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Caribbean Forum of Acp States CARIBBEAN FORUM OF ACP STATES (CARIFORUM) ----- EUROPEAN COMMUNITY REGIONAL STRATEGY PAPER AND REGIONAL INDICATIVE PROGRAMME (RIP) For the period 2003 – 2007 The Caribbean Region, represented by the Caribbean Forum of ACP States (Cariforum), and the European Commission hereby agree as follows: (1) Cariforum, (represented by its Secretary General, Dr. Edwin Carrington), and the European Commission, (represented by <name and title>,) hereinafter referred to as the Parties, held discussions in <place> from …..… to …….. with a view to determining the general orientations for co-operation for the period <year of signature> – 2007. <If appropriate> The European Investment Bank was represented at these discussions by <name and title>. During these discussions, the Regional Strategy Paper including an Indicative Programme of Community Aid in favour of Cariforum was drawn up in accordance with the provisions of Articles 8 and 10 of Annex IV to the ACP-EC Partnership Agreement, signed in Cotonou on 23 June 2000. These discussions complete the programming process in the Cariforum region. Cariforum includes the following ACP countries1: Antigua and Barbuda, The Bahamas, Barbados, Belize, Dominica, Dominican Republic, Grenada, Guyana, Haiti, Jamaica, St. Kitts and Nevis, Saint Lucia, St. Vincent and the Grenadines, Suriname and Trinidad and Tobago. The Regional Strategy Paper and the Indicative Programme are annexed to the present document. (2) As regards the indicative programmable financial resources which the Community envisages to make available to Cariforum for the period <year of signature> -2007, an amount of € 57 million is foreseen for the allocation referred to in Article 9 of Annex IV of the ACP-EC Partnership Agreement. This allocation is not an entitlement and may be revised by the Community, following the completion of mid-term and end-of-term reviews, in accordance with Article 11 of Annex IV. Balances remaining from previous EDFs at the date of entry into force of the Financial Protocol as well as decommittments made at a later stage, will be added to this indicative allocation, in accordance with Paragraph 5 of Annex 1 of the ACP-EC Partnership Agreement. (3) The Indicative Programme under chapter 6 concerns the resources of the allocation. This allocation is destined to cover economic integration and trade support, sectoral policies, programmes and projects at the regional level in support of the focal or non-focal areas of Community Assistance. It does not pre-empt financing decisions by the Commission. (4) The European Investment Bank may contribute to the present Regional Strategy Paper by operations financed from the Investment Facility and/or from its own resources, in accordance with Articles 3 and 4 of the Financial Protocol of the ACP-EC Partnership Agreement (see paragraph 5.5 for further details). (5) In accordance with Article 11 of Annex IV to the ACP-EC Partnership Agreement, the signatories will undertake a mid-term and end-of-term review of the Regional Strategy Paper and the Indicative Programme in the light of current needs and performance. The mid-term review shall be undertaken within two years and the end-of-term review shall be undertaken within four years from the date of signature of the Regional Strategy Paper and the Regional Indicative Programme. Following the completion of the mid- and end-of-term reviews, the Community may revise the resource allocation in the light of current needs and performance. i 1 Cuba, though not benefiting from EDF support, became a member of Cariforum in October 2001. (6) The agreement of the two parties on this Regional Strategy Paper and Regional Indicative Programme, subject to the ratification and entry into force of the ACP-EC Partnership Agreement, will be regarded as definitive within eight weeks of the date of the signature, unless either party communicates the contrary before the end of this period. Signatures For Cariforum For the Commission ii TABLE OF CONTENTS PART A: CO-OPERATION STRATEGY Page Abbreviations iv Executive Summary v Chapter 1 The EC regional co-operation principles and objectives vi Chapter 2 The policy agenda of the region 2.1 Assessment of the process of regional integration 2.1.1 Regional economic integration 1 2.1.2 Regional functional co-operation 4 2.1.3 Regional vulnerability and stability 5 2.2 The policy agenda of the region 2.2.1 Cariforum regional integration and development strategy (RIDS) 5 2.2.2 The Dominican Republic and Haiti 6 2.2.3 Cuba 6 2.2.4 External trade agenda 6 2.2.5 Hemispheric agenda 7 2.2.6 The EU-LAC bi-regional strategic partnership 8 2.2.7 Regional governance and institutional efficiency 8 Chapter 3 Analysis of the political, economic and social context of the region 3.1 Political situation 9 3.2 Economic and social situation 10 3.3 Sustainability of policies and medium term outlook 11 Chapter 4 Overview of past and ongoing EC co-operation 4.1 Results analysis, lessons and experience 13 4.2 Programmes of EU Member States and other donors 14 4.3 Co-ordination and dialogue on development co-operation 15 4.4 Other EC policies 15 Chapter 5 The Response Strategy 16 PART B: INDICATIVE PROGRAMME Chapter 6 Presentation of the Regional Indicative Programme 19 ANNEXES Annex 1 Intervention Framework Annex 2 Chronogramme of activities Annex 3 Indicative commitments and disbursements Annex 4 Cariforum Regional Integration and Development Strategy (RIDS) Annex 5 Ongoing EDF programmes Annex 6 Donor matrix Annex 7 Regional institutional framework Annex 8 Implementation of the CSME Annex 9 Statistics: social data, trade and economic Annex 10 EU-LAC bi-regional strategy Annex 11 Allocations and focal areas of CSPs iii MAIN ABREVIATIONS RELEVANT TO THE CARIBBEAN RSP ACP Africa, Caribbean and Pacific ACS Association of Caribbean States BPA Barbados Plan of Action CARICAD Caribbean Centre for Development Administration CARICOM Caribbean Community and Common Market CARTAC Caribbean Regional Technical Assistance Centre CCJ Caribbean Court of Justice CDB Caribbean Development Bank CDE Centre for the Development of Enterprises CDERA Caribbean Disaster Emergency Response Agency CET Common External Tariff CFAT Caribbean Financial Action Task Force CGCED Caribbean Group for Co-operation in Economic Development CRIP Caribbean Regional Indicative Programme CROSQ Caribbean Regional Organisation for Standards and Quality CSME Caribbean Single Market and Economy DDA Doha Development Agenda CSP Country Strategy Paper DFID Department for International Development (United Kingdom) DIPECHO Disaster Preparedness ECHO DOM Departments d’Outre Mer (French Overseas Departments) DR Dominican Republic EBAS EU/ACP Business Assistance Scheme EC European Commission ECHO European Commission Humanitarian Aid Office EDF European Development Fund EDU Export Development Unit EIB European Development Bank EPA Economic Partnership Agreement EU European Union EU-LAC European Union – Latin America / Caribbean FDI Foreign Direct Investment FTA Free Trade Agreement FTAA Free Trade Agreement of the Americas GATS General Agreement on Trade in Services GDP Gross Domestic Product HDI Human Development Index IADB Inter American Development Bank ICT Information and Communication Technologies ILO International labour Organisation IMF International Monetary Fund INTERREG Community Initiative for the European Regional Development Fund IT Information Technology IPRs Intellectual Property Rights LDC Caribbean Less Developed Country (Caricom definition) NIP National Indicative Programme NSAs Non-State Actors MFN Most Favoured Nation NGO Non Government Organisation OAS Organisation of American States OCTs Overseas Countries and Territories OECD Organisation for Economic Co-operation and Development OECS Organisation of Eastern Caribbean States RAO Regional Authorising Officer RIDS Caribbean Regional Integration and Development Strategy RIP Regional Indicative Programme RNM Regional Negotiation Machinery RS Response Strategy RSS Regional Support Strategy RSP Regional Strategy Paper SME Small and Medium Enterprises UNDP United Nations Development Programme USAID United States Agency for International Development UWI University of the West Indies WTO World Trade Organisation @LIS ALliance for the Information Society iv EXECUTIVE SUMMARY The overall aim of the Regional Support Strategy is the beneficial integration of the Caribbean region into the world economy through a global repositioning aimed at achieving sustainable economic growth, regional cohesion and stability and continued improvements in living conditions. Support to regional integration aims the establishment of a harmonised economic space that will contribute to achieving greater competitiveness. This will facilitate the Caribbean to engage in a structural transformation and repositioning of its economy, to enter into advantageous international trade negotiations, and ultimately to achieve Cotonou’s central objective of poverty reduction. An integrated and mutually-reinforcing process of support to the Intensification of Regional Integration has been selected as the Focal sector: – An expansion in the regional economic base is expected to increase market opportunities, improve the attractiveness of investments and achieve greater economies of scale. The completion and full implementation of the Caribbean Single Market and Economy by 2005 should enable the lack of international competitiveness in a number of export sectors to be tackled by easing the constraints facing small economies and markets. – Building upon
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