Idea Transcript
ANNEX I
ACTION FICHE FOR THE ANDEAN COMMUNITY
1.
IDENTIFICATION Title/Number Total cost
2. 2.1.
"INTER-CAN (INTegración Económica Regional de la CAN)" -DCI-ALA/2007/019 669 EC contribution: 6 500 000 EUR Beneficiary contribution: 2 420 000 EUR Total cost: 8 920 000 EUR
Aid method / Management mode
Project approach – decentralised
DAC-code
33120 and 33130
Sector:
Trade Facilitation and Regional Trade Agreements
RATIONALE Sector context
Regional economic integration within the Andean Community remains one of the major objectives of the Cartagena Agreement, the treaty founding what is now called the Andean Community. Many advances have been made in this respect, such as complete liberalisation of trade between the four countries (since the mid-1990s between three of the four and, since January 2006 between all four), some convergence in the Multi Favoured Nation (MFN) duties applied, a set of common rules in various areas (such as intellectual property rights), efforts to promote harmonised technical legislation, etc.
On 14 June 2007 the Andean Community and the European Union officially announced the starting of negotiations in view of an Association Agreement between both blocks. This Association Agreement will include a free trade area (as one of its three pillars) and will replace the General System of Preferences (GSP) arrangements. In order to start the negotiations, a joint assessment exercise was carried out with a view to assure that a sufficient level of regional economic integration had been achieved. This exercise looked at the institutional framework of economic integration, the customs union aspects and the trade regulatory framework and non-tariff barriers to intra-regional trade. Following the positive results of this exercise, the first round of negotiations took place between 17 and 21 September in Bogotá, Colombia, and on December 10 to 14 in Brussels, with satisfactory results for both sides. The third round is foreseen on the third week of April 2008 in Quito, Ecuador.
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Bolivia, until the end of 2006, Bolivia saw an important increase in its exports though its trade structure has not changed. It is still very similar to that of twenty years ago, the main exports being limited to commodities. Bolivia is an example of a low economic development, highly dependent on international cooperation and international commodity prices while showing severe asymmetries in income distribution.
At present the main priority of Bolivia's government’s policy concerns reform of the productive matrix, as explained in the National Development Plan. This matrix attempts to generate conditions for productive links between small and medium enterprises and large national and international companies. Trade policy focuses on the intention to broaden international relations, lessening dependence on the USA and deepening contacts with Cuba and Venezuela, while also strengthening relations with South Africa, India and China. In this context, in the last ten years Bolivia has signed bilateral treaties for economic complementation with countries like Chile, Mexico, Cuba and the MERCOSUR group. The EU is seen as a strategic ally, with the negotiation in view of an EU-CAN Association Agreement perceived by Bolivia as an interesting example of the kind of relations to be developed with industrialised countries. It should be noted that Bolivia's trade is less developed than that of Peru and Ecuador and that within the framework of the start of negotiations on an association agreement, Bolivia was very reluctant to open negotiations on services, foreign direct investment, government procurement and intellectual property, and stressed the different economic development levels and policies within the CAN. Yet, the main problem of Bolivia is not market access but rather the reduced volume, quality and diversity of its exports.
Colombia, since 1995, Colombia's trade policy has been characterized by a process of commercial opening, market liberalization of goods and services, and improvements in the exchange and credit systems. During this period the country reduced tariffs on imports and exports. Additionally, changes in the exchange system allowed the repayment of debts to the multilateral organizations by the disbursement of loans. The United States continues to be Colombia’s most important trading partner, providing (25%) of imports and taking (41%) of exports. Imports from the European Union (14%) and Andean Community (11%) and exports to those two blocs (14% and 20% respectively) are also falling. Meanwhile, imports from China, Brazil and Mexico have been showing significant increases since 1997. Colombia's present administration will continue to promote private foreign investment by integration and commercial infrastructure concessions, the sale of remaining public assets, the banking and energy industries and, finally, generating and consolidating a more attractive regulatory framework. The European Union is the largest source of foreign investment in Colombia, representing around 37 percent through the period 1997-2005. At the first round of negotiations with the EU, president Uribe outlined his interest in concluding the negotiations in less than 2 years.
In Ecuador, trade flows with the rest of the countries of the CAN have increased considerably over the last few years. The exports and the imports practically have multiplied by three from the year 2000. This is a positive development and shows that commercial relations between Ecuador and its neighbouring countries are improving, and this favours the process of
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regional integration. However, trade flows with the rest of the CAN could still increase further particularly with diminishing trade barriers. At present, only 16% of Ecuador’s imports and 13% of its exports come from or go to the countries of the CAN given the predominance of trade with the United States, the country’s principal trading partner. Ecuadorian trade is heavily biased towards the United States. In addition, direct foreign investment with the countries of the CAN is quite limited.
In Ecuador’s case the lack of competitiveness of its companies is one of the main reasons that it does not use the commercial opportunities of regional integration. Another obstacle is an insufficient legal framework and the high cost of doing businesses in Ecuador. Finally the Ecuadorian customs are enormously inefficient and need in-depth reform. In this context, the country strategy of the EC in Ecuador envisages an economic axis that aims to create economic and sustainable prospects and to promote regional integration, thus stimulating the competitiveness of micro-businesses and SMEs. The objective is to increase productivity, to favour the presence of the SMEs in foreign and especially regional markets, and to promote a more propitious environment for competitiveness. As far as government policy is concerned, the economic plan presented at the beginning of the year 2007 contains regional integration as one of its aims. Although concrete actions are not still defined, emphasis is placed on support for small producers, promotion of exports and defence of Ecuadorian production. Ecuador has shown a quite constructive position during the two first rounds of negotiations and not raised any particular problematic issue contributing to the good progress of the process.
Peru, trade between Peru and the CAN continues to progress. Peru’s exports to the CAN rose by 186% between 2002 and 2006 and imports by 114% over this same period. While exports to the CAN increased considerably, they account only for 6% of total Peruvian exports. Imports from the CAN are more important and account for 18% of total imports. However, the USA remains the number one trading partner for Peru. The commercial policy of Peru is based on three fundamental principles: 1. liberalisation of trade: since the beginning of the 1990s, Peru has reduced substantially its customs barriers, both tariff and non-tariff. 2. development of exports: one priority has been the setting up of a national export plan. 3. priority for free trade agreements such as that with MERCOSUR, the USA and Singapore. To facilitate intra-regional trade there are still certain obstacles to be overcome with its Andean neighbours such as tariffs on inspections by the national authority (SENASA) and the duration of customs procedures (verification of the value of products, classification, samples). As far as negotiations on the Association Agreement with the EU is concerned, Peru has stressed at several occasions its interest in negotiating separately with the EU. Yet, Peru is participating fully in the common negotiations.
At CAN level, the state of the integration process was looked at with the following main results: customs union: the main conclusions were that in the process of establishing a Common External Tariff (CET), the Andean Community has created an ad hoc group of high level officials responsible for continuing the necessary technical work for the adoption of a Common Tariff Policy, which does not yet exist. Since January 2006, all goods originating in CAN circulate freely, although customs controls, notably on origin, are undertaken at each internal border crossing. Also, significant difficulties exist at some internal borders, as trucks
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are not allowed to cross and continue further, or at least have to change tractors. It should be noted that as of January 2007 the Andean Integrated Tariff (Arancel Integrado Andino – ARIAN) is in force in accordance with Decision 657. Since 2002/2003, there have been common rules on: customs control, customs nomenclature, customs valuation, international transit, mutual administrative assistance and cooperation between customs authorities, a single administrative document (DUA - applicable to both intra and extra-regional trade has been recently developed, however no date has been fixed for its formal implementation).
As the most important conclusion of the joint assessment and with the view to facilitate trade and reduce operational costs for economic operators, the CAN has been working on the existing framework for free circulation of member countries’ products. In this context, the assessment concludes that it would be desirable to:
- Solve the difficulties encountered at internal land borders, in particular problems related to the difficulties of ensuring direct transportation between various CAN countries, especially implementation of a community transit regime regulated by Decision 617, as modified by Decision 636 and the lack of implementation of the Andean community transport legislation by local authorities;
- Implement the recent common legislation on customs regimes and procedures (such as Decision 574) in particular, with regard to the adoption by member countries of the draft common customs code and respective implementing provisions;
- Complete existing legislation on valuation, through the adoption of a common Andean Valuation Declaration, as well as the definition of common data required from importers for valuation purposes;
- Complete the reform of the international/Andean community transit system, by defining three important elements such as 1) the identification of sensitive products; 2) methods for providing information on transit between customs and 3) the introduction of appropriate precautionary measures, including guarantees;
- Strengthen the administrative capacity of customs administrations. In particular, attention could be focused on interconnectivity between administrations through electronic data exchange networks. Interconnectivity between all authorities involved in the control of goods at the border should also been enhanced (for example; connection between customs and authorities in charge of issuing sanitary register, conduct sanitary inspections);
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- Promote the operation of CEBAF (cross-border check points) and of a unique integrated customs control conducted only once by both customs administrations and authorities (for example the customs of the country of destination);
- Develop common regional legislation aimed at fighting smuggling.
A further central issue is to further strengthen the Andean sanitary and phytosanitary system on the basis of Decision 515. This action in the AAP 2008 must contribute to improving the national capacities of the Andean countries’ agricultural health services, thus generating credibility and confidence in the certification of products to gain new international markets. There are currently marked differences in the capacity and implementation of the principal quarantine measures requiring control posts of the Andean countries, generating difficulties and greater costs for the trade in agricultural products. As far as the regulatory framework and non-tariff barriers to intraregional trade are concerned, the main recommendations concentrated on technical barriers to trade, SPS norms, regional liberalisation on services and investment, government procurement, intellectual property and geographical indications, agriculture, competition and trade defence instruments. 2.2.
Lessons learnt
The project aims to implement some important conclusions of the above mentioned joint assessment which are in line in particular with the results of the former EC financed projects on regional integration described below. Therefore the present project is indispensable in the framework of an Association Agreement. The EC has financed in the past various projects out of which one is still being implemented. EU-Andean Community Cooperation in Trade Related Technical Assistance (CAN TRTA I) (EC 4 mio €/CAN 1 mio €/ 11/05-10/07): The objective of the project was to contribute to the pursuance of Andean Integration and a Common Market and to develop trade relations between the EU and the CAN. Important results are e.g. a study on non-technical barriers to trade which is a basis for future actions on regional integration as a key to the negotiations, a proposal for a common customs code, se adoption of decision 623 on conflict resolution and various specific studies and legislative proposals and a high number of training courses. Trade Related Technical Assistance (TRTA II – part 1) (EC .95 mio €/CAN .265 mio €/ 11/0506/07): The TRTA II funding was split into two parts: the objective of the first part (€ 950.000) was to strengthen the institutional capacity of the General Secretariat and the Andean Countries to collect, systematize and analyze the information necessary to advance the process of joint assessment and to process the results of the group’s meetings. Results of this assessment are mentioned above. In addition some training in view of the negotiations was provided. EU-Andean Community Co-operation in the field of technical standardisation (CAN-Calidad) (EC 2.3 mio €/CAN 1.0 mio €/11/02-11/05): The aim of this project was to harmonise Technical Regulations within the Andean Community, through the transfer of European know-how to the Andean region in fields such as standardisation, notification and
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certification. The mains results of the project were the development of a system for information and notification, the development of national quality plans, the revision of the Andean system for accreditation and training on metrology and ISO 17025. EU-Andean Community Co-operation in the field of Competition Law (CAN-Competencia) (EC 2.0 mio €/CAN 1.5 mio €/10/02-11/05): The aim of this project was to achieve a regional competition law that could be enforced in order to ensure a “real” internal market. Main results were the approval of the Andean law on competition in June 2005 and a number of training courses. GRANADUA: "Fortalecimiento de la Unión Aduanera en los países de la Comunidad Andina" (EC 1.9 mio€/CAN 2.2 mio €/05/2000-05/2003): The principal aim of the project was to help to consolidate the Andean Customs Union, as a step prior to the construction of the Andean Common Market in 2005, through support for national customs institutions, the harmonisation of technologies and procedures, the speeding up of customs operations and other actions. The project prepared a number of important decisions, most of which are adopted such as on the nomenclature NANDINA, the Andean Integrated Tariff (ARIAN), the single customs document (DUA) and the customs transit regime. These projects produced a variety of results, many of which were incorporated in decisions of the CAN. However, the main challenge remains either the approval of some proposals or in the case of existing decisions, their implementation. For this reason this project will focus on the one hand on helping the implementation of concrete activities to improve intra-regional trade as well as conditions for imported goods, and on the other hand to facilitate and promote understanding and cooperation in policy areas of interest for the CAN within the framework of negotiations leading to an Association Agreement between the CAN and the EU. This process will help to adapt and implement the necessary decisions with a view to deepening the regional integration. 2.3. Complementary actions Projects financed by the EC in the past are: Trade Related Technical Assistance (TRTA II – part 2)(EC 3.05 mio €/CAN 1.652 mio €/ 12/06-12/09): The second part of the TRTA II project (€ 3.050.000) shall contribute to the pursuance of an Andean Common Market as the basic element for regional integration. The project is a facility which will finance projects identified by a call for proposals which was launched in 12/07. The projects will be selected in March 2008. EU-Andean Community Co-operation in the field of statistics (EC 5 mio €/CAN 3 mio€ 6/2005-6/2009 (CAN-Estadísticas):The objective of this project is to transfer to the Andean Community the European experience in the field of statistical integration as one of the basic elements which will support its regional integration and the constitution of the Andean Common Market. It should be mentioned that the EC is the only donor financing regional integration issues at CAN level. EU Member States and other donors are financing cooperation in this area mainly at country level. 2.4. Donor coordination As the EC is the only actor working on economic integration in the CAN, joint intervention with other donors is not applicable. However, in the spirit of the Paris Declaration, close
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coordination with the other EU donors is guaranteed by coordination meetings and in particular, the framework of the on going negotiations exercise in view of an Association Agreement. 3.
DESCRIPTION
3.1.
Objectives
General Objective: To improve regional economic integration and to facilitate EU-CAN negotiations in view of an Association Agreement.
Specific Objective: To help to implement regional decisions identified in the past (i.e. in the context of EC funded ended projects) or to be identified within the UE-CAN negotiations for an Association Agreement at national level. 3.2.
Expected results and main activities
Result 1: to help to implement regional decisions identified in the past or to be identified within the UE-CAN negotiations on an Association Agreement at national level (1.400.000 Euro approx). EC cooperation has financed a variety of Aid for Trade activities in the Andean Community. These cooperation activities have led to a variety of decisions at CAN regional level to be implemented at national level. However, due to the lacking regional infrastructure, mainly a politically and technical insufficient endowed General Secretariat and lacking staff at the national governments working on CAN issues, has caused serious deficiencies in implementing such decisions at national level. Therefore, this project shall support a network of experts attached to the CAN GS with one coordinator working there and 4 experts attached to each of the governments (Ministries of Trade). The newly to be created Centre for the Implementation of Andean Regional Integration Policies (Centro Andino para la Implementación de Políticas de Integración Regional – CAIPIR) will be responsible for the necessary coordination within the national governments in order to prepare and implement regional decisions at national level. It will be directed by a supervisory board with representatives from the four CAN countries, presided over by the CAN GS and with the European Commission as observer. The establishment of the CAIPIR does not implicate the creation of a new institution, but rather a mechanism with a regional character that will facilitate the coordination and implementation of common policies. Concrete tasks to be carried out by CAIPIR are: • Support for the four governments of the Member Countries and the CAN GS in formulating and implementing regional decisions identified in the past or to be identified within the UE-CAN negotiations in view of an Association Agreement at national level; • Strengthening the technical leadership of the CAN GS for the promotion and implementation of regional economic integration; • Helping the countries of the CAN to implement regional decisions identified in the past with a view to improving intra-regional commercial exchanges, increasing intra-regional investments and allowing regional production clusters; • Helping the countries of the CAN to implement agreements within the framework of the Association Agreement;
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• Support for the CAN GS in elaborating mechanisms to promote financing of regional economic integration projects; • Support for the CAN governments in coordinating policies for regional economic integration; • Promoting coordination and promotion of best practices among governments; • Carry out visible actions in coordination with the four governments and the CAN GS to improve levels of information and motivation among the Andean citizens concerning the process of Andean integration and the CAN’s regional economic integration policies; • Other actions to be defined within the negotiation in view of the Association Agreement and approved by the above mentioned supervisory board. The supervisory board will define the annual work programme of CAIPIR. Result 2: to improve intra-regional trade and allow an integrated control of goods and services at the borders by improving the interconnectivity between administrations through electronic data exchange networks (800.000 Euro approx) and some investment in regional customs laboratories (600.000 Euro approx) For this purpose, the project will support the development of an integrated electronic data exchange network of customs procedures based on the Single Customs Document (Documento Unico Aduanero – DUA). The objective is to implement Andean decision such as that on the Single Customs Document and to allow integrated administration of customs procedures. The result should be measurable by reduced transaction costs for trade, reduced time needed for the transport of goods and services and in the end by increasing intra-regional trade. For this reason, a first investment in customs laboratories will be undertaken and may be extended under AAP 2010. The detailed investment will be determined at the moment of launching the tender. Result 3: to improve intra-regional trade and allow an integrated control of goods and services by support for improved inspection laboratories (2.400.000 Euro approx) The component will contribute to equipping laboratories of the national administrations in the CAN member countries and some training. In particular strengthening the regional sanitary and phytosanitary system of the CAN (Fortalecimiento del Sistema Andino de Sanidad Agropecuaria y de la Inocuidad de Alimentos (450.000 Euro)) and support for the implementation of laboratories for the chemical inspection of goods (Implementación de los laboratorios de Análisis Químico y Físico Químico de Plaguicidas, Productos veterinarios y contaminantes alimenticios (550.000 Euro)). First support for the National Institutes for metrology will be envisaged (1.400.000 Euro) and further support envisaged under the AAP 2010. The detailed investment will be determined at the moment of launching the tender. Result 4: to facilitate and promote dialogue and cooperation in policy areas within the framework of negotiation leading to an Association Agreement between the CAN and the EU (400.000 Euro approx) This dialogues will be established by: • • • •
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meetings, seminars, for a, exchange of experience and best practices, workshops and conferences mutual visits of officials and other dialogue partners studies on subjects of mutual interest, publications and dissemination training of CAN officials in areas of mutual interest
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• •
3.3.
technical assistance and provision of relevant expertise to dialogue partners in promoting the shared agenda One key area of these dialogues will be environmental subjects.
Risks and assumptions
The assumption is that the negotiation process will continue with full political support of the CAN Member countries. If the political agenda of the CAN were to change and the negotiation process suspended or even abandoned, the project itself would be in danger as well. A further condition for the project is that already existing decisions are implemented by the Member countries, such as the use of the Single Customs Document, the acceptance of transport companies operating at Community level (avoiding changing tractors / trucks at borders) and application of "Arancel Integrado Andino"(ARIAN). 3.4.
Crosscutting Issues
The Project is linked to the Millennium Development Goals (MDG) as its objective is to contribute to the reduction of poverty by enhancing economic growth and reducing social and economic differences, paying attention to gender equality and the different ethnical and cultural contexts that exist in the Andean region. Likewise, the parallel dimensions of gender equality, intercultural matters and environmental sustainability will be present throughout the project and implementation of its activities. 3.5.
Stakeholders
The direct beneficiaries of the project will be the CAN GS, the trade ministries, the sanitary services and most importantly the customs administrations of the four countries. The aim is to improve treatment of trade flows by customs administrations in order to reduce costs of trade and thereby increase the trade flows. In addition, free circulation for European goods is a request by the EU in the framework of the negotiations in view of an Association Agreement and in this context all measures had been identified jointly during the joint assessment. Further beneficiaries are the Ministries and public entities involved in the negotiation process of the Association Agreement and Civil Society. Indirectly, economic actors benefiting from an improved trade flow of services and goods and the population will benefit via economic growth, higher employment rates and better salaries. 4. 4.1.
IMPLEMENTATION ISSUES Implementation method
Partly decentralised management through the signature of a Financing Agreement (FA) with the Andean Community. The Beneficiary of the FA is the General Secretariat of the Andean Community (CAN GS), which assumes the obligations and responsibilities deriving from that FA. The Beneficiary accepts responsibility for the good execution of the project, among others in terms of effectiveness, efficiency, transparency, sustainability, participation and good use of the resources.
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The CAN GS has been designated by Bolivia, Colombia, Ecuador and Peru (i.e. third countries) to act on their behalf for the purpose of this FA. These third countries retain the ultimate responsibility for the implementation of this FA. The Commission controls ex ante the contracting procedures for procurement contracts >50.000 EUR and ex post for procurement contracts < 50.000 EUR. The Commission controls ex-ante the contracting procedures for all grant contracts. Through the programme estimates, payments are decentralised for operating costs and contracts up to the ceilings indicated in the table below: The Authorising Officer ensures that, by using the model financing agreement for decentralised management, segregation of duties between the authorising officer and the accounting officer or of the equivalent functions within the delegated entity will be effective, so that the decentralisation of the payments can be carried out for contracts up to the ceilings specified below. Works
Supplies
Services
Grants
< 300.000 EUR
< 150.000 EUR
< 200.000 EUR
< 100.000 EUR
The project will be implemented by decentralised management via the CAN GS. The CAN GS will sign delegation agreements with the customs administrations of the four countries in order to implement the projects which will then be administered by these customs administrations and with the competent national authorities for the investments in laboratories. The component on promotion of dialogue and cooperation in policy areas will be fully implemented by the CAN GS. 4.2.
Procurement and grant award procedures/programme estimates
All contracts implementing the action must be awarded and implemented in accordance with the procedures and standard documents laid down and published by the Commission for the implementation of external operations, in force at the time of the launch of the procedure in question. The essential selection and award criteria for the award of grants are laid down in the Practical Guide to contract procedures for EC external actions. The maximum possible rate of co-financing for grants is 80%. Full financing may only be applied in the cases provided for in Article 253 of the Commission Regulation (EC, Euratom) No 2342/2002 of 23 December 2002 laying down detailed rules for the implementation of the Financial Regulation applicable to the general budget of the European Communities. Participation in the award of contracts for the present action shall be open to all natural and legal persons covered by Regulation (EC) No 1905/2006 of 18 December 2006 establishing a financing instrument for development cooperation (DCI). Further extensions of this participation to other natural or legal persons by the concerned authorising officer shall be subject to the conditions provided for in articles 31(7) and (8) of the DCI Regulation. All programme estimates must respect the procedures and standard documents laid down by the Commission, in force at the time of the adoption of the programme estimates in question.
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4.3.
Budget and calendar
Headings 1 Services 1.1 Technical Assistance, Training, Exchange of Experience, Studies, Conferences, Publications
EC 2.000.000 600.000
Beneficiary 1.000.000 200.000
Total 3.000.000 800.000
1.2 Technical Assistance for new CAIPIR (Centre for the application of regional policies in the CAN countries)
1.200.000
800.000
2.000.000
1.2 Monitoring, Evaluation, Audits 2 Equipment and supplies 3 Works 4 Information and Visibility 5 Grants 6 Administrative expenditure 6.1 Local Personnel 6.2 Other administrative expenditure 7 Contingencies 8 Total
200.000 3.800.000 0 300.000 0 350.000 250.000 100.000 50.000 6.500.000
0 1.300.000 0 0 0 120.000 100.000 20.000 0 2.420.000
200.000 5.100.000 0 300.000 0 470.000 350.000 120.000 50.000 8.920.000
% 34
57 3 5
1 100
The financing agreement (FA) will have duration of 42 months, comprising two phases: the 36 months operational phase and the closing phase, which will last a maximum of 6 months. 4.4.
Performance monitoring
The project's degree of progress and the fulfilment of its objectives and results will be regularly monitored internally. For this purpose, the project technical team, in close cooperation with the CAN GS, will set and apply a monitoring system in line with the CAN GS guidelines. Independently of this, the European Commission may carry out periodic external monitoring missions that will begin once the project activities have been in effect for at least 4 months, and will conclude no later than 4 months before the end of the project’s operational implementation. Monitoring mission reports will be delivered to the CAN GS so that it can take into consideration any possible recommendations put forward by those missions. 4.5.
Evaluation and audit
Mid-term and final project evaluations will be made and, possibly, an ex-post evaluation, as well. If necessary, other evaluations may be carried out during the project implementation period, by common agreement of the CAN GS and the EC. The CAN GS and the European Commission will examine the conclusions and recommendations of the evaluations and will jointly agree on their follow-up and on any adjustments that may be in order, including the project’s redirection, if necessary. The reports of the other evaluation missions and of the monitoring missions will be delivered to the CAN GS so that possible recommendations put forward by those missions can be taken into consideration. The CAN GS may, regardless of any legally mandated internal and external audits, periodically audit (at least once a year) all of the expenditures chargeable to the EC contribution. To that end, the CAN GS will, with the prior agreement of the European Commission, enter into contact with an external auditing firm, chargeable to the budget item "6.2. Other administrative expenditure". The CAN GS will also perform a final audit during the closing phase and will submit the results to the European Commission, together with the final project report. The final audit should not contain any reservations. Besides these periodic audits for which the CAN GS is responsible, the Commission may carry out its own audit missions.
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4.6.
Communication and visibility
The project aims at improving regional economic integration and facilitating EU-CAN negotiations for an Association Agreement. Therefore, visibility actions will focus on the impact of the Association Agreement on the inter- and intra-regional relations. The Beneficiary will respect the indications of the EU Visibility Guidelines for E
ANNEX II
ACTION FICHE FOR THE ANDEAN COMMUNITY
5.
IDENTIFICATION Title/Number Total cost
6. 6.1.
PRADI-CAN (PRograma Anti-Drogas Ilícitas en la CAN) / DCI-ALA/2007/019-670 EC contribution: 3 250 000 EUR Beneficiary contribution: 770 000 EUR Total cost: 4 020 000 EUR
Aid method / Management mode
Project approach – decentralised management
DAC-code
16063
Sector:
Narcotics control
RATIONALE Sector context
Almost all of the coca produced in the world is cultivated on Andean soil, in particular in Colombia, Peru and Bolivia (but with significant spill-over effects starting in border areas of Ecuador as well). In general, political instability, combined with poverty, weak governance and increasing demand for cocaine, are nourishing production and trafficking of illicit drugs, which remains a very significant destabilising factor.
More and more, awareness is gaining ground that regional action to address similar problems in the drugs area has an added value. An initial effort to put the fight against illicit drugs on the Andean agenda was the adoption of the first Andean strategy on the fight against drugs and related crime in 2002 and the adoption of CAN Decision 505 in 2001, the "Andean Cooperation Plan for the control of illegal drugs and related offences". Cooperation between the CAN countries further intensified in the area of chemical precursors, notably with the adoption of common CAN legislation on this subject at the end of 2004 and implementation of a sub-regional project on cooperation in this area financed by the EC (Prevention of the Diversion of Chemical Precursors for the Scope of Drug Manufacturing in the Andean
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Countries - PRECAN). The establishment of an Andean Committee on Alternative Development (CADA) made up of representatives of all CAN countries and serving to exchange views on how to stimulate alternative development, in turn led, in July 2005, to the adoption of Decision 614, the "Integral and sustainable Alternative Development Andean Strategy".
These policies were confirmed at the recent presidential summit in June 2007 in Tarija, Bolivia. The presidents confirmed in the final "Declaration of Tarija" of the "XVII Reunión Ordinaria del Consejo Presidencial Andino" of 14 June 2007 the importance they attach to the effective application of the shared responsibility principle in the fight against the global problem of drugs. They also insisted on the need, within the context of the above mentioned Decision 505, for strengthening the drugs observatories in their fight against illicit drugs. In the following country overview, national policies to combat illicit drugs are outlined:
Bolivia: According to the UNODC 2007 report the area in Bolivia under coca cultivation increased in 2006 by 8 % compared to 2005, and reached 27,500 hectares. The Bolivian government’s new policy to fight this problem is based on the concept of “Coca sí, cocaína no”, under which past efforts to stamp out the production and trafficking of illicit drugs will be maintained and even intensified, but under which the cultural and traditional place of coca leaf cultivation and the traditional use of the coca leaf will be respected. The aim of the government is to reformulate the existing Law 1008 which allows for leaf cultivation on only 12,000 hectares and provides for forced eradication (as a temporary measure raised to 20,000 hectares). The apparent increase in cultivation is clearly related to this government policy, under which restrictions have been loosened. The government promotes within the framework of its "Estrategia de Lucha contra el Narcotráfico y Revalorización de la Hoja de Coca 20072010" a policy of allowing every grower affiliated to a coca growers’ union to cultivate a cato – equivalent to 1600 m² – of coca. At the same time, the government is implementing a “rationalization” programme, under which coca in excess of this quantity is removed, in consultation with local growers’ unions: the “social control” mechanism. Indeed, a key government objective is to implement a policy that will avoid the bloodshed, confrontation and marginalisation that characterised previous government programmes. This policy is only recently being started and has not yet shown its full effects. Colombia: Colombia is the largest producer of coca and accounts for 62% of the world’s supply of cocaine. According to the UNODC 2007 report, the coca-cultivated area was 78,000 hectares, which was the lowest number in the last few years. The government focuses its fight against the production and trafficking of cocaine on an eradication policy through gliphosate spraying and manual eradication. Complementarily, the Presidential programme against Illegal Crops “PCI”, includes three programmes with a view to creating alternative sources of income for those who are prepared to manually eradicate coca from their own lands “familias guardabosques”, “ proyectos productivos” and the “grupo móvil de Erradicación”. President Uribe’s alternative development policy is based on a recognition of the incidence of the armed conflict on the drug-producing zones and therefore it is embedded within national security strategy. In its National Development Plan 2006-2010, the Colombian government established its policies on illegal drugs. In this document the primary lines of work in this area are in the chapter on democratic security. Government policy focuses on: (1) control of illegal crops, (2)
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control and interdiction of arms traffic, (3) money laundering and expropriation, (4) prevention of consumption of psychoactive substances and (5) joint responsibility policy and Colombia’s positioning on the multilateral scene for issues of this kind.
Ecuador: It should be stressed that Ecuador is not a coca producer but rather a transit country and especially a money laundering destination. The previous government designed a "fouryear strategic Plan for the fight against drugs" that involves different state institutions at different levels. A piece of legislation, the "Law of drugs and psychotropic substances" from 1990 provides the legal framework for the fight against illicit drugs in Ecuador and establishes the "Consejo Nacional de Control de Sustancias Estupefacientes y Psicotrópicas" (CONSEP) as the institution responsible for its implementation. On this basis, in December 2003 the President approved a National Policy to fight against drugs that outlines the main strategies to address the drug problem. In order to implement this policy CONSEP drew up a National Plan for Drugs Control and Prevention for the period 2004-2008, whose objectives are: (i) to reduce production, sale, traffic and illicit distribution of drugs and psychotropic substances and fight against related illegal activities, and (ii) to protect the population, in particular children and teenagers, from drug abuse and ensure access to diagnosis, treatment, rehabilitation and reinsertion of drug consumers. In 2005, the "Law against money laundering" was approved. This law aims to prevent, detect, sanction and eradicate money laundering in its different modalities and could be a very important step in the fight against drug trafficking.
Peru: According to the UNODC 2007 report, in spite of government efforts in the fight against illicit drug production, coca cultivation has been increasing to 51,400 hectares in 2006. From the beginning of his mandate President García’s approach to the drug issue (as to many other political issues) was one of dialogue. Like many other social movements, the coca leaders were invited to present their demands and discuss with Prime Minister Jorge del Castillo. A reorganisation and decentralisation of DEVIDA (Comisión Nacional para el Desarollo y Vida sin Drogas) was launched and former Interior Minister Rómulo Pizarro was designated as the institution’s Executive President. In December 2006, the new anti-drug strategy was launched with a general objective to “reduce the social, political and economic impacts of the production, traffic and consumption of illegal drugs in the country”. The eradication of coca has disappeared as one of the main programmes and in the current strategy it is only one action among many others. Emphasis is rather placed on developing sustainable production alternatives to coca and preventing chemical precursors from entering the coca producing areas. Also, the prevention of consumption within Peru seemingly receives more attention in the 2007-2011 strategy than in earlier action plans. However, the government lacks additional concrete development plans, in particular for the coca producing areas, and the signs it has given lately have been quite confusing. 6.2.
Lessons learnt
This project is the first time that the EC is financing a comprehensive project in the fight against illicit drugs in the CAN. Some experience exists at financing mainly alternative development projects at national level and the PRECAN project at regional level. It should be noted that PRECAN has contributed to an increase in the awareness by the Andean countries of their strengths and weaknesses in controlling precursor diversion and PRECAN has
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reinforced their institutional capacities at personal and technological level. Several lessons were learned from the PRECAN Project: Cooperation with the industry, exchange of experience within the region and training proved the most valuable components of the project and should be continued in future. Practical tools such as Websites and guidelines were not provided satisfactory and will have to be improved. In addition, the project activities of PRADI-CAN should focus on inter-agency approaches and exchange of information to achieve a greater efficiency of national public policies. In addition, in late 2007 a CAN project on SYNTHETIC DRUGS has started with financing from EC of 2.55 M€. It aims to address the growing problem of synthetic drugs in Andean Community countries, not yet as developed as the traditional drug problem but showing worrying signs of potential development. Activities aim at (i) improving the network of the national drugs observatories in the CAN (mainly information on synthetic drugs), including some pilot actions on prevention of the use of synthetic drugs; (ii) improving the coordination between the Andean countries in particular concerning synthetic drugs and (iii) training in the field of demand reduction an supply control including some training in European institutions such as EUROPOL and the European Drugs Observatory. The present project is the first in the fight against illicit drugs under regional cooperation 2007-2013 and therefore no further evaluation than the one mentioned above is available. However, the experience of the formulation with the Synthetic Drugs project has shown that closest involvement of the four governments is of utmost importance from the beginning in order to assure a successful project. 6.3.
Complementary actions
Bolivia: The European Commission (EC) has supported the Bolivian alternative development approach since 1998, by funding 5 projects with 50 M€. Under the CSP 2007 – 2013, the EC foresees a support of 58.5 M€ for Bolivia’s fight against illicit drug production and trafficking by means of alternative development and the rationalisation of coca production through social control mechanisms. A sector policy support programme (26M€) is currently under development to assist the government in its efforts to create alternative income opportunities for coca growers in the context of its comprehensive development policy. Additionally, a programme (10M€) is being formulated to materialise innovative actions for rationalising and reducing coca cultivation in close consultation with coca growers’ organisations. Finally, it is intended to finance studies of the legal demand for coca under the Instrument for Stability (1M€). EU Member States have financed projects mainly on alternative development and demand reduction. Colombia: The EC focuses its support on the fight against production and trafficking of illegal drugs in Colombia through actions that are already defined under the European Union definition of Alternative Development. Mainly, these activities are implemented through programmes called “Laboratorios de Paz” (Peace Laboratories) which constituted in the past 88 % of total EC cooperation to the Colombian Government. According to the Peace Laboratories, alternative development should be tackled as an integral intervention accompanied by cultural changes within the population producing small crops. This approach invites them to generate legal activities by creating awareness in the population in order to live legally, peacefully and with dignity. This is why a link between grass roots organizations, institutional support, human rights and income generation activities should be comprehensively strengthened. Under component I of the Country Strategy Paper (CSP 2007
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– 2013), the EC will reinforce this approach through the Peace Laboratories and other new interventions. EU Member States have financed projects mainly on alternative development and demand reduction. Ecuador: The only EC programme in Ecuador in the field of drugs was the CAN programme on chemical precursors (PRECAN) and a training programme for inspectors (funded under the bilateral cooperation programme with Ecuador). Currently, there is no bilateral programme being implemented in this area. Some donors like Spain and the United States are offering training to various state agencies such as the police and tax authorities. Peru: The EC has supported Peruvian alternative development since 2002 with 22.6 M€ through one project (PRODAPP). For 2007 the EC will support the efforts of DEVIDA with 0.8 M€ for a pilot policy of intervention with different sectors in the fight against drugs and promotion of alternative development. EU Member States have financed projects mainly on alternative development and demand reduction. Andean Community: At regional level, the EC has financed (until end 2006) a project aimed at the control of precursors (PRECAN) with EC co-financing of 1.6 M€ and a project on SYNTHETIC DRUGS which has started with financing from EC of 2.55 M€. Further descriptions are outlined above. Donor coordination Regarding Drugs, the EC is planning under the Instrument for Stability three interventions: (i) an intervention at Latina America and Caribbean level on precursors which shall be built on and be complementary to the experience of the CAN, (ii) another intervention on law enforcement and intelligence cooperation against cocaine trafficking from Latin America to West Africa, and (iii) an intervention on improving drug treatment, rehabilitation and harm reduction in an European, Latin American and Caribbean Cities partnership. There is also cooperation on combating drug trafficking as a sub-sector in the RSP 2007-2013 for Latin America, which is expected to be complementary to the PRADI-CAN project. 6.4.
Donor coordination
As defined in the Regional Strategy Paper, the exact scope of the cooperation activities have to be determined on the basis of a detailed needs assessment and of discussions between the EU and the Andean Community in the context of the yearly EU-CAN High-Level Dialogue on Drugs, where the EU Member States are present. The CAN requested at the High-Level Dialogue on 27 September 2006 in Brussels some cooperation: continuation of the precursors project ; institutional building; financial intelligence units; activities in the field of police cooperation; strengthening community organisations and involvement of civil society in the area of alternative development; strengthening of national and Andean observatories and the development of strategies and practical mechanisms to deal with seizures of chemical products. At the recent EU-CAN High-Level Dialogue on Drugs in Colombia, Bogotá, on 1-2 November 2007 this project, which reflects the proposal of the CAN from September 2006, was presented and welcomed from both sides: the EU Member States and the CAN.
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7.
DESCRIPTION
7.1.
Objectives
General Objective: to assist the Andean Community countries in their fight against illicit drugs.
Specific Objective: to contribute to the implementation by the Member Countries of the Andean Community of their Andean Plan for the Fight against Illicit Drugs and related crimes and the Andean Strategy for Alternative Development. 7.2.
Expected results and main activities
Result 1: strengthening of the National Drugs Observatories and establishment of a network between them (€ 800 000) The purpose is to strengthen the National Drugs Observatories and to improve the network between them in order to offer to policy-makers the necessary information for drawing up drug laws and strategies to combat illicit drugs. The network of the national drugs observatories will gather and analyse country data according to common data-collection standards and tools and based on these data, some action (to be selected by call for proposals) for demand reduction, including on treatment and rehabilitation, will be implemented (€ 300 000). The main activities will aim to: -
create suitable information at Andean level on illicit drugs and create homogeneous statistics;
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produce information on production trends, consumption and drug trafficking through the compilation and standardization of information created by the national organizations;
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formulate Community legislation supported by epidemiological analysis;
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compare national legislations and provide suitable information to inform national and regional strategies of demand reduction;
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facilitate information sharing between the Andean Network of Drug Observatories and the European Monitoring Centre of Drugs and Drug addictions (EMCDDA) in Lisbon and with the various establishments of the European Union that are involved in the fight against illicit drugs, such as Europol;
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implement concrete actions on demand reduction in the four countries, such as campaigns in schools;
The project will also provide practical training and exchange of experiences between the National Drugs Observatories. This will complement actions advanced within the framework of the EC financed project ALA/2005/017-652 "Support for the Andean Community in the area of Synthetic Drugs". The General Secretariat of the Andean Community (CAN GS) will guarantee coordination between both projects.
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Result 2: facilitate government and civil society sector dialogue at Andean level on the problem of drugs (€ 450 000) The fight against illicit drugs is a wide ranged problem involving not only government bodies but also civil society. To this end, it is necessary to facilitate the dialogue between the different government levels and persons concerned with a view to identifying the best practices to combat this problem. Activity 1: "Support for community initiatives and civil society working in alternative development " This activity aims to: -
support the exchange of experience between alternative development programs/projects in the CAN (including all projects financed by European Cooperation), in line with Decision 614 "Integral and Sustainable Alternative Development Andean Strategy" and to develop best practices;
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facilitate other activities for the implementation of Decision 614 to be decided by Comité Andino de Desarollo Alternativo (CADA) and presented in the annual programme estimate.
Activity 2: "Create a program to promote the dialogue and cooperation among the institutions involved in the fight against the supply of illicit drugs" This activity aims at the exchange of experience, training and horizontal cooperation for the technical staff of national governments and civil society responsible for combating illicit drugs in the Member Countries. Civil servants, judges, police, customs departments, academics, scientists and other people will be beneficiaries with a view to better coordinate the efforts of the countries in their fight against illicit drugs. Under this action the drugs observatories are not covered and it is directed to those stake holders involved directly into the fight against illicit drugs such as for example by law making or enforcement activities. Activities will in particular concentrate on development of curricula, train-the-trainer programmes and involvement of experts from EU Member States and agencies as well as relevant international organisations such as UNODC, CICAD and Interpol. Training should in particular cover relevant CAN legislation and mechanisms for international police and judicial cooperation such as the relevant UN Conventions on drugs, organised crime and corruption. Result 3: to further develop activities at regional level on control of precursors in the CAN (€ 500 000) Continuation of the activities developed under the former PRECAN project, under coordination of the CAN GS, in order to consolidate the results and ensure the sustainability of the latter, and to contribute to a better instrumentation of Decision 602 "Andean Regulation for the control of chemical substances used in the illegal manufacture of narcotic drugs and psychotropic substances". Taking into account the outcome of the independent expert evaluation of the former PRECAN project, activities may in particular cover: -
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further development of the Internet network and of the guidelines of the former PRECAN project;
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inter-agency training of government bodies such as licensing authorities, Ministries of Justice, Customs, Agencies in charge of combating the drugs problems (e.g. DEVIDA in Peru and CONSEP in Ecuador), Police Departments and Ministries of Economy;
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training of enterprises on precursors control procedures;
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exchange of experience with European institutions and training provided by them;
Activities under this result will be closely coordinated by the CAN SG with parallel EC funded activities which occur in the area of precursor control and are carried out in the Latin American region. Result 4: improve the capacity of drug-related analysis of the Andean Community countries (€ 800 000) Under this component the capacities of the CAN member countries services, in particular their forensic laboratories, with regard to drug- and precursor-related analysis will be supported in view to establishing a functioning network of forensic laboratories in the CAN region. Financing will cover detailed needs assessment for each country and subsequently, based on the outcome of this assessment, the relevant equipment and related training at CAN level. 7.3.
Risks and assumptions
The assumption is that the integration process will continue with full political support by CAN Member Countries. If the CAN political agenda or landscape was to change or the fight against illicit drugs removed from the regional agenda, the project itself would be in danger as well. It is important that CAN Member Countries remain committed to the cooperation and exchange of information in the area of drugs, and that already existing decisions at CAN level, such as Decision 505 “Andean Cooperation Plan for the Control of Illegal Drugs and Related Offenses”, be implemented by Member Countries. Furthermore, it is assumed that the SG CAN will be effective at securing the genuine cooperation of all Member Countries and at ensuring its role as a political and strategic forum for dialogue among them; and that these countries will remain committed politically, financially and materially to strengthening their drug observatories as well as their forensic laboratories. In light of the foregoing, the risks exist that a deterioration of the international relations in the region could lead to diminished trust between the countries concerned; that rivalry between competent authorities impede the successful conclusion of some of the project's analytical and data quality objectives; and that the conclusion of required arrangements on new structures and networks, notably on data-sharing, be delayed in several project countries. These assumptions and risks require consideration and monitoring during implementation by SG CAN and the European Commission, so as to rapidly adapt activities and budget allocations if necessary. Finally, it is assumed that related projects, in particular the CAN Synthetic Drugs project as well as the activities to be financed under the Instrument for Stability, will be implemented efficiently and in complementarity to each other, so as to create synergies and ensure the best benefit for the CAN and the wider region in the fight against illicit drugs.
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7.4.
Crosscutting Issues
The Project is directly linked to the Millennium Development Goals (MDG) as its objective is to contribute to improvements in the health of the population concerned in both the CAN and in Europe. Selection of the demand reduction campaigns will focus on those campaigns that contribute the most to achieving the MDG. Likewise, the horizontal topics of gender equality, intercultural matters and environmental sustainability will be present throughout the project and implementation of its activities. 7.5.
Stakeholders
The direct beneficiaries of the project will be the CAN GS, national drugs observatories, the public services involved in the fight against illicit drugs and civil society at large. In general, it should be noted that the fight against illicit drugs benefits not only the populations of the CAN countries but also indirectly the population of the European Union. The four Andean countries governments have fully agreed to the proposed action and will help to implement the project. While the institutional capacity of the CAN GS still remains weak, a recently initiated project for the institutional strengthening of the CAN GS shall allow a proper implementation of this project by the CAN GS. 8. 8.1.
IMPLEMENTATION ISSUES Implementation method
Partly decentralised management through the subscription of a Financing Agreement (FA) with the Andean Community. The Beneficiary of the FA is the CAN GS, which assumes the obligations and responsibilities deriving from that FA. The Beneficiary accepts responsibility for the proper execution of the project, among others, in terms of effectiveness, efficiency, transparency, sustainability, participation and good use of the resources. The CAN GS has been designated by Bolivia, Colombia, Ecuador and Peru (i.e. third countries) to act on their behalf for the purpose of this FA. These third countries retain the ultimate responsibility for the implementation of this FA. The Commission controls ex ante the contracting procedures for procurement contracts >50 000 EUR and ex post for procurement contracts < 50 000 EUR. The Commission controls ex-ante the contracting procedures for all grant contracts. Through the programme estimates, payments are decentralised for operating costs and contracts up to the ceilings indicated in the table below: The Authorising Officer ensures that, by using the model financing agreement for decentralised management, segregation of duties between the authorising officer and the accounting officer or of the equivalent functions within the delegated entity will be effective, so that the decentralisation of the payments can be carried out for contracts up to the ceilings specified below. Works
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Supplies
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Grants
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< 300.000 EUR
8.2.
< 150.000 EUR
< 200.000 EUR
< 100.000 EUR
Procurement and grant award procedures [/programme estimates]
All contracts implementing the action must be awarded and implemented in accordance with the procedures and standard documents laid down and published by the Commission for the implementation of external operations, which are in force at the time of the launch of the procedure in question. The essential selection and award criteria for the award of grants are laid down in the Practical Guide to contract procedures for EC external actions. The maximum possible rate of co-financing for grants is 80%. Full financing may only be applied in the cases provided for in Article 253 of the Commission Regulation (EC, Euratom) No 2342/2002 of 23 December 2002 laying down detailed rules for the implementation of the Financial Regulation applicable to the general budget of the European Communities. Participation in the award of contracts for the present action shall be open to all natural and legal persons covered by Regulation (EC) No 1905/2006 of 18 December 2006 establishing a financing instrument for development cooperation (DCI). Further extensions of this participation to other natural or legal persons by the concerned authorising officer shall be subject to the conditions provided for in articles 31(7) and (8) of the DCI Regulation. All programme estimates must respect the procedures and standard documents laid down by the Commission, in force at the time of the adoption of the programme estimates in question. 8.3.
Budget and calendar Headings
EC
Beneficia
Total
%
1 Services
1.450.000
200.000
1.650.000
1.1 Technical Assistance, Training, Capacity building, Institutional Support, Exchange of Experience, Studies, Conferences, Publications
1.250.000
200.000
1.450.000
1.2 Monitoring, Evaluation, Audits
200.000
0
200.000
2 Equipment and supplies
600.000
200.000
800.000
0
0
0
4 Information and Visibility
200.000
0
200.000
5 Grants
700.000
200.000
900.000
3 Works
41
20
5 23 8
6 Administrative expenditure
250.000
170.000
420.000
6.1 Local Personnel
200.000
150.000
350.000
6.2 Other administrative expenditure
50.000
20.000
70.000
7 Contingencies
50.000
0
50.000
1
3.250.000
770.000
4.020.000
100
8 Total
10
The financing agreement (FA) will have duration of 42 months, comprising two phases: the 36 months operational phase and the closing phase, which will last a maximum of 6 months.
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8.4.
Performance monitoring
The project's degree of progress and the fulfilment of its objectives and results will be regularly monitored internally. For this purpose, the project technical team, in close cooperation with the CAN GS, will set and apply a monitoring system in line with the CAN GS guidelines. Independently of this, the European Commission may carry out periodic external monitoring missions that will begin once the project activities have been in effect for at least 4 months, and will conclude no later than 4 months before the end of the project’s operational implementation. Monitoring mission reports will be delivered to the CAN GS so that it can take into consideration any possible recommendations put forward by those missions. 8.5.
Evaluation and audit
Mid-term and final project evaluations will be made and, possibly, an ex-post evaluation, as well. If necessary, other evaluations may be carried out during the project implementation period, by common agreement of the CAN GS and the EC. The CAN GS and the European Commission will examine the conclusions and recommendations of the evaluations and will jointly agree on their follow-up and on any adjustments that may be in order, including the project’s redirection, if necessary. The reports of the other evaluation missions and of the monitoring missions will be delivered to the CAN GS so that the possible recommendations put forward by those missions can be taken into consideration. The CAN GS may, regardless of any legally mandated internal and external audits, periodically audit (at least once a year) all of the expenditures chargeable to the EC contribution. To that end, the CAN GS will, with the prior agreement of the European Commission, enter into contact with an external auditing firm, chargeable to the budget item "6.2 Other administrative expenditure " The CAN GS will also perform a final audit during the closing phase and will submit the results to the European Commission, together with the final project report. The final audit should not contain any reservations. Besides these periodic audits for which the CAN GS is responsible, the Commission may carry out its own audit missions. 8.6.
Communication and visibility
The project aims at strengthening the CAN in its fight against illicit drugs and improving cooperation with the EU in line with the principle of shared responsibility. Visible actions will focus on the alternative development and demand reduction component.
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