Related links

• Single Programming Documents 10th EDF (OCT)
• Single Programming Documents 9th EDF (OCT)
• EU-OCT Forum

EU relations with Overseas Countries and Territories (OCTs)

Although their nationals are in principle EU citizens, these territories are not part of the EU and not directly subject to EU law.
They have a special "associate" status, designed to help their economic and social development.

Which are the OCTs?

• Anguilla (UK)
• Aruba (NL)
• Bermuda (UK)*
• Bonaire (NL)
• British Antarctic Territory (UK)**
• British Indian Ocean Territory (UK)**
• British Virgin Islands (UK)
• Cayman Islands (UK)
• Curação (NL)***
• Falkland Islands (UK)
• French Polynesia (FR)
• French Southern and Antarctic Territories (FR)**
• Greenland (DK)
• Mayotte (FR)
• Montserrat (UK)
• New Caledonia and Dependencies (FR)
• Pitcairn (UK)
• Saba (NL)***
• Sint Eustatius (NL)***
• Sint Maarten (NL)***
• South Georgia and South Sandwich Islands (UK)**
• Saint Helena, Ascension Island, Tristan da Cunha (UK)
• St. Pierre and Miquelon (FR)
• Turks and Caicos Islands (UK)
• Wallis and Futuna Islands (FR)

(*)Bermuda has never applied the association regime.
(**) OCTs, without a permanent local population.
(***)Curação, Sint Maarten, Bonaire, Saba and Sint Eustatius were formerly the Netherlands Antilles.

As from 1 January 2012, the French Outermost region, Saint Barthelemy (St. Barth), will, following a decision of the European Council, change its status from Outermost Region to OCT, bringing the total number of OCTs to 26.

Some specifics of the OCTs

There are significant differences between the OCTs themselves in terms of the degree of autonomy vis-à-vis the Member States to which they are linked, but also in the economic and social field and as regards their geographical characteristics and climate.
However, they do share common characteristics: none of them is a sovereign country, they are all parliamentary democracies, they are all islands, the size of their populations is very small and their ecological richness is extraordinary compared to continental Europe. They are all relatively vulnerable to external shocks and are in general dependent on a narrow economic base that mostly revolves around services. The OCTs are facing many challenges such as: remoteness, vulnerability to economic shocks and climate change, difficulties to build and maintain infrastructure, or sustainable energy supply.

The main legal framework

Under Part IV of the Treaty on the Functioning of the European Union (Articles 198 to 204 TFEU), "the Member States agree to associate with the Union the non-European countries and territories which have special relations with Denmark, France, the Netherlands and the United Kingdom" (Article 198). Detailed rules and procedures are provided for by the Council Decision of 27 November 2001 on the association of the OCTs with the European Community (2001/822/EC), referred to herein after as the Overseas Association Decision (OAD) (1).

With Greenland, the EU also has a comprehensive partnership, which is complementary to the OCT association arrangements under the OAD, and which is based on: (i) the Greenland (Council) Decision 2006/526/EC of 17 July 2006 (2); and (ii) the Fisheries Partnership Agreement of 30 July 2006(3) between the European Community on the one hand, and the Government of Denmark and the Home Rule Government of Greenland, on the other hand.

EU financial support for OCTs

The EU provides financial support for each OCT's development strategy (set out in a 'single programming document').
Total EU funding for all OCTs for 2007-2013 is €286m, through the European Development Fund (EDF)

• € 195 million for special programmes (all OCTs with per-capita GNP lower than that of EU)
• € 40 million for regional cooperation and integration
• € 30 million to finance the European Investment Bank investment facility for OCTs (this is on top of loans worth €30m made from the Bank's own resources).
• € 6 million for technical assistance
• € 15 million for emergency help.

The OCTs can also get funding under European programmes (e.g. research, education and training, innovation and competitiveness, culture and media, etc.).
Greenland is not eligible to EDF funds but receives € 25 million per year from the General budget of the EU on the basis of the Partnership Agreement between the EU, Denmark and Greenland which also covers the period from 2007-2013.

(1)Decision 2001/822/EC of the Council of 27 November 2001 on the association of the overseas countries and territories with the European Community, (OJ L 314/1, 30.11.2001). Decision as amended by Decision 2007/249/EC (OJ L 109/33, 26.04.2007).
(2)Decision 2006/526/EC of 17 July 2006 on relations between the European Community on the one hand, and Greenland and the Kingdom of Denmark on the other (OJ L208/8, 2907.2006)
(3)Fisheries Partnership Agreement between the European Community on the one hand, and the Government of Denmark and the Home Rule Government of Greenland, on the other hand (OJ L 172/4, 30).

Financial allocations per OCT10th EDF

Territorial Allocations
Overseas Country or Territory		indicative allocation (in EUR million)			Aid/c (EUR per capita)
New Caledonia		19,81			13,73
French Polynesia		19,79			12,70
Wallis and Futuna		16,49			183,91
Mayotte		22,92			21,70
St Pierre et Miquelon		20,74			547,29
Aruba		8,88			14,71
Former Netherlands Antilles		24			21,56
Former Netherlands Antilles	Curaçao	Per island		11,25
	Sint-Maarten			4,75
	Bonaire			3
	Sint-Eustatius			2
	Saba			3
Falkland Islands		4,13			232,94
Turks and Caicos		11,85			59,85
Anguilla		11,7			142,98
Montserrat		15,66			545,45
Saint Helena, Ascension Island & Tristan da Cunha		16,63			520,40
Pitcairn		2,4			8888,89
Total		195
Regional Allocations
Strand			indicative allocation (in EUR million)
Technical Assistance to Association of Overseas Countries and Territories			5
Territorial Strategies for Innovation			5
Caribbean strand			15
Pacific strand			12
Indian Ocean			3
Total			40
Humanitarian, Emergency, Refugee Aid & Additional Support
indicative allocation (in EUR million)			15
Investment Facility (EIB)
indicative allocation (in EUR million)			30

Cooperation with Greenland (Budget line 21 07 02)

Greenland
indicative allocation (in EUR million)	175 (25 per year)

What form do EU-OCT relations take?

OCTs benefit from agreements in many fields, such as:

• trade – favourable rules of origin and advantageous trade arrangements
• sustainable development – through greener production and trade, human/social development, cultural and social cooperation
• regional cooperation/integration – improvement of a free movement of people, goods, services, work and technologies, liberalisation of transfers/payments, sectoral reforms.

Furthermore, there is a constant dialogue between the partners, e.g. through:

• the annual OCT-EU forum (Commission, all OCTs and all the Member States to which they are linked)
• regular trilateral meetings (Commission, all OCTs and the Member States to which they are linked), and
• partnership meetings (Commission, individual OCT and related Member State).

The need to revise the current legal framework

Apart from the TFEU, the Overseas Association Decision and the Greenland Decision/Partnership Agreement lay the foundations for the European Commission's policies and strategies towards the OCTs. Both the OAD as well as the Council Decision defining the EU / Grenland partnership will expire on 31 December 2013. The European Commission will deliver a proposal for a new legislative package to the Council before July 2012(4) .

The European Commission is striving to modernise the relationship the Union has with its OCTs. Classical development cooperation (with a focus on poverty reduction) no longer addresses the current and future challenges, such as climate change, terrorism and the need for a sustainable energy supply. Therefore, the new partnership with the EU should help the OCTs to develop competitive economies, by supporting education and innovation. They should also be provided with a more flexible trade regime and be supported to face the challenges of this century: protecting the biodiversity and the need to develop modern technologies to combat negative consequences of the climate change. Additionally, a stronger cooperation in the fight against organised crime (e.g. money laundering, trafficking of drugs and human beings) could be offered.
The core aim is to strengthen the economic position of the OCTs by increasing their competitiveness and resilience. Also the EU will stimulate the OCTs to increase the cooperation with their regional, national and European partners.

A continuous dialogue on the reflection process on the revision of the OCT/EU strategy and thus of the Overseas Association Decision has been and will be followed between the European Commission, the OCTs and the Member States to which they are linked.

A first crucial step in this process has been the adoption of a Green Paper on the future relations between the EU and the OCTs(5) on 25 June 2008. The Green paper was followed by a large public consultation between 1 July and 17 October 2008. The outcome and results were subsequently presented in the Communication from the Commission "Elements for a new partnership between the EU and the OCTs"(6).

Following the publication of the Communication, the Council, on its turn, adopted on 22 December 2009(7) conclusions welcoming "the Commission’s reflections on how to best further develop and strengthen the EU-OCT partnership and foster sustainable development in the OCTs". The essential elements of the new partnership suggested by the European Commission were further discussed in March 2010 at the annual OCT/EU Forum which gathered political representatives of the EU, the OCTs and the Member States. During this Forum the latter two partners decided that they would work together on a Joint Position Paper that would feed the reflection process. At their Ministerial Conference on 28 February 2011, the OCTs and the Member States to which they are linked, adopted their Joint Position Paper, which will be a crucial document for the revision of the OAD.

Reference service within the European Commission

Task Force OCT is part of the Directorate G (Latin America and the Caribbean) of the Directorate-General for Development and Cooperation - EuropeAid.

This Task Force coordinates all the activities concerning the relations between the EU and the OCTs and has the primary responsibility of implementing the provisions of the Part IV of the Treaty on the Functioning of the EU. The Task Force inter alia chairs the Commission Inter-Service group on OCTs and is responsible for the programming and the coordination of the EU aid towards the OCTs.

(4)Indicative Roadmap concerning the "proposal for Council Decision replacing Council Decision 2001/822/EC of 27 November 2001 on the association of the ()overseas countries and territories with the European Community ("Overseas Association Decision") , 19 October 2010
(5)Commission Green Paper on Future relations between the EU and the Overseas Countries and Territories, COM(2008) 383 final, 25 June 2008 .
(6)Commission, Communication on Elements for a new partnership between the EU and the overseas countries and territories (OCTs), COM(2009) 623 final , 6 November 2009
(7) adopted on 22 December 2009 .