The European Union EU will give a grant of 43 Million Euros to 13 Forum Island Countries on Thursday, October 18, after they sign the Country Strategy Papers, the European Commission Director General for Development, Stefano Manservisi told Pacific Leaders in Nuku'alofa yesterday, October 15.

In a Pre Forum meeting the Africa, Caribbean and Pacific ACP Leaders' Meeting yesterday afternoon, Stefano reminded Pacific leaders of the "far-reaching relationships" between the EU and the Pacific islands during the past 30 years. He said the Pacific islands and the EU have something in common.

"You are a region with many small countries, with many cultures. The EU is a union of diversities where size does not matter.

"I believe we can understand each other comparing our experiences."

The Country Strategy Papers the pacific ACP members adopted in 2006 "calls for stronger partnership and for greater emphasis on regional integration and cooperation, as defined in your Pacific Plan."

The Country Strategy Papers addresses the key issues of development, stability, regional and economic integration, environmental vulnerability and governance.

Economic partnership

With regards to the Economic Partnership Agreement EPA, which has been negotiated between the EU and ACP members of the Pacific Forum to replace the Cotonou Trade Agreement that is due to expire at the end of December 2007, Stefano pointed out that in a ministerial meeting on October 2, ministers agreed on a two step approach.

"First, and In view of the short time available until the deadline of December 31 2007 they agreed to conclude a WTO compatible interim agreement by mid-November as a stepping stone to a comprehensive EPA, which would enter into force on January 1 2008."

Stefan said that the advantage of having an Interim Agreement in 2008 is that "it would enable us to bridge the gap to this ideal situation, whilst securing for you those fruits which can be reaped now, such as the EU's generous market access offer and Pacific-specific fisheries rules of origin.

"The key outstanding component of an interim agreement are WTO compatible market access offers.

"However, as I said, to conclude an Interim Agreement, we need market offers which will withstand WTO challenge. In this respect, you should consider WTO compatibility a guarantee of peaceful enjoyment of your status with us, not as an arbitrary imposition."

First EU political dialogue

Following the signing of the Country Strategy Paper on Thursday, October 18, the first Political Dialogue between the EU delegation and their Pacific counterparts will be held on Friday, October 19.