthened co-operation in the fight against drugs and related crimes.  

Finally,  a  free  trade  area  between  the  Dominican  Republic  and  CARICOM  has  been 
established, and all Caribbean countries are also part of the Association of Caribbean States 
(ACS). 

6.4. 

Proposal for a regional strategy between the EC and the Caribbean  

Since  1975  the  EC  has  been  the  largest  grant  donor  to  the  Caribbean  region.  Overall 
EC/CARIFORUM  cooperation  is  aimed  at  poverty  reduction  through  interventions  in 
economic  regional  integration  and  cooperation,  as  well  as  addressing  vulnerabilities  and 
social issues.  

EN 

31 

   EN 

 
The overall aim is the beneficial integration of the Caribbean region into the world economy 
through  sustainable  economic  growth,  regional  cohesion  and  stability,  and  continued 
improvements  in  living  conditions.  This  strategy  supports  regional  integration  processes 
aimed at establishment of a harmonised economic space for the generation of sustainable and 
equitable economic growth, and includes in a coherent manner the EPA. This is intended to 
facilitate  the  region  in  structural  transformation  and  the  repositioning  of  its  economy  in 
response to global developments. 

6.5. 

EC response strategy 

The  10th  EDF  Regional  Support  Strategy  is  based  on  the  policy  agenda  of  CARIFORUM 
States  and  the  Communication  on  the  Caribbean  of  2  March  2006,  as  well  as  on  the 
CARIFORUM-EC Economic Partnership Agreement (EPA). 

The Regional Strategy (RS) takes into account the recent political developments which point 
to  stability  in  the  Region  including  restoration  of  the  democratic  process  in  Haiti  and 
assistance to that country in its development efforts. It also takes into account historical and 
current  economic  features  and  trends  in  CARIFORUM.  More  particularly,  the  RS  seeks  to 
frame  the  assistance  to  CARIFORUM  countries  in  their  economic  diversification  efforts, 
namely  to  move  away  from  overdependence  on  commodity  exports  and  into  services.  Such 
assistance is provided through support for regional integration and cooperation efforts aimed 
at developing economic competitiveness and gradual entry into the global economy. The RS 
takes  into  account  the  special  relationship  between  the  CARIFORUM  and  the  EU  through 
provisions  to  assist  the  region  in  fully  implementing  and  deriving  maximum  development 
benefits from the CARIFORUM/EC EPA. Lastly, the RS also takes into account the physical 
and social vulnerabilities having the potential to negatively impact on regional economic and 
social development. 

The primary focus of the strategy is to provide support to regional integration and cooperation 
among CARIFORUM countries taking into account the needs related to the implementation 
of the EPA.  

The  themes  selected  for  intervention  are  based  on  the  various  integration  and  cooperation 
processes  in  which  CARIFORUM  Member  States  are  involved,  namely  the  OECS,  the 
CARICOM,  enlargement  of  regional  markets  and  the  need  to  build  capacity  to  meet  EPA 
commitments.  The  intent  is  to  achieve  a  concentration  of  focus  for  the  interventions  to  be 
made under the regional programme.  
The Response Strategy is also coherent with the National Indicative Programmes of the 10th 
EDF.  Focal  areas  of  the  NIPs  are  in  the  area  of  governance  and  competitiveness  or 
infrastructure/interconnectivity  (Haiti,  Suriname  and  Guyana),  macroeconomic  budgetary 
support  (Jamaica)  or  poverty  reduction  (Grenada).  Non-focal  sectors  focus  among  other 
things  on  Governance  (Guyana,  Trinidad  and  Tobago),  good  governance  in  the  tax  area 
(Barbados,  Belize,  Dominica,  Grenada,  St.  Lucia,  St.  Kitts  &  Nevis,  St.  Vincent  &  the 
Grenadines) as well as capacity building related to EPA (Jamaica).  

6.6.  Main elements of the regional indicative programme 

The RIP total indicative allocation for the Caribbean amounts to €165 million. This envelope 
will be distributed as follows: 

Focal  area:  Regional  economic  integration/cooperation  and  EPA  priority  areas  (€143 
million) 

EN 

32 

   EN 

 
This focal area is divided into the following components:  

–  CARICOM Integration (€24.4 million) : suppor ting the process of CARICOM integration 
including  the  establishment  of  a  Single  Market  Economy  (CSME),  an  area  of  free 
circulation of goods, services, people and capital; 

–  OECS Economic Union (€6.6 million): supporting  and deepening of OECS integration and 

support for OECS integration into the CSME 

–  Strengthening  Intra-CARIFORUM  regional  co-operation  (€23.1  million):  focusing  on 
Dominican  Republic/Haiti  bilateral  cooperation;  supporting  closer  cooperation  between 
CARICOM and the Dominican Republic 

–  Investing  in  human  capital  (€9.9  million):  preparing  the  people  and  institutions  of 
CARIFORUM to respond to the challenges posed by global trade and economic realities, 
including the CARIFORUM-EU EPA, in partnership with Caribbean centres of excellence, 
such as regional universities. 

–  EPA  implementation  (€72.6  million):  supporting  priority  EPA  implementation  and 

accompanying measures at the OECS, CARICOM and CARIFORUM levels. 

–  Integration  and  cooperation 

the  wider  Caribbean  (€6.6  m illion):  supporting 
CARIFORUM/Départements  d'Outre-Mer  (DOM)/OCT  integration  and  cooperation; 
supporting CARIFORUM-cooperation with Latin American Caribbean countries and sub-
regional institutions or integration processes. 

in 

Non-focal area: Addressing vulnerabilities and social issues (€22 million) 

–  Crime  and  security  cooperation  (€10  milli on):  supporting  regional  security  cooperation 
structures  building  on  the  CARICOM  Action  Plan  and  foster  CARIFORUM-wide 
cooperation in the fight against illicit drugs and related crimes; 

–  Civil society participation (€8 million): prom oting stakeholder ownership and participation 

in the development, integration and cooperation processes in the region.  

–  Institutional support / programme implementation (€4 million). 

Implementation methods 

The implementation modalities will be designed to secure timely programming and efficient 
implementation  through  a  limited  number  of  projects/programmes  and  through  the  use  of 
quick disbursing mechanisms which maintain transparency and accountability. In this context, 
at the occasion of the 3rd EU-Cariforum Summit (Lima, May 2008) both regions have made a 
high level commitment to "work together to achieve optimal disbursement rates, through the 
adoption  of  innovative  and  flexible  implementation  mechanisms".  Leaders  also  confirmed 
that "the best way of establishing the regional development fund referred to in the EPA Joint 
Declaration  on  Development  Cooperation,  by  the  nearest  possible  date,  as  an  effective 
channel for aid disbursement". 

EN 

33 

   EN 

 
7. 

PACIFIC 

For  the  purposes  of  EU  external  relations  and  development  cooperation,  the  Pacific  region 
includes  15  states  that  are  parties  to  the  EU-ACP  Cotonou  Partnership  Agreement.  The 
Pacific  region  comprises  6  least  developed  countries,  one  low  income  country,  five  lower 
middle income countries and three upper middle income countries.  

All  15  Pacific  ACP  countries  are  regarded  as  small  island  development  states.  They  are 
heterogeneous in terms of  size (land area varies from 21 km² for Nauru to  400,000  km² for 
Papua  New  Guinea),  economic  structure,  as  well  as  resources  endowment.  They  however 
share  a  common  objective  to  address  sustainable  economic  growth  through  regional 
integration and trade. 

Progress toward reaching the Millennium Development Goals has been made overall but it is 
uneven. The Pacific region has performed well in reducing poverty and in advancing primary 
education. Progress towards gender parity in secondary school is not as good, and in health 
improvements has been slower, particularly in low income countries. HIV is on the increase 
in many Pacific ACP, with Papua New Guinea already reaching generalised epidemic rates. 
Finally,  Pacific  island  countries  rank  among  the  most  vulnerable  in  the  world  to  natural 
disasters. 

In 2005 Pacific Forum Leaders adopted an Agreement establishing the Pacific Islands Forum 
an  intergovernmental  organisation  opening  the  way  for  a  more  structured  and  formalised 
procedure. This provided new impetus to the EU relations with the Pacific Islands, resulting 
in a Strategy for a strengthened partnership between the EU and the Pacific adopted in May 
2006. The Strategy has three components: i) the relationship / political dialogue between the 
EU and the Pacific countries; ii) development action focused on governance, regionalism and 
the sustainable management of natural resources and iii) more efficient aid delivery.  

The  Regional  Organisation  (RO)  which  is  mandated  by  the  Pacific  ACP  for  EDF 
programming  is  the  Pacific  Islands  Forum  Secretariat  (PIFS)  to  which  14  of  the  15  Pacific 
ACP belong. Timor Leste is not a member of the PIFS but has observer status at the annual 
Leaders meeting of the Forum.  

7.1. 

Situation in the region 

Overall, most Pacific ACP States are relatively young democracies and face a wide range of 
development  challenges  that  include  governance  and  capacity  development  of  public 
institutions. There is still a need for state consolidation.  

The  Pacific  islands  have  maintained  satisfactory  levels  of  national  safety  and  security  and 
addressed on their own and by means of regional assistance and co-operation the instances of 
political  instability  and  conflict  that  have  occurred  notably  since  2000.  The  main  causes  of 
conflict  in  the  region  are  often  related  to  ethnic  differences,  land  disputes,  disparity  of 
economic opportunity and a lack of confidence in the ability of central governments to resolve 
provincial differences. 

Apart from the case of Timor Leste, where a UN peace-keeping force has been deployed since 
October 1999, peace and security issues have always been dealt with internally by the region. 
A regional mechanism referred to as the Biketawa Declaration has been in force since 2000. 
Requests for assistance and mediation under the Biketawa Declaration were taken up on two 
occasions:  the  Regional  Assistance  Mission  to  the  Solomon  Islands  (RAMSI)  following 
ethnic  tensions  in  2003  and  the  Pacific  Regional  Assistance  to  Nauru  (PRAN)  after  near 

EN 

34 

   EN 

 
economic collapse in 2003/4. The Pacific Islands Forum also played key role in the political 
process  which  followed  the  military  coup  in  Fiji  in  December  2006.  As  a  result  Fiji 
committed  to  hold  parliamentary  elections  by  March  2009.  The  Forum  and  Fiji  have 
established  a  high-level  working  group  that  meets  regularly  and  considers  main  issues 
concerning the situation in Fiji. 

Governance and democratization in the Pacific region have improved in the last few years, 
including in the area of media ownership and control, the involvement of civil society and the 
participation  of  external  observers  in  electoral  processes.  However,  some  of  these  changes 
have been top-down and the situation in Fiji, in particular, is extremely complex as regards a 
return to free elections. The low literacy levels and social vulnerability in the Solomon Islands 
leave  room  for  the  electoral  processes  to  be  manipulated.  In  the  highly  literate  Kingdom  of 
Tonga,  which  experienced  rioting  in  2006,  domestic  legislation  is  being  revised  to  expand 
democratic suffrage.  

As regards the macroeconomic situation, the region’s combined GDP is projected to grow by 
4.5% in 2008, up from an average of 2.8% between 2005 and 2007.  

The economies of Papua New Guinea (PNG), Vanuatu and Solomon Islands (which together 
comprise  more  than  70%  of  the  PACP  population)  are  now  growing  at  6%.  Good  macro-
economic policies are being increasingly applied in most countries, most remarkably in PNG. 
Responsible fiscal policies have reduced deficits and helped to keep inflation low. However, 
inflation remains a risk in the Melanesian countries due to their heavy inflows (aid and forest 
revenue in the Solomon Islands, commodity revenue for PNG and East Timor, and property 
investments  for  Vanuatu).  The  economies  of  Fiji  and  Tonga,  on  the  contrary,  have  been 
contracting in the wake of political instability and inflation has increased. 
Smaller Island States5 (SIS) economies have grown at less than 3% for the last three years, 
four of them at less than 2%.  

Overall,  growth  has  occurred  in  several  sectors  but  remains  volatile  in  the  Pacific.  It  is 
estimated that economies will need to grow annually at about 7% to 8% to create employment 
and improve livelihoods.  

The environmental profile of the Pacific region is characterised by high degrees of endemism 
and  levels  of  biodiversity,  but  relatively  small  numbers  of  species,  high  degree  of 
vulnerability to a wide range of natural events and high economic dependence on the marine 
and coastal environment. Pacific island countries actually rank among the most vulnerable in 
the world to natural disasters. 

7.2. 

Issues and challenges for the regional integration process 

The  Pacific  region  faces  important  challenges  towards  regional  integration.  First  and 
foremost, it is challenged by the physical geography, being the largest geographical entity in 
the  world.  Small  countries  are  scattered  on  a  huge  ocean  and  transport  connections  are 
extremely  expensive.  The  region  is  also  very  diverse  in  terms  of  size  of  the  countries,  their 
resource end economic base.  

As regards the partners of the regional institutions, there are asymmetries between the Pacific 
islands on one hand and Australia and New Zealand on the other. These two blocs are quite 
different from the economic, historical and cultural point of view and different objectives may 
also have to be reconciled in regional forums.  

5 

Tuvalu, Kiribati, Cook Islands, Niue, Nauru, Palau and RMI 

EN 

35 

   EN 

 
                                                 
In  the  short  term,  regional  cooperation  and  integration  in  the  Pacific  may  work  best  at  the 
political  level,  while  economic/commercial  integration  is  a  longer  term  strategic  objective. 
Pacific ACP progress towards economic integration uses a step by step approach and applies 
the subsidiarity principle in much the same way as has been increasingly applied in the EU. 

The regional integration process among the Pacific countries was institutionalised in the early 
2000 and evolved into an agreement to give the Pacific Islands Forum legal personality in 
2005.  The  Forum  is  supported  by  ten  Regional  Organisations  with  technical  mandates 
ranging from higher education to fisheries, tourism and energy.  

The  Economic  Partnership  Agreement  (EPA)  with  the  EU  aims  to  use  trade  as  an 
instrument for development, through a comprehensive WTO compatible trade agreement and 
through its synergetic implementation with development cooperation. EPA will be reciprocal 
but  asymmetric  in  favour  of  the  Pacific  ACP.  Negotiations  entered  a  crucial  phase  during 
2007, when the deadline jointly set by ACP and EU in the Cotonou Agreement and reflected 
in  the  WTO  waiver  was  approaching.  Under  time  pressure,  negotiations  focused  on 
preserving  ACP  market  access  complying  with  the  parameters  for  a  WTO-compatible  free 
trade area. An interim Economic Partnership was therefore initialled with Papua New Guinea 
and  Fiji.  Significant  progress  has  been  made  since  then  in  a  number  of  areas  including 
principles, trade in goods, fisheries, development cooperation and dispute settlement.  

The decision taken  by  the  Pacific  Forum ACP to remain united as a  negotiating party  for a 
comprehensive Pacific EPA constitutes a challenge and a further opportunity to strengthen the 
process  of  regional  integration.  A  deeper  and  well  functioning  regional  internal  market, 
progressively  and  asymmetrically  opened  to  the  EU  and  other  key  trading  partners,  can 
certainly contribute to economic growth. 

7.3. 

State of play and way forward for the regional integration process 

In  2005,  Forum  Leaders  adopted  the  Pacific  Plan  for  Regional  Cooperation  and 
Integration  (the  'Pacific  Plan'  2005-2010),  which  includes  an  Economic  Partnership 
Agreement (EPA) with the EU as one of its economic growth objectives.  

The Pacific Plan's overarching goal is to enhance and stimulate economic growth, sustainable 
development, good governance and security for Pacific countries through regionalism. It has a 
number of strategic objectives developed around four pillars: 

–  Economic growth: the Plan aims to increase trade and investment; improve infrastructure 

and service deliver and enhance private sector participation 

–  Sustainable  development:  it  aims  to  reduce  poverty;  improve  natural  resource  and 
environmental  management;  improve  health,  education  and  training;  improve  gender 
equality; involve youth and promote sports and cultural values. 

–  Good  governance:  the  Plan  aims  at  improved  transparency,  accountability,  equity  and 

management efficiency 

–  Security: the Plan aims to achieve improved political and social conditions for stability and 

safety. 

Concerning  trade  and  economic  integration,  progress  has  been  made  towards  the 
establishment of a number of free trade agreements.  

The Pacific Island Countries Trade Agreement (PICTA) aims to establish a free trade area 
between the 14 Forum Pacific ACP countries by 2017. 11 states have so far ratified and six 

EN 

36 

   EN 

 
countries have announced domestic regulations for trading under PICTA6. No customs union 
is foreseen at this stage. It currently covers trade in goods, and in 2007 it was agreed to extend 
its provisions to services. 

The  Melanesian  Spearhead  Group  (MSG)  Preferential  Trade  Agreement  concerns  the 
four  Melanesian  states  of  Vanuatu,  PNG,  the  Solomon  Islands  and  Fiji.  The  MSG  provides 
for  the  gradual  and  progressive  removal  of  tariff  and  non-tariff  barriers  between  trading 
parties, and full liberalisation by 2013. It covers both goods and services but the schedule to 
the Agreement covering  trade  in  services has not been developed yet. The  final outcome of 
the MSG Agreement should be a customs union. The MSG was formally recognised as a sub-
regional organisation in March 2007  and the MSG Secretariat was officially  opened in Port 
Vila (Vanuatu) in May 2008.  

The  Pacific  Agreement  on  Closer  Economic  Relations  (PACER)  is  a  Forum-wide 
framework agreement including Australia and New Zealand. It entered into force in 2002 and 
eleven Forum members have ratified it so far. PACER intends to promote regional economic 
integration  and  supports  the  progressive  integration  of  the  Forum  region  into  the  world 
economy. Negotiations on a detailed trade agreement, required for liberalisation, may begin in 
late  2008.  Meanwhile,  Forum  Trade  Ministers  have  agreed  to  look  into  the  possibility  of  a 
more comprehensive framework for trade and economic cooperation which would at the very 
least include trade in services, known as "PACER-Plus". 

The  Pacific  region  has  made  remarkable  progress  in  advancing  regional  integration  through 
regional cooperation in developing common sectoral policies for sustainable development, 
particularly for the management of natural resources and the provision of social services.  

As regards fisheries, three organizations are responsible region-wide for managing fisheries 
in  the  Western  and  Central  Pacific  Ocean  through  a  regional  approach:  the  Pacific  Islands 
Forum Fisheries Agency (FFA), that runs a vessel monitoring system, the Secretariat of the 
Pacific Community (SPC), that carries out scientific research on the state of fish stocks, and 
the  Western  and  Central  Pacific  Fisheries  Commission  (WCPFC)  that  determines  the  total 
allowable  catch  and  level  of  fishing  effort  in  the  area  governed  by  the  so  called  "Tuna 
Convention". The Convention entered into force in June 2004 and the European Community 
is a full member. 

FFA  members  and  in  particular  the  subset  of  Parties  to  the  Nauru  Agreement  (PNA)  have 
established  a  number  of  regional  arrangements  which  reflect  the  fact  that  highly  migratory 
species like tuna require special management considerations due to their movement between 
Exclusive Economic Zones (EEZs) of coastal states as well as onto the high seas. Another key 
regional  initiative  is  the  Niue  Treaty  on  Cooperation  in  Fisheries  Surveillance  and  Law 
Enforcement in the South Pacific Region.  

Pacific  island  countries  are  the  most  vulnerable  to  the  impact  of  climate  change.  In  2005 
Forum  Leaders  endorsed  the  Pacific  Islands  Framework  for  Action  on  Climate  Change 
(PIFACC) as a regional platform for deepening and broadening climate change cooperation.  

The  region  has  also  adopted  the  Pacific  Islands  Regional  Oceans  Policy  to  improve  the 
understanding  of  the  oceans  and  sustainably  develop  and  manage  ocean  resources.  The 
Regional  Pacific  Disaster  Risk  Reduction  and  Disaster  Management  Framework  for  Action 
provides  another  coordinated  “all  hazards”  approach.  National  and  mitigation  responses  for 
civil protection and community risk management are assisted by the South Pacific Sea Level 

6 

Cook Islands, Fiji, Niue, Samoa, Solomon Islands and Vanuatu 

EN 

37 

   EN 

 
                                                 
and Climate Monitoring Network, which uses sophisticated sea level monitoring gauges in 12 
countries and territories across the Pacific.  

The provision of education and health services poses practical challenges to the Pacific ACP 
with  scattered  islands  and  remote  rural  communities  because  of  high  costs  and  efficiency 
barriers. The establishment of the Pacific Association of Technical and Vocational Education 
Training (PATVET) as a peer network of regional training institutions is a good example of 
progress  in  this  area.  Meanwhile,  impressive  progress  has  already  been  made  in  higher 
education,  which  is  traditionally  provided  at  the  regional  level  by  universities7  with  highly 
evolved distance education facilities. 

Basic  education  is  also  pursued  through  regional  cooperation:  the  seven-year  old  Forum 
Education  Action  Plan  (FBEAP)  will  be  evaluated  in  2008  with  a  view  to  developing  a 
regional education support mechanism. The EDF and NZAID have jointly funded the Action 
Plan. 

The regional response for the provision of health services has focused on telemedicine and 
the  adoption  of  a  regional  strategy  for  combating  HIV/AIDS  and  other  sexually  transmitted 
infections STIs. The mid-term review of this strategy showed some evidence of reduction in 
risk behaviour in several countries. The strategy will be extended for a further five years to 
cover  2009-2013,  as  agreed  by  the  Leaders  Forum  in  2007.  A  regional  framework  is  also 
envisaged by  the WHO  to  strengthen prevention and control  of non-communicable diseases 
(leading cause of death in Pacific Island countries and territories). 

7.4. 

Proposal for a regional strategy between the EC and the Pacific  

The overall objective is to contribute to the sustainable  development of the Pacific ACP by 
supporting  economic  growth  at  the  same  time  as  preserving  the  natural  resources  and  the 
fragile  island  environments  on  which  such  growth  is  predicated.  Specific  objectives  are  to 
support the regional economic integration agenda as set out in the Pacific Plan and to flank 
this  with  environmental  sustainability  measures.  Adaptation  to  climate  change  will  be  a 
particular concern, given the extreme vulnerability of Pacific islands to the effects of global 
warming and sea-level rise.  

7.5. 

EC response strategy 

The  Response  Strategy  is  guided  by  the  EU  Pacific  Strategy  and  the  Pacific  Plan,  which 
address  the  main  challenges  of  the  Pacific  ACP  countries.  The  Response  Strategy  thus 
proposes to place greater emphasis on support to regional cooperation and integration in order 
to  build  up  a  critical  mass,  including  by  considerably  increasing  the  10th  EDF  regional 
financial envelope compared to previous RIPs.  

The main focus will be on the 'four pillars' of the Pacific Plan, economic growth, sustainable 
development, good governance and security. More precisely: 

Regional economic integration, EPA and regional sectoral policies 

The aim is to enhance sustainable livelihoods by exploiting economic opportunities through 
regional  cooperation  and  economic  integration  in  Pacific  ACPs.  This  will  be  done  through 
supporting  the  full  implementation  of  the  Forum  ACP-wide  PICTA,  implementing  regional 
economic  initiatives  for  building  human  capacity for  provision  of  services,  and  investing  in 

7

EN 

Fiji  School  of  Medicine  and  USP  in  Fiji  (which  also  has  campuses  in  Vanuatu  and  Samoa)  and  the  University  of  Technology 
(UNITECH) and the University of PNG (UPNG) in PNG 

38 

   EN 

 
                                                 
 
other productive sectors of regional importance. This will also leverage funds for trade-related 
infrastructure to deepen regional integration. 

Sustainable management of natural resources and the environment 

The  objective  is  to  ensure  that  economic  growth  is  sustainable  and  will  not  deplete  natural 
resources  and  the  environment,  so  that  both  are  preserved  for  future  generations  of  Pacific 
Islanders. This will be achieved by promoting and strengthening sustainable development and 
management  of  marine  and  land  resources,  including  ecosystems,  through  governance, 
practices and capacity at all levels. 

7.6.  Main elements of the regional indicative programme 

The total indicative allocation for the RIP of the Pacific region amounts to € 95 million. This 
envelope will be distributed as follows: 

Focal area 1: Regional Economic Integration (€ 45 million) 

This focal area is divided into the following components:  

–  Assist  the  region  in  meeting  its  regional  economic  integration  objectives  particularly  by 
facilitating  regional  trade  arrangements  and  integrating  into  the  world  economy,  notably 
through the EPA. 

–  Assist the region in developing its economic resource base in key productive sectors. 

–  Create an enabling environment and expand the region’s export base in order to be able to 
respond to the opportunities provided by regional and international trade arrangements. 

–  Contribute  to  the  region’s  efforts  to  develop  a  well  educated  labour  force,  capable  of 

adapting to rapidly changing regional and global markets and services. 

Focal  area  2:  Sustainable  Management  of  Natural  Resources  and  the  Environment  (€  40 
million) 

This focal area is divided into the following components:  

–  Assist  the  region  in  developing  cost  effective  solutions  to  natural  resources  and 

environmental development challenges. 

–  Address  vulnerability  issues  in  the  Pacific,  in  particular  those  associated  with  fragile 
ecosystems,  waste  management,  disaster  preparedness  and  adaptation  to  climate  change. 
Fragile habitats will be protected through waste management, renewable energy generation 
and disaster preparedness (taking special account of the risks posed by sea-level rise in the 
many atoll islands) so that the tourist, recreational and living environment is preserved for 
future generations. 

Non focal area (€ 10 million) 

The financial envelope will be used for institutional capacity building through the financing 
of  a  Technical  Cooperation  Facility  project  (€3  million)  and  giving  technical  support  to  the 
RAO (€3 million). Funds will also be committe d to assist non-state actors (€4 million).  

Flanking measures aimed at assisting the Pacific ACP tackle regional political problems in a 
coordinated fashion will be promoted through the region-to-region EU-PIF Political Dialogue 
launched  in  2008  and  supported  where  appropriate  from  budget  mechanisms  such  a  the 
Stability Instrument.  

EN 

39 

   EN 

 
Implementation methods 

Two financing mechanisms will be employed. Contribution Agreements will be the preferred 
channel,  provided  that  the  RAO  has  demonstrated,  by  means  of  an  institutional  assessment, 
that it meets international standards in management, accounting, audit and procurement. In all 
other  cases  (notably  taking  into  account  the  size  and  the  nature  of  projects),  traditional 
financing agreements would be used.  

If the Trade Development Facility (TDF) were set up and if such a Facility would be a more 
efficient  channel  for  the  financing  of  certain  RIP  activities,  funds  for  implementing  such 
activities could be channelled through the TDF.  

EN 

40 

   EN 

 
List of acronyms 

ACP 
ADB 
AIMS 
ASF 
AU 
CAR 
CARICOM 
CARIFORUM 
CEEAC 
CEEMAC 
CET 
CICOS 
CLISS 
COMESA 
COMIFAC 
COPAX 
CSME 
DDR 
DDU 
DOM 
DRC 
EAC 
EC 
ECODRUG 
ECOSAP 
ECOWAP 
ECOWAS 
EDF 
EEZ 
ELAC 
EPA 
ERDF 
ESA 
ESF 
EU 
EUFOR 
FBEAP 
FFA 
FODEC 
FOMUC 
FTA 
GCCA 
GDP 
GIABA 
HIV 
IGAD 
IO 
IOC 
IRCC 
LDC 
MARAC 
MDG 
MS 
MSG 
NEPAD 
NSA 
OAPI 
OCTs 

African, Caribbean, Pacific 
African Development Bank 
Agricultural Information Management System 
African Standby Force 
African Union 
Central African Republic 
Caribbean Community and Common Market 
Caribbean Forum 
Communauté Économique des États d'Afrique Centrale 
Communauté Économique et Monétaire de l'Afrique Centrale 
Common External Tariff 
Commission Internationale du Bassin Congo-Oubangui-Sangha 
Comite Permanent Inter-états de Lutte Contre la Sécheresse dans le Sahel 
Common Market for Eastern and Southern Africa 
Conférence des Ministres en charge des forêts d'Afrique Centrale 
Peace and security council for Central Africa 
Caribbean Single Market Economy 
Disarmament, demobilisation and re-integration 
Déclaration en Douane Unique 
Département a l'outre mer 
Democratic Republic of Congo 
East African Community 
European Commission 
ECOWAS Anti Drug Fund 
ECOWAS Small Arms Control Programme 
ECOWAS Agricultural Policy 
Economic Community of West African States 
European Development Fund 
Exclusive Economic Zones 
Economic Commission for Latin America and the Caribbean 
Economic Partnership Agreement 
European Regional Development Fund 
Eastern and Southern Africa 
ECOWAS Standby Force 
European Union 
European Mission to Chad and CAR 
Forum Education Action Plan 
Pacific Islands Forum Fisheries Agency 
Fond de développement communautaire 
CEMAC multi-national force 
Free Trade Area 
Global Climate Change Alliance 
Gross Domestic Product 
Groupe Intergouvernemental d'Action Contre le Blanchiment de l'Argent en Afrique 
Human immunodeficiency virus 
Intergovernmental Authority on Development 
Indian Ocean 
Indian Ocean Commission 
Inter-regional Co-ordinating Committee 
Least Developed Country 
Central African early warning mechanism 
Millennium Development Goal 
Member State 
Melanesian Spearhead Group 
New Partnership for Africa's Development 
Non-state actors 
Organisation de la propriété intellectuelle 
Overseas Countries and Territories 

EN 

41 

   EN 

 
ODA 
OECS 
OR 
PACER 
PATVET 
PDCT-AC 
PER 
PICTA 
PIF 
PIFACC 
PIFS 
PNA 
PNG 
PRAN 
PTRP 
RAMSI 
RAO 
REP 
RIP 
RISDP 
RO 
RPTF 
RSP 
SACU 
SADC 
SADCC 
SIDS 
SIPO 
SIS 
SME 
SPS 
SSR 
TBT  
TDF 
TEC 
TRIE 
UDEAC 
UN 
UNDP 
UNIDO 
USD 
WAEMU 
WCO 
WCPFC 
WTO 

Overseas Development Assistance 
Organisation of East Caribbean States 
Outmost Region 
Pacific Closer Economic Relations 
Pacific Association of Technical and Vocational Education Training 
Master plan for transport in Central Africa 
Regional economic programme 
Pacific Island Countries Trade Agreement 
Pacific Island Forum 
Pacific Islands Framework for Action on Climate Change 
Pacific Island Forum Secretariat 
Parties to the Nauru Agreement 
Papua New Guinea 
Pacific Regional Assistance to Nauru 
Programme de Transport Routier Prioritaire 
Regional Assistance Mission to the Solomon Islands 
Regional Authorising Officer 
Regional Economic Programme 
Regional Indicative Programme 
Regional Indicative Strategic Development Plan 
Regional Organisation 
Regional Preparatory Task Force 
Regional Strategy Paper 
Southern African Customs Union 
Southern Africa Development Community 
Southern African Development Co-ordination Conference 
Small Island Developing States 
Strategic Indicative Plan for the Organ on Peace and Security 
Smaller Island States 
Small or medium sized enterprise 
Sanitary and Phytosanitary Measures 
Security Sector Reform 
Technical Barriers to Trade  
Trade Development Facility 
Tarif Extérieur Commun 
Transit Routier Inter-états 
Douanière et Économique de l’Afrique Centrale 
United Nations 
United Nations Development Programme 
United Nations Industrial Development Organisation 
US Dollar 
West African Economic and Monetary Union 
World Customs Organisation 
Western and Central Pacific Fisheries Commission 
World Trade Organisation 

EN 

42 

   EN