Overseas Countries and Territories

They are not sovereign countries but depend to varying degrees on the three Member States with which they maintain special links, namely Denmark, France, and the Netherlands.

The OCTs have wide-ranging autonomy, covering areas such as economic affairs, employment market, public health, home affairs and customs, while defense and foreign affairs usually remain within the remit of the Member States.

Relations between the OCTs and the EU date back to the signature of the Treaty of Rome in 1957. OCTs are neither part of the EU territory nor of the EU single market. Through the Association, the OCTs enjoy a special political, cooperation and commercial partnership with the EU (duty-free and quota-free access to the EU market). They are of high political importance to the EU as a whole: despite being small in either size or population, they play a vital role as strategic outposts of the Union in their geographical areas.

It is important to distinguish the OCTs from the Outermost Regions (OR) of the EU, which are an integral part of the EU and its single market.

As a result of Brexit, the number of Overseas Countries and Territories associated with the EU has been reduced from 25 to 13. As of 1 February 2020, they are:

linked to Denmark: Greenland
linked to Netherlands: Aruba, Bonaire, Curaçao, Saba, Sint Eustatius Sint Maarten
linked to France: French Polynesia, French Southern and Antarctic Territories, New Caledonia, Saint Barthélemy, St. Pierre et Miquelon, Wallis et Futuna Islands

The OCT-EU Association

Legal basis

The OCT-EU Association is based on Articles 198 to 204 of Part IV of the Treaty on the Functioning of the European Union (TFEU):

The purpose of association shall be to promote the economic and social development of the countries and territories and to establish close economic relations between them and the Union as a whole. In accordance with the principles set out in the preamble to this Treaty, association shall serve primarily to further the interests and prosperity of the inhabitants of these countries and territories in order to lead them to the economic, social and cultural development to which they aspire.

At the beginning of each programming period the Council adopts by unanimity a specific 'Overseas Association Decision' (OAD) defining the rules and procedures that apply to the Association.

Governance

Regular policy and political dialogue between the Union and the OCTs are a core element of the Association. Formally, the dialogue takes place in different forms:

the annual OCT-EU Forum
the tripartite meetings, and
the partnership working parties

The OCT-EU Forum is the highest-level instance of dialogue that brings together at political level authorities from the OCTs, Member States representatives, the European Commission, Members of the European Parliament, representatives of the European Investment Bank (EIB) and of the OR. It takes place annually, provides strategic orientation and is chaired by the European Commission.

The Commission also chairs tripartite meetings, which, at senior officials’ level, focus on the programming and the implementation of the cooperation programmes, current affairs, and other issues of mutual interest. These meetings take place at least four times a year and this regularity ensures continuous, year-round dialogue on issues of shared concern.

Finally, the Commission also chairs the partnership working parties at technical level dedicated to specific topics such as financial services, climate/environment, trade, and regional integration, which act in an advisory capacity and meet on a need’s basis.

OCT-EU Cooperation

2014-2020

The 11th European Development Fund was the main source of EU financial support to the OCTs with a total budget of €364.5 million. For Greenland, on the other hand, the general budget of the EU had provided €217.8 million, notably to support the Greenlandic education sector. Implementation of some of the EDF cooperation is still ongoing beyond the period 2014-2020.

2021-2027

The current Decision on the Overseas Association including Greenland (DOAG) was adopted on 5 October 2021.

This new decision merges and simplifies two previous instruments: the 2014 Overseas Association Decision financed by the European Development Fund prior to 2021, and the 2013 Greenland Decision funded by the EU budget. This has resulted in a single instrument with the same source of financing - the EU budget - for all OCTs. It includes specific provisions guiding the partnership with Greenland.

The EU OCT partnership is underpinned by €500 million of available support for the period 2021-2027 allocated as follows:

€164 million for bilateral cooperation with OCTs other than Greenland
€225 million for t bilateral cooperation with Greenland
€76 million for regional cooperation, of which €15 million are allocated to intra-regional cooperation of OCTs with their non-OCT neighbours, Greenland being eligible only for intra-regional operations
€22 million for studies and technical assistance measures
€13 million in a non-allocated fund for unforeseen circumstances, emerging challenges, and new international priorities. Reflows from the former OCT Investment Facility (max €35 million) will be added

Informed by in-depth political and policy dialogue, 16 Multiannual Indicative Programmes (MIPs) are adopted by the Commission framing the cooperation 2021-2027 of the EU with our OCT partners. They build on territorial development plans of the OCTs as well as EU policy priorities.

Around up to 40% of the overall DOAG resources will be mobilized for Green Deal cooperation, such as renewable energy, water management, disaster risk reduction, sustainable agriculture as well as green and blue growth. Human development/education will also be a major area of cooperation accounting for over 40% of the total OCT envelope for 2021-2027. One of the two priority areas of the Greenland MIP is dedicated to education, with an allocation of €202.5 million. In addition, the EU advances with their OCT partners the digital transition, promotes good jobs and sustainable growth and, more generally in the spirt of the Global Gateway strategy, better connects our OCT partners with their neighbours and the wider world. Cooperation is rolled out in a Team Europe spirit and approach working closely together with Member States.

Access to other EU programmes

OCTs are eligible to other EU funding programmes, as a matter of principle, such as Invest EU, Horizon Europe, and Erasmus+. They can also benefit from the thematic part and rapid response actions of the NDICI as well from the Humanitarian Aid Instrument.

The ‘Overseas Countries and Territories Youth Network’

The OCT Youth Network was established in 2022 by the EU to engage with a diverse group of young voices from the OCTs. It is aiming specifically at strengthening the ties between youth living in the OCTs and the EU, as well as enhancing their knowledge and involvement in the EU-OCT Partnership.