Rozhodnutí Rady (EU) 2021/1764 ze dne 5. října 2021 o přidružení zámořských zemí a území k Evropské unii včetně vztahů mezi Evropskou unií na jedné straně a Grónskem a Dánským královstvím na straně druhé (rozhodnutí o přidružení zámoří včetně Grónska)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 203 thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national Parliaments,

Having regard to the opinion of the European ParliamentOpinion of 31.1.2019 (not yet published in the Official Journal) and Opinion of 14.9.2021 (not yet published in the Official Journal). ,

Acting in accordance with a special legislative procedure,

This Decision establishes an association of the OCTs with the Union (the association), which constitutes a partnership to support the OCTs’ sustainable development as well as to promote the values and standards of the Union in the wider world. The partners to the association are the Union, the OCTs and the Member States to which they are linked. In addition, this Decision lays down rules concerning the relations between the Union on the one hand, and Greenland and Denmark on the other.

This Decision establishes the funding programme for the association (the Programme) for the period from 1 January 2021 to 31 December 2027 . It lays down the objectives of the Programme, the budget for the period from 2021 to 2027, the forms of Union funding and the rules for providing such funding as set out in Annex I.

Opinion of 31.1.2019 (not yet published in the Official Journal) and Opinion of 14.9.2021 (not yet published in the Official Journal).

(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)Council Decision 2013/755/EU of 25 November 2013 on the association of the overseas countries and territories with the European Union (Overseas Association Decision) (OJ L 344, 19.12.2013, p. 1 ). and Council Decision 2014/137/EUCouncil Decision 2014/137/EU of 14 March 2014 on relations between the European Union on the one hand, and Greenland and the Kingdom of Denmark on the other (OJ L 76, 15.3.2014, p. 1 ). . Decision 2013/755/EU should therefore be repealed.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 CommunitiesOJ L 29, 1.2.1985, p. 1 . , 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 AgreementOJ L 282, 19.10.2016, p. 4 . 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 territoriesThe term territories means the 12 UK OCTs which were listed in Annex II to the TFEU at the time of the notification received by the European Council on 29 March 2017 of the UK’s withdrawal from the European Union and Euratom based on Article 50 TEU. 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 resourcesInterinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European 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 (OJ L 433 I, 22.12.2020, p. 28 ). 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 CouncilRegulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1 ). (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 CouncilRegulation (EU) 2021/947 of the European Parliament and of the Council of 9 June 2021 establishing the Neighbourhood, Development and International Cooperation Instrument – Global Europe, amending and repealing Decision No 466/2014/EU and repealing Regulation (EU) 2017/1601 and Council Regulation (EC, Euratom) No 480/2009 (OJ L 209, 14.6.2021, p. 1 ). 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-MakingOJ L 123, 12.5.2016, p. 1 . , 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/EUCouncil Decision 2010/427/EU of 26 July 2010 establishing the organisation and functioning of the European External Action Service (OJ L 201, 3.8.2010, p. 30 ). 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 CouncilRegulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13 ). .

(45) In accordance with the Financial Regulation, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the CouncilRegulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p. 1 ). , Council Regulation (EC, Euratom) No 2988/95Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests (OJ L 312, 23.12.95, p. 1 ). , Council Regulation (Euratom, EC) No 2185/96Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities’ financial interests against fraud and other irregularities (OJ L 292, 15.11.96, p. 2 ). and Council Regulation (EU) 2017/1939Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European Public Prosecutor’s Office (the EPPO) (OJ L 283, 31.10.2017, p. 1 ). , 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 CouncilDirective (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union's financial interests by means of criminal law (OJ L 198, 28.7.2017, p. 29 ). . 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

(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) 2015/2447Commission Implementing Regulation (EU) 2015/2447 of 24 November 2015 laying down detailed rules for implementing certain provisions of Regulation (EU) No 952/2013 of the European Parliament and of the Council laying down the Union Customs Code (OJ L 343, 29.12.2015, p. 558 ). , 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 ,

The association applies to the OCTs listed in Annex II to the TFEU, excluding the 12 UK OCTs listed in that Annex.

Council Decision 2013/755/EU of 25 November 2013 on the association of the overseas countries and territories with the European Union (Overseas Association Decision) (OJ L 344, 19.12.2013, p. 1 ).

Article 1 Article 1 Subject matter

Article 2 Article 2 Territorial application

Article 3 Article 3 Objectives, principles and values 1.The association between the Union and the OCTs shall be based on objectives, principles and values shared by the OCTs, the Member States to which they are linked and the Union. 2.The partners recognise each other’s rights to determine their sustainable development policies and priorities, to establish their own levels of domestic environmental and labour protection, and to adopt or amend accordingly the relevant laws and modify the relevant policies, consistently with commitment to the internationally recognised standards and agreements. In doing so, they shall strive to ensure high levels of environmental and labour protection. 3.In implementing this Decision, the partners shall be guided by the principles of transparency, subsidiarity and the need for efficiency and shall equally address the three pillars of OCTs’ sustainable development, implementing the 2030 Agenda across all its internal and external policies in a comprehensive and strategic approach: economic development, cultural and social development and nature and environmental protection. Gender equality and the rights of girls and women should be mainstreamed into all actions as a key contribution to the successful achievement of the SDGs. 4.The general objective of this Decision is to promote the economic and social development of the OCTs and to establish close economic relations between them and the Union as a whole. The association shall pursue this general objective by enhancing the OCTs’ competitiveness, strengthening the OCTs’ resilience, reducing their economic and environmental vulnerability and by promoting cooperation between them and other partners. Furthermore, the aim of this Decision is to preserve the existing ties between the Union on the one hand, and Greenland and Denmark on the other, acknowledging the geostrategic position of Greenland in the Arctic, and to preserve existing ties between the Union and the other OCTs, acknowledging their geostrategic positions in the Caribbean, the Indian Ocean, the Atlantic and the Pacific. 5.In accordance with Articles 3(5) and 21 of the TEU, the specific objectives of this Decision are the following: (a) to foster and support cooperation with OCTs, including in addressing their major challenges and reaching the SDGs,(b) to support and to cooperate with Greenland in addressing its major challenges such as the raising of education level and to contribute to the capacity of the administration of Greenland to formulate and implement national policies. 6.In pursuing the general objectives referred to in paragraph 4 and the specific objectives referred to in paragraph 5, the association shall respect the fundamental principles of liberty, democracy, human rights and fundamental freedoms, the rule of law, good governance and sustainable development, all of which are common to the OCTs and the Member States to which they are linked.

Article 4 Article 4 Management of the association

Article 5 Article 5 Mutual interests, complementarity and priorities 1.The association shall be the framework for policy dialogue and cooperation on issues of mutual interest. 2.Priority shall be given to cooperation in areas of mutual interest, such as: (a) the sustainable diversification of OCTs’ economies, including their further integration in world and regional economies; in the specific case of Greenland, the need to increase the skills of its labour force;(b) fostering exchange, cooperation and partnerships for accelerating the achievement of the SDGs;(c) education and training, public health, tourism and culture;(d) the promotion of a green and blue economy;(e) the sustainable management of natural resources, including the conservation and sustainable use of biodiversity and ecosystem services;(f) mitigation of climate change and adaptation to the impacts of climate change;(g) the promotion of disaster risk reduction;(h) the promotion of research, innovation and scientific cooperation activities;(i) digital accessibility;(j) the promotion of social, cultural and economic exchanges between the OCTs, their neighbours and other partners;(k) the social sector, mobility of the workforce, social protection systems, food safety and food security issues;(l) Arctic issues;(m) the development of regional cooperation in the Caribbean, the Indian Ocean, the Atlantic and the Pacific;(n) the development of intraregional cooperation in the Arctic, the Caribbean, the Indian Ocean, the Atlantic and the Pacific. 3.Cooperation in the areas of mutual interest shall aim to promote OCTs’ self-reliance and of the development of OCTs’ capacities to formulate, implement and monitor strategies and policies set out in paragraph 2.

Article 6 Article 6 Promotion of the association 1.With an aim to strengthen their mutual relations, the Union and the OCTs shall endeavour to make the association known among their citizens, in particular by promoting the development of the links and cooperation between the authorities, academic community, civil society and businesses of OCTs on the one hand and their interlocutors within the Union on the other. 2.OCTs shall make efforts to strengthen and promote their relations with the Union as a whole. The Member States shall support these efforts.

Article 7 Article 7 Regional cooperation, regional integration and cooperation with other partners 1.Subject to Article 3, the association shall support the OCTs in their efforts to take part in relevant international, regional and sub-regional cooperation initiatives as well as regional and sub-regional integration processes, in line with their own aspirations and in accordance with objectives and priorities defined by the competent OCTs’ authorities. 2.To this end, the Union and the OCTs may exchange information and best practices or establish any other form of close cooperation and coordination with other partners in the context of the OCTs’ participation in regional and international organisations, where appropriate by means of international agreements. 3.The association aims to support cooperation between the OCTs and other partners in the areas of cooperation set out in Parts II and III of this Decision. In that respect, the objective of the association is to promote the cooperation between the OCTs and the outermost regions, referred to in Article 349 TFEU, their neighbouring ACP and non-ACP states and territoriesThe term territories means the 12 UK OCTs which were listed in Annex II to the TFEU at the time of the notification received by the European Council on 29 March 2017 of the UK’s withdrawal from the European Union and Euratom based on Article 50 TEU. . In order to achieve that objective, the Union shall improve coordination and synergies between the relevant Union programmes or instruments. The Union shall also endeavour to associate OCTs in its instances of dialogue with their neighbouring countries, whether they are ACP or non-ACP States or territories, and with the outermost regions, where appropriate. 4.The support to OCTs’ participation in relevant regional integration organisations shall focus in particular on: (a) capacity building of relevant regional organisations and institutions of which OCTs are members;(b) regional or sub-regional initiatives such as the implementation of sectoral reform policies relating to the areas of cooperation identified in Parts II and III;(c) the awareness and knowledge of the OCTs on the impacts of regional integration processes in different areas;(d) OCTs’ participation in the development of regional markets within the framework of regional integration organisations;(e) cross-border investment between OCTs and their neighbours.

Article 8 Article 8 Participation in European Groupings of Territorial Cooperation

Article 9 Article 9 Specific treatment 1.The association shall take into account the diversity of the OCTs in terms of economic development and their capacity to benefit fully from regional cooperation and regional integration referred to in Article 7. 2.A specific treatment shall be established for isolated OCTs. 3.In order to enable isolated OCTs to overcome structural and other obstacles to their development, specific treatment shall take account of their specific difficulties, inter alia , when determining the volume of financial assistance and the conditions attached thereto. 4.St Pierre et Miquelon shall be considered to be an isolated OCT.

Article 10 Article 10 General approach 1.The association shall be based on a broad dialogue and consultations on issues of mutual interest between the OCTs, the Member States to which they are linked and the Commission, and, if appropriate, the European Investment Bank (EIB), as well as other Union institutions and bodies. 2.The OCTs shall organise, where appropriate, a dialogue and consultations with authorities and bodies such as: (a) the competent local and other public authorities;(b) the economic and social partners;(c) any other appropriate body representing civil society, such as environmental partners, non-governmental organisations and bodies responsible for promoting equality between men and women.

Article 11 Article 11 Actors of cooperation 1.Actors of cooperation in the OCTs shall include: (a) the government authorities of the OCTs;(b) the local authorities within the OCTs;(c) public service providers and civil society organisations, such as social, business, employers’ and trade union associations, and local, national or international non-governmental organisations;(d) regional and sub-regional organisations. 2.The Member States to which the OCTs are linked shall notify to the Commission the names of the governmental and local authorities referred to in points (a) and (b) of paragraph 1.

Article 12 Article 12 Responsibilities of the non-governmental actors 1.Non-governmental actors may play a role in the exchange of information and consultations concerning the cooperation, and in particular for the preparation and implementation of cooperation assistance, projects or programmes. They may receive a delegation of financial management powers for implementing such projects or programmes for the purpose of supporting local development initiatives. 2.Non-governmental actors eligible for decentralised management of projects or programmes shall be identified by agreement between the OCT authorities, the Commission and the Member State to which the OCT is linked, taking into account the subject concerned, their expertise and field of activity. The process of identification shall be conducted in each OCT as part of the broad dialogue and consultations referred to in Article 10. 3.The association aims to contribute to the efforts of the OCTs to strengthen civil society organisations, in particular to facilitate their creation and development, and the development of the arrangements necessary for opening their involvement in the design, implementation and evaluation of development strategies and programmes.

Article 13 Article 13 Guiding principles for dialogue 1.The Union, the OCTs and the Member States to which they are linked shall regularly engage in a comprehensive and political dialogue. 2.The dialogue shall be conducted in full compliance with the respective institutional, legal and financial powers of the Union, of the OCTs and of the Member States to which they are linked. The dialogue shall be conducted in a flexible manner. It may be formal or informal, at an appropriate level or format and shall be conducted within the framework referred to in Article 14. 3.The dialogue shall enable the OCTs to take part fully in the implementation of the association. 4.The dialogue shall focus, inter alia , on specific political issues of mutual concern or of general significance for the attainment of the objectives of the association. 5.The dialogue with OCTs, including Greenland, shall, in particular, provide the basis for broad cooperation and dialogue in areas concerning, inter alia , education, energy, climate change, nature, environment, the blue economy, natural resources, including raw materials and fish stocks, maritime transport, research and innovation, as well as the Arctic dimension of those issues, where relevant.

Article 14 Article 14 Instances of dialogue of the association 1.The association shall establish the following instances of dialogue: (a) an OCTs-EU forum for dialogue (the OCTs-EU Forum), which shall meet annually to bring together OCTs’ authorities, representatives of the Member States and the Commission. Members of the European Parliament, representatives of the EIB and representatives of the outermost regions shall, where appropriate, be associated with the OCTs-EU Forum;(b) trilateral consultations between the Commission, the OCTs and the Member States to which they are linked, which shall be held on a regular basis. Those consultations shall be organised at least four times a year on the initiative of the Commission or at the request of OCTs and of the Member States to which they are linked. Member States will be informed about the results of the consultations appropriately;(c) working parties, acting in an advisory capacity, which shall be set up in agreement between the OCTs, the Member States to which they are linked and the Commission,, to follow the implementation of the association, in a form appropriate to the issues to be addressed. Those working parties may be convened at the request of the Commission, of a Member State or of an OCT. They shall provide for technical discussions on matters which are of specific concern to the OCTs and the Member States to which they are linked, complementing the work that is being done in the OCTs-EU Forum and/or in the trilateral consultations. 2.The Commission shall chair the OCTs-EU Forum, the trilateral consultations and the working parties and shall provide their secretariat. The working orientations of the trilateral consultations shall be jointly defined by the Commission, the OCTs and the Member States to which they are linked. The working orientations of the OCTs-EU Forum shall be jointly defined by the Commission, the OCTs, the Member States to which they are linked and other interested Member States.

Article 15 Article 15 General principles

Article 16 Article 16 Sustainable management and conservation of biodiversity and ecosystem services

Article 17 Article 17 Sustainable forest management

Article 18 Article 18 Integrated coastal zone management

Article 19 Article 19 Oceans 1.In the framework of the association, cooperation in the field of international ocean governance may concern: (a) the strengthening of the dialogue on issues of common interest in that field;(b) the promotion of marine knowledge and biotechnology, ocean energy, maritime surveillance, coastal zone management and ecosystem-based management, including through monitoring of marine ecosystems;(c) the promotion of integrated approaches at regional and international level;(d) the active promotion of good governance, best practices and responsible fisheries management in the conservation and sustainable management of fish stocks, including fish stocks of common interest and those managed by regional fisheries management organisations;(e) the local development of responsible fisheries processing industries;(f) dialogue and cooperation regarding the conservation of fish stocks, including through measures to fight illegal, unreported and unregulated fishing, and by effectively cooperating with and within regional fisheries management organisations, which shall include control and inspection schemes, incentives and obligations for a more effective management of fisheries and coastal environments in the long term. 2.In the context of the association, and while ensuring consistency and complementarity with existing Fisheries Partnership Agreements, cooperation referred to in points (d) and (f) of paragraph 1 shall be based on the following principles: (a) commitment to responsible fisheries management and fishing practices;(b) refraining from measures or activities that are inconsistent with the principles of sustainable exploitation of fisheries resources and sustainable local development;(c) taking into account existing or possible future bilateral Fisheries Partnership Agreements between the Union and the OCTs, the Union and the OCTs shall aim to regularly consult each other on the conservation and management of the living marine resources and to exchange information on the ongoing state of resources within the context of the relevant instances of dialogue as provided for in Article 14.

Article 20 Article 20 Sustainable water management 1.In the framework of the association, the Union and the OCTs may cooperate in the field of sustainable water management through water policy and institution building, protecting water resources, water supplies in rural and urban areas for domestic, industrial or agricultural purposes, storage, distribution and management of water resources, the reduction of water loss and the efficient use of water and waste water management. 2.In the field of water supply and sanitation sector, particular attention shall be given to access in under-served areas to clean and affordable drinking water supply and sanitation services and in those areas particularly exposed to natural disasters, which contribute directly to human resources development by improving the state of health and increasing productivity. 3.Cooperation in the fields referred to in paragraph 1 shall be guided by the principle that the continuing need to extend the provision of basic services in water and sanitation to both urban and rural populations must be addressed in environmentally sustainable ways. Priority shall be given to the development of active and climate-sensitive water resource management.

Article 21 Article 21 Waste management

Article 22 Article 22 Energy

Article 23 Article 23 Raw materials

Article 24 Article 24 Climate change

Article 25 Article 25 Disaster risk reduction

Article 26 Article 26 General objectives 1.In the framework of the association, cooperation in the field of accessibility shall aim to: (a) ensure greater access of OCTs to global transport networks; and(b) ensure greater access of OCTs to information and communication technologies (ICT) and services. 2.Cooperation as referred to in paragraph 1 may cover: (a) policy and institution building;(b) transport by road, rail, air, sea or inland waterway;(c) storage facilities in sea- and airports; and(d) security of supply for remote areas and isolated islands.

Article 27 Article 27 Maritime transport 1.In the framework of the association, cooperation in the field of maritime transport shall aim to the development and promotion of cost-effective and efficient maritime transport services in the OCTs and may concern: (a) the promotion of efficient and low-carbon shipments of cargo at economically and commercially viable rates;(b) the facilitation of greater participation of the OCTs in international shipping services;(c) the encouragement of regional programmes;(d) the support to local private sector involvement in shipping activities; and(e) the development of sustainable and resilient infrastructure. 2.The Union and the OCTs shall promote shipping safety, the security of crews and the prevention of pollution. 3.The Union and the OCTs shall promote maritime safety and security, protection of the marine environment, living and working conditions on board that are consistent with the relevant international conventions and Union legislation.

Article 28 Article 28 Air transport

Article 29 Article 29 Air transport safety and security

Article 30 Article 30 ICT services

Article 31 Article 31 Cooperation in research and innovation

Article 32 Article 32 Youth

Article 33 Article 33 Education and training 1.In the framework of the association, cooperation in the field of education and training may cover: (a) the provision of high quality, inclusive education at primary, secondary and higher education level and in the field of vocational education and training; and(b) the support to the OCTs in defining and implementing education and vocational training policies. 2.The Union shall ensure that educational bodies and institutes from OCTs can take part in education related cooperation initiatives of the Union on the same basis as the educational and vocational training bodies and institutes of the Member States.

Article 34 Article 34 Protection of the rights of the child 1.In the framework of the association, the Union shall ensure the comprehensive protection and promotion of the rights of the child in the OCTs, giving special attention to girls and boys who are disadvantaged, vulnerable and marginalised, to ensure that no child is left behind. 2.The association aims to take a life-cycle approach to child development to ensure that children’s rights and needs are recognised and realised in a gender- and age-appropriate way. It acknowledges that such an approach is critical for the transition into adulthood and for human development.

Article 35 Article 35 Employment and social policy 1.The Union and the OCTs shall maintain dialogue in the field of employment and social policy in order to contribute to the economic and social development of the OCTs and the promotion of decent work in the OCTs and regions where they are located. Such a dialogue shall also aim to support the efforts of the OCTs’ authorities to develop policies and legislation in this area, taking into account the dialogue established by the OCTs with the International Labour Organisation (ILO). 2.The dialogue in the field of employment and social policy shall mainly consist of exchange of information and best practices relating to policies and legislation in the area of employment and social policy that are of mutual interest to the Union and the OCTs. In that regard, areas such as skills development, social protection, social dialogue, equal opportunities, non-discrimination and accessibility for persons with disabilities, health and safety at work and other labour standards shall be taken into consideration.

Article 36 Article 36 Public health, food safety, and food and nutrition security

Article 37 Article 37 Cultural exchanges and dialogue 1.In the framework of the association, cooperation in the field of cultural exchanges and dialogue may cover: (a) the self-reliant development of the OCTs, this being a process centred on people themselves and rooted in each people’s culture;(b) the support to the policies and measures adopted by the competent authorities of OCTs to enhance their human resources, increase their own creative capacities and promote their cultural identities;(c) the participation by the population in the process of development;(d) the development of a common understanding and enhanced exchange of information on cultural and audio-visual matters through dialogue. 2.Through their cooperation, the Union and the OCTs shall seek to stimulate cultural exchanges between each other through: (a) cooperation between the cultural and creative sectors of all partners;(b) promotion of the circulation of cultural and creative works and operators between them;(c) policy cooperation in order to foster policy development, innovation, audience building and new business models.

Article 38 Article 38 Audio-visual cooperation 1.In the framework of the association, cooperation in the audio-visual field aims at promoting each other’s audio-visual productions and may cover the following actions: (a) cooperation and exchange between the respective broadcasting industries;(b) encouraging exchange of audio-visual works;(c) exchange of information and views on audio-visual and broadcasting policy and regulatory framework between competent authorities;(d) encouraging visits to and participation in international events held in each other’s territory as well as in third countries. 2.Co-produced audio-visual works shall be entitled to benefit from any scheme for the promotion of local or regional cultural content set up in the Union, the OCTs and the Member States to which they are linked.

Article 39 Article 39 Performing arts

Article 40 Article 40 Protection of cultural heritage and historic monuments

Article 41 Article 41 Tourism

Article 42 Article 42 Fight against organised crime, trafficking in human beings, child sexual abuse, sexual exploitation, gender-based violence, terrorism and corruption 1.In the framework of the association, cooperation in the field of organised crime may include: (a) the development of innovative and effective means of police and judicial cooperation, including cooperation with other stakeholders such as civil society and national human rights institutions, in the prevention of and fight against organised crime, trafficking in human beings, child sexual abuse, sexual exploitation, gender-based violence, terrorism and corruption; and(b) support in order to increase the efficiency of OCTs’ policies to prevent and fight against organised crime, trafficking in human beings, child sexual abuse, sexual exploitation, gender-based violence, terrorism and corruption, as well as the production, distribution and trafficking of all kinds of narcotic drugs and psychotropic substances, preventing and reducing drug use and drug-related harms, taking into account work carried out in those areas by international bodies, inter alia through:(i) training and capacity building in preventing and fighting organised crime, including trafficking in human beings, child sexual abuse, sexual exploitation, gender-based violence, terrorism and corruption;(ii) prevention including training, education and health promotion, treatment and rehabilitation of dependent drug users, including projects for the reintegration of dependent drug users into work and social environments;(iii) development of effective enforcement measures;(iv) technical, financial and administrative assistance in the development of effective policies and legislation on trafficking in human beings, in particular awareness raising campaigns, referral mechanisms and victim protection systems, involving all relevant stakeholders and civil society;(v) technical, financial and administrative assistance relating to the prevention, treatment and reduction of harm related to drug use;(vi) technical assistance to support the development of legislation and policy against child sexual abuse, sexual exploitation and gender-based violence; and(vii) technical assistance and training to support capacity building and encourage compliance with international anti-corruption standards notably those set out in the UN Convention against Corruption. 2.In the framework of the association, the OCTs shall cooperate with the Union as regards combatting money laundering and the financing of terrorism in accordance with Article 72.

Article 43 Article 43 Specific objectives

Article 44 Article 44 Free access for originating goods 1.Products originating in the OCTs shall be imported into the Union free of import duty. 2.The definition of originating products and the methods of administrative cooperation relating thereto are laid down in Annex II.

Article 45 Article 45 Quantitative restrictions and measures having equivalent effect 1.The Union shall not apply to imports of products originating in the OCTs any quantitative restrictions or measures having equivalent effect. 2.Paragraph 1 shall not preclude prohibitions or restrictions on imports, exports or goods in transit which are justified on grounds of public morality or public policy, the protection of health and life of humans, animals and plants, the protection of national treasures possessing artistic, historic or archaeological value, the conservation of exhaustible natural resources or the protection of industrial or commercial property. 3.Prohibitions or restrictions referred to in paragraph 2 shall in no case constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction of trade.

Article 46 Article 46 Measures adopted by the OCTs 1.The authorities of the OCTs may retain or introduce, in respect of imports of products originating in the Union, such customs duties or quantitative restrictions as they consider necessary in view of their respective development needs. 2.For the fields covered by this Chapter, the OCTs shall grant to the Union treatment no less favourable than the most favourable treatment applicable to any major trading economy as defined in paragraph 4. 3.Paragraph 2 shall not preclude an OCT from granting certain other OCTs or other developing countries more favourable treatment than that accorded to the Union. 4.For the purposes of this Title, a major trading economy means any developed country, or any country accounting for a share of world merchandise exports above one per cent, or, without prejudice to paragraph 3, any group of countries acting individually, collectively or through an economic integration agreement accounting collectively for a share of world merchandise exports above 1,5 %. For that calculation, the latest available official data by the WTO on leading exporters in world merchandise trade, excluding intra-Union trade, shall be used. 5.The authorities of the OCTs shall communicate to the Commission the customs tariffs and lists of quantitative restrictions which they apply in accordance with this Decision. The authorities of the OCTs shall also communicate to the Commission any subsequent amendments to such measures as and when they are adopted.

Article 47 Article 47 Non-discrimination 1.The Union shall not discriminate between OCTs and the OCTs shall not discriminate between Member States. 2.In accordance with Article 66, the implementation of the specific provisions in this Decision and in particular its Article 45(2), Articles 46 and 49, 50 and 52 and Article 59(3) shall not be deemed to constitute a discrimination.

Article 48 Article 48 Conditions for movements of waste 1.Movements of waste between the Member States and the OCTs shall be controlled in accordance with international law, in particular the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their DisposalOJ L 39, 16.2.1993, p. 3 . (Basel Convention), and Union law. The Union shall support the establishment and development of effective international cooperation in this area with a view to protecting the environment and public health. 2.As regards those OCTs which, due to their constitutional status, are not Party to the Basel Convention, their relevant authorities shall expedite adoption of the necessary internal legislation and administrative regulations to implement the Basel Convention in their respective territories. 3.The Member States to which OCTs are linked shall promote the adoption by the OCTs of the necessary internal legislation and administrative regulations to implement relevant Union law concerning waste and waste shipments. 4.An OCT and the Member State to which it is linked may apply their own procedures to the export of waste from the OCT to that Member State. In such cases, the Member State to which the OCT is linked shall notify to the Commission the applicable legislation as well as any subsequent amendments to such legislation.

Article 49 Article 49 Temporary withdrawal of preferences

Article 50 Article 50 Safeguard and surveillance measures

Article 51 Article 51 Definitions

Article 52 Article 52 Most favourable treatment 1.With respect to any measures affecting trade in services and establishment in economic activities: (a) the Union shall accord to natural and legal persons of the OCTs a treatment no less favourable than the most favourable treatment applicable to like natural and legal persons of any third country with whom the Union concludes or has concluded an economic integration agreement;(b) an OCT shall accord to the natural and legal persons of the Union a treatment no less favourable than the most favourable treatment applicable to like natural and legal persons of any major trading economy with which it has concluded an economic integration agreement after 1 January 2014 . 2.The obligations provided for in paragraph 1 shall not apply to treatment granted: (a) in the framework of an internal market or economic integration agreement requiring the parties thereto to significantly approximate their legislation with a view to removing non-discriminatory obstacles to establishment and to trade in services;(b) under measures providing for recognition of qualifications or licences. This is without prejudice to OCTs specific measures under this Article;(c) under any international agreement or arrangement relating wholly or mainly to taxation;(d) under measures benefitting from the coverage of a most-favoured nation exemption listed in accordance with Article II.2 of the GATS. 3.Nothing in this Decision shall prevent either the Union or the OCTs from adopting or maintaining measures for prudential reasons, including for: (a) the protection of investors, depositors, policy-holders or persons to whom a fiduciary duty is owed by a financial service supplier; or(b) to ensure the integrity and stability of a Party’s financial system. 4.The authorities of an OCT may with a view to promoting or supporting local employment, adopt regulations to aid their natural persons and local activities. In this event, the OCT authorities shall notify the Commission of the regulations they adopt so that it may inform the Member States thereof.

Article 53 Article 53 General approach

Article 54 Article 54 Environmental and climate change standards in trade 1.Trade and trade-related cooperation under the association aims to enhance the mutual supportiveness between trade and environmental policies and obligations. For those purposes, trade-related cooperation under the association shall take into account the principles of international environmental governance and multilateral environmental agreements. 2.Trade-related cooperation shall aim to support the ultimate objectives of the UNFCCC and the implementation of the Paris Agreement. It may also extend to cooperation on other trade-related multilateral environmental agreements, such as the Convention on International Trade in Endangered Species of Wild Fauna and FloraOJ L 75, 19.3.2015, p. 4 . .

Article 55 Article 55 Labour standards in trade 1.The association aims to promote trade in such a way that it is conducive to full and productive employment and decent work for all. 2.The internationally recognised core labour standards, as defined by the relevant ILO conventions, shall be respected and implemented. Such labour standards include, in particular, respect for freedom of association, right to collective bargaining, abolition of all forms of forced or compulsory labour, elimination of the worst forms of child labour, the minimum age for admission to employment and non-discrimination in respect to employment. The OCTs shall ensure effective labour inspection, effective measures for occupational safety and health, consistent with relevant ILO conventions and decent working conditions for all.

Article 56 Article 56 Sustainable trade in fisheries products

Article 57 Article 57 Sustainable timber trade

Article 58 Article 58 Trade and sustainable development 1.In the framework of the association, cooperation in the field of trade and sustainable development may be pursued by: (a) facilitating and promoting trade and investment in environmental goods and services including through the elaboration and implementation of local legislation, as well as in those goods that contribute to the improvement of social conditions in OCTs;(b) facilitating the removal of obstacles to trade or investment regarding goods and services of particular relevance for mitigation of climate change, such as sustainable renewable energy and energy efficient products and services, including through the adoption of policy frameworks conducive to the deployment of best available technologies and through the promotion of standards that respond to environmental and economic needs and minimise technical obstacles to trade;(c) promoting trade in goods that contribute to enhanced social conditions and environmentally sound practices, including goods that are the subject of voluntary sustainability assurance schemes such as fair and ethical trade schemes, eco-labels, and certification schemes for natural resource-based products;(d) promoting internationally recognised principles and guidelines in the area of responsible business conduct and corporate social responsibility, encouraging companies operating in the territory of OCTs to implement them and exchanging information and best practices;(e) promoting the United Nations 2030 Agenda for Sustainable Development and the implementation of the related SDGs. 2.In the design and implementation of measures aiming to protect the environment or labour conditions that may affect trade or investment, the Union and the OCTs shall take account of available scientific and technical information, and relevant international standards, guidelines or recommendations, including the precautionary principle. 3.The Union and the OCTs shall apply full transparency to develop, introduce and implement any measures aimed at protecting the environment and labour conditions affecting trade or investment.

Article 59 Article 59 Current payments and capital movements 1.No restrictions shall be imposed on any payments in freely convertible currency on the current account of balance of payments between residents of the Union and residents of the OCTs. 2.With regard to transactions on the capital account of balance of payments, the Member States and the OCTs authorities shall ensure free movement of capital relating to direct investments in companies formed in accordance with the laws of the host Member State, country or territory and shall ensure that the assets formed by such investment and any profit stemming therefrom can be realised and repatriated. 3.The Union and the OCTs shall be entitled to take the measures referred to in Articles 64, 65, 66, 75, 143, 144 and 215 TFEU in accordance with the conditions laid down therein mutatis mutandis . 4.The OCT authorities, the Member State concerned or the Union shall inform one another immediately of any such measures and submit a timetable for their elimination as soon as possible.

Article 60 Article 60 Competition policies

Article 61 Article 61 Protection of intellectual property rights 1.An adequate and effective level of protection of intellectual property rights, including means for enforcing such rights, shall be ensured in line with the highest international standards, where appropriate, with a view to reducing distortions and impediments to bilateral trade. 2.In the framework of the association, cooperation in this field may concern the preparation of laws and regulations for the protection and enforcement of intellectual property rights, the prevention of the abuse of such rights by right holders and of the infringement of such rights by competitors and support for regional intellectual property organisations involved in enforcement and protection, including the training of personnel.

Article 62 Article 62 Protection of Geographical Indications

Article 63 Article 63 Technical barriers to trade

Article 64 Article 64 Consumer policy, consumer health protection and trade

Article 65 Article 65 Sanitary and phyto-sanitary measures

Article 66 Article 66 Prohibition of protectionist measures

Article 67 Article 67 Tax carve out 1.Without prejudice to Article 68, the most favoured nation treatment granted in accordance with this Decision shall not apply to tax advantages which the Member States or OCTs authorities are providing or may provide in the future on the basis of agreements to avoid double taxation or other tax arrangements, or to domestic tax legislation in force. 2.Nothing in this Decision may be construed so as to prevent the adoption or enforcement of any measure to prevent tax fraud or avoidance or evasion of taxes pursuant to the tax provisions of agreements to avoid double taxation or other tax arrangements, or domestic tax legislation in force. 3.Nothing in this Decision shall be construed so as to prevent the respective competent authorities from distinguishing, in the application of the relevant provisions of their tax legislation, between taxpayers who are not in the same situation, in particular with regard to their place of residence, or with regard to the place where their capital is invested.

Article 68 Article 68 Tax and customs arrangements for Union-funded contracts 1.An OCT shall apply to contracts funded by the Union tax and customs arrangements no less favourable than those applied by them to the Member State to which the OCT is linked or to the states to which the most-favoured nation treatment is granted, or to international development organisations with which it has relations, whichever treatment is the most favourable. 2.Without prejudice to paragraph 1, the following arrangements shall apply to contracts financed by the Union: (a) the contract shall not be subject in the beneficiary OCT to stamp or registration duties or to fiscal charges having equivalent effect, whether such charges already exist or are to be instituted in the future; however, such contracts shall be registered in accordance with the legislation in force in that OCT and a fee corresponding to the service rendered may be charged for it;(b) profits and/or income arising from the performance of contracts shall be taxable according to the internal fiscal arrangements of the beneficiary OCT, provided that the natural persons or legal persons who realise such profit or such income have a permanent place of business in that OCT, or that the performance of the contract takes longer than six months;(c) natural persons or legal persons that must import equipment in order to carry out works contracts shall, if they so request, benefit from the system of temporary admission as laid down by the legislation in force in the beneficiary OCT in respect of that equipment;(d) professional equipment necessary for carrying out tasks defined in a service contract shall be temporarily admitted into the beneficiary OCT free of fiscal, import and customs duties and of other charges having equivalent effect where those duties and charges do not constitute remuneration for services rendered;(e) imports under supply contracts shall be admitted into the beneficiary OCT without customs duties, import duties, taxes or fiscal charges having equivalent effect. The contract for supplies originating in the OCT concerned shall be concluded on the basis of the ex-works price of the supplies, to which may be added such internal fiscal charges as may be applicable to those supplies in the OCT;(f) fuels, lubricants and hydrocarbon binders and all materials used in the performance of works contracts shall be deemed to have been purchased on the local market and shall be subject to fiscal rules applicable under the legislation in force in the beneficiary OCT;(g) personal and household effects imported for use by natural persons, other than those recruited locally, engaged in carrying out tasks defined in a service contract and members of their families, shall be exempt from customs or import duties, taxes and other fiscal charges having equivalent effect, within the limits of the legislation in force in the beneficiary OCT. 3.Any contractual matter not covered by paragraphs 1 and 2 shall remain subject to the legislation in force in the OCT concerned.

Article 69 Article 69 General approach

Article 70 Article 70 Trade dialogue, cooperation and capacity development

Article 71 Article 71 Cooperation on international financial services

Article 72 Article 72 International standards in financial services 1.The Union and the OCTs shall make their best endeavours to ensure that internationally agreed standards for regulation and supervision in the financial services sector and for the fight against tax evasion and avoidance are implemented and applied in their territory. Such internationally agreed standards are, inter alia, the Basel Committee’s Core Principle for Effective Banking Supervision, the International Association of Insurance Supervisors Insurance Core Principles, the International Organisation of Securities Commissions Objectives and Principles of Securities Regulation, the OECD’s Agreement on exchange of information on tax matters, the G20 Statement on Transparency and exchange of information for tax purposes, the Financial Stability Board’s Key Attributes of Effective Resolution Regimes for Financial Institutions. 2.The OCTs shall adopt or maintain a legal framework for the prevention of the use of their financial systems for the purpose of money laundering and the financing of terrorism, taking particular account of the instruments of international bodies active in this field, such as the Financial Action Task Force’s International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation - the FATF Recommendations. 3.Where the Commission issues Decisions authorising a Member State to conclude an agreement with an OCT for the transfer of funds between that OCT and the Member State to which it is linked, this transfer shall be treated as a transfer of funds within the Union under Regulation (EU) 2015/847 of the European Parliament and of the CouncilRegulation (EU) 2015/847 of the European Parliament and of the Council of 20 May 2015 on information accompanying transfers of funds and repealing Regulation (EC) No 1781/2006 (OJ L 141, 5.6.2015, p. 1 ). and that OCT shall comply with the terms of that Regulation. 4.This Article shall be without prejudice to Article 155 of the Financial Regulation.

Article 73 Article 73 Cooperation in taxation matters

Article 74 Article 74 Financial resources

Article 75 Article 75 Budget 1.The financial envelope for the implementation of the Programme for the period 2021-2027 shall be EUR 500000000 in current prices. 2.The indicative distribution of the amount referred to in paragraph 1 shall be detailed as set out in Annex I. 3.The amount referred to in paragraph 1 is without prejudice to the application of provisions providing for flexibility in Council Regulation (EU, Euratom) 2020/2093Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021 to 2027 (OJ L 433 I, 22.12.2020, p. 11 ). , Regulation (EU) 2021/947 and the Financial Regulation. 4.The cumulative net reflows stemming from the OCT Investment Facility set out in Article 3(3) of Annex IV of Decision 2013/755/EU shall constitute external assigned revenues to top-up the non-allocated fund referred to in Article 1(1)(e) of Annex I of this Decision, from the moment they become available. Without prejudice to the decisions to be taken with respect to the subsequent Multiannual Financial Frameworks, after 31 December 2027 , and until their depletion, the cumulative net reflows shall constitute contributions to the next OCT financial instrument which replaces this instrument.

Article 76 Article 76 Definitions

Article 77 Article 77 Principles of financial cooperation 1.Union financial assistance shall be based on the principles of partnership, ownership, alignment to territorial systems, complementarity and subsidiarity. 2.Operations funded within the framework of this Decision may take the form of programmable or non-programmable aid. 3.Union financial assistance shall: (a) be implemented with due regard to the OCTs’ respective geographical, social and cultural characteristics, as well as their specific potential;(b) ensure that resource flows are accorded on a predictable and regular basis;(c) be flexible and tailored to the situation in each OCT; and(d) be conducted in full compliance with the respective institutional, legal and financial powers of each of the partners. 4.The authorities of the OCT concerned shall be responsible for implementing operations without prejudice to the powers of the Commission to ensure sound financial management in the use of Union funds.

Article 78 Article 78 Subject matter and scope

Article 79 Article 79 Capacity development 1.Financial assistance may contribute among other things, to supporting the OCTs with developing the necessary capacities to define, implement and monitor territorial and/or regional strategies and actions in view of achieving the general objectives for the areas of cooperation mentioned in Parts II and III. 2.The Union shall support the efforts of the OCTs in developing reliable statistical data regarding those areas including to ensure the follow-up on the implementation of the SDGs. 3.The Union may support OCTs in their efforts to improve the comparability of their macroeconomic indicators, in particular to facilitate the analysis of OCTs’ GDPs.

Article 80 Article 80 Technical assistance 1.On the initiative of the Commission, Union financing may cover support expenditure for the implementation of this Decision and for the achievement of its objectives, including administrative support associated with the preparation, follow-up, monitoring, control, audit and evaluation activities necessary for such implementation, as well as expenditure at headquarters and Union delegations for the administrative support needed for the programme, and for the management of operations financed under this Decision, including information and communication actions, and corporate information and technology systems. 2.On the initiative of the OCTs, studies or technical assistance measures, including long-term support, may be financed in relation to the implementation of the activities scheduled in the programming documents. The Commission may decide to finance such action either from the programmable aid or from the envelope earmarked for technical cooperation measures.

Article 81 Article 81 General principle

Article 82 Article 82 Adoption of multiannual indicative programmes, action plans and measures

Article 83 Article 83 Eligibility for territorial financing 1.The OCTs’ public authorities shall be eligible for financial support provided for in this Decision. 2.Subject to the agreement of the authorities of the OCTs concerned, the following entities and bodies shall also be eligible for financial support provided for in this Decision: (a) local, national and regional public or semi-public agencies, departments or local authorities of the OCTs and in particular their financial institutions and development banks;(b) companies and businesses of the OCTs and of regional groups;(c) companies and businesses of a Member State, so as to enable them, in addition to their own contribution, to undertake productive projects in the territory of an OCT;(d) OCTs or Union financial intermediaries promoting and financing private investments in the OCTs; and(e) actors of decentralised cooperation and other non-governmental actors from OCTs and from the Union, to enable them to undertake economic, cultural, social and educational projects and programmes in the OCTs in the framework of decentralised cooperation, as referred to in Article 12.

Article 84 Article 84 Eligibility for regional financing 1.A regional allocation may be used for operations benefitting and involving: (a) two or more OCTs regardless of their location; or(b) the OCTs and the Union as a whole; or(c) two or more regional bodies of which OCTs are members; or(d) two or more OCTs regardless of their location and at least one of the following:(i) one or more outermost regions referred to in Article 349 TFEU;(ii) one or more ACP States and/or one or more non-ACP States or territoriesThe term territories means the 12 UK OCTs which were listed in Annex II to the TFEU at the time of the notification received by the European Council on 29 March 2017 of the UK’s withdrawal from the European Union and Euratom based on Article 50 TEU. ;(iii) one or more regional bodies or associations of which OCTs are members;(iv) one or more entities, authorities or other bodies from at least one OCT, being members of an EGTC in accordance with Article 8. For the purposes of points (a) and (d), the French Southern and Antarctic Lands, given their specific situation, shall be considered as two separate OCTs. 2.Within the regional allocation, an intra-regional allocation may be used for operations benefitting and involving: (a) one or more OCTs and at least one of the following:(i) one or more outermost regions referred to in Article 349 TFEU;(ii) one or more neighbouring ACP and/or non-ACP States or territories;(iii) one or more regional bodies of which OCTs, or ACP States or one or more of the outermost regions are members; or (b) one or more entities, authorities or other bodies from at least one OCT, being members of an EGTC, and one or more outermost regions and/or one or more neighbouring ACP and/or non-ACP States or territories. 3.The funding to enable participation of the ACP States, outermost regions and other countries and territories to OCT regional cooperation programmes shall be additional to funds allocated to the OCTs under this Decision. 4.The participation of ACP States, outermost regions and other countries or territories in programmes established pursuant to this Decision shall be envisaged only to the extent that: (a) equivalent provisions exist in the framework of relevant Union’s programmes or in the relevant funding programmes of third countries and territories not covered by Union programmes; and(b) the principle of proportionality is respected, taking into account the capacities of stakeholders, in particular their financial capacities under instruments of the Union for cooperation with other countries.

Article 85 Article 85 Eligibility for other Union programmes 1.Natural persons from an OCT and, where applicable, the relevant public and private bodies and institutions in an OCT, shall be eligible to participate in and for funding from Union programmes, such as InvestEU, subject to the rules and objectives of the programmes and possible arrangements applicable to the Member State to which the OCT is linked. 2.OCTs shall also be eligible for support under programmes and instruments of the Union for cooperation with other countries, such as Regulation (EU) 2021/947 and Council Regulation (EC) No 1257/96Council Regulation (EC) No 1257/96 of 20 June 1996 concerning humanitarian aid (OJ L 163, 2.7.1996, p. 1 ). , subject to the rules, objectives and arrangements of those programmes. 3.Where appropriate, the Commission shall encourage the access of OCTs to Union programmes, as well as programmes and instruments of the Union for cooperation with other countries. 4.The OCTs, with the support of relevant stakeholders, shall report to the Commission on their participation in the Union programmes, at mid-term and at the end of the period 2021 to 2027.

Article 86 Article 86 Reporting

Article 87 Article 87 Financial controls 1.OCTs shall bear primary responsibility for the financial supervision of the Union funds. That financial supervision shall be carried out, where appropriate, in coordination with the Member State to which the OCT is linked in accordance with the applicable national legislation. 2.The Commission shall be responsible for: (a) ensuring that management and control systems exist and function properly in the OCTs concerned so as to ensure that the Union funds are used correctly and effectively; and(b) in the event of irregularities, sending recommendations or requests for corrective measures to remedy those irregularities and rectify any management shortcomings found. 3.The Commission, the OCTs and, where appropriate, the Member State to which they are linked, shall cooperate on the basis of administrative arrangements at annual or biannual meetings to coordinate programmes, methodologies and the implementation of controls. 4.With regard to financial corrections: (a) the OCTs concerned shall be responsible in the first instance for detecting and correcting financial irregularities;(b) however, in the event of shortcomings by the OCT concerned, if the OCT fails to remedy the situation and attempts at conciliation are unsuccessful, the Commission shall take action to reduce or withdraw the balance of the overall allocation corresponding to the financing decision of the programming document.

Article 88 Article 88 Delegation of powers to the Commission 1.The Commission shall be empowered to adopt delegated acts in accordance with Article 89 in order to amend the procedural rules of origin and related definitions in Annex II and the Appendices of Annex II for the purpose of taking into account technological development and changes in customs and trade legislation. 2.To ensure effective assessment of progress of this Decision towards the achievement of its objectives, the Commission shall be empowered to adopt delegated acts in accordance with Article 89 in order to amend Article 3 of Annex I to review or complement the indicators where considered necessary and to supplement Annex I with provisions on the establishment of a monitoring and evaluation framework.

Article 89 Article 89 Exercise of the delegation 1.The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article. 2.The power to adopt delegated acts referred to in Article 88 shall be conferred on the Commission for a period of five years from 1 January 2021 . The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the five-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the Council opposes such extension not later than three months before the end of each period. 3.The delegation of power referred to in Article 88 may be revoked at any time by the Council. A decision to revoke shall put an end to the delegation of power specified in that Decision. It shall take effect on the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force. 4.Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making. 5.As soon as it adopts a delegated act, the Commission shall notify it to the Council. 6.A delegated act adopted pursuant to Article 88 shall enter into force only if no objection has been expressed by the Council within a period of two months of notification of the act to the Council or if, before the expiry of that period, the Council has informed the Commission that it will not object. That period shall be extended by two months at the initiative of the Council.

Article 90 Article 90 Committee procedure 1.The Commission shall be assisted by a committee (the OCT Committee). That committee shall be a committee within the meaning of Regulation (EU) No 182/2011. 2.For the purpose of Articles 10(6) and 16(8) of Annex II, the Commission shall be assisted by the Customs Code Committee established by Article 285(1) of Regulation (EU) No 952/2013 of the European Parliament and of the CouncilRegulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (OJ L 269, 10.10.2013, p. 1 ). . That committee shall be a committee within the meaning of Regulation (EU) No 182/2011. 3.For the purpose of Article 2 of Annex III and Article 5 and 6 of Annex IV, the Commission shall be assisted by the Committee established by Article 4(1) of Council Regulation (EC) No 260/2009Council Regulation (EC) No 260/2009 of 26 February 2009 on the common rules for imports (OJ L 84, 31.3.2009, p. 1 ). . That committee shall be a committee within the meaning of Regulation (EU) No 182/2011. 4.Where reference is made to this paragraph, Article 4 of Regulation (EU) No 182/2011 shall apply. 5.Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply. 6.Where reference is made to this paragraph, Article 8 of Regulation (EU) No 182/2011, in conjunction with Article 4 thereof, shall apply. 7.Where the opinion of the committee is to be obtained by a written procedure, the procedure shall be terminated without result when, within the time limit for delivery of the opinion, the chair of the committee so decides or a simple majority of committee members so requests.

Article 91 Article 91 Information, communication and publicity 1.The recipients of Union funding shall acknowledge the origin of those funds and ensure the visibility of the Union funding, in particular when promoting the actions and their results, by providing coherent, effective and proportionate targeted information to multiple audiences, including the media and the public. 2.The Commission shall implement information and communication actions relating to the Programme, and to actions taken pursuant to the Programme and to the results obtained. 3.Financial resources allocated to the Programme shall also contribute to the corporate communication of the political priorities of the Union, insofar as those priorities are related to the objectives laid down in Article 3.

Article 92 Article 92 European External Action Service clause

Article 93 Article 93 Repeal and transitional provisions 1.Decision 2013/755/EU is hereby repealed with effect from 1 January 2021 . 2.This Decision shall not affect the continuation or modification of actions initiated pursuant to Decision 2013/755/EU, which shall continue to apply to those actions until their closure. 3.The financial envelope for the Programme may also cover technical and administrative assistance expenses necessary to ensure the transition between the Programme and the measures adopted pursuant to Decision 2013/755/EU. 4.If necessary, appropriations may be entered in the Union budget beyond 2027 to cover the expenses provided for in Article 80 to enable the management of actions not completed by 31 December 2027 .

Article 94 Article 94 Entry into force

The association between the Union and the OCTs shall be based on objectives, principles and values shared by the OCTs, the Member States to which they are linked and the Union.

The partners recognise each other’s rights to determine their sustainable development policies and priorities, to establish their own levels of domestic environmental and labour protection, and to adopt or amend accordingly the relevant laws and modify the relevant policies, consistently with commitment to the internationally recognised standards and agreements. In doing so, they shall strive to ensure high levels of environmental and labour protection.

In implementing this Decision, the partners shall be guided by the principles of transparency, subsidiarity and the need for efficiency and shall equally address the three pillars of OCTs’ sustainable development, implementing the 2030 Agenda across all its internal and external policies in a comprehensive and strategic approach: economic development, cultural and social development and nature and environmental protection. Gender equality and the rights of girls and women should be mainstreamed into all actions as a key contribution to the successful achievement of the SDGs.

The general objective of this Decision is to promote the economic and social development of the OCTs and to establish close economic relations between them and the Union as a whole. The association shall pursue this general objective by enhancing the OCTs’ competitiveness, strengthening the OCTs’ resilience, reducing their economic and environmental vulnerability and by promoting cooperation between them and other partners. Furthermore, the aim of this Decision is to preserve the existing ties between the Union on the one hand, and Greenland and Denmark on the other, acknowledging the geostrategic position of Greenland in the Arctic, and to preserve existing ties between the Union and the other OCTs, acknowledging their geostrategic positions in the Caribbean, the Indian Ocean, the Atlantic and the Pacific.

In accordance with Articles 3(5) and 21 of the TEU, the specific objectives of this Decision are the following:

(a) to foster and support cooperation with OCTs, including in addressing their major challenges and reaching the SDGs,

(b) to support and to cooperate with Greenland in addressing its major challenges such as the raising of education level and to contribute to the capacity of the administration of Greenland to formulate and implement national policies.

In pursuing the general objectives referred to in paragraph 4 and the specific objectives referred to in paragraph 5, the association shall respect the fundamental principles of liberty, democracy, human rights and fundamental freedoms, the rule of law, good governance and sustainable development, all of which are common to the OCTs and the Member States to which they are linked.

Council Decision 2014/137/EU of 14 March 2014 on relations between the European Union on the one hand, and Greenland and the Kingdom of Denmark on the other (OJ L 76, 15.3.2014, p. 1 ).

Management of the association shall be conducted by the Commission and the OCTs’ authorities and, where necessary, by the Member State to which the OCT is linked, in accordance with their respective institutional, legal and financial competences.

OJ L 29, 1.2.1985, p. 1 .

The association shall be the framework for policy dialogue and cooperation on issues of mutual interest.

Priority shall be given to cooperation in areas of mutual interest, such as:

(a) the sustainable diversification of OCTs’ economies, including their further integration in world and regional economies; in the specific case of Greenland, the need to increase the skills of its labour force;

(b) fostering exchange, cooperation and partnerships for accelerating the achievement of the SDGs;

(c) education and training, public health, tourism and culture;

(d) the promotion of a green and blue economy;

(e) the sustainable management of natural resources, including the conservation and sustainable use of biodiversity and ecosystem services;

(f) mitigation of climate change and adaptation to the impacts of climate change;

(g) the promotion of disaster risk reduction;

(h) the promotion of research, innovation and scientific cooperation activities;

(i) digital accessibility;

(j) the promotion of social, cultural and economic exchanges between the OCTs, their neighbours and other partners;

(k) the social sector, mobility of the workforce, social protection systems, food safety and food security issues;

(l) Arctic issues;

(m) the development of regional cooperation in the Caribbean, the Indian Ocean, the Atlantic and the Pacific;

(n) the development of intraregional cooperation in the Arctic, the Caribbean, the Indian Ocean, the Atlantic and the Pacific.

Cooperation in the areas of mutual interest shall aim to promote OCTs’ self-reliance and of the development of OCTs’ capacities to formulate, implement and monitor strategies and policies set out in paragraph 2.

OJ L 282, 19.10.2016, p. 4 .

With an aim to strengthen their mutual relations, the Union and the OCTs shall endeavour to make the association known among their citizens, in particular by promoting the development of the links and cooperation between the authorities, academic community, civil society and businesses of OCTs on the one hand and their interlocutors within the Union on the other.

OCTs shall make efforts to strengthen and promote their relations with the Union as a whole. The Member States shall support these efforts.

The term territories means the 12 UK OCTs which were listed in Annex II to the TFEU at the time of the notification received by the European Council on 29 March 2017 of the UK’s withdrawal from the European Union and Euratom based on Article 50 TEU.

Subject to Article 3, the association shall support the OCTs in their efforts to take part in relevant international, regional and sub-regional cooperation initiatives as well as regional and sub-regional integration processes, in line with their own aspirations and in accordance with objectives and priorities defined by the competent OCTs’ authorities.

To this end, the Union and the OCTs may exchange information and best practices or establish any other form of close cooperation and coordination with other partners in the context of the OCTs’ participation in regional and international organisations, where appropriate by means of international agreements.

The association aims to support cooperation between the OCTs and other partners in the areas of cooperation set out in Parts II and III of this Decision. In that respect, the objective of the association is to promote the cooperation between the OCTs and the outermost regions, referred to in Article 349 TFEU, their neighbouring ACP and non-ACP states and territoriesThe term territories means the 12 UK OCTs which were listed in Annex II to the TFEU at the time of the notification received by the European Council on 29 March 2017 of the UK’s withdrawal from the European Union and Euratom based on Article 50 TEU. . In order to achieve that objective, the Union shall improve coordination and synergies between the relevant Union programmes or instruments. The Union shall also endeavour to associate OCTs in its instances of dialogue with their neighbouring countries, whether they are ACP or non-ACP States or territories, and with the outermost regions, where appropriate.

The support to OCTs’ participation in relevant regional integration organisations shall focus in particular on:

(a) capacity building of relevant regional organisations and institutions of which OCTs are members;

(b) regional or sub-regional initiatives such as the implementation of sectoral reform policies relating to the areas of cooperation identified in Parts II and III;

(c) the awareness and knowledge of the OCTs on the impacts of regional integration processes in different areas;

(d) OCTs’ participation in the development of regional markets within the framework of regional integration organisations;

(e) cross-border investment between OCTs and their neighbours.

Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European 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 (OJ L 433 I, 22.12.2020, p. 28 ).

In the application of Article 7(1), (2) and (3) of this Decision, the cooperation initiatives or other forms of cooperation shall also mean that governmental authorities, regional and sub-regional organisations, local authorities and, where appropriate, other public and private bodies or institutions, including public service providers, from an OCT may participate in a European Grouping of Territorial Cooperation (EGTC) subject to the rules and objectives of the cooperation activities of this Decision and those of Regulation (EC) No 1082/2006 of the European Parliament and of the CouncilRegulation (EC) No 1082/2006 of the European Parliament and of the Council of 5 July 2006 on a European grouping of territorial cooperation (EGTC) (OJ L 210, 31.7.2006, p. 19 ). and in accordance with the arrangements applicable to the Member State to which the OCT is linked.

Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1 ).

The association shall take into account the diversity of the OCTs in terms of economic development and their capacity to benefit fully from regional cooperation and regional integration referred to in Article 7.

A specific treatment shall be established for isolated OCTs.

In order to enable isolated OCTs to overcome structural and other obstacles to their development, specific treatment shall take account of their specific difficulties, inter alia , when determining the volume of financial assistance and the conditions attached thereto.

St Pierre et Miquelon shall be considered to be an isolated OCT.

Regulation (EU) 2021/947 of the European Parliament and of the Council of 9 June 2021 establishing the Neighbourhood, Development and International Cooperation Instrument – Global Europe, amending and repealing Decision No 466/2014/EU and repealing Regulation (EU) 2017/1601 and Council Regulation (EC, Euratom) No 480/2009 (OJ L 209, 14.6.2021, p. 1 ).

The association shall be based on a broad dialogue and consultations on issues of mutual interest between the OCTs, the Member States to which they are linked and the Commission, and, if appropriate, the European Investment Bank (EIB), as well as other Union institutions and bodies.

The OCTs shall organise, where appropriate, a dialogue and consultations with authorities and bodies such as:

(a) the competent local and other public authorities;

(b) the economic and social partners;

(c) any other appropriate body representing civil society, such as environmental partners, non-governmental organisations and bodies responsible for promoting equality between men and women.

OJ L 123, 12.5.2016, p. 1 .

Actors of cooperation in the OCTs shall include:

(a) the government authorities of the OCTs;

(b) the local authorities within the OCTs;

(c) public service providers and civil society organisations, such as social, business, employers’ and trade union associations, and local, national or international non-governmental organisations;

(d) regional and sub-regional organisations.

The Member States to which the OCTs are linked shall notify to the Commission the names of the governmental and local authorities referred to in points (a) and (b) of paragraph 1.

Council Decision 2010/427/EU of 26 July 2010 establishing the organisation and functioning of the European External Action Service (OJ L 201, 3.8.2010, p. 30 ).

Non-governmental actors may play a role in the exchange of information and consultations concerning the cooperation, and in particular for the preparation and implementation of cooperation assistance, projects or programmes. They may receive a delegation of financial management powers for implementing such projects or programmes for the purpose of supporting local development initiatives.

Non-governmental actors eligible for decentralised management of projects or programmes shall be identified by agreement between the OCT authorities, the Commission and the Member State to which the OCT is linked, taking into account the subject concerned, their expertise and field of activity. The process of identification shall be conducted in each OCT as part of the broad dialogue and consultations referred to in Article 10.

The association aims to contribute to the efforts of the OCTs to strengthen civil society organisations, in particular to facilitate their creation and development, and the development of the arrangements necessary for opening their involvement in the design, implementation and evaluation of development strategies and programmes.

Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13 ).

The Union, the OCTs and the Member States to which they are linked shall regularly engage in a comprehensive and political dialogue.

The dialogue shall be conducted in full compliance with the respective institutional, legal and financial powers of the Union, of the OCTs and of the Member States to which they are linked. The dialogue shall be conducted in a flexible manner. It may be formal or informal, at an appropriate level or format and shall be conducted within the framework referred to in Article 14.

The dialogue shall enable the OCTs to take part fully in the implementation of the association.

The dialogue shall focus, inter alia , on specific political issues of mutual concern or of general significance for the attainment of the objectives of the association.

The dialogue with OCTs, including Greenland, shall, in particular, provide the basis for broad cooperation and dialogue in areas concerning, inter alia , education, energy, climate change, nature, environment, the blue economy, natural resources, including raw materials and fish stocks, maritime transport, research and innovation, as well as the Arctic dimension of those issues, where relevant.

Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p. 1 ).

The association shall establish the following instances of dialogue:

(a) an OCTs-EU forum for dialogue (the OCTs-EU Forum), which shall meet annually to bring together OCTs’ authorities, representatives of the Member States and the Commission. Members of the European Parliament, representatives of the EIB and representatives of the outermost regions shall, where appropriate, be associated with the OCTs-EU Forum;

(b) trilateral consultations between the Commission, the OCTs and the Member States to which they are linked, which shall be held on a regular basis. Those consultations shall be organised at least four times a year on the initiative of the Commission or at the request of OCTs and of the Member States to which they are linked. Member States will be informed about the results of the consultations appropriately;

(c) working parties, acting in an advisory capacity, which shall be set up in agreement between the OCTs, the Member States to which they are linked and the Commission,, to follow the implementation of the association, in a form appropriate to the issues to be addressed. Those working parties may be convened at the request of the Commission, of a Member State or of an OCT. They shall provide for technical discussions on matters which are of specific concern to the OCTs and the Member States to which they are linked, complementing the work that is being done in the OCTs-EU Forum and/or in the trilateral consultations.

The Commission shall chair the OCTs-EU Forum, the trilateral consultations and the working parties and shall provide their secretariat. The working orientations of the trilateral consultations shall be jointly defined by the Commission, the OCTs and the Member States to which they are linked. The working orientations of the OCTs-EU Forum shall be jointly defined by the Commission, the OCTs, the Member States to which they are linked and other interested Member States.

Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests (OJ L 312, 23.12.95, p. 1 ).

In the framework of the association, cooperation in the field of nature, environment, climate change and disaster risk reduction may concern:

(a) support to the OCTs’ efforts to define and implement policies, strategies, action plans and measures;

(b) support to the OCTs’ efforts to integrate in regional, Union and global networks and initiatives;

(c) the promotion of sustainable use of resources and resource efficiency, and encouragement towards the decoupling of economic growth from environmental degradation; and

(d) support to the OCTs’ efforts to act as regional hubs and centres of excellence.

Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities’ financial interests against fraud and other irregularities (OJ L 292, 15.11.96, p. 2 ).

In the framework of the association, cooperation in the field of sustainable management and conservation of biodiversity, and ecosystem services may concern:

(a) the promotion of the establishment and effective management of marine and terrestrial protected areas and improved management of existing protected areas;

(b) the encouragement of sustainable management of marine and terrestrial resources, which contribute to protecting species, habitats and ecosystem functions outside protected areas, in particular, endangered, vulnerable and rare species;

(c) the strengthening of conservation and sustainable use of marine and terrestrial biodiversity and ecosystems by:(i) addressing the wider ecosystem challenge of climate change by maintaining healthy, resilient ecosystems and fostering green and blue infrastructure and ecosystem-based approaches to mitigation of and adaptation to climate change, which often produce multiple benefits;(ii) strengthening capacities at a local, regional or international scale, by promoting the exchange of information, knowledge, including indigenous, traditional and local knowledge, and best practices amongst all stakeholders including public authorities, landowners, private sector, researchers and civil society;(iii) strengthening existing nature conservation programmes and related efforts within and outside conservation areas;(iv) broadening the knowledge base and filling the knowledge gaps, including quantifying the value of ecosystem functions and services and developing long-term monitoring programmes of the development of species and ecosystems;

(i) addressing the wider ecosystem challenge of climate change by maintaining healthy, resilient ecosystems and fostering green and blue infrastructure and ecosystem-based approaches to mitigation of and adaptation to climate change, which often produce multiple benefits;

(ii) strengthening capacities at a local, regional or international scale, by promoting the exchange of information, knowledge, including indigenous, traditional and local knowledge, and best practices amongst all stakeholders including public authorities, landowners, private sector, researchers and civil society;

(iii) strengthening existing nature conservation programmes and related efforts within and outside conservation areas;

(iv) broadening the knowledge base and filling the knowledge gaps, including quantifying the value of ecosystem functions and services and developing long-term monitoring programmes of the development of species and ecosystems;

(d) the encouragement and facilitation of regional cooperation in order to address issues such as invasive alien species or the impacts of climate change and the sustainable conservation of oceans;

(e) the development of mechanisms to lever resources, including payments, for ecosystem services.

Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European Public Prosecutor’s Office (the EPPO) (OJ L 283, 31.10.2017, p. 1 ).

In the framework of the association, cooperation in the field of sustainable forest management may concern the promotion of the conservation and sustainable management of forests, including their role in the conservation of the environment from erosion and desertification control, afforestation and management of timber exports.

Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union's financial interests by means of criminal law (OJ L 198, 28.7.2017, p. 29 ).

In the framework of the association, cooperation in the field of integrated coastal zone management may concern:

(a) the support to the efforts of the OCTs towards an effective sustainable management of marine and coastal zones in defining strategic and integrated approaches to marine and coastal zone planning and management, including support for long-term monitoring programmes;

(b) conciliation of economic and social activities such as fisheries and aquaculture, tourism, maritime transports and agriculture with the potential of marine and coastal zones in terms of renewable energy, water resources, raw materials, whilst taking into account impacts of climate change and human activities.

Commission Implementing Regulation (EU) 2015/2447 of 24 November 2015 laying down detailed rules for implementing certain provisions of Regulation (EU) No 952/2013 of the European Parliament and of the Council laying down the Union Customs Code (OJ L 343, 29.12.2015, p. 558 ).

In the framework of the association, cooperation in the field of international ocean governance may concern:

(a) the strengthening of the dialogue on issues of common interest in that field;

(b) the promotion of marine knowledge and biotechnology, ocean energy, maritime surveillance, coastal zone management and ecosystem-based management, including through monitoring of marine ecosystems;

(c) the promotion of integrated approaches at regional and international level;

(d) the active promotion of good governance, best practices and responsible fisheries management in the conservation and sustainable management of fish stocks, including fish stocks of common interest and those managed by regional fisheries management organisations;

(e) the local development of responsible fisheries processing industries;

(f) dialogue and cooperation regarding the conservation of fish stocks, including through measures to fight illegal, unreported and unregulated fishing, and by effectively cooperating with and within regional fisheries management organisations, which shall include control and inspection schemes, incentives and obligations for a more effective management of fisheries and coastal environments in the long term.

In the context of the association, and while ensuring consistency and complementarity with existing Fisheries Partnership Agreements, cooperation referred to in points (d) and (f) of paragraph 1 shall be based on the following principles:

(a) commitment to responsible fisheries management and fishing practices;

(b) refraining from measures or activities that are inconsistent with the principles of sustainable exploitation of fisheries resources and sustainable local development;

(c) taking into account existing or possible future bilateral Fisheries Partnership Agreements between the Union and the OCTs, the Union and the OCTs shall aim to regularly consult each other on the conservation and management of the living marine resources and to exchange information on the ongoing state of resources within the context of the relevant instances of dialogue as provided for in Article 14.

The term territories means the 12 UK OCTs which were listed in Annex II to the TFEU at the time of the notification received by the European Council on 29 March 2017 of the UK’s withdrawal from the European Union and Euratom based on Article 50 TEU.

In the framework of the association, the Union and the OCTs may cooperate in the field of sustainable water management through water policy and institution building, protecting water resources, water supplies in rural and urban areas for domestic, industrial or agricultural purposes, storage, distribution and management of water resources, the reduction of water loss and the efficient use of water and waste water management.

In the field of water supply and sanitation sector, particular attention shall be given to access in under-served areas to clean and affordable drinking water supply and sanitation services and in those areas particularly exposed to natural disasters, which contribute directly to human resources development by improving the state of health and increasing productivity.

Cooperation in the fields referred to in paragraph 1 shall be guided by the principle that the continuing need to extend the provision of basic services in water and sanitation to both urban and rural populations must be addressed in environmentally sustainable ways. Priority shall be given to the development of active and climate-sensitive water resource management.

Regulation (EC) No 1082/2006 of the European Parliament and of the Council of 5 July 2006 on a European grouping of territorial cooperation (EGTC) (OJ L 210, 31.7.2006, p. 19 ).

In the framework of the association, cooperation in the field of waste management may concern the promotion of the use of the best environmental practice in all operations related to waste management. Such cooperation may also concern the reduction of waste, including ocean plastic waste, recycling or other processes of recovery, e.g. energy recovery and waste disposal.

OJ L 39, 16.2.1993, p. 3 .

In the framework of the association, cooperation in the field of sustainable energy may concern:

(a) sustainable energy production, distribution and access, in particular the development, promotion, use and storage of low-carbon energy from renewable energy sources;

(b) energy policies and regulations, in particular the formulation of policies and the adoption of regulations guaranteeing affordable and sustainable energy tariffs;

(c) energy efficiency, in particular the development and introduction of energy efficiency standards and the implementation of energy efficiency measures in different sectors, such as industrial, commercial, public and households, as well as accompanying educational and awareness activities;

(d) transport, in particular the development, promotion and use of more environmentally friendly public and private transport means such as hybrid, electric or hydrogen vehicles, carpooling and cycling schemes;

(e) town planning and construction, in particular the promotion and introduction of high environment quality standards and high energy performance in urban planning and construction; and

(f) tourism, in particular the promotion of energy self-sufficient (renewable energy based) and green tourism infrastructures.

OJ L 75, 19.3.2015, p. 4 .

In the framework of the association, cooperation in the field of raw materials, including rare earths, may concern the promotion of a raw material sector which is sustainable in respect of all operations related to mining and which aims to:

(a) support an efficient and optimal use of resources;

(b) promote responsible consumption and recycling;

(c) develop and strengthen environmental protection at local and regional level;

(d) support environmentally friendly handling and exploitation;

(e) strengthen capacities, training, innovation, research and business measures for raw material exploitation and extraction on a local, regional and national level, in accordance with international labour standards;

(f) support the sustainable management of socio-economic impacts of exploitation and extraction of raw materials;

(g) take into account the views of stakeholders involved in raw materials activities.

Regulation (EU) 2015/847 of the European Parliament and of the Council of 20 May 2015 on information accompanying transfers of funds and repealing Regulation (EC) No 1781/2006 (OJ L 141, 5.6.2015, p. 1 ).

In the framework of the association, cooperation in the field of climate change shall aim to support the initiatives of the OCTs concerning mitigation of climate change and adaptation to the adverse effects of climate change, and may cover:

(a) the development of evidence; identification of key risks and territorial, regional and/or international actions, plans, or measures in view of adapting to climate change or mitigating its adverse effects;

(b) contributing to partners countries’ efforts to pursue their commitments on climate change in line with the Paris Agreement;

(c) the integration of adaptation to climate change and its mitigation in public policies and strategies;

(d) the elaboration and identification of statistical data and indicators, essential tools for policy making and implementation; and

(e) the promotion of the participation of the OCTs in regional and international dialogue in order to foster cooperation, including exchange of knowledge and experience.

Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021 to 2027 (OJ L 433 I, 22.12.2020, p. 11 ).

In the framework of the association, cooperation in the field of disaster risk reduction may cover:

(a) the development or perfection of systems, including infrastructures, for disaster prevention and preparedness, including prediction and early-warning systems, with a view to reducing the consequences of disasters;

(b) the development of detailed knowledge of the exposure to disasters and the current response capacities in the OCTs and in the regions where they are located;

(c) the strengthening of existing measures of disaster prevention and preparation at local, national and regional levels;

(d) the improvement of response capacities of the actors concerned, to improve their coordination, effectiveness and efficiency;

(e) the improvement of awareness-raising amongst and access to information by the population regarding the exposure to risks, prevention, preparation and the response in the event of disaster, with due attention to the specific needs of persons with disabilities;

(f) the strengthening of collaboration between key actors involved in civil protection;

(g) the promotion of international disaster-risk reduction initiatives, such as the Sendai Framework for Disaster Risk Reduction 2015-2030; and

(h) the promotion of the participation of the OCTs in regional, European and international instances in order to allow a more regular exchange of information and closer cooperation among the different partners in the event of a disaster.

The term territories means the 12 UK OCTs which were listed in Annex II to the TFEU at the time of the notification received by the European Council on 29 March 2017 of the UK’s withdrawal from the European Union and Euratom based on Article 50 TEU.

In the framework of the association, cooperation in the field of accessibility shall aim to:

(a) ensure greater access of OCTs to global transport networks; and

(b) ensure greater access of OCTs to information and communication technologies (ICT) and services.

Cooperation as referred to in paragraph 1 may cover:

(a) policy and institution building;

(b) transport by road, rail, air, sea or inland waterway;

(c) storage facilities in sea- and airports; and

(d) security of supply for remote areas and isolated islands.

Council Regulation (EC) No 1257/96 of 20 June 1996 concerning humanitarian aid (OJ L 163, 2.7.1996, p. 1 ).

In the framework of the association, cooperation in the field of maritime transport shall aim to the development and promotion of cost-effective and efficient maritime transport services in the OCTs and may concern:

(a) the promotion of efficient and low-carbon shipments of cargo at economically and commercially viable rates;

(b) the facilitation of greater participation of the OCTs in international shipping services;

(c) the encouragement of regional programmes;

(d) the support to local private sector involvement in shipping activities; and

(e) the development of sustainable and resilient infrastructure.

The Union and the OCTs shall promote shipping safety, the security of crews and the prevention of pollution.

The Union and the OCTs shall promote maritime safety and security, protection of the marine environment, living and working conditions on board that are consistent with the relevant international conventions and Union legislation.

Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (OJ L 269, 10.10.2013, p. 1 ).

In the framework of the association, cooperation in the field of air transport may concern:

(a) the reform and modernisation of the OCTs’ air transport industries;

(b) the promotion of the commercial viability and competitiveness of the OCTs’ air transport industries;

(c) the facilitation of private sector investment and participation; and

(d) the promotion of the exchange of knowledge and good business practice, taking into account issues of sustainability and of mitigation of climate change.

Council Regulation (EC) No 260/2009 of 26 February 2009 on the common rules for imports (OJ L 84, 31.3.2009, p. 1 ).

In the framework of the association, cooperation in the fields of air transport safety and security shall aim to support the OCTs in their efforts to comply with the relevant Union and international standards and may cover inter alia:

(a) the implementation of the European aviation safety system and, where relevant, of international standards;

(b) the implementation of airport security and the strengthening of the capacity of civil aviation authorities to manage all aspects of operational security placed under their control; and

(c) the development of infrastructures and human resources.

In the framework of the association, cooperation in the field of ICT services shall aim to address the digital divide and spur, in the OCTs, digital accessibility, innovation, economic growth and improvements in daily life for both citizens and businesses, including the promotion of accessibility for persons with disabilities. Cooperation shall, in particular, be directed at enhancing OCTs’ regulatory capacity and may support the expansion of ICT networks and services, including adequate and reliable electronic communications networks, in order to ensure that citizens and businesses from OCTs can benefit from digital services, through the following measures:

(a) creation of a predictable regulatory environment that keeps pace with technological developments, stimulates growth and innovation and fosters competition and consumer protection;

(b) dialogue on the various policy aspects regarding the promotion and monitoring of the information society;

(c) exchange of information on standards and interoperability issues;

(d) promotion of cooperation in the field of ICT research and in the field of ICT-based research infrastructures;

(e) development of services and applications in fields of high societal impact;

(f) education and training, especially for young people.

In the framework of the association, cooperation in the field of research and innovation may cover science, energy, climate change, disaster resilience, natural resources including raw materials, and sustainable use of living resources.

It may also cover technology, including ICT, with the aim of contributing to the OCTs’ sustainable development and to promoting the OCTs’ role as regional hubs and centres of excellence as well as their industrial competitiveness. In particular, cooperation may concern:

(a) dialogue, coordination and the creation of synergies between OCTs and Union policies and initiatives with regard to science, technology and innovation;

(b) policy and institutional building within OCTs and concerted actions at local, national or regional level, with a view to developing science, technology and innovation activities and their application;

(c) cooperation between legal entities from the OCTs, the Union, the Member States and third countries;

(d) participation of individual researchers, research bodies and legal entities from OCTs in the European Framework Programmes for Research and Innovation and the Programme for the Competitiveness of Enterprises and small and medium size enterprises (COSME), also linking them to already supported activities of those programmes with the aim to ensure complementarity of activities; and

(e) training, international mobility and exchange of researchers from OCTs.

The association aims to strengthen the ties between young people living in the OCTs and the Union, including by promoting learning mobility of OCTs youth and by fostering mutual understanding among young people.

In the framework of the association, cooperation in the field of education and training may cover:

(a) the provision of high quality, inclusive education at primary, secondary and higher education level and in the field of vocational education and training; and

(b) the support to the OCTs in defining and implementing education and vocational training policies.

The Union shall ensure that educational bodies and institutes from OCTs can take part in education related cooperation initiatives of the Union on the same basis as the educational and vocational training bodies and institutes of the Member States.

In the framework of the association, the Union shall ensure the comprehensive protection and promotion of the rights of the child in the OCTs, giving special attention to girls and boys who are disadvantaged, vulnerable and marginalised, to ensure that no child is left behind.

The association aims to take a life-cycle approach to child development to ensure that children’s rights and needs are recognised and realised in a gender- and age-appropriate way. It acknowledges that such an approach is critical for the transition into adulthood and for human development.

The Union and the OCTs shall maintain dialogue in the field of employment and social policy in order to contribute to the economic and social development of the OCTs and the promotion of decent work in the OCTs and regions where they are located. Such a dialogue shall also aim to support the efforts of the OCTs’ authorities to develop policies and legislation in this area, taking into account the dialogue established by the OCTs with the International Labour Organisation (ILO).

The dialogue in the field of employment and social policy shall mainly consist of exchange of information and best practices relating to policies and legislation in the area of employment and social policy that are of mutual interest to the Union and the OCTs. In that regard, areas such as skills development, social protection, social dialogue, equal opportunities, non-discrimination and accessibility for persons with disabilities, health and safety at work and other labour standards shall be taken into consideration.

In the framework of the association, cooperation in the field of public health and food safety shall aim, inter alia , to reduce the burden of communicable and non-communicable diseases and, in particular, to develop, strengthen, and maintain the OCTs’ capacity for epidemiological surveillance, monitoring, early warning, risk assessment and response to serious cross-border health threats through measures including:

(a) actions to strengthen preparedness and response planning for health emergencies such as outbreaks of communicable diseases including through the implementation of the International Health Regulations (2005), ensure interoperability between the health sector and other sectors, and continuous delivery of critical services and products, and address challenges related to geographical remoteness;

(b) capacity building through strengthening public health networks at regional level, facilitating exchange of information among experts and promoting adequate training, including in the field of food safety;

(c) development of tools and communication platforms, including rapid alert systems, as well as e-learning programs adapted to OCTs’ particular needs;

(d) actions to prevent and reduce food related outbreaks, and address food safety and food and nutrition security issues;

(e) actions to reduce the burden of non-communicable diseases in the framework of achieving the SDGs.

In the framework of the association, cooperation in the field of cultural exchanges and dialogue may cover:

(a) the self-reliant development of the OCTs, this being a process centred on people themselves and rooted in each people’s culture;

(b) the support to the policies and measures adopted by the competent authorities of OCTs to enhance their human resources, increase their own creative capacities and promote their cultural identities;

(c) the participation by the population in the process of development;

(d) the development of a common understanding and enhanced exchange of information on cultural and audio-visual matters through dialogue.

Through their cooperation, the Union and the OCTs shall seek to stimulate cultural exchanges between each other through:

(a) cooperation between the cultural and creative sectors of all partners;

(b) promotion of the circulation of cultural and creative works and operators between them;

(c) policy cooperation in order to foster policy development, innovation, audience building and new business models.

In the framework of the association, cooperation in the audio-visual field aims at promoting each other’s audio-visual productions and may cover the following actions:

(a) cooperation and exchange between the respective broadcasting industries;

(b) encouraging exchange of audio-visual works;

(c) exchange of information and views on audio-visual and broadcasting policy and regulatory framework between competent authorities;

(d) encouraging visits to and participation in international events held in each other’s territory as well as in third countries.

Co-produced audio-visual works shall be entitled to benefit from any scheme for the promotion of local or regional cultural content set up in the Union, the OCTs and the Member States to which they are linked.

In the framework of the association, cooperation in the field of performing arts may cover:

(a) the facilitation of increased contacts between practitioners of performing arts in areas such as professional exchanges and training, including participation in auditions, development of networks and promotion of networking;

(b) the encouragement of joint productions between producers of one or several Member States of the Union and one or several OCTs; and

(c) the encouragement of the development of international theatre technology standards and the use of theatre stage signs, including through appropriate standardisation bodies.

In the framework of the association, cooperation in the field of tangible and intangible cultural heritage and of historic monuments aims at allowing the promotion of exchanges of expertise and best practices through:

(a) the facilitation of exchanges of experts;

(b) collaboration on professional training;

(c) the awareness of the local public; and

(d) counselling on the protection of the historic monuments and protected spaces and on the legislation and implementation of measures related to heritage, in particular its integration into local life.

In the framework of the association, cooperation in the field of tourism may cover:

(a) measures aiming to define, adapt and develop sustainable tourism policies;

(b) measures and operations to develop and support sustainable tourism;

(c) measures aiming to integrate sustainable tourism into the social, cultural and economic life of the citizens of the OCTs.

In the framework of the association, cooperation in the field of organised crime may include:

(a) the development of innovative and effective means of police and judicial cooperation, including cooperation with other stakeholders such as civil society and national human rights institutions, in the prevention of and fight against organised crime, trafficking in human beings, child sexual abuse, sexual exploitation, gender-based violence, terrorism and corruption; and

(b) support in order to increase the efficiency of OCTs’ policies to prevent and fight against organised crime, trafficking in human beings, child sexual abuse, sexual exploitation, gender-based violence, terrorism and corruption, as well as the production, distribution and trafficking of all kinds of narcotic drugs and psychotropic substances, preventing and reducing drug use and drug-related harms, taking into account work carried out in those areas by international bodies, inter alia through:(i) training and capacity building in preventing and fighting organised crime, including trafficking in human beings, child sexual abuse, sexual exploitation, gender-based violence, terrorism and corruption;(ii) prevention including training, education and health promotion, treatment and rehabilitation of dependent drug users, including projects for the reintegration of dependent drug users into work and social environments;(iii) development of effective enforcement measures;(iv) technical, financial and administrative assistance in the development of effective policies and legislation on trafficking in human beings, in particular awareness raising campaigns, referral mechanisms and victim protection systems, involving all relevant stakeholders and civil society;(v) technical, financial and administrative assistance relating to the prevention, treatment and reduction of harm related to drug use;(vi) technical assistance to support the development of legislation and policy against child sexual abuse, sexual exploitation and gender-based violence; and(vii) technical assistance and training to support capacity building and encourage compliance with international anti-corruption standards notably those set out in the UN Convention against Corruption.

(i) training and capacity building in preventing and fighting organised crime, including trafficking in human beings, child sexual abuse, sexual exploitation, gender-based violence, terrorism and corruption;

(ii) prevention including training, education and health promotion, treatment and rehabilitation of dependent drug users, including projects for the reintegration of dependent drug users into work and social environments;

(iii) development of effective enforcement measures;

(iv) technical, financial and administrative assistance in the development of effective policies and legislation on trafficking in human beings, in particular awareness raising campaigns, referral mechanisms and victim protection systems, involving all relevant stakeholders and civil society;

(v) technical, financial and administrative assistance relating to the prevention, treatment and reduction of harm related to drug use;

(vi) technical assistance to support the development of legislation and policy against child sexual abuse, sexual exploitation and gender-based violence; and

(vii) technical assistance and training to support capacity building and encourage compliance with international anti-corruption standards notably those set out in the UN Convention against Corruption.

In the framework of the association, the OCTs shall cooperate with the Union as regards combatting money laundering and the financing of terrorism in accordance with Article 72.

The objectives of trade and trade-related cooperation between the Union and the OCTs are to:

(a) promote the economic and social development of the OCTs by establishing close economic relations between the OCTs and the Union as a whole;

(b) stimulate the OCTs’ effective integration in the regional and world economies and the development of trade in goods and services;

(c) support OCTs in creating a favourable investment climate to support the social and economic development of OCTs;

(d) promote the stability, integrity and transparency of the global financial system and good governance in the area of tax;

(e) support the process of diversification of OCTs economies;

(f) support OCTs’ capacities to formulate and implement policies necessary for the development of their trade in goods and services;

(g) support OCTs’ export and trading capacities;

(h) support OCTs’ efforts to align or converge their local legislation with Union legislation, where relevant;

(i) provide possibilities for targeted cooperation and dialogue with the Union on trade and trade-related areas;

(j) encourage OCTs in expressing their views in the context of any relevant public consultation activities or any existing relevant tool linked to the design and impact assessment of the negotiation of free trade agreements by the Union; and

(k) where relevant, take account of the OCTs in impact analyses accompanying the launch and negotiation of free trade agreements by the Union.

Products originating in the OCTs shall be imported into the Union free of import duty.

The definition of originating products and the methods of administrative cooperation relating thereto are laid down in Annex II.

The Union shall not apply to imports of products originating in the OCTs any quantitative restrictions or measures having equivalent effect.

Paragraph 1 shall not preclude prohibitions or restrictions on imports, exports or goods in transit which are justified on grounds of public morality or public policy, the protection of health and life of humans, animals and plants, the protection of national treasures possessing artistic, historic or archaeological value, the conservation of exhaustible natural resources or the protection of industrial or commercial property.

Prohibitions or restrictions referred to in paragraph 2 shall in no case constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction of trade.

The authorities of the OCTs may retain or introduce, in respect of imports of products originating in the Union, such customs duties or quantitative restrictions as they consider necessary in view of their respective development needs.

For the fields covered by this Chapter, the OCTs shall grant to the Union treatment no less favourable than the most favourable treatment applicable to any major trading economy as defined in paragraph 4.

Paragraph 2 shall not preclude an OCT from granting certain other OCTs or other developing countries more favourable treatment than that accorded to the Union.

For the purposes of this Title, a major trading economy means any developed country, or any country accounting for a share of world merchandise exports above one per cent, or, without prejudice to paragraph 3, any group of countries acting individually, collectively or through an economic integration agreement accounting collectively for a share of world merchandise exports above 1,5 %. For that calculation, the latest available official data by the WTO on leading exporters in world merchandise trade, excluding intra-Union trade, shall be used.

The authorities of the OCTs shall communicate to the Commission the customs tariffs and lists of quantitative restrictions which they apply in accordance with this Decision. The authorities of the OCTs shall also communicate to the Commission any subsequent amendments to such measures as and when they are adopted.

The Union shall not discriminate between OCTs and the OCTs shall not discriminate between Member States.

In accordance with Article 66, the implementation of the specific provisions in this Decision and in particular its Article 45(2), Articles 46 and 49, 50 and 52 and Article 59(3) shall not be deemed to constitute a discrimination.

Movements of waste between the Member States and the OCTs shall be controlled in accordance with international law, in particular the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their DisposalOJ L 39, 16.2.1993, p. 3 . (Basel Convention), and Union law. The Union shall support the establishment and development of effective international cooperation in this area with a view to protecting the environment and public health.

As regards those OCTs which, due to their constitutional status, are not Party to the Basel Convention, their relevant authorities shall expedite adoption of the necessary internal legislation and administrative regulations to implement the Basel Convention in their respective territories.

The Member States to which OCTs are linked shall promote the adoption by the OCTs of the necessary internal legislation and administrative regulations to implement relevant Union law concerning waste and waste shipments.

An OCT and the Member State to which it is linked may apply their own procedures to the export of waste from the OCT to that Member State. In such cases, the Member State to which the OCT is linked shall notify to the Commission the applicable legislation as well as any subsequent amendments to such legislation.

Where the Commission considers that there are sufficient grounds to question whether this Decision is being correctly implemented, the Commission shall enter into consultations with the OCT and the Member State with which the OCT has special relations, in order to ensure the proper implementation of this Decision. If the consultations do not lead to a mutually acceptable way of implementing this Decision, the Union may temporarily withdraw preferences from the OCT concerned in accordance with Annex III.

In order to ensure the proper implementation of this Decision, the Union may take the safeguard and surveillance measures set out in Annex IV.

For the purposes of this Chapter, the following definitions apply:

(a) natural person from an OCT means a natural person ordinarily resident in an OCT who is a national of a Member State or who enjoys a legal status specific to an OCT. This definition is without prejudice to the rights conferred by citizenship of the Union within the meaning of Article 20 of the TFEU;

(b) legal person of an OCT means a legal person of an OCT set up in accordance with the laws applicable in that OCT, and having its registered office, its central administration, or its principal place of business in the territory in that OCT. Should the legal person have only its registered office or central administration in the OCT, it shall not be considered as a legal person of that OCT, unless it engages in an activity which has a real and continuous link with the economy of that OCT;

(c) the respective definitions laid down in the economic integration agreements referred to in Article 52(1) shall apply to the treatment accorded between the Union and the OCTs.

With respect to any measures affecting trade in services and establishment in economic activities:

(a) the Union shall accord to natural and legal persons of the OCTs a treatment no less favourable than the most favourable treatment applicable to like natural and legal persons of any third country with whom the Union concludes or has concluded an economic integration agreement;

(b) an OCT shall accord to the natural and legal persons of the Union a treatment no less favourable than the most favourable treatment applicable to like natural and legal persons of any major trading economy with which it has concluded an economic integration agreement after 1 January 2014 .

The obligations provided for in paragraph 1 shall not apply to treatment granted:

(a) in the framework of an internal market or economic integration agreement requiring the parties thereto to significantly approximate their legislation with a view to removing non-discriminatory obstacles to establishment and to trade in services;

(b) under measures providing for recognition of qualifications or licences. This is without prejudice to OCTs specific measures under this Article;

(c) under any international agreement or arrangement relating wholly or mainly to taxation;

(d) under measures benefitting from the coverage of a most-favoured nation exemption listed in accordance with Article II.2 of the GATS.

Nothing in this Decision shall prevent either the Union or the OCTs from adopting or maintaining measures for prudential reasons, including for:

(a) the protection of investors, depositors, policy-holders or persons to whom a fiduciary duty is owed by a financial service supplier; or

(b) to ensure the integrity and stability of a Party’s financial system.

The authorities of an OCT may with a view to promoting or supporting local employment, adopt regulations to aid their natural persons and local activities. In this event, the OCT authorities shall notify the Commission of the regulations they adopt so that it may inform the Member States thereof.

Trade and trade-related cooperation under the association aims to contribute to sustainable development in its economic, social and environmental dimensions. In this context, the domestic environmental or labour laws and regulations of OCTs shall not be lowered in order to encourage trade or investment.

Trade and trade-related cooperation under the association aims to enhance the mutual supportiveness between trade and environmental policies and obligations. For those purposes, trade-related cooperation under the association shall take into account the principles of international environmental governance and multilateral environmental agreements.

Trade-related cooperation shall aim to support the ultimate objectives of the UNFCCC and the implementation of the Paris Agreement. It may also extend to cooperation on other trade-related multilateral environmental agreements, such as the Convention on International Trade in Endangered Species of Wild Fauna and FloraOJ L 75, 19.3.2015, p. 4 . .

The association aims to promote trade in such a way that it is conducive to full and productive employment and decent work for all.

The internationally recognised core labour standards, as defined by the relevant ILO conventions, shall be respected and implemented. Such labour standards include, in particular, respect for freedom of association, right to collective bargaining, abolition of all forms of forced or compulsory labour, elimination of the worst forms of child labour, the minimum age for admission to employment and non-discrimination in respect to employment. The OCTs shall ensure effective labour inspection, effective measures for occupational safety and health, consistent with relevant ILO conventions and decent working conditions for all.

The association may include cooperation to promote the sustainable management of fish stocks, as well as to combat illegal, unreported and unregulated fishing and related trade. Cooperation in this field should aim to:

(a) facilitate cooperation between OCTs and regional fisheries management organisations, in particular with respect to the development and effective implementation of control and inspection schemes, incentives and measures for effective long term management of fisheries and marine ecosystems;

(b) promote the implementation of measures to combat illegal, unreported and unregulated fishing and related trade in OCTs.

In the framework of the association, cooperation in the field of timber trade aims to promote trade in legally harvested timber. Such cooperation may include dialogue on regulatory measures as well as exchange of information on market-based or voluntary measures such as forest certification or green procurement policies.

In the framework of the association, cooperation in the field of trade and sustainable development may be pursued by:

(a) facilitating and promoting trade and investment in environmental goods and services including through the elaboration and implementation of local legislation, as well as in those goods that contribute to the improvement of social conditions in OCTs;

(b) facilitating the removal of obstacles to trade or investment regarding goods and services of particular relevance for mitigation of climate change, such as sustainable renewable energy and energy efficient products and services, including through the adoption of policy frameworks conducive to the deployment of best available technologies and through the promotion of standards that respond to environmental and economic needs and minimise technical obstacles to trade;

(c) promoting trade in goods that contribute to enhanced social conditions and environmentally sound practices, including goods that are the subject of voluntary sustainability assurance schemes such as fair and ethical trade schemes, eco-labels, and certification schemes for natural resource-based products;

(d) promoting internationally recognised principles and guidelines in the area of responsible business conduct and corporate social responsibility, encouraging companies operating in the territory of OCTs to implement them and exchanging information and best practices;

(e) promoting the United Nations 2030 Agenda for Sustainable Development and the implementation of the related SDGs.

In the design and implementation of measures aiming to protect the environment or labour conditions that may affect trade or investment, the Union and the OCTs shall take account of available scientific and technical information, and relevant international standards, guidelines or recommendations, including the precautionary principle.

The Union and the OCTs shall apply full transparency to develop, introduce and implement any measures aimed at protecting the environment and labour conditions affecting trade or investment.

No restrictions shall be imposed on any payments in freely convertible currency on the current account of balance of payments between residents of the Union and residents of the OCTs.

With regard to transactions on the capital account of balance of payments, the Member States and the OCTs authorities shall ensure free movement of capital relating to direct investments in companies formed in accordance with the laws of the host Member State, country or territory and shall ensure that the assets formed by such investment and any profit stemming therefrom can be realised and repatriated.

The Union and the OCTs shall be entitled to take the measures referred to in Articles 64, 65, 66, 75, 143, 144 and 215 TFEU in accordance with the conditions laid down therein mutatis mutandis .

The OCT authorities, the Member State concerned or the Union shall inform one another immediately of any such measures and submit a timetable for their elimination as soon as possible.

With due consideration to their different levels of development and economic needs, the OCTs shall adopt, maintain or be subject to law or policies aiming to:

(a) prevent and prohibit horizontal and vertical agreements between undertakings, decisions by associations of undertakings and concerted practices which have as their object or effect the significant prevention, restriction or distortion of competition;

(b) prevent and prohibit abuses by one or more undertakings of a dominant position;

(c) prevent and prohibit concentrations between undertakings which would significantly impede effective competition, in particular as a result of the creation or strengthening of a dominant position; and

(d) transparency about the OCTs’ granting of subsidies regarding goods that have a significant negative effect on trade or investment between the Union and an OCT.

An adequate and effective level of protection of intellectual property rights, including means for enforcing such rights, shall be ensured in line with the highest international standards, where appropriate, with a view to reducing distortions and impediments to bilateral trade.

In the framework of the association, cooperation in this field may concern the preparation of laws and regulations for the protection and enforcement of intellectual property rights, the prevention of the abuse of such rights by right holders and of the infringement of such rights by competitors and support for regional intellectual property organisations involved in enforcement and protection, including the training of personnel.

The Union and the OCTs recognise the importance of Geographical Indications (GIs) for sustainable agriculture and rural development. They shall ensure the proper protection and enforcement of GIs and shall cooperate towards the further development of more effective GI systems. They shall also exchange information on legislative and policy developments on GIs.

The association may include cooperation in the fields of technical regulation for goods, standardisation, conformity assessment, accreditation, market surveillance and quality assurance with a view to removing unnecessary technical barriers to trade between the Union and the OCTs and to reduce differences in those areas.

In the framework of the association, cooperation in the field of consumer policy, consumer health protection and trade may include the preparation of laws and regulations in the area of consumer policy and consumer health protection, with a view to avoiding unnecessary barriers to trade.

In the framework of the association, cooperation in the field of sanitary and phyto-sanitary measures aims to:

(a) facilitate trade between the Union and the OCTs as a whole and between OCTs and third countries, whilst safeguarding human, animal and plant health or life in accordance with the WTO Agreement on the Application of Sanitary and Phytosanitary Measures (the WTO SPS Agreement);

(b) address trade-related issues arising from sanitary and phyto-sanitary measures;

(c) ensure transparency as regards sanitary and phyto-sanitary measures applicable to trade between the Union and the OCTs;

(d) promote the harmonisation of measures with international standards, in accordance with the WTO SPS Agreement;

(e) support the effective participation of OCTs in organisations that set international sanitary and phyto-sanitary standards;

(f) promote consultation and exchanges between OCTs and European institutes and laboratories;

(g) establish and enhance OCTs’ technical capacity to implement and monitor sanitary and phyto-sanitary measures;

(h) promote technology transfer and rapid exchange of information in the area of sanitary and phyto-sanitary measures.

The provisions of Chapter 1 and of this Chapter shall not be used as a means of arbitrary discrimination or a disguised restriction on trade.

Without prejudice to Article 68, the most favoured nation treatment granted in accordance with this Decision shall not apply to tax advantages which the Member States or OCTs authorities are providing or may provide in the future on the basis of agreements to avoid double taxation or other tax arrangements, or to domestic tax legislation in force.

Nothing in this Decision may be construed so as to prevent the adoption or enforcement of any measure to prevent tax fraud or avoidance or evasion of taxes pursuant to the tax provisions of agreements to avoid double taxation or other tax arrangements, or domestic tax legislation in force.

Nothing in this Decision shall be construed so as to prevent the respective competent authorities from distinguishing, in the application of the relevant provisions of their tax legislation, between taxpayers who are not in the same situation, in particular with regard to their place of residence, or with regard to the place where their capital is invested.

An OCT shall apply to contracts funded by the Union tax and customs arrangements no less favourable than those applied by them to the Member State to which the OCT is linked or to the states to which the most-favoured nation treatment is granted, or to international development organisations with which it has relations, whichever treatment is the most favourable.

Without prejudice to paragraph 1, the following arrangements shall apply to contracts financed by the Union:

(a) the contract shall not be subject in the beneficiary OCT to stamp or registration duties or to fiscal charges having equivalent effect, whether such charges already exist or are to be instituted in the future; however, such contracts shall be registered in accordance with the legislation in force in that OCT and a fee corresponding to the service rendered may be charged for it;

(b) profits and/or income arising from the performance of contracts shall be taxable according to the internal fiscal arrangements of the beneficiary OCT, provided that the natural persons or legal persons who realise such profit or such income have a permanent place of business in that OCT, or that the performance of the contract takes longer than six months;

(c) natural persons or legal persons that must import equipment in order to carry out works contracts shall, if they so request, benefit from the system of temporary admission as laid down by the legislation in force in the beneficiary OCT in respect of that equipment;

(d) professional equipment necessary for carrying out tasks defined in a service contract shall be temporarily admitted into the beneficiary OCT free of fiscal, import and customs duties and of other charges having equivalent effect where those duties and charges do not constitute remuneration for services rendered;

(e) imports under supply contracts shall be admitted into the beneficiary OCT without customs duties, import duties, taxes or fiscal charges having equivalent effect. The contract for supplies originating in the OCT concerned shall be concluded on the basis of the ex-works price of the supplies, to which may be added such internal fiscal charges as may be applicable to those supplies in the OCT;

(f) fuels, lubricants and hydrocarbon binders and all materials used in the performance of works contracts shall be deemed to have been purchased on the local market and shall be subject to fiscal rules applicable under the legislation in force in the beneficiary OCT;

(g) personal and household effects imported for use by natural persons, other than those recruited locally, engaged in carrying out tasks defined in a service contract and members of their families, shall be exempt from customs or import duties, taxes and other fiscal charges having equivalent effect, within the limits of the legislation in force in the beneficiary OCT.

Any contractual matter not covered by paragraphs 1 and 2 shall remain subject to the legislation in force in the OCT concerned.

With a view to ensuring that OCTs derive the maximum benefit from this Decision and that they may participate under the best possible conditions in the Union’s internal market as well as regional, sub-regional and international markets, the association aims to contribute to the development of the OCTs’ trade capacities by:

(a) increasing the OCTs’ competitiveness, self-reliance and economic resilience, through diversifying the range and increasing the value and volume of OCTs trade in goods and services and by strengthening the OCTs’ ability to attract private investments in various sectors of economic activity;

(b) improving cooperation in trade in goods, services and establishment between the OCTs and neighbouring countries.

In the framework of the association, trade dialogue, cooperation and capacity development initiatives may include:

(a) strengthening the OCTs’ capacities to define and implement policies necessary for the development of trade in goods and services;

(b) encouraging the efforts of OCTs to put in place appropriate legal, regulatory and institutional frameworks as well as the necessary administrative procedures;

(c) promoting private sector development, in particular SMEs;

(d) facilitating market and product development, including product quality improvement;

(e) contributing to the development of human resources and professional skills relevant to trade in goods and services;

(f) enhancing the capacity of business intermediaries to provide OCTs enterprises services pertinent to their exporting activities, such as market intelligence;

(g) contributing to the creation of a business climate conducive to investment.

With a view to promoting the stability, integrity and transparency of the global financial system, the association may include cooperation on international financial services. Such cooperation may cover:

(a) the provision of effective and adequate protection of investors and other consumers of financial services;

(b) the prevention and combat of money laundering and financing of terrorism;

(c) the promotion of cooperation between different actors of the financial system, including regulators and supervisors;

(d) the setup of independent and effective mechanisms for the supervision of financial services.

The Union and the OCTs shall make their best endeavours to ensure that internationally agreed standards for regulation and supervision in the financial services sector and for the fight against tax evasion and avoidance are implemented and applied in their territory. Such internationally agreed standards are, inter alia, the Basel Committee’s Core Principle for Effective Banking Supervision, the International Association of Insurance Supervisors Insurance Core Principles, the International Organisation of Securities Commissions Objectives and Principles of Securities Regulation, the OECD’s Agreement on exchange of information on tax matters, the G20 Statement on Transparency and exchange of information for tax purposes, the Financial Stability Board’s Key Attributes of Effective Resolution Regimes for Financial Institutions.

The OCTs shall adopt or maintain a legal framework for the prevention of the use of their financial systems for the purpose of money laundering and the financing of terrorism, taking particular account of the instruments of international bodies active in this field, such as the Financial Action Task Force’s International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation - the FATF Recommendations.

Where the Commission issues Decisions authorising a Member State to conclude an agreement with an OCT for the transfer of funds between that OCT and the Member State to which it is linked, this transfer shall be treated as a transfer of funds within the Union under Regulation (EU) 2015/847 of the European Parliament and of the CouncilRegulation (EU) 2015/847 of the European Parliament and of the Council of 20 May 2015 on information accompanying transfers of funds and repealing Regulation (EC) No 1781/2006 (OJ L 141, 5.6.2015, p. 1 ). and that OCT shall comply with the terms of that Regulation.

This Article shall be without prejudice to Article 155 of the Financial Regulation.

The Union and the OCTs shall recognise and commit themselves to effectively implement the principles of good governance in the tax area, including the global standards on transparency and exchange of information, fair taxation and the minimum standards against Base Erosion and Profit Shifting. They will promote good governance in tax matters, improve international cooperation in the tax area and facilitate the collection of tax revenues.

The Union shall contribute to the achievement of the association’s overall objectives through the provision of:

(a) adequate financial resources and appropriate technical assistance aimed at strengthening the OCTs’ capacities to formulate and implement strategic and regulatory frameworks;

(b) long term financing to promote private sector growth;

(c) where appropriate, other Union programmes may contribute to actions established under this Decision, provided that the contributions do not cover the same costs. This Decision may also contribute to measures established under other Union programmes, provided that the contributions do not cover the same costs. In such cases, the work programme covering those actions shall establish which set of rules shall be applicable.

The financial envelope for the implementation of the Programme for the period 2021-2027 shall be EUR 500000000 in current prices.

The indicative distribution of the amount referred to in paragraph 1 shall be detailed as set out in Annex I.

The amount referred to in paragraph 1 is without prejudice to the application of provisions providing for flexibility in Council Regulation (EU, Euratom) 2020/2093Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021 to 2027 (OJ L 433 I, 22.12.2020, p. 11 ). , Regulation (EU) 2021/947 and the Financial Regulation.

The cumulative net reflows stemming from the OCT Investment Facility set out in Article 3(3) of Annex IV of Decision 2013/755/EU shall constitute external assigned revenues to top-up the non-allocated fund referred to in Article 1(1)(e) of Annex I of this Decision, from the moment they become available. Without prejudice to the decisions to be taken with respect to the subsequent Multiannual Financial Frameworks, after 31 December 2027 , and until their depletion, the cumulative net reflows shall constitute contributions to the next OCT financial instrument which replaces this instrument.

For the purposes of this Part, the following definitions apply:

(a) programmable aid means the non-repayable aid allocated to the OCTs in order to finance territorial, regional and intra-regional strategies when applicable or priorities set out in programming documents;

(b) programming means the process of organisation, decision-making and allocation of indicative financial resources intended to implement, on a multi-annual basis and in an area referred to in Part II, the action to achieve the association’s objectives for the sustainable development of the OCTs;

(c) programming document means the document which sets out the OCT’s strategy, priorities and arrangements and translates the objectives and targets of the OCT for its sustainable development in an effective and efficient way to pursue the objectives of the association;

(d) development plans means a coherent set of operations defined and financed exclusively by the OCTs in the framework of their own policies and strategies of development, and those agreed upon between an OCT and the Member State to which it is linked;

(e) territorial allocation means the amount allocated to individual OCTs for the programmable aid in order to finance territorial strategies and priorities set out in programming documents;

(f) regional allocation means the amount allocated in accordance with Article 84(1) for the programmable aid in order to finance regional cooperation strategies or priorities as set out in programming documents;

(g) intra-regional allocation means an amount, within the regional allocation, allocated in accordance with Article 84(2) for the programmable aid in order to finance intra-regional cooperation strategies and priorities as set out in programming documents.

Union financial assistance shall be based on the principles of partnership, ownership, alignment to territorial systems, complementarity and subsidiarity.

Operations funded within the framework of this Decision may take the form of programmable or non-programmable aid.

Union financial assistance shall:

(a) be implemented with due regard to the OCTs’ respective geographical, social and cultural characteristics, as well as their specific potential;

(b) ensure that resource flows are accorded on a predictable and regular basis;

(c) be flexible and tailored to the situation in each OCT; and

(d) be conducted in full compliance with the respective institutional, legal and financial powers of each of the partners.

The authorities of the OCT concerned shall be responsible for implementing operations without prejudice to the powers of the Commission to ensure sound financial management in the use of Union funds.

Within the framework of the strategy and priorities established by the OCT concerned at local or regional level, financial support may be given to the following:

(1) sector policies and reforms as well as projects that are in coherence with them;

(2) institutional development, capacity building and integration of environmental aspects; and

(3) technical assistance.

Financial assistance may contribute among other things, to supporting the OCTs with developing the necessary capacities to define, implement and monitor territorial and/or regional strategies and actions in view of achieving the general objectives for the areas of cooperation mentioned in Parts II and III.

The Union shall support the efforts of the OCTs in developing reliable statistical data regarding those areas including to ensure the follow-up on the implementation of the SDGs.

The Union may support OCTs in their efforts to improve the comparability of their macroeconomic indicators, in particular to facilitate the analysis of OCTs’ GDPs.

On the initiative of the Commission, Union financing may cover support expenditure for the implementation of this Decision and for the achievement of its objectives, including administrative support associated with the preparation, follow-up, monitoring, control, audit and evaluation activities necessary for such implementation, as well as expenditure at headquarters and Union delegations for the administrative support needed for the programme, and for the management of operations financed under this Decision, including information and communication actions, and corporate information and technology systems.

On the initiative of the OCTs, studies or technical assistance measures, including long-term support, may be financed in relation to the implementation of the activities scheduled in the programming documents. The Commission may decide to finance such action either from the programmable aid or from the envelope earmarked for technical cooperation measures.

Unless otherwise specified in this Decision, Union financial assistance shall be implemented in accordance with this Decision, the Financial Regulation, and, as appropriate, the following chapters of Title II of Regulation (EU) 2021/947:

Chapter I with the exception of Articles 10, 11, 13, 14(3), 14(4), 15, Article 16(1) to (4), and Article 17,

Chapter III with the exception of Articles 25(1), 25(2)(a), (b) and (c) and 25(3), and

Chapter V with the exception of Articles 41(1), 41(4), 41(6), 41(7), 41(9) and 42(4).

The Commission shall adopt, under this Decision, in the form of single programming documents, multiannual indicative programmes as referred to in Article 14 of Regulation (EU) 2021/947.

The single programming documents may take into account the territorial development plans or other plans agreed upon between the OCTs and the Member States to which they are linked.

The single programming documents shall be adopted in accordance with the examination procedure referred to in Article 90(5) of this Decision. That procedure shall also apply to reviews which have the effect of significantly modifying the content of the multiannual indicative programme.

Action plans and measures as referred to in Article 23 of Regulation (EU) 2021/947 may be adopted separately from the multiannual indicative programmes and shall be adopted in accordance with the examination procedure referred to in Article 90(5) of this Decision. That procedure shall not apply to cases referred to in point (d) of paragraph 2 of Article 25 of Regulation (EU) 2021/947.

The OCTs’ public authorities shall be eligible for financial support provided for in this Decision.

Subject to the agreement of the authorities of the OCTs concerned, the following entities and bodies shall also be eligible for financial support provided for in this Decision:

(a) local, national and regional public or semi-public agencies, departments or local authorities of the OCTs and in particular their financial institutions and development banks;

(b) companies and businesses of the OCTs and of regional groups;

(c) companies and businesses of a Member State, so as to enable them, in addition to their own contribution, to undertake productive projects in the territory of an OCT;

(d) OCTs or Union financial intermediaries promoting and financing private investments in the OCTs; and

(e) actors of decentralised cooperation and other non-governmental actors from OCTs and from the Union, to enable them to undertake economic, cultural, social and educational projects and programmes in the OCTs in the framework of decentralised cooperation, as referred to in Article 12.

A regional allocation may be used for operations benefitting and involving:

(a) two or more OCTs regardless of their location; or

(b) the OCTs and the Union as a whole; or

(c) two or more regional bodies of which OCTs are members; or

(d) two or more OCTs regardless of their location and at least one of the following:(i) one or more outermost regions referred to in Article 349 TFEU;(ii) one or more ACP States and/or one or more non-ACP States or territoriesThe term territories means the 12 UK OCTs which were listed in Annex II to the TFEU at the time of the notification received by the European Council on 29 March 2017 of the UK’s withdrawal from the European Union and Euratom based on Article 50 TEU. ;(iii) one or more regional bodies or associations of which OCTs are members;(iv) one or more entities, authorities or other bodies from at least one OCT, being members of an EGTC in accordance with Article 8.

(i) one or more outermost regions referred to in Article 349 TFEU;

(ii) one or more ACP States and/or one or more non-ACP States or territoriesThe term territories means the 12 UK OCTs which were listed in Annex II to the TFEU at the time of the notification received by the European Council on 29 March 2017 of the UK’s withdrawal from the European Union and Euratom based on Article 50 TEU. ;

(iii) one or more regional bodies or associations of which OCTs are members;

(iv) one or more entities, authorities or other bodies from at least one OCT, being members of an EGTC in accordance with Article 8.

For the purposes of points (a) and (d), the French Southern and Antarctic Lands, given their specific situation, shall be considered as two separate OCTs.

Within the regional allocation, an intra-regional allocation may be used for operations benefitting and involving:

(a) one or more OCTs and at least one of the following:(i) one or more outermost regions referred to in Article 349 TFEU;(ii) one or more neighbouring ACP and/or non-ACP States or territories;(iii) one or more regional bodies of which OCTs, or ACP States or one or more of the outermost regions are members; or

(i) one or more outermost regions referred to in Article 349 TFEU;

(ii) one or more neighbouring ACP and/or non-ACP States or territories;

(iii) one or more regional bodies of which OCTs, or ACP States or one or more of the outermost regions are members; or

(b) one or more entities, authorities or other bodies from at least one OCT, being members of an EGTC, and one or more outermost regions and/or one or more neighbouring ACP and/or non-ACP States or territories.

The funding to enable participation of the ACP States, outermost regions and other countries and territories to OCT regional cooperation programmes shall be additional to funds allocated to the OCTs under this Decision.

The participation of ACP States, outermost regions and other countries or territories in programmes established pursuant to this Decision shall be envisaged only to the extent that:

(a) equivalent provisions exist in the framework of relevant Union’s programmes or in the relevant funding programmes of third countries and territories not covered by Union programmes; and

(b) the principle of proportionality is respected, taking into account the capacities of stakeholders, in particular their financial capacities under instruments of the Union for cooperation with other countries.

Natural persons from an OCT and, where applicable, the relevant public and private bodies and institutions in an OCT, shall be eligible to participate in and for funding from Union programmes, such as InvestEU, subject to the rules and objectives of the programmes and possible arrangements applicable to the Member State to which the OCT is linked.

OCTs shall also be eligible for support under programmes and instruments of the Union for cooperation with other countries, such as Regulation (EU) 2021/947 and Council Regulation (EC) No 1257/96Council Regulation (EC) No 1257/96 of 20 June 1996 concerning humanitarian aid (OJ L 163, 2.7.1996, p. 1 ). , subject to the rules, objectives and arrangements of those programmes.

Where appropriate, the Commission shall encourage the access of OCTs to Union programmes, as well as programmes and instruments of the Union for cooperation with other countries.

The OCTs, with the support of relevant stakeholders, shall report to the Commission on their participation in the Union programmes, at mid-term and at the end of the period 2021 to 2027.

The Commission shall examine the progress made in implementing the financial assistance provided to the OCTs under this Decision and shall submit a report to the Council every year starting in 2022 on the implementation and results of that financial cooperation. The report shall also be sent to the European Parliament, the European Economic and Social Committee and the Committee of the Regions.

OCTs shall bear primary responsibility for the financial supervision of the Union funds. That financial supervision shall be carried out, where appropriate, in coordination with the Member State to which the OCT is linked in accordance with the applicable national legislation.

The Commission shall be responsible for:

(a) ensuring that management and control systems exist and function properly in the OCTs concerned so as to ensure that the Union funds are used correctly and effectively; and

(b) in the event of irregularities, sending recommendations or requests for corrective measures to remedy those irregularities and rectify any management shortcomings found.

The Commission, the OCTs and, where appropriate, the Member State to which they are linked, shall cooperate on the basis of administrative arrangements at annual or biannual meetings to coordinate programmes, methodologies and the implementation of controls.

With regard to financial corrections:

(a) the OCTs concerned shall be responsible in the first instance for detecting and correcting financial irregularities;

(b) however, in the event of shortcomings by the OCT concerned, if the OCT fails to remedy the situation and attempts at conciliation are unsuccessful, the Commission shall take action to reduce or withdraw the balance of the overall allocation corresponding to the financing decision of the programming document.

The Commission shall be empowered to adopt delegated acts in accordance with Article 89 in order to amend the procedural rules of origin and related definitions in Annex II and the Appendices of Annex II for the purpose of taking into account technological development and changes in customs and trade legislation.

To ensure effective assessment of progress of this Decision towards the achievement of its objectives, the Commission shall be empowered to adopt delegated acts in accordance with Article 89 in order to amend Article 3 of Annex I to review or complement the indicators where considered necessary and to supplement Annex I with provisions on the establishment of a monitoring and evaluation framework.

The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.

The power to adopt delegated acts referred to in Article 88 shall be conferred on the Commission for a period of five years from 1 January 2021 . The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the five-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the Council opposes such extension not later than three months before the end of each period.

The delegation of power referred to in Article 88 may be revoked at any time by the Council. A decision to revoke shall put an end to the delegation of power specified in that Decision. It shall take effect on the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making.

As soon as it adopts a delegated act, the Commission shall notify it to the Council.

A delegated act adopted pursuant to Article 88 shall enter into force only if no objection has been expressed by the Council within a period of two months of notification of the act to the Council or if, before the expiry of that period, the Council has informed the Commission that it will not object. That period shall be extended by two months at the initiative of the Council.

The Commission shall be assisted by a committee (the OCT Committee). That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

For the purpose of Articles 10(6) and 16(8) of Annex II, the Commission shall be assisted by the Customs Code Committee established by Article 285(1) of Regulation (EU) No 952/2013 of the European Parliament and of the CouncilRegulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (OJ L 269, 10.10.2013, p. 1 ). . That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

For the purpose of Article 2 of Annex III and Article 5 and 6 of Annex IV, the Commission shall be assisted by the Committee established by Article 4(1) of Council Regulation (EC) No 260/2009Council Regulation (EC) No 260/2009 of 26 February 2009 on the common rules for imports (OJ L 84, 31.3.2009, p. 1 ). . That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

Where reference is made to this paragraph, Article 4 of Regulation (EU) No 182/2011 shall apply.

Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

Where reference is made to this paragraph, Article 8 of Regulation (EU) No 182/2011, in conjunction with Article 4 thereof, shall apply.

Where the opinion of the committee is to be obtained by a written procedure, the procedure shall be terminated without result when, within the time limit for delivery of the opinion, the chair of the committee so decides or a simple majority of committee members so requests.

The recipients of Union funding shall acknowledge the origin of those funds and ensure the visibility of the Union funding, in particular when promoting the actions and their results, by providing coherent, effective and proportionate targeted information to multiple audiences, including the media and the public.

The Commission shall implement information and communication actions relating to the Programme, and to actions taken pursuant to the Programme and to the results obtained.

Financial resources allocated to the Programme shall also contribute to the corporate communication of the political priorities of the Union, insofar as those priorities are related to the objectives laid down in Article 3.

This Decision shall apply in accordance with Decision 2010/427/EU.

Decision 2013/755/EU is hereby repealed with effect from 1 January 2021 .

This Decision shall not affect the continuation or modification of actions initiated pursuant to Decision 2013/755/EU, which shall continue to apply to those actions until their closure.

The financial envelope for the Programme may also cover technical and administrative assistance expenses necessary to ensure the transition between the Programme and the measures adopted pursuant to Decision 2013/755/EU.

If necessary, appropriations may be entered in the Union budget beyond 2027 to cover the expenses provided for in Article 80 to enable the management of actions not completed by 31 December 2027 .

This Decision shall enter into force on the day following its publication in the Official Journal of the European Union .

It shall apply from 1 January 2021 .

HAS ADOPTED THIS DECISION: