RELATIONS WITH THE EU
The European Union and Federated States of Micronesia
The Federated States of Micronesia (FSM) is a Micronesian Pacific island country. The relationship between the European Union and FSM is governed by the EU-ACP Cotonou Partnership Agreement, which will soon be replaced by a successor Agreement. FSM and the EU work together on a number of common values, interests and challenges, such as climate change, oceans and human rights, which they address in bilateral Political Dialogues, at various ACP-EU policy dialogues, and at global multilateral levels.
Political Relations
Political relations between the EU and the Federated States of Micronesia
FSM consists of 4 islands-States, and an approximate total population of 105,000.
FSM participates in policy dialogues within the ACP-EU institutions from senior officials to parliamentary and ministerial levels.
The EU and FSM hold Enhanced Political Dialogues to address common interests and challenges, such as climate change, oceans, human rights, development cooperation, economic and trade cooperation. The last Political Dialogue took place in 2017.
FSM and the EU are engaged in the Pacific region through the Pacific Islands Forum (PIF) and Pacific Community (SPC). The Organisation of African, Caribbean and Pacific States (OACPS) coordinates the ACP-EU policy dialogues.
The EU and FSM apply a short-stay Visa Waiver Agreement, to encourage people-to-people contacts, boost tourism and invigorate business.
FSM has been supported by the EU and its Member States through the Team Europe response to the COVID-19 pandemic.
Economic Relations
Economic Relations Between the EU and Federated States of Micronesia
The Federated States of Micronesia is a Small Island Developing State (SIDS), categorised as Lower Middle Income Country.
The economy is mainly driven by government employment (two-thirds of employment nationally), and subsistence farming and fishing. FSM’s main source of income is through grants under its Compact of Free Association with the United States.
FSM benefits from the EU’s Generalised Scheme of Preferences (GSP) regime which reduces or removes import duties from many FSM’s export products.
As part of the Pacific ACP Group, FSM can accede to the EU-Pacific Economic Partnership Agreement (EPA), currently applied between the EU and Fiji, Papua New Guinea, Samoa and Solomon Islands, for duty-free, quota-free access to the EU market — the world’s largest single market.
The EU and FSM signed a Fisheries Partnership Agreement (FPA) in 2010, but FSM has not yet ratified the Agreement and thus its provisions have not been implemented.
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FSM can accede to the EU-Pacific Economic Partnership Agreement (EPA), currently applied between the EU and Fiji, Papua New Guinea, Samoa and Solomon Islands, for duty-free, quota-free access to the EU market — the world’s largest single market.
Copyright: Julius Sliver