Considerations on COM(2018)461 - Association of the Overseas Countries and Territories with the EU including relations between the EU and Greenland and Denmark ('Overseas Association Decision')

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dossier COM(2018)461 - Association of the Overseas Countries and Territories with the EU including relations between the EU and Greenland and ...
document COM(2018)461 EN
date October  5, 2021
 
table>(1)This Decision establishes the rules and the procedure for the association of the Union with the Overseas Countries and Territories (OCTs), including Greenland, and replaces Council Decision 2013/755/EU (‘Overseas Association Decision’) (2) and Council Decision 2014/137/EU (3). Decision 2013/755/EU should therefore be repealed.
(2)Following the withdrawal of the United Kingdom of Great Britain and Northern Ireland (UK) from the European Union and the European Atomic Energy Community (Euratom) in accordance with Article 50 of the Treaty on the European Union (TEU), this association applies to the OCTs listed in Annex II to the Treaty on the Functioning of the European Union (TFEU), excluding the 12 UK OCTs listed in that Annex.

(3)Pursuant to Article 204 TFEU, the provisions of Articles 198 to 203 TFEU apply to Greenland, subject to the specific provisions set out in Protocol No 34 to the TFEU on special arrangements for Greenland. In accordance with the Treaty amending, with regard to Greenland, the Treaties establishing the European Communities (4), the relations between the Union on the one hand, and Greenland and the Kingdom of Denmark on the other are governed by Decision 2014/137/EU that highlights the close historical, political, economic and cultural connections between the Union and Greenland and defines a specific partnership and cooperation. Decision 2014/137/EU expired on 31 December 2020.

(4)From 1 January 2021, the Union assistance to OCTs previously financed by the European Development Fund (EDF) should be financed from the general budget of the Union.

(5)In order to reduce the number of External Financing Instruments and to streamline their performance, the relations with all OCTs, including Greenland, should be regrouped by replacing Decision 2013/755/EU and Decision 2014/137/EU by a single Decision.

(6)The partnership established by this Decision should allow for the continuation of strong relations between the Union on the one hand, and the OCTs on the other.

(7)In 2003, the Council agreed that the future relationship of the Union with Greenland after 2006 would be based on a comprehensive partnership for sustainable development which would include a specific fisheries agreement, negotiated according to the general rules and principles for such agreements.

(8)The Joint Declaration by the European Union, on the one hand, and the Government of Greenland and the Government of Denmark on the other, on relations between the European Union and Greenland, signed in Brussels on 19 March 2015, recalled the close historical, political, economic and cultural connections between the Union and Greenland and committed to further strengthening relations and cooperation based on broadly shared interests and to endow their mutual relations with a long-term perspective.

(9)This Decision should highlight the specificities of the partnership between the Union on the one hand and Greenland and Denmark on the other, such as the objective to preserve the close and lasting links between the Union, Greenland and Denmark, the acknowledgement of the geostrategic position of Greenland, the importance of policy dialogue between Greenland, Denmark and the Union, the existence of a Fisheries Partnership Agreement between the Union and Greenland and the potential cooperation on Arctic issues. It should respond to the global challenges, allowing for the development of a proactive agenda and the pursuit of mutual interests, in particular, the increasing impact of climate change on human activity and the environment, maritime transport, natural resources, including raw materials and fish stocks, as well as research and innovation.

(10)The TFEU and the secondary legislation adopted on the basis of it do not automatically apply to the OCTs, with the exception of a number of provisions which explicitly provide for their application. Although not third countries, the OCTs do not form part of the single market and must nevertheless comply with the obligations imposed on third countries in respect of trade, particularly rules of origin, health and plant health standards and safeguard measures.

(11)The special relationship between the Union and the OCTs is moving from a development cooperation approach to a reciprocal partnership to support the OCTs’ sustainable development. The progress achieved so far should be consolidated and reinforced. Moreover, the solidarity between the Union and the OCTs should be based on their unique relationship and their belonging to the same European family.

(12)The contribution of civil society to OCTs’ development can be enhanced by strengthening civil society organisations in all spheres of cooperation.

(13)The 2030 Agenda for Sustainable Development (‘2030 Agenda’), adopted by the United Nations in September 2015, is the international community’s response to global challenges and trends in relation to sustainable development. With the United Nation’s Sustainable Development Goals (‘SDGs’), the Paris Agreement (5) adopted on 12 December 2015 under the United Nations Framework Convention on Climate Change (UNFCCC) (Paris Agreement) and the Addis Ababa Action Agenda – at its core, the 2030 Agenda is a transformative framework to eradicate poverty and achieve sustainable development globally. It is universal in scope, providing a comprehensive shared framework for action that applies both to the Union and to its partners. It balances the economic, social and environmental dimensions of sustainable development, recognising the essential interlinkages between its goals and targets. The 2030 Agenda aims to leave no one behind. Its implementation will be closely coordinated with other international commitments. Actions implemented under this Decision will pay particular attention to interlinkages between SDGs and to integrated actions that can create co-benefits and meet multiple objectives in a coherent way. Gender equality and women’s empowerment are vital for achieving the SDGs and are cross-cutting issues for the entire 2030 Agenda.

(14)The association between the Union and the OCTs should continue to be based on three key pillars, namely enhancing competitiveness, strengthening resilience and reducing vulnerability, and promoting cooperation and integration between the OCTs and other partners and neighbouring regions.

(15)Union financial assistance allocated through the partnership should bring a European perspective to the development of OCTs and should contribute to the strengthening of the close and long lasting ties between the Union and the OCTs, while strengthening the position of OCTs as advanced outposts of the Union, based on the common values and history which link the partners.

(16)Given the OCTs’ geographical position and despite the different status vis-à-vis Union law of each actor in a given geographical area, cooperation between the OCTs and their neighbours should be pursued in the interests of all sides, with a particular focus on areas of common interest and the promotion of the Union’s values and standards.

(17)The development of intraregional cooperation is a priority of mutual interest. Intraregional operations should strive for a balance, where appropriate, between the Pacific, the Indian Ocean, the Caribbean, the Atlantic and the Arctic regions.

(18)OCTs face particular constraints due to their geographical position. In particular, the constraints imposed by their remoteness or extreme remoteness should be taken into account when implementing this Decision.

(19)When implementing this Decision, the social and economic situation of OCTs should be taken into account, in particular for OCTs eligible to receive official development assistance (‘ODA’), on the basis of the list of recipients of that assistance, drawn up by the Development Assistance Committee of the Organisation for Economic Cooperation and Development (‘OECD’).

(20)Many OCTs are neighbours to outermost regions, referred to in Article 349 TFEU, to African, Caribbean and Pacific (ACP) States and to other third countries or territories (6) and share common needs with their neighbours from mitigation of and adaptation to climate change and the preservation of biodiversity to oceans-related issues, economic diversification and disaster risk reduction.

(21)The Commission Communication of 24 October 2017‘A stronger and renewed strategic partnership with the Union’s outermost regions’, the Conclusions of the 15th and 16th OCT-EU Forums and the Commission recommendations for the negotiations on a Partnership Agreement between the European Union and ACP countries call for the reinforcement of regional cooperation programmes involving OCTs and their neighbours.

(22)The OCTs are host to wide terrestrial and marine biodiversity. Climate change is impacting on OCTs’ natural environment and constitutes a threat undermining their sustainable development. Actions in the fields of conservation of biodiversity and ecosystem services, disaster risk reduction, sustainable management of natural resources and the promotion of sustainable energy and environmental security contribute to adaptation to and mitigation of climate change in the OCTs. The association should aim to ensure the conservation, restoration and sustainable use of biological diversity and ecosystem services as a key element for the achievement of sustainable development.

(23)The Union and the OCTs reaffirm their right to regulate the impact of waste on environmental and public health grounds, in compliance with their international commitments.

(24)Reflecting the importance of tackling climate change in line with the Union’s commitments to implement the Paris Agreement and to achieve the SDGs, the Programme established by this Decision (‘this Programme’) should contribute to mainstream climate action in the Union policies and to the achievement of an overall target of 30 % of the Union budget expenditure supporting climate objectives. Actions under this Programme are expected to contribute 25 % of its overall financial envelope to climate objectives. Relevant actions will be identified during the Programme’s implementation and the overall contribution from this Programme should be part of relevant monitoring, evaluations and review processes. In view of contributing to halting and reversing the decline of biodiversity, this Programme should contribute to the ambition of providing 7,5 % of annual spending under the multiannual financial framework to biodiversity objectives in the year 2024 and 10 % of annual spending under the multiannual financial framework to biodiversity objectives in 2026 and 2027, while considering the existing overlaps between climate and biodiversity goals.

(25)The significant role which OCTs could play in contributing to the Union’s commitments under Multilateral Environmental Agreements should be recognised in the relations between the Union and the OCTs.

(26)The Union and the OCTs recognise the special importance of education and vocational training as a lever for OCTs’ sustainable development.

(27)The association between the Union and the OCTs should take into account and contribute to the preservation of the cultural diversity and identity of OCTs.

(28)Trade and trade-related cooperation between the Union and the OCTs should contribute to the objective of sustainable economic development, social development and environmental protection.

(29)This Decision will continue to provide for flexible rules of origin, including as regards cumulation of origin. Cumulation should be possible not only with OCTs and countries that have concluded an Economic Partnership Agreement with the Union, but under certain conditions also for products originating in countries with which the Union is applying a free trade agreement as well as for products entering the Union duty-free and quota-free under the Union’s General System of Preferences, also subject to conditions. Those conditions are necessary to prevent trade circumvention and ensure the proper functioning of the cumulation arrangements.

(30)The procedures for certification of OCT origin should be updated, in the interests of the operators and administrations concerned in the OCTs. Provisions on administrative cooperation between the Union and the OCTs should also be updated accordingly.

(31)In addition, detailed safeguard and surveillance provisions will be maintained to allow OCTs’ and Union competent authorities as well as economic operators to rely on clear and transparent rules and procedures. Finally, it is a matter of common interest to ensure the proper application of the procedures and arrangements that allow the OCTs to export goods to the Union duty-free and quota-free.

(32)Taking into account the aims of integration and the developments of global trade in the area of services and establishment, it is necessary to support the development of services markets and investment possibilities by improving the market access of OCTs’ services and investment to the Union market. In this regard the Union should offer to OCTs the best possible treatment offered to any other trading partner through comprehensive most favoured nation clauses, while ensuring more flexible possibilities for trade relations for OCTs by limiting the treatment offered by OCTs to the Union to what has been offered to other major trading economies.

(33)Cooperation in the area of financial services between the Union and OCTs should contribute to building a safer, sounder, more transparent financial system that is essential to enhance global financial stability and to underpin sustainable growth. Efforts in that area should focus on convergence with internationally agreed standards and approximation of OCTs’ legislation with Union acquis on financial services. Adequate attention should be paid to strengthening administrative capacity of OCTs’ authorities, including in the area of supervision.

(34)Union financial assistance should focus on areas where it has the most impact, having regard to its capacity to act on a global scale and to respond to global challenges such as poverty eradication, sustainable and inclusive development or the worldwide promotion of democracy, good governance, human rights and the rule of law, its long-term and predictable engagement in development assistance and its role in coordinating with its Member States.

(35)In the interest of efficiency, simplification and recognition of the management capacities of the OCTs’ authorities, the financial resources granted to the OCTs should be managed on the basis of a reciprocal partnership. Moreover, the authorities of the OCTs should assume the responsibility for the formulation and implementation of those policies agreed upon between the parties as cooperation strategies. The limited administrative and human resources of the OCTs should be taken into account in the programming and implementation rules and process.

(36)This Decision lays down a financial envelope for the association of the OCTs with the Union, which is to constitute the financial reference amount, within the meaning of point 19 of the Interinstitutional Agreement between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources (7) for the European Parliament and the Council during the annual budgetary procedure. This amount should be taken as illustrating the will of the legislator and should not affect the budgetary powers of the European Parliament and of the Council as set out in the TFEU.

(37)Horizontal financial rules adopted by the European Parliament and the Council on the basis of Article 322 TFEU apply to this Decision. Those rules are laid down in Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (8) (the ‘Financial Regulation’) and determine in particular the procedure for establishing and implementing the budget through grants, prizes, procurement, indirect management, financial instruments, budgetary guarantees, financial assistance and the reimbursement of external experts, and provide for checks on the responsibility of financial actors. Rules adopted on the basis of Article 322 TFEU also include a general regime of conditionality for the protection of the Union budget.

(38)The types of financing and the methods of implementation under this Decision should be chosen on the basis of their ability to achieve the specific objectives of the actions and to deliver results, taking into account, in particular, the costs of controls, the administrative burden and the expected risk of non-compliance. When making that choice, the use of lump sums, unit costs and flat rates, as well as financing not linked to costs as referred to in Article 125(1) of the Financial Regulation, should be considered.

(39)The Union should seek the most efficient use of available resources in order to optimise the impact of its external action. That should be achieved through coherence and complementarity between the Union’s external financing instruments, as well as the creation of synergies with other Union policies and programmes. In order to maximise the impact of combined interventions to achieve a common objective, this Decision should allow for the combination of funding with other Union programmes, as long as the contributions do not cover the same costs. Taking into account that OCTs’ access to Union programmes remains a challenge, the Commission should, where appropriate, encourage OCTs’ better access to Union programmes, for example through capacity building and training activities. The level of OCTs’ participation should be evaluated regularly. Furthermore, the Union should ensure that natural persons from OCTs can participate in initiatives of the Union on the same basis as other nationals of Member States.

(40)This Decision should make reference, where required, to Regulation (EU) 2021/947 of the European Parliament and of the Council (9) for the purpose of the implementation of the cooperation and thus ensuring coherence in the management across instruments.

(41)In order to take into account developments and changes in customs and trade legislation, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of the procedural rules of origin and related definitions in Annex II and the Appendices of Annex II to enable the Commission to translate into the Decision these changes. The Commission should also be empowered to adopt delegated acts in order to amend Article 3 of Annex I to review or complement the indicators where considered necessary and to supplement that Annex with provisions on the establishment of a monitoring and evaluation framework.

(42)Pursuant to paragraphs 22 and 23 of the Interinstitutional Agreement of 13 April 2016 for Better Law-Making (10), this Programme should be evaluated on the basis of information collected in accordance with specific monitoring requirements, while avoiding overregulation and administrative burdens, in particular on Member States. These requirements, where appropriate, should include measurable indicators as a basis for evaluating the effects of the Programme on the ground. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making.

(43)The references to the external assistance instruments in Article 9 of Council Decision 2010/427/EU (11) should be read as reference also to this Decision. The Commission should ensure that this Decision is implemented in accordance with the role of the EEAS as provided in that Decision.

(44)In order to ensure uniform conditions for the implementation of Article 10(6) and 16(8) of Annex II, Article 2 of Annex III, Article 5 and 6 of Annex IV of this Decision, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council (12).

(45)In accordance with the Financial Regulation, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council (13), Council Regulation (EC, Euratom) No 2988/95 (14), Council Regulation (Euratom, EC) No 2185/96 (15) and Council Regulation (EU) 2017/1939 (16), the financial interests of the Union are to be protected by means of proportionate measures, including measures relating to the prevention, detection, correction and investigation of irregularities, including fraud, the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, the imposition of administrative penalties. In particular, in accordance with Regulation (EU, Euratom) No 883/2013 and Regulation (Euratom, EC) No 2185/96, the European Anti-Fraud Office (OLAF) has the power to carry out administrative investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union.

The European Public Prosecutor’s Office (EPPO) is empowered, in accordance with Regulation (EU) 2017/1939, to investigate and prosecute criminal offences affecting the financial interests of the Union as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council (17). In accordance with the Financial Regulation, any person or entity receiving Union funds is to fully cooperate in the protection of the Union’s financial interests, grant the necessary rights and access to the Commission, OLAF, the Court of Auditors and, in respect of those Member States participating in enhanced cooperation pursuant to Regulation (EU) 2017/1939, the EPPO, and ensure that any third parties involved in the implementation of Union funds grant equivalent rights. For that reason, agreements with third countries and territories and with international organisations, and any contract or agreement resulting from the implementation of this Decision should contain provisions expressly empowering the Commission, the Court of Auditors and OLAF to conduct such audits, on-the-spot checks and inspections, in accordance with their respective competences and ensuring that any third parties involved in the implementation of Union funding grant equivalent rights.

(46)In order to increase the cooperation between OCTs, the REX system, the system for registering exporters authorised to certify the origin of goods set up pursuant to Commission Implementing Regulation (EU) 2015/2447 (18), could be used by OCTs to grant preferential tariff treatment to products originating in another OCT in cases where there is no cumulation.

(47)By virtue of this Decision, the Union should be able to give an innovative response to all the factors mentioned above, which is both consistent and tailored to the variety of situations.

(48)In order to ensure continuity in providing support to the relevant policy area and to allow implementation to start from the beginning of the Multiannual Financial Framework 2021-2027, this Decision should enter into force as a matter of urgency and should apply, with retroactive effect, from 1 January 2021,