Brussels, 20 April 2007

The EU and the Andean Community announced yesterday in Santo Domingo¹ their intention to start negotiations for an Association Agreement in the margins of the next EU-Andean Community Joint Committee that will be held in La Paz at the end of May 2007. By then, it is expected that the Andean Community will have made further progress on regional integration. The Commission will carry out the negotiations on behalf of the EU. During the meeting, Commissioner Ferrero-Waldner presented a large aid package for the Andean region, amounting to around €713 million for the period (2007-2013), adopted by the European Commission to assist the region to address the most important challenges they face. The allocations are €234 million for Bolivia, €160 million for Colombia, €137 million for Ecuador, €132 million for Peru and €50 million to support regional integration.

European Commissioner for External Relations and Neighbourhood Policy, Benita Ferrero-Waldner, said in Santo Domingo: "Reinforcing our relations with an ambitious Association Agreement has been a longstanding strategic objective for both the EU and the Andean Community and, therefore, I am pleased to announce that the first round of negotiations for such an agreement is expected to take place in La Paz at the end of May.“ And she added: “We are natural partners and closer ties with the Andean Community will contribute to a stronger partnership between the two regions, both politically and economically. With this decision, the EU shows its standing commitment to the Andean region. “

The Association Agreement is envisaged as a comprehensive agreement, embracing the whole array of the multifaceted relations of the EU with the Andean Community: political dialogue, cooperation and trade.

The Agreement will be negotiated on a ‘region-to-region’ basis in order to provide further impetus to the regional integration process in the Andean Community, as this is a key to foster stability, progress and sustainable development in the region. It will also help to place this region in the world economy by developing larger and more stable economies which are able to attract investment.

The bilateral cooperation envisaged by the Commission for the four Andean countries for the period 2007-2010 will address mainly social inequalities, the fight against poverty and against illicit drugs, good governance, rule of law and justice. The choice of the specific sectors for cooperation, both at regional level and at country level, was a common decision widely consulted with the Andean partners and civil societies from both sides.

The Commissioner added: "This aid package for the region aims to support the Andean countries efforts to increase levels of social cohesion by fighting poverty and exclusion. It also shows the willingness to work together on issues such as good governance, institution building and sustainable development. It also means that solidarity is an important aspect of our relations”.

Bolivia (€234 million)²

Cooperation with Bolivia will focus on creating the economic opportunities able to generate employment and to promote local development. The fight against drugs, in particular through alternative development, will also be a priority.

Colombia (€160 million)

Aid to Colombia will be channelled mainly through initiatives for peace and stability, including alternative development. The strategy also includes a new line on economic cooperation which aims to strengthen the country's competitiveness.

Ecuador (€137 million)

In Ecuador, apart from generating employment and support to the productive sector, in particular to SMEs, cooperation will support the government´s efforts to modernise the education sector.

Peru (€132 million)

With Peru the Commission will work towards the modernisation of the public institutions by supporting reforms. It will also dedicate a large part of the funds to promote integral social development in geographic areas particularly affected by poverty.

The regional cooperation (€50 million) has been designed to assist this integration system in its endeavours to address the most important challenges facing the region, notably regional economic integration, social and economic cohesion and the fight against illicit drugs.

^{1 IP/2007/529 EU and Latin America Foreign Ministers meet in Santo Domingo on 19 and 20 April 2007}