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The European Union and the world

European Commission

Europe on the move

The European Union is working to ensure a stable and peaceful Europewith a voice that is heard in the world.The EU is an important cooperationpartner for all regions in the world — it is the world’s biggest trading partnerand is particularly active in promotingthe human aspects of international relations, such as social solidarity,human rights and democracy.

This brochure presents all aspects of theEuropean Union’s relations with other

countries and peoples of the world. This includes trade relations, thecommon defence and security policy, development assistance to help combat poverty around the world, humanitarian aid and the forthcoming enlargement of the EU with a significant number of new Member States.

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European CommissionPress and Communication ServiceRue de la Loi/Wetstraat 200B-1049 Brussels

Manuscript completed in December 2000.

Cover illustration: EKA; Cover layout: EC-EAC

Graphics: free form communication

Cataloguing data can be found at the end of this publication.

Luxembourg: Office for Official Publications of the European Communities, 2001

ISBN 92-828-8260-8

European Communities, 2001Reproduction is authorised.

Printed in Belgium

PRINTED ON WHITE CHLORINE-FREE PAPER

©

Contents

The European Union in a changing world

External relations: a global commitment

Common foreign and security policyExternal assistance programmesNorth AmericaRussia and the new independent StatesSouth-eastern EuropeMiddle EastEuro-Mediterranean PartnershipRegional groupingsMultilateral relationsEnvironmentHumanitarian aid

EU enlargement: a historic opportunity

EU membership conditionsTurkeyEnlargement must not lead to new barriers

Trade: removing barriers, spreading growth

World Trade OrganisationJapanAsiaLatin America and Mexico

Promoting development, fighting poverty

New emphasis on helping the world’s poorACP–EU Partnership AfricaSouth AfricaHuman rights

Defence and security: keeping the peace

Rapid reaction for conflict prevention

Further reading

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The European Union’s influence in world affairs is on the increase. Theprocess of integration, the launch of the euro and the progressivedevelopment of a common foreign and security policy are all providingthe EU with political and diplomatic status to match its undoubtedeconomic and commercial clout.

The Union has a number of strategic foreign policy objectives. The firstis to establish a stable Europe with a stronger voice in the world. Therecent wars in Bosnia and Kosovo and the bloody fighting in Chechnyaunderline how important it is to secure peace, democracy and respectfor human rights throughout Europe. Enlargement can help achievethat by creating an internal market of over 500 million consumers andending the long divide in Europe.

As the world’s biggest trading partner, the EU is also determined tosecure its international competitiveness while at the same time pro-moting global commerce through further liberalisation of world traderules — a process that it believes will be of particular benefit todeveloping countries.

Until recently, there were three main components to the Union’s exter-nal activities: trade policy, development aid and the political dimen-sion. These provided it with considerable instruments for a credible foreign policy in diplomatic, economic and commercial arenas. It nowwants to reinforce these capabilities, if and when necessary, with theability to use force where its vital interests are at stake and to be able

The European Union in a changing world

Many global challenges affect thedaily life of Europe’s citi-zens and can only besolved by workingtogether.

EKA


to respond more effectively to crises. This does not mean fighting wars orcreating a European army. It means greater cooperation between EUmembers in carrying out humanitarian and peace-keeping tasks. At thesame time, the Union is becoming more involved in security issues, takingon greater responsibility for ensuring peace and stability in parts of theworld close to its own spheres of influence.

Foreign policy is not just a question of trade, security and diplomacy. Thereare a host of other issues, many of which affect the daily lives of Europe’scitizens, that help to condition the Union’s approach to the wider world.These range from the need to fight the spread of AIDS and famine and togovern migration flows to the campaigns against drugs and terrorism.They all require closer transnational cooperation since the problems oftoday’s world can only really be solved by working together.

Economic and political changes in the world require the European Unionto adapt continuously its external policies and priorities. It has done so bybroadening and deepening its contacts with partners, incorporating eco-nomic, trade and political dimensions into those relationships. It can nowcount on a diversity of interregional partnerships and cooperation agree-ments with countries on all five continents.

The European Commission which took office in 1999 under the Presidencyof Romano Prodi is carrying out a vast overhaul and reassessment of itsvarious activities to ensure better value for money — a process which willinevitably involve tough decisions on which policies should have priorityover others.

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The importance the Union nowattaches to its relations with coun-tries around the world can be seenthrough recent innovations in boththe European Commission and theCouncil of Ministers. Some 15 yearsago, the complete panoply of exter-nal relations was handled by just twoCommission departments. Now thereare six. To ensure a coherentapproach and a clear identity, overallcoordination is assured by theExternal Relations Commissioner,Chris Patten. He works closely withhis colleagues in charge of sec-toral policies — Poul Nielson(Development and HumanitarianAid), Günter Verheugen (Enlarge-ment) and Pascal Lamy (Trade). Healso works in close contact withJavier Solana, the Secretary-Generalof the Council of Ministers and thefirst High Representative for theCommon Foreign and Security Policy(CFSP).

The Union has an extensive networkaround the world which helps it toformulate and implement policy. Inaddition to the many foreignembassies in Brussels accredited tothe EU, the Commission has over120 of its own delegations in thirdcountries. Their role is to develop theUnion’s bilateral links with nationsof hugely differing size and wealth,promoting the EU’s policies and val-ues and keeping Brussels informed ofdevelopments on the ground.

Alongside frequent contactsbetween officials, ministers and par-liamentarians, the EU has regularsummit meetings, once or twice ayear, with its major partners such asthe United States, Japan, Russia andCanada. Originally heavily trade ori-ented, discussions now also rangeover a vast array of political issuesincluding ways to protect the envi-ronment, tackle international crimeand drug trafficking and promotehuman rights. The Union makes itsviews known in various multilateralforums such as the United Nations,the World Bank and the Organi-sation for Security and Cooperationin Europe and works with them tobetter secure the common objectivesof peace and security.

Although the Presidency of the EUrotates between Member Statesevery six months, continuity in for-eign policy is ensured by the CFSPHigh Representative, the CouncilSecretariat and the Commission.The Member State holding thePresidency is also assisted by thecountry that will hold the nextPresidency.

External relations: a global commitment


Common foreign and security policy

The European Union’s common foreign and security policy(CFSP) was introduced in 1993 by the Treaty on EuropeanUnion (Maastricht Treaty), following over 20 years of politi-cal cooperation between the EU countries.

Since 1993, the Council of Ministers has adopted some 70common positions on foreign policy issues ranging from theBalkans to East Timor and from the non-proliferation ofnuclear weapons to counter-terrorism. Once adopted,Member States are required to adhere to common positions,which the Presidency defends at the United Nations and inother international forums. Over the same period, theCouncil has agreed some 50 common actions, including de-mining operations in Africa and elsewhere and the dispatchof EU special envoys to crisis areas such as the Balkans andthe Middle East.

Since the Amsterdam Treaty of 1999, the European Council(Heads of State or Government) is empowered to adoptlonger-term common strategies for certain countries orregions. Common strategies on Russia and the Ukraine wereadopted in 1999 and on the Mediterranean in 2000.

Within the CFSP, a common European security anddefence policy (CESDP) is rapidly taking shape. To reinforcethe Union’s ability to deal with crisis situations in neigh-bouring regions or further afield, plans are in hand, in closecooperation with NATO, to set up a rapid reaction militaryforce to carry out peace-keeping and other non-combattasks at short notice. The existence of such a force wouldcomplement the EU’s existing possibilities which includepolice operations, border controls and civilian humanitarianassistance.

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External assistanceprogrammes

Foreign policy is not just abouthanding out aid. But the scale offinancial assistance is worth record-ing. The EU is now the largest donorof humanitarian aid and fifth,behind the United States, Japan,Germany and France, in terms ofgrant finance.

Between them, the EU and itsMember States provide some 55 %of total international official devel-opment assistance (ODA) and morethan two thirds of grant aid. Theshare of European aid managed bythe Commission and the EuropeanInvestment Bank has increased from7 % 30 years ago to 17 % now. Intotal, the Commission administersan annual external aid portfolio ofsome 9.6 billion euro annually.

Initially, EU external aid was concen-trated on Member States’ formercolonies in Africa, the Caribbeanand the Pacific. Now it is truly glob-al. Two thirds go to central and east-ern Europe, the countries of the for-mer Soviet Union, the Balkans, theMiddle East, the Mediterranean,Asia and Latin America. Aid is givennot just for development purposes,but also to help reconstruction, insti-tution-building, macroeconomic pro-grammes and to promote humanrights.

Given the sheer scale of EU overseasaid and the large number of projectswhich it helps finance — in 1999alone, there were some 44 500 ofthese — it is not surprising that hugelogistical challenges are involved.These are made all the more difficultgiven that the volume of EU aid hasnearly tripled between 1990 and

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2000, while staff levels have noteven doubled. Faced with this situa-tion, the Commission is implement-ing a radical overhaul of its adminis-trative arrangements to improve thespeed, quality and profile of its exter-nal aid.

North America

The United States is without doubtthe Union’s major partner and thecomprehensive relationship is partic-ularly close on a range of issuesstretching from trade and politics toforeign policy and security. The twocooperate closely not just on bilater-al matters, but in internationalforums like the United Nations, theWorld Trade Organisation, NATO andthe G8, and in sensitive parts of theworld such as the Balkans. They havewhat is considered to be an‘enabling relationship’, whereby,when they are together, they can bea powerful force for progress onalmost any issue.

The foundations of the present part-nership were shaped by the 1990Transatlantic Declaration, which pro-vides for two bilateral summits ayear. They were further strengthenedby the ‘new transatlantic agenda‘ in1995, whose four chapters — pro-moting peace and stability through-out the world, responding to globalchallenges, contributing to theexpansion of world trade and estab-lishing closer ties between partners— cover the whole gamut of EU activ-ities. The Transatlantic EconomicPartnership of 1998 with its commit-ment to removing bilateral technicaltrade barriers and promoting multi-lateral liberalisation brought a newdimension to the relationship as didthe Bonn Declaration the followingyear with its confirmation of a ‘full

and equal partnership’ on economic,political and security issues.

The EU and the United States are thetwo largest economies in the worldand are becoming increasingly inter-dependent. Together, they accountfor almost half the global economyand transatlantic flows of trade andinvestment amount to almost 1 bil-lion euro every day. Each is theother’s largest single trading partnerand most important source of, anddestination for, foreign investment.Although disputes over bananas andhormone-treated beef may grab theheadlines, they account for less than2 % of transatlantic trade and areessentially an inheritance of the pastrather than a reflection of the pre-sent. An early warning system andarrangements for regulatory cooper-ation are now in place to try anddefuse potential problems as quicklyas possible.

A key input into the wider relation-ship is made by the business com-munities on both sides of theAtlantic through the ‘transatlanticbusiness dialogue‘ (TABD). Morerecently, parallel dialogues havebeen established to ensure labour,consumers and environmentalistscan add their contributions. In addi-tion, there are regular contactsbetween officials, ministers andpoliticians, including meetingsbetween members of the EuropeanParliament and the US Congress.

Importance is given to specificaccords on the regulatory aspects oftrade. A ‘mutual recognition agree-ment‘, ranging from telecom equip-ment to pharmaceuticals, allows EUbodies to carry out conformityassessments to US requirements andvice versa, saving exporters consider-able time and cost. Cooperation


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between customs authorities isencouraged, while other agreementspromote science and technology andthe trade across the Atlantic of liveanimals.

The bilateral relationship betweenthe EU and Canada was placed on aformal footing in 1976 with theFramework Agreement for Commercial and Economic Cooperation —the first between the then EuropeanCommunity and an industrialisedcountry. Contacts became far moreambitious with the adoption in 1990of the Transatlantic Declaration onEU–Canada Relations and then sixyears later with the EU–CanadaJoint Action Plan. Another qualita-tive impetus was given in 1998 witha commitment to launch the‘EU–Canada trade initiative‘ with itsemphasis on mutual recognition, ser-vices, government procurement,intellectual property rights, competi-tion issues, cultural cooperation andbusiness-to-business contacts.

The partnership is not limited totrade issues. A joint statement on‘northern cooperation‘ issued inDecember 1999 reaffirmed theircommitment to work together in pro-moting a range of policies such assustainable development and anoth-er on small arms has led to coopera-tion in the fight against the illegaltrade in handguns and lightweapons.

Russia and the newindependent States

The importance the Union attachesto its relations with Moscow wasmade clear in mid-1999 when itagreed a common strategy on Russiafor the following four years. The ini-tiative signalled a new phase in rela-tions between the two partners andwas the first foreign policy documentapproved by the EU under the newcommon foreign and security policyprovisions introduced by theAmsterdam Treaty from 1997. It wasfollowed six months later by a similarcommon strategy towards Ukraine.

Both initiatives go further than the‘partnership and cooperation agree-ments‘ which the Union has with allthe new independent States, i.e. thecountries which earlier formed theSoviet Union. They aim to consoli-date democracy, the rule of law andpublic institutions and to help thecountries integrate into a ‘commonEuropean economic and socialspace’, including working towards afree trade area with the Union. Majorinitiatives include cooperation linkedto disarmament and fight againstorganised crime. While it is keen tohave closer economic and politicalties with these countries, the Uniondoes not hesitate to criticise any per-ceived abuses of human rights, as ithas shown in the case of the Russianintervention in Chechnya.

The main vehicle for EU assistance topartner States in eastern Europe andcentral Asia is the Tacis programme.Launched in 1991, the programmenow has a budget of 3.138 billioneuro for the period 2000 to 2006. Itscentral thrust is to provide know-howto promote the transition to a marketeconomy and to reinforce democracyand the rule of law.

Tacis

The European Union and:

Armenia, Azerbaijan,

Belarus, Georgia,

Kazakhstan,Kyrgyzstan,

Moldova, Mongolia,

Russia, Tajikistan,

Turkmenistan, Ukraine,

Uzbekistan.

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The current seven-year programmefocuses on a number of cross-sectoralthemes such as public administra-tion reform, private sector develop-ment and the social consequences ofmoving to a market economy. Specialattention is devoted to nuclear safe-ty ranging from proper waste man-agement strategies to the closure ofChernobyl.

South-eastern Europe

The European Union is strongly com-mitted to bringing peace and stabili-ty to the Balkans and its main objec-tive is to integrate the countries ofthe region into Europe’s political andeconomic mainstream. The ‘stabilisa-tion and association process’ is itsprincipal policy instrument involvingAlbania, Bosnia and Herzegovina,Croatia, the Federal Republic ofYugoslavia and the former YugoslavRepublic of Macedonia. The processis individually tailored to the needsof each participant and includes eco-nomic and financial assistance,cooperation, political dialogue, thegoal of a free trade area, approxima-tion of EU legislation and practicesand cooperation in areas like justiceand home affairs.

This process specifically offers thecountries the long-term prospect ofEU integration — a historic turningpoint in their relations with theUnion. But they themselves mustfirst meet demanding political andeconomic conditions and demon-strate they can emulate the EU’sexample by increasing trade andcooperation between themselves.The Union provides the five countrieswith substantial financial and tech-nical assistance. In the 1991–99period, more than 4.5 billion eurowere disbursed to the region.

Between 2000 and 2006 the assis-tance funds earmarked in the EUbudget for this purpose will be sub-stantially increased.

The Union believes its own exampleof regional integration can provide amodel for the countries in the region.At their Cologne Summit in June1999, EU leaders adopted theStability Pact for South-EasternEurope. Bringing all parties together,the pact complements the stabilisa-tion and association process andhelps to build new forms of coopera-tion and stimulate practical andfinancial support from the interna-tional community. It focuses onregional cooperation initiatives inthe fields of business and the envi-ronment, the fight against corruptionand organised crime, elimination ofethnic discrimination, security sectorreform and the independence of themedia.

The European Unionsupports the economicand democratic development in othercountries through assistance programmessuch as Tacis, whichamong others benefitsRussia.


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Middle East

Contributing to efforts to establish acomprehensive peace agreement inthe Middle East has long been oneof the EU’s main foreign policyobjectives. The Union has appointeda special envoy for the region tohelp in the task and tries to meetthis goal in a close and equal part-nership with the United States andRussia.

The Union believes that a just andlasting political settlement on thebasis of relevant UN resolutionsmust be consolidated through co-operation and economic progress inall countries in the region. It haswarned that a comprehensive dealwill require substantial financialassistance and that sustained eco-nomic growth will be necessary toavoid widespread disaffection andinstability.

In this regard, the Union hasassumed its responsibility as chair ofthe Regional Economic Development

Working Group (REDWG) in the con-text of the multilateral peace talks.The establishment of the REDWGSecretariat in Amman, Jordan, as apermanent regional economic insti-tution for the Middle East, could helpachieve growth by supportingregional cooperation, coordinatingtrade- and investment-related mat-ters and promoting transport, energyand communication infrastructure inthe area. In time, it could even laythe foundations for a Middle Easteconomic area with the free move-ment of goods, services, capital andlabour.

The Union has a strong record ofinvolvement. It is the largest donor tothe Palestinians, contributing over1.6 billion euro in grants and loansbetween 1994 and 1999 (EU andMember States combined) represent-ing over 60 % of all internationalassistance. This EU support haseffectively underpinned the Pal-estinian Authority and contributedsubstantially towards the reconstruc-tion of the deteriorated physicalinfrastructure in the West Bank andGaza Strip. In addition, the EU andits Member States make an annualtransfer of over 100 million euro tothe UNRWA, the UN agency caringfor Palestinian refugees — the largestgroup of refugees in the world, num-bering more than 3 million people.

The EU provides substantial supportto Jordan, Lebanon, Syria and Egypt.Regional cooperation in the MiddleEast is reinforced by annual aid ofsome 20 million euro to specific pro-jects involving Israelis and Arabsthrough people-to-people activities(seminars, festivals, etc.) and cross-border cooperation between munici-palities, experts and non-governmen-tal organisations.

EU foreign policy aimsto prevent crises such asthe Balkans conflicts in

the 1990s.

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The Euro-MediterraneanPartnership

The European Union and:Morocco, Algeria, Tunisia, Egypt, Israel, Jordan, the PalestinianAuthority, Lebanon, Syria, Turkey, Cyprus, Malta.

Relations with Israel are largelydetermined by a succession of tradeagreements between the two partiesand by the bilateral associationagreement which came into force inJune 2000. This launched a closepolitical dialogue between the twopartners and set out a large numberof areas for future cooperation.

In the Gulf region, the Union has acooperation agreement with the GulfCooperation Council (consisting ofSaudi Arabia, Kuwait, Bahrain,Qatar, the United Arab Emirates andOman). Since 1998, a dialogue withIran on political and cooperationissues has been taking place. WithIraq, the EU has no contractual rela-tions due to the UN sanctions. TheEU also concluded a renewed co-operation agreement with Yemen in1997.

Euro-MediterraneanPartnership

In November 1995, the 15 EU mem-bers and 12 countries and territories,covering almost the whole of theMediterranean region adopted theBarcelona declaration. The signato-ries undertook to create an area ofpeace and shared prosperity and toimprove mutual understandingbetween their peoples. This is beingfollowed by a new Euro-Mediterra-nean ‘charter for peace and stability‘to implement strengthened politicaland security cooperation in areassuch as drug trafficking, terrorism,immigration, conflict prevention andhuman rights.

To reinforce the overall objectives,the Union is negotiating bilateralassociation agreements with itsMediterranean partners. By mid-2000, these had been concluded

with Morocco, Tunisia, Jordan, thePalestinian Authority and Israel.

The ‘Barcelona process’, which is theonly forum where ministerial meet-ings involving all 27 partners havetaken place even during difficultperiods in the Middle East peaceprocess, aims to establish a Euro-Mediterranean free trade area by2010.

To help the Mediterranean partnersovercome the challenges posed byfree trade, the EU’s MEDA pro-gramme provides around 1 billioneuro annually in grants supplement-ed by around 1 billion euro in loansfrom the European Investment Bank.

There is already a considerabledegree of economic interchange inthe Euro-Mediterranean region. Thelatter’s imports from the Union nowamount to more than 30 billion euro(some 47 % of total imports), whileexports are even higher at 63 billioneuro (52 %).

The Asia–EuropeMeeting (ASEM)

The EuropeanUnion and:

Brunei,China,

Indonesia,Japan,

South Korea,Malaysia,

the Philippines,Singapore,Thailand,Vietnam.


Regional groupings

In addition to bilateral contacts, theUnion has a large number of multi-lateral relations both with interna-tional organisations and with otherregional groupings of countries. Itattaches particular importance toencouraging regional forms of inte-gration, since these help create large,integrated local markets and enablecountries in specific parts of theworld to participate more effectivelyon global issues.

In Asia, the Union has developed astronger regional relationshipthrough greater involvement withthe Association of South-East AsianNations (ASEAN). Burma/Myanmar,while a member of ASEAN is not partof the EU–ASEAN Member Statesagreement. There are also regularAsia–Europe meetings (the ASEMprocess) with the majority of ASEANmembers as well as China, Japanand Korea.

In Latin America, the main partner-ships are with the San José Group(Costa Rica, El Salvador, Guatemala,Honduras, Nicaragua and Panama),Mercosur (Argentina, Brazil,Paraguay and Uruguay), the AndeanCommunity (Bolivia, Colombia,Ecuador, Peru and Venezuela) andthe Rio Group of countries(Argentina, Bolivia, Brazil, Chile,Colombia, Ecuador, Mexico, Panama,Paraguay, Peru, Uruguay andVenezuela).

The Union gives strong encourage-ment to the establishment of region-al groupings among the African,Caribbean and Pacific countries andcooperates closely with the SouthernAfrican Development Community(SADC). Closer to home, it has a well-developed relationship, particularlyon single market matters and flank-ing policies such as the environmentand competition, with the threeEuropean Free Trade Association(EFTA) countries — Iceland, Norway

Markets all over theworld offer new

business opportunitiesfor European

companies.

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EKA

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and Liechtenstein — which, with theEU, make up the European EconomicArea. A unique feature of this associ-ation is that the three countries par-ticipate in decisions shaping relevantEU legislation. As Switzerland, thefourth EFTA country, is not a memberof the EEA, the EU is strengtheningits ties with this country through apackage of seven bilateral agree-ments ranging from agriculture andresearch to transport and the freemovement of people.

One of the most recent initiatives isthe ‘northern dimension‘ whichbrings together the EU’s morenortherly members, Russia and can-didate countries in northern Europe.

Multilateral relations

Over the years, the Union has strengthened its cooperationwith a wide range of international organisations. Amongthe various bodies it now works closely with are the UnitedNations, the Organisation for Security and Cooperation inEurope, the Council of Europe, the Western EuropeanUnion, the North Atlantic Treaty Organisation, the WorldTrade Organisation and various organisations establishedunder the Law of the Sea Convention. In its dealings withthe UN, for instance, the Union has been active in the eco-nomic, social, environmental, drugs, humanitarian andhuman rights areas and cooperates on crisis managementand conflict prevention.

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Environment

Some internal EU responsibilities have internation-al implications. Environmental protection and sus-tainable development are undoubtedly the mostvisible.

One major priority is ensuring nuclear safety in theformer Soviet Union. This is being tackled through aspecial Tacis programme which in 1999 had fundsof 23 million euro. These are used to provide variousforms of technical and practical assistance withparticular attention being paid to the decom-missioning of reactors at the Chernobyl nuclearplant, and to the problems posed by spent nuclearfuel from submarines and icebreakers in north-westRussia.

The importance of candidate countries meetinghigh environmental standards was underlined inearly 2000 when negotiations were opened to allowall 13 to participate in the Copenhagen-basedEuropean Environment Agency (EEA) — their firstopportunity to be involved in the work of any of theEU’s 11 specialised agencies. The EEA providesup-to-date, reliable and targeted information tohelp the candidates implement EU environmentallaws, establish effective monitoring systems and setup reliable data collection networks.

In addition, a ‘priority environmental investment programme for accession‘ (PEPA) offers some financialhelp for the candidate countries to implement EU standards. Reliable estimates suggest that as muchas 120 billion euro will be required to meet the 10 most important pieces of environmental legislation.

While extending the benefits of participation in existing programmes, the Union has also pressed thecandidates to take measures to increase nuclear safety. By the end of 1999, it had successfully won firmcommitments from Slovakia, Lithuania and Bulgaria to close down as early as possible the eight nuclearreactors on their territory considered dangerous and non-upgradable.

EKA

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Humanitarian Aid

The European Union’s humanitarian role hasdeveloped substantially over the past decadeand is now an important aspect of its exter-nal policy. It is coordinated and organised bythe EU’s Humanitarian Aid Office (ECHO)with its remit of providing effective humani-tarian aid to the victims of natural disastersand armed conflicts. ECHO is now the world’slargest donor of humanitarian aid.

The assistance from ECHO is channelledthrough its partners — United Nations agen-cies, over 170 non-governmental organisa-tions such as Oxfam and Médecins SansFrontières, as well as other international bod-ies. Since 1992, it has signed over 7 000 individual aid contracts with a value of almost 5 billion euro,funding humanitarian assistance in more than 85 countries. The aid is non-discriminatory and is intend-ed to go directly to those in distress irrespective of their race, gender, religious or political convictions. Itmay include essential supplies, food, medical equipment and medicines and services such as medical aid,water purification teams and logistical support.

ECHO evaluates needs for humanitarian operations and monitors the implementation of the projectsthemselves. It promotes and coordinates disaster prevention measures by training specialists, strength-ening institutions and running pilot micro-projects. It finances landmine clearance schemes. ECHO alsosupports public awareness and information campaigns aimed at increasing understanding of humani-tarian issues.

As emergency aid must be linked to longer-term reconstruction, ECHO’s policy is to reduce vulnerabilityand encourage self-sufficiency among those receiving humanitarian aid so they do not become depen-dent on it. To that end, it helps set up suitable longer-term strategies.

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EU enlargement: a historic opportunity

Enlargement offers the uniqueopportunity of ending the artificialdivide which has split the Europeancontinent into two for most of thepast 60 years. Not only will individu-als be able to move, study and workfreely across frontiers, but businessesand economies in central and east-ern Europe should prosper as amarket-based economy takes root.Europe as a whole will also benefiteconomically and politically with thecreation of a domestic market of 500million people.

The EU has already experienced fourseparate enlargements (in 1973,1981, 1986 and 1995) as it hasgrown from six to 15 members. Butwith 13 candidate countries in thewings stretching from Estonia in thenorth to Turkey in the south, this iseasily the most ambitious. Thepreparations that have to be madeby both existing and potential mem-bers to meet such a challenge arehuge. To take just purely economicconsiderations, the GDP per head inpurchasing power standards as apercentage of existing EU levelsranges from 79 % in Cyprus and68 % in Slovenia to 23 % inBulgaria and 27 % in Latvia.

Internally, the EU has to adapt itsown policies, finances and pro-cedures to prepare for a Union of 20or more countries. The first two chal-lenges were met at the EU summit inBerlin in March 1999 when bud-getary ceilings were set for all areasof EU spending up to 2006. Thesewere accompanied by wide-ranging

reforms to regional, social and agri-cultural expenditure. Decision-mak-ing procedures are also beingstreamlined. In addition, theCommission is coordinating variousinformation campaigns to inform thepublic of the implications of enlarge-ment.

The EU summit in March 1999 madesome 22 billion euro available forpre-accession support between 2000and 2006 — double the amount allo-cated during the 1990s. In addition,the Union’s budget will be ready forthe first accessions from 2002onwards with some 57 billion eurospecifically earmarked for newMember States between 2002 and2006.

No date has been set for the nextenlargement, but the Union hascommitted itself to be in a position,both institutionally and politically, towelcome new members from thestart of 2003 — provided they havemet all the accession requirements.

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Other candidatecountries

Applicant countries with which accessionnegotiations are open

GreecePortugal

SpainItaly

FranceLuxembourg

BelgiumUnited Kingdom

Ireland

CyprusMalta

TurkeyBulgaria

Poland

SlovakiaHungary

SloveniaRomania

FinlandSweden

AustriaDenmark

GermanyNetherlands

EstoniaLatviaLithuania

Czech Republic

EU Member States (*)

(*) Non continental and overseas territories not shown.


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EU membership conditions

Before a country can contemplate thepossibility of joining the EU it mustdemonstrate that it satisfies the threebasic membership criteria laid downat the Copenhagen Summit in June1993. These are:

• the existence of stable institutionsguaranteeing democracy, the ruleof law, human rights and respectfor and protection of minorities;

• the existence of a functioning mar-ket economy as well as the cap-acity to cope with competitive pres-sure and market forces within theUnion;

• the ability to take on the obliga-tions of membership, includingadherence to the aims of political,economic and monetary union.

Negotiations with six of the appli-cants — Poland, Hungary, the CzechRepublic, Slovenia, Estonia and

Cyprus — opened in March 1998.After receiving the green light fromEU leaders at their Helsinki EuropeanCouncil meeting in December 1999,formal negotiations were launched inmid-February 2000 with another sixcandidate countries — Bulgaria,Latvia, Lithuania, Malta, Romaniaand Slovakia.

Although the accession negotiationshave been launched in two groups,each applicant is considered on itsown merits. The Union has put inplace a fully flexible, multi-speedaccession process where countrieswill be assessed on their own meritsand join when they are able to meetall the obligations of membership.

The first stage in the complex processis a screening exercise involving aseries of multilateral and bilateralmeetings with the candidates. Theseenable the European Commission topresent the ‘acquis communautaire’— the whole corpus of EU Treaties,legislation and practices running toalmost 100 000 pages — and todetermine whether the applicants areable to apply it. This is followed bydetailed negotiations on the 31 indi-vidual policy chapters ranging fromfisheries to external relations.

The Commission continues to moni-tor the progress each applicantmakes in actually implementing andapplying EU legislation and, increas-ingly, emphasis is placed on its prop-er transposition into national law. Inprinciple, each new member must beable to implement all EU obligationsand responsibilities from the first dayof entry, with temporary exemptionsand transition measures kept to aminimum.

The Union has a number of specificpre-accession programmes to help

Training in newworking methods is part

of the applicantcountries’ preparation

for EU membership.

EKA

19

the candidates prepare for member-ship. The best-known and longest-running vehicle for channelling thefinancial and technical cooperationto the candidates is Phare.

This programme provides grants,rather than loans, and can be brokendown into two main priorities. Thefirst, with some 30 % of the budget,is institution building to help nation-al and regional administrations aswell as regulatory and supervisorybodies familiarise themselves withEU objectives and procedures.

The second, with 70 % of the budget,helps the candidates bring theirindustries and major infrastructureup to EU standards by mobilising theinvestment required. The support ischiefly targeted at areas where EUnorms and standards are becomingincreasingly demanding: environ-ment, transport, industrial plants,and quality standards in productsand working conditions.

Other aid programmes are specifi-cally aimed at agricultural and ruraldevelopment and at transport andenvironmental projects. There arealso programmes to fight corruptionand organised crime and to handlerefugees and asylum seekers. In addi-tion, numerous seminars and work-shops for officials in the candidatecountries are held on subjects asdiverse as fiscal surveillance and cus-toms clearance.

While the European Union has takenthe lead in helping candidate coun-tries prepare for membership, it is notalone. Other international bodieslend their support and expertise: theWorld Bank, the European Bank forReconstruction and Development,the Council of Europe and the NordicCouncil.

Turkey

Turkey’s formal relations with theUnion date back to the 1963 associ-ation agreement and the countrywas the first of the current group ofapplicants to apply for EU member-ship — back in 1987. For a variety ofpolitical, economic and human rightsreasons, the request made littleprogress over the years, until theHelsinki Summit in December 1999.At that meeting, EU Governmentsformally recognised the country’sstatus by agreeing that ‘Turkey is acandidate State destined to join theUnion on the basis of the same cri-teria as applied to the other candi-date States’.

As a result, the country benefits froma pre-accession strategy and partner-ship to stimulate and support itspolitical and economic reforms and acloser political dialogue with theUnion. It is able to participate inexisting EU programmes and inmeetings between the candidatesand the Union and is being helpedto bring its own domestic legislationinto line with the EU’s rules andpractices.

But before actual accession negotia-tions may begin, Turkey must firstdemonstrate its respect for humanrights and restructure many elementsof the country’s economy. Given thehistorical friction between Turkeyand its Aegean neighbour, Greece,the Union has specifically called forthe peaceful settlement of any out-standing border disputes and otherrelated issues, such as Cyprus.

Alongside Turkey’s EU membershipaspirations, a customs union with a15 million euro budget already linksthe two and the Union is makingavailable a further 135 million euro


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to promote the country’s economicand social development.

Enlargement must not leadto new barriers

Enlargement also raises questionsabout how the Union will organiseits relationships with countries fac-ing a longer road towards member-ship. The Commission has floatedthe concept of virtual membership togive Albania and former Yugoslavia,for instance, the stimulus and advan-tages of various forms of close co-operation even before they are readyfor accession. But to benefit fromthese, they would have to meet cer-tain criteria. These include recogni-tion of each other’s borders, settle-ment of all outstanding issues relat-ing to the treatment of minoritiesand the establishment of a regionalcooperation organisation. This wouldencourage economic integration bycreating a free trade zone and then acustoms union which could latermerge with the EU’s own customsunion as a first step towards acces-sion.

The EU is conscious of the impactenlargement will have on its neigh-bours for whom accession is not anissue, but with whom it wants closeand constructive relations and so it isactively examining suitable strategicpartnerships with Russia, Ukraineand the Mediterranean Basin.

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The European Union is the world’sbiggest trading partner, accountingfor over a fifth of all exports in 1999.Since its earliest days, the EU hasbeen committed to removing tradebarriers between its individual mem-bers on the grounds that this willstimulate economic prosperity andnational and individual well-being. Ithas championed the same principleson the world stage.

The figures speak for themselves. Themultilateral trading system has beenprogressively liberalised through aseries of international negotiationsover the past half-century. Duringthat time, world trade has grown sev-enteen-fold, world production hasmore than quadrupled, world percapita income has doubled and aver-age tariffs applied by industrialisedcountries have dropped from 40 %in 1940 to under 4 %.

The EU believes that multilateraltrade liberalisation can yield verysubstantial benefits for the globaleconomy and that much of thisshould go to developing regions. Itconsiders that economic growththrough trade liberalisation is amajor factor in improving social con-ditions worldwide and contributingto sustainable development.

The Union is one of the strongestadvocates of continuing this trend bypressing for as wide an agenda aspossible in the next round of WorldTrade Organisation (WTO) talksinvolving 137 countries. Despite thesetback at the ministerial meeting

held in Seattle in December 1999,the EU is still committed to a broadagenda and is convinced the bene-fits will be significant.

Two European Commission studiespublished shortly before the Seattleconference concluded that furthertrade liberalisation could help sus-tainable development and bringabout an annual welfare gain for theworld of up to 420 billion euro — theequivalent of adding an economythe size of Korea or the Netherlandsto world GDP every year. Economicgrowth translates into employmentas the Union itself has shown withthe creation of half a million newjobs after the abolition of its owninternal trade barriers.

Freer trade can mean more businessopportunities, more efficient alloca-tion of resources and more wealth.Further reductions in tariffs willenable business to better exploitexport potential because trade flowswill be driven increasingly by quality,price and service and be less imped-ed by artificial obstacles like tariffs.Consumers should benefit fromwider choice and lower pricesthrough increased competition.

Trade: removing barriers, spreading growth

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World Trade Organisation

As part of this wide ranging agenda,the EU is in the vanguard of coun-tries arguing that the next WTOnegotiations should not be limited tothe narrow agenda of agricultureand services left over from the lastUruguay round. It must be morecomprehensive, covering both tradi-tional topics and new issues to allowall participants to have an interest inthe negotiations and meet the needsof the economy of the 21st century.

The Union has drawn two clearlessons from the failure to open theliberalisation talks in Seattle. Thefirst is that the days when a handfulof major trading nations negotiateddeals among themselves andimposed them on the rest of the

world are over. Others, particularlydeveloping countries, now legiti-mately demand a bigger say in theprocess.

The second is that the WTO must bereformed to make it more inclusive,transparent, efficient and account-able. Its rule book needs to be rewrit-ten and civil society more closelyinvolved so that environmental andsocial concerns can be consideredalongside trade and developmentissues.

When a new round of WTO negotia-tions is launched, the Union believesit should cover at least four mainareas if it is to be comprehensive andsuccessful. In the EU’s view, theround should:

• improve market access across theboard, including agriculture, ser-vices and non-agricultural pro-ducts;

• set rules in a number of new areassuch as investment, competitionand trade facilitation;

• focus more on development, byproviding better market accessand improvements to the specialand differential treatment accord-ed to developing countries, as wellas ensuring that new agreementspromote development;

• address a number of civil societyconcerns, by clarifying WTO ruleson trade and environmental agree-ments, labelling, public health andthe application of the precaution-ary principle. This should be donewith a view to ensuring that rulesare mutually supportive and themeasures taken do not constitute

International trade andglobalisation must serveto improve the prosperity

of poorer people.

EKA


a means of arbitrary or unjusti-fiable discrimination betweencountries.

While aware that the globalisationprocess is a trend that cannot bestopped and that economies mustadapt to survive, the Union does notaccept that unfettered market forcesshould dictate its peoples’ way of life,culture and ultimately their societyand core values. As a result, it setsout to reconcile the way societies andvalues are managed with the need tomodernise and globalise.

In this respect, the Commission seesthe WTO, with its membership of over130 countries — and a further 30queuing up to join it — and wide-ranging powers to set rules and arbi-trate in trade disputes, as a crucialinstitution for global governance.

The WTO should cooperate moreclosely with other internationalorganisations to promote the overallgoal of sustainable development andcontribute to the reduction ofinequalities, both within and amongnations. That is why the EU favoursregular consideration of the relation-ship between trade and social devel-opment, including the promotion ofcore labour standards. It supportspositive incentives for promotinglabour rights and is firmly opposed toany protectionist or sanction-basedapproach.

Japan

The second largest national economyafter the United States, accountingfor two thirds of Asian GDP and14 % of the global economy, Japanis one of the Union’s major tradingpartners and its third largest foreignmarket. Friction during the 1980s

over trade imbalances and the diffi-culties European firms encounteredin exporting to Japan have given wayto a far more constructive relation-ship, based on the 1991 political dec-laration governing relations betweenthe two partners. This was consoli-dated by approval of an EU strategyin 1995 on Europe and Japan, andwill be considerably extended by theaction plan which the two partiesagreed to develop at their TokyoSummit in July 2000. This will launcha ‘decade of Japan–Europe coopera-tion‘ beginning in 2001 in four keyareas: promoting peace and security,strengthening the economic andtrade partnership, coping with globaland societal challenges and bringingpeople and cultures together.

Apart from purely bilateral issues,existing collaboration extends toregular shared analyses on the politi-cal and security situation in NorthKorea, China’s evolving role in Asia,the creation of security structures onthe continent and promotion ofdevelopment assistance.

One of the Union’s major concernshas been to ensure that Europeanexporters and investors are not pre-vented from entering the Japanesemarket by unnecessarily restrictivered tape and bureaucratic regula-tions. Since 1995, this has beenachieved through the regulatoryreform dialogue aimed at removingstructural and other obstacles facingexporters. The Commission’s gatewayto Japan export promotion cam-paigns have also helped many EUbusinesses, especially smaller ones,to break into the Japanese market.This is being accompanied by movesto negotiate a mutual recognitionagreement on testing and certifica-tion, which would constitute the firsttreaty between the EU and Japan,

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and by an accord on the applicationof each partner’s competition legisla-tion. There are also regular contactsbetween the respective consumerand business communities.

Often dialogue has been successfulin overcoming obstacles but, whennot, the EU has turned to the WTO todefend the interests of Europeanbusinesses. The Union is also keen tosee fewer obstacles to European

investment in Japan. Japanese directforeign investment is seven timesgreater in the EU than Europeaninvestment in Japan.


Share of world trade, % (1998 figures)

(1) ASEM: the nine Asian partners of the ‘Asia-Europe meeting’ other than Japan:Brunei, China, Indonesia, South Korea, Malaysia, Philippines, Thailand, Singapore, Vietnam.

Services

Latin America (excl. Mexico) 4.0Japan 8.6

Asian countries in ASEM(excl. Japan)(1) 10.8

European Union 24.9

Canada and Mexico 4.5

United States 20.1

Rest of the world 27.1

Latin America (excl. Mexico) 4.2

Japan 7.8

Asian countries in ASEM(excl. Japan)(1) 13.2

European Union 18.7

Canada and Mexico 7.6

United States 18.9

Rest of the world 29.6

Goods

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Asia

China has undergone dramaticchanges since it opened up to theoutside world in 1978, evolving froman inward-looking centrally plannedeconomy to a market driven oneengaged in global commerce. Duringthe past two decades, EU–Chinatrade increased more than 20 foldand was worth 70 billion euro in1999. China is the Union’s thirdlargest non-European trading part-ner after the United States andJapan and the EU is China’s fourthlargest source of imports. In 1999,the Union became the largest for-eign direct investor in the country,excluding Hong Kong, with 4.5 bil-lion euro.

The Union has been a strong sup-porter of Chinese membership of theWorld Trade Organisation and hasworked closely with the UnitedStates to help bring this about. Insummer 2000, the two parties com-pleted their lengthy bilateral negoti-ations on China’s accession to theWTO. The agreement will give amajor boost to trade between thetwo.

Under the terms of the EU–ChinaWTO accession agreement, Chinaagreed to substantial reductions onimport tariffs for over 150 leadingEuropean exports, ranging frommachinery to wines and spirits. Theaccord will make it easier forEuropean distributors and compa-nies to operate in China and restric-tions which used to apply to a num-ber of service sectors and professionssuch as bankers and lawyers will alsobe relaxed.

Although devoting considerable timeand resources to China, the Union iskeen to deepen its contacts with the

whole continent. This may be doneon a multilateral basis — a processbegun with the first ‘Asia–Europemeeting‘ in Bangkok in 1996 — orvia ASEAN, the EU’s fourth largesttrading partner, or bilaterally.

Relations with Asia’s second largestnation — India — are also moving upa gear as they broaden from dia-logue and cooperation to partner-ship. That shift was epitomised bymajor initiatives in 2000. Theseincluded the first EU–India Summitand wider contacts between officials,policy-makers, opinion formers andcivil society.

This is in addition to the extensivecommercial contacts which already

United States

Japan

Latin America

African, Caribbeanand Pacific countries (1)

Candidate countriesfor EU membership

Asian countries in ASEM(except Japan) (2)

Other countries

Share of the main partners of the external trade of the EU,% (1999 figures, goods)

(1) The 77 ACP countries that are part of the so-called Cotonou Agreement.(2) ASEM: the nine Asian partners of the ‘Asia–Europe meeting’ other than Japan:

Brunei, China, Indonesia, South Korea, Malaysia, Philippines, Thailand, Singapore, Vietnam.

20.624.1

9.14.7

4.76.0

2.82.9

12.015.6

15.78.1

35.1

38.6

Exports from the European Union

Imports into the European Union

exist. The EU is India’s most impor-tant partner in trade, investment anddevelopment cooperation. Indianexports to the Union grew from 1.8billion euro in 1980 to 9.8 billioneuro in 1998. Similar growth can beseen in trade going in the otherdirection which has risen from 2.4billion to 9.5 billion euro.

Latin America and Mexico

The EU has organised its relationswith Latin American countriesaround the recognition of three sub-regional groups: Central America,the Andean Community andMercosur, as well as individual coun-tries like Chile and Mexico. Over thepast decade, relations between theEU and Latin America have consis-tently developed as bilateral tradehas expanded and the Union haspromoted regional integration in thearea.

The Andean countries enjoy easieraccess to the European market underthe ‘generalised system of prefer-ences’ and the EU works closely withthem on a programme to tackle drugtrafficking. Caribbean countriesenjoy trade preferences with the EU,while Cuba is the only LatinAmerican country not to have signeda cooperation agreement with theUnion.

A quantum leap in the Union’s rela-tions with this part of the world tookplace in June 1999 with the first eversummit between the EU, LatinAmerica and the Caribbean, involv-ing the leaders of 48 countries. Thiswas followed in 2000 by a free tradeagreement between the EU andMexico. Under the ambitious deal,Mexican exports will enter the Unionduty-free from 2003 and all tariffs

on EU exports will disappear by2007 at the latest. The accord pro-vides a new dimension to a relation-ship which was already wellanchored in the 1997 EU–MexicoEconomic Partnership, PoliticalCoordination and CooperationAgreement.

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The Union is the developing world’smain partner, providing 55 % of allinternational official assistance, andis by far its biggest trader and for-eign investor. At a bilateral level, itgrants non-reciprocal trade prefer-ences, along with more favourablearrangements for the least devel-oped. It has concluded economic andtrade cooperation agreements, whichwill in time lead to free trade areas,with several countries or regionalgroupings in the Mediterranean,Latin America, Africa, the Caribbeanand the Pacific.

The marginalisation of many econo-mies, the increase in poverty in theworld, the need to manage betterenvironmental interdependencies,the destabilising effects of migra-tion, and the consequences of armedconflicts, natural disasters and pan-demics are major concerns for every-one and Europe’s citizens under-standably expect effective EU actionin tackling them. Given the financesat its disposal and its economic andpolitical weight the EU can make animpact.

Promoting development, fighting poverty

Far from home—or? The alternative to emigration is better economic prospects at home.

EKA

New emphasis on helping theworld’s poor

The Union firmly believes that it ispolitically and morally unacceptablethat more than 1 billion people onthe planet still have to survive on lessthan one euro per day. That figuremay well rise as the world’s popula-tion grows. As a result, the fightagainst poverty is the central thrustof the EU’s development policyefforts as it concentrates its atten-tion on a more limited number ofpolicy areas.

Foreign direct investment into devel-oping countries has soared in thepast decade, rising from 29 billioneuro in 1990 to 185 billion euro in1998. But it is unevenly spread.Some 55 % goes to the top fivedeveloping nations, while the 48least developed, many of them inAfrica, receive less than 1 %.

Responding to concerns about theeffectiveness of aid programmes ingeneral, the European Commissionpresented a major reorientation inthe summer of 2000 of its develop-ment policy. This is designed to bringits internal organisation, proceduresand methods up to internationalbest practice and provide a newvision of its core objectives. Centralto the new strategy are attempts tointegrate developing countries intothe international economic system,to encourage them in their efforts atregional integration, to use the EU’sconsiderable expertise and financialmeans to provide a critical mass, asin the transport sector, and to relatemore closely to what other donorsare doing.

By concentrating on core tasks, theCommission has suggested the EUshould limit its activities to those

areas where it can offer comparativeadvantages and added value. It hasselected six: trade for development,regional integration and coopera-tion, macroeconomic policies linkedwith poverty reduction strategies,reliable and sustainable transport,food security and sustainable ruraldevelopment strategies, and institu-tional capacity building to consoli-date good governance and the ruleof law.

The new strategy with its emphasison empowerment, capacity-building,ownership and sustainability, isbased on clear political guidelines:

• ownership of the process must liewith the developing countriesthemselves and involve maximumparticipation of civil society repre-sentatives;

• the need for more coordinationand a better division of labour be-tween the EU’s development pro-gramme and those of otherdonors, especially the Union’sMember States;

• contradictions between develop-ment policy and other EU activities— trade, agriculture and fisheries —which impact on developing coun-tries must be avoided;

• administrative procedures must bestreamlined to increase the speedand efficiency of programme deli-very.

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ACP–EU Partnership

The lynchpin of the EU’s develop-ment policy is the CotonouAgreement which binds it withAfrican, Caribbean and Pacific (ACP)countries and is the most ambitiousand comprehensive agreementbetween developed and developingcountries. Its predecessor, the LoméConvention, was first signed in 1975in Lomé, the capital of Togo, and wasregularly updated. Its importancegrew as its provisions were extendedto new areas and the number of sig-natories increased.

However, the basic objective of thecomprehensive aid-and-trade agree-ment remains constant. It is ‘to pro-mote and expedite the economic,cultural and social development ofthe ACP States and to consolidateand diversify their relations [with theEU and its Member States] in aspirit of solidarity and mutual inter-est’. The wide-ranging partnership isbased on equality between the sig-natories, respect for their sovereigntyand mutual interest and interdepen-dence.

The Cotonou Agreement was signedin June 2000 in the capital of Benin,which is the origin for the informalname of the agreement. At this occa-sion, the existing ACP members werejoined by six new countries from thePacific, bringing the total to 77 ACPcountries. The outcome underlineshow far the partnership has evolvedover 25 years as it prepares for thechallenges of the next two decades. Itsets out an integrated and compre-hensive approach to development,poverty eradication, trade and apolitical dialogue that includes con-flict prevention, human rights anddemocratisation and issues of mutualconcern such as migration.

The new agreement includes somenotable qualitative changes from itspredecessors as it moves from mar-ket-access-based trade relations to amore comprehensive relationshipand from government to governmentpartnerships to a more inclusiveprocess involving all elements of civilsociety. It is both comprehensive andinnovative. Civil society is involved inshaping its country’s future and theallocation of funds is based not juston an assessment of needs, but alsoon a country’s record on policyimplementation.

New procedures have been drawn upfor handling any violations of humanrights and where these are particu-larly serious and flagrant, action canbe taken immediately. In what is areal innovation in international rela-tions, the two partners have agreednew procedures to deal with seriouscases of corruption.

The EU has agreed to implement animmigration and asylum policyfounded on the principle of partner-ship with the originating countriesand regions. This includes new initia-tives on the rights of third countrycitizens inside the Union andarrangements for the repatriation ofillegal immigrants found on theother’s territory.

Regional economic partnershipagreements are new arrangementswithin the Cotonou Agreementdesigned to promote trade liberalisa-tion between the EU and ACP coun-tries and between ACP States them-selves. Negotiations on these willstart no later than 2002 — allowingregional integration processes to bestrengthened in the meantime — andthey will come into force by 2008.Until then, the EU and the ACP coun-tries will ask the WTO for a waiver to

allow them to retain their existingpreferential arrangements.

The Union is committed to helpingthe ACP countries become moreactive members in the internationaleconomic and trade system. That, ithopes, will encourage other coun-tries and international business toestablish closer relations with ACPpartners, boosting investment andthe transfer of technology and know-how, thus helping their overall com-petitiveness. This should help theACP members as the value of thepreferences they have with the Unionis eroded by the general liberalisa-tion process and reduction of tariffstaking place globally.

The Union has agreed special tradeconcessions for all least developedcountries, of which 39 are signato-ries of the Cotonou Agreement. By2005, their exporters will have freeaccess to the EU market for almostall their products. The agreementintroduces more refined ways of miti-gating the effects of fluctuations inexport earnings for the ACP coun-tries than the previous compensationschemes.

On the financial front, the EuropeanDevelopment Fund used to financeACP programmes will have a budgetof 13.5 billion euro over the nextseven years. To this, will be added afurther 9.5 billion euro unspent fromprevious funds and 1.7 billion euro inloans from the European InvestmentBank.

Africa

Traditionally, relations between theUnion and Africa have had two dif-ferent focuses: the MediterraneanBasin and Lomé Convention mem-bers. But, largely on Portugal’s initia-tive, the relationship was recentlyplaced on a wider, continental basis,when the first EU–Africa Summitwas held in Cairo in April 2000.

The object of the largest ever meet-ing between Heads of State orGovernment from the two continentswas to strengthen internationalawareness of Africa’s importantpotential, encourage its integrationinto the world economy and con-struct a strategic partnership to pro-mote peace, democracy and develop-ment. While the meeting concentrat-ed on the interrelationship betweenpolitical, economic and developmentissues, it also dwelt on internationaldebt relief, around 80 % of whosebeneficiaries are African countries.

Future cooperation will be partlydetermined by the action planadopted by the summit. This willfocus on greater regional integrationand ways to provide a solid and cor-ruption-free environment to attractforeign investment. It includes, viabetter crisis management and peace-keeping capacities, ways to end con-flicts between and within countries.These can destroy in a few shortweeks countless lives and the effortsinvested over years in promoting eco-nomic development. Attention isbeing paid to improving health andwelfare conditions, by tackling dis-ease and AIDS in particular, reducingunemployment and combating socialexclusion. Emphasis is placed on theneed for sound democratic founda-tions anchored in the rule of law andrespect for human rights. These

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objectives will be fleshed out by apermanent committee of officialsand regular ministerial meetings,and they will be re-examined at asecond summit in Greece in 2003.

South Africa

In early 2000, a wide-ranging trade,development and cooperation agree-ment which had taken three and ahalf years to negotiate came intoeffect between the EU and SouthAfrica. By the end of the ensuing 12years, the latter will have grantedduty-free status to 86 % of EUexports, while the Union will do thesame for 95 % of goods travelling inthe other direction. Most EU liberali-sation, giving South Africa preferen-tial access for items such as chemi-cals, clothing, food, textiles and veg-etables, will be completed by 2002.The accord is accompanied by paral-lel agreements on science and tech-nology, wines and fisheries andaround 125 million euro of EU finan-cial assistance to South Africa everyyear.

The Union also played a central rolein the country’s successful transitionto a democratic government — oneof the clearest examples of theimpact of EU support for humanrights and democracy in recent years.

The EU–ACP Partnershipor ‘Cotonou Agreement’ is the biggest cooperation and aid programme in the world.

Human rights

The importance which theEuropean Union attaches torespect for human rights aroundthe world was underlined by twodevelopments in 1999. For the firsttime, responsibility for this areawas given to one Commissioner —Chris Patten, the External RelationsCommissioner. The second, was thepublication of the first annualreport on human rights document-ing the EU’s policies, priorities andpractices in this area.

This commitment to human rightsand a legal framework are reflectedin the Union’s common foreign andsecurity policy provisions and in itsdevelopment cooperation programme. Every new agreement between the EU and a third country includesa human rights clause allowing for trade benefits and development cooperation to be suspended ifabuses are established.

The Union can impose targeted sanctions as it has done against Serbia and Burma. These range from arefusal to give visas to senior members of the regime to freezing assets held in EU countries. The Unionhas little hesitation in speaking out against what it considers to be human rights abuses such as torture,political arrests or censorship, whether these be in China, Turkey, Cuba or Russia. But its preference is touse positive action rather than penalties.

To help achieve this, the Union has an ‘initiative for democracy and human rights‘ with a budget of some100 million euro as well as several million euro a year for use in external assistance. The funds can beused for projects with the direct aim of strengthening the rule of law and democratisation, such as sup-port for electoral reform or training lawyers. More indirect ways like improving the basic infrastructure ofwater supplies and transport links which help reduce potential tension and threats to human rights arealso supported. Sending international observers to monitor elections and the use of humanitarian aid areother tools in the EU’s armoury.

This concern for the respect of human rights worldwide is matched by renewed efforts to prevent anydeterioration of standards inside the Union itself. This is partly being achieved through a charter of fun-damental rights to provide a comprehensive code of common values with the aim of better protectingpeople living inside the EU.

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EKA


For most of the post Second WorldWar period, Europe’s security wasguaranteed in close cooperationwith the United States, and NATOwas the predominant self-defenceinstitution. With the end of the coldwar, the picture has changed.

Europe no longer faces the threat ofa massive attack by conventionaland nuclear weapons. Instead, as theBalkans have shown, the EU is con-fronted by a range of risks whichthreaten Europe’s stability, but notits existence. Understandably, theUnited States does not wish to inter-vene in every regional crisis on thecontinent and there will be occasionswhen it will be more appropriate forEuropeans to take the lead. There isa growing readiness by members ofthe Union to equip themselves withthe tools needed to promote theircommon set of values and to defendtheir interests.

It is these factors which led the EU tolay down the foundations of a com-mon foreign and security policy(CFSP) in the Maastricht Treaty of1993. These were further refined byits successor, the Amsterdam Treaty,which took effect from 1 May 1999.Five fundamental objectives liebehind the Union’s CFSP:

• to safeguard the fundamentalinterests and independence of theUnion;

• to strengthen the security of theUnion;

• to preserve peace and strengtheninternational security;

• to promote international coopera-tion;

• to consolidate democracy, the ruleof law and respect for humanrights.

The Amsterdam Treaty improvedCFSP decision-making. It provided forcommon strategies in areas whereMember States share importantinterests. It introduced more focusedpolicy formulation and an earlywarning mechanism through the cre-ation of a policy unit working for theCouncil of Ministers. This has beenstrengthened with the addition of aninterim political and security com-mittee and a parallel military com-mittee to advise governments oncrisis management.

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Defence and security: keeping the peace


34

One of the most visible achievementsof the Amsterdam Treaty was theestablishment of a High Represent-ative for the CFSP. In October 1999,Javier Solana, former SpanishForeign Minister and Secretary-General of NATO, became the firstholder of the post. He works closelywith the Commission and MemberStates, including their extensivediplomatic networks and theCommission’s delegations, ensuringcontinuity and efficiency in theUnion’s foreign policy.

Rapid reaction for conflictprevention

Amsterdam also reformulated theUnion’s security and defence objec-tives by opening up the prospect ofusing both military and non-militarycapabilities in cases of humanitariandisasters. These are the so-calledPetersberg tasks which range fromsearch and rescue missions to peace-keeping and even peace-makingoperations.

Kosovo revealed the shortcomings ofEurope’s existing national and col-lective military capabilities andunderlined the need for a Europeanstrategic defence policy. The frame-work was laid down by EU leaders attheir Helsinki Summit in December1999. There, they agreed to establisha rapid reaction force and insisted ontransparent procedures for consult-ing and cooperating with NATO andnon-EU countries. They made it clearthat NATO remains the foundationof the collective defence of its mem-bers and that the Union would onlyact where NATO as a whole was notengaged.

As experiences in places as far apartas the Balkans and East Timor havedemonstrated, the EU must be pre-pared to react quickly and effectivelywhen required. It was this require-ment which lay behind the Helsinkicommitment to establish by 2003the ability to deploy up to 60 000troops within 60 days and sustainthem for up to a year to carry outvarious Petersberg tasks. Use of forceis clearly always a matter of lastresort.

The European Commission is deter-mined to play its full part in theprocess, although this is largelyorganised on an intergovernmental

The European Union canorganise peace-keeping

actions in troubledareas.

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Further reading

Further information about the European Union’s external relations can be found via the Internet webportal called ‘The European Union in the World’ at:europa.eu.int/comm/world

This portal gives thematic access to the different aspects of the EU’s external relations (foreign policies,enlargement, external trade, development policy, humanitarian aid, and external cooperation pro-grammes) as well as news, press releases, contact persons, mailbox and other services.

The European Commission has delegations in most countries around the world. The addresses can befound at: europa.eu.int/comm/external_relations/repdel/index.htm

The EU Council of Ministers presents information on the EU common foreign and security policy at:ue.eu.int/Pesc/default.asp?lang=en

basis rather than following pro-cedures used in most other EU busi-ness. While having no competencefor military matters, the Commissionhas the means and experience tomake a valuable input to non-military issues. One clear contribu-tion is encouragement for a vibranteconomy which can help develop acompetitive and open Europeandefence industrial and technologicalbase.

Secondly, the Commission and theUnion have a role to play in conflictprevention and crisis management.This involves obvious areas such ashumanitarian assistance, rehabilita-tion and reconstruction and moreindirect means including help withlaw enforcement, institution build-ing and trade policy. Recent initia-tives have included de-mining inBosnia, the re-establishment of aviable police force in Albania, andpromoting reconstruction and recon-ciliation in Kosovo.

European Commission


‘Europe on the move’ series

Luxembourg: Office for Official Publications of the European Communities

2001 — 35 pp. — 16.2 x 22.9 cm

ISBN 92-828-8260-8

The European Union is working to ensure a stable and peaceful Europe with a voice that is heard in the world.The EU is an important cooperation partner for all regions in the world — it is the world’s biggest trading partnerand is particularly active in promoting the human aspects of international relations, such as social solidarity,human rights and democracy.

This brochure presents all aspects of the European Union’s relations with other countries and peoples of theworld. This includes trade relations, the common defence and security policy, development assistance to helpcombat poverty around the world, humanitarian aid and the forthcoming enlargement of the EU with a significant number of new Member States.

EUROPEAN COMMISSION REPRESENTATIONS

Representation in Ireland18 Dawson Street, Dublin 2Tel. (353-1) 662 51 13

Representation in the United KingdomJean Monnet House, 8 Storey’s Gate,London SW1P 3ATTel. (44-20) 79 73 19 92Internet: www.cec.org.uk

Representation in Wales4 Cathedral Road, Cardiff CF1 9SGTel. (44-29) 20 37 16 31

Representation in Scotland9 Alva Street, Edinburgh EH2 4PHTel. (44-131) 225 20 58

Representation in Northern IrelandWindsor House, 9/15 Bedford Street,Belfast BT2 7EGTel. (44-28) 90 24 07 08

Information services in the USA2300 M Street, NW, Suite 707, Washington DC 20037Tel. (1-202) 862 95 00305 East 47th Street, 3 Dag Hammarskjöld Plaza, New York, NY 10017Tel. (1-212) 371 38 04Internet: www.eurunion.org

EUROPEAN PARLIAMENT OFFICES

Office in IrelandEuropean Union House, 43 Molesworth Street, Dublin 2Tel. (353-1) 605 79 00 Fax: (353-1) 605 79 99E-mail: [email protected]: www.europarl.eu.int

United Kingdom Office2 Queen Anne’s Gate, London SW1H 9AATel. (44-20) 72 27 43 00Fax: (44-20) 72 27 43 02E-mail: [email protected]: www.europarl.eu.int/uk

Office in Scotland9 Alva Street, Edinburgh EH2 4PHTel. (44-131) 225 20 58Fax: (44-131) 226 41 05E-mail: [email protected]: www.europarl.eu.int/uk

European Commission and Parliament representations and offices exist in all the countries of theEuropean Union. The European Commission also has delegations in other parts of the world.

Other information on the European Union

Information in all the official languages of the European Union is available on the Internet.It can be accessed through the Europa server (europa.eu.int).

EUROPE DIRECT is a freephone service to help you find answers to your questions about theEuropean Union and to provide information about your rights and opportunities as an EU citizen:

1800 55 31 88 (Ireland)0800 58 15 91 (United Kingdom).

Information and publications in English on the European Union can be obtained from:

This booklet is published in all the official languages of the European Union: Danish, Dutch,English, Finnish, French, German, Greek, Italian, Portuguese, Spanish and Swedish.

European CommissionPress and Communication ServiceRue de la Loi/Wetstraat 200B-1049 Brussels

Manuscript completed in December 2000.

Cover illustration: EKA; Cover layout: EC-EAC

Graphics: free form communication

Cataloguing data can be found at the end of this publication.

Luxembourg: Office for Official Publications of the European Communities, 2001

ISBN 92-828-8260-8

European Communities, 2001Reproduction is authorised.

Printed in Belgium

PRINTED ON WHITE CHLORINE-FREE PAPER

©


European Commission

Europe on the move

The European Union is working to ensure a stable and peaceful Europewith a voice that is heard in the world.The EU is an important cooperationpartner for all regions in the world — it is the world’s biggest trading partnerand is particularly active in promotingthe human aspects of international relations, such as social solidarity,human rights and democracy.

This brochure presents all aspects of theEuropean Union’s relations with other

countries and peoples of the world. This includes trade relations, thecommon defence and security policy, development assistance to help combat poverty around the world, humanitarian aid and the forthcoming enlargement of the EU with a significant number of new Member States.

OFFICE FOR OFFICIAL PUBLICATIONS OF THE EUROPEAN COMMUNITIESL-2985 Luxembourg

EN

PH-26-99-247-EN

-C1 11

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