The partnership between the EU and The Gambia is guided by the principles and objectives found in the Cotonou Agreement, which governs the relationship between the EU and African, Caribbean and Pacific (ACP) countries. The Agreement covers areas such as political dialogue, trade and development cooperation. 

Key issues addressed in the partnership include poverty eradication in line with the Millennium Development Goals (MDGs), democracy, the rule of law, good governance, and respect for human rights and fundamental freedoms. 

Regular political talks between the EU and The Gambia for sharing information and fostering mutual understanding take place under this Agreement and also under the EU's Treaty of Lisbon. The talks aim to promote economic, cultural and social development in The Gambia with a view to promoting stable and democratic political development. 

The EU regularly discusses issues related to the political situation in the country and all aspects of governance with both the Government and civil society. The EU recognises the importance of civil society in policy-making, advocacy and promoting accountability, and therefore consults regularly on relevant issues with non-governmental organisations, the media and other interested parties. 

Support for human rights defenders is a long-established feature of the EU's external relations policy. The EU Delegation, together with EU countries, provides its support in accordance with the EU Guidelines on Human Rights Defenders. 

The economy and the National Indicative Programme (NIP) 

Economic growth in The Gambia is driven mainly by a strong agricultural sector, with agriculture accounting for about 30 % of GDP and 40 % of total export earnings. However there remains substantial untapped potential in this sector, as less than half of arable land is cultivated, and yields for most crops are well below the global average. Tourism accounts for around 20% of GDP. Manufacturing, which accounts for less than 5% of GDP, is small and uncompetitive, reflecting a limited domestic market and a problematic (albeit slowly improving) business environment. 

The real GDP is expected to grow by 3.5% in 2017 and 4.5% in 2018, after contracting in 2016 because of the negative impact of the El Niño weather phenomenon on the key agriculture sector. Inflation is expected to moderate from an estimated 7.4% in 2016 to 6.5% in 2017 helped by better weather conditions, before rising to 6.8% in 2018 because of a potential rebound in global oil prices. 

Policy slippages - including a failure to meet fiscal targets and limit domestic borrowing - are continuing to exacerbate The Gambia's economic difficulties. The large financial deficits of public enterprises such as the National Water and Electricity Company (Nawec), as well as the shrinking customer base of the Gambia Telecommunication Company (GAMTEL), will keep pressure on the public finances in 2017-18 as unpopular corrective action is unlikely to be taken. 

Progress with tax reform (including a broadening of the tax base and a reduction in tax exemptions) is likely to be slow, and the reform of parastatals (including Nawec) will take even longer to implement. 2017 budget remains expansionary, with the rapid growth in spending partly driven by a continuing rise in debt interest payments. Much of the budget shortfall will need to be financed through short-term Treasury bills, perpetuating the problem of rollover risk and leading to a further crowding out of private-sector borrowers. 

Using the European Development Fund (EDF), the EU provides financial support for development aid, notably under the National Indicative Programme (NIP).. A key focus of the NIP is 'Agriculture for Economic Growth & Food Security/Nutrition', given the importance of agriculture in The Gambia (food security, jobs, trade opportunities, etc.) and its potential to boost the country's economy. 

Investment opportunities 

To encourage investment and business growth, useful information on investment opportunities and business support can be obtained through the Gambia Investment and Export Promotion Agency and The Gambia Chamber of Commerce. Incentives for both local and foreign investors are outlined in the Gambia Investment Promotion Act and Gambia Free Zones Act. 

The main source of EU funding for ACP countries is the EDF. 

The EU is committed to the principle of ‘ownership’, i.e. that partner countries should be fully involved in the process of developing the strategies and programmes which affect them. The EU’s development assistance aims to be flexible and adaptive, responding to the specific needs of the beneficiary countries, as identified in countries' national development plans. The Gambia's development strategy is based on two plans: 

• Vision 2020 — a long-term strategic plan drafted in 1996, defining development objectives to be attained by The Gambia by 2020.
• Programme for Accelerated Growth and Employment (PAGE) — a medium-term strategic plan to assist The Gambia in its efforts to achieve the MDGs and the goals of Vision 2020. 
• Other instruments and regional funding. 

The Gambia benefits from funding under EU thematic initiatives (in addition to the EDF), such as the EU Food Facility and the Global Climate Change Alliance. The Gambia, as a member of ECOWAS, can also benefit from projects and programmes that are identified and implemented by the ECOWAS Commission in Abuja and/or the West African Economic and Monetary Union (UEMOA) Commission in Ouagadougou. Areas of cooperation include: trade and competitiveness development, peace and security, regional infrastructure and transport facilitation.