RELATIONS WITH THE EU
The European Union and the Republic of Vanuatu
The Republic of Vanuatu is a Melanesian Pacific island nation. The relationship between the European Union and Vanuatu is governed by the Partnership Agreement between the EU and the Organisation of the African, Caribbean and Pacific States (the Samoa Agreement).
Vanuatu 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, as well as at various ACP-EU policy dialogues and global multilateral levels.
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The Ambassador of the European Union (EU) to the Pacific, Her Excellency Barbara Plinkert presented her credentials to the President of the Republic of the Vanuatu, His Excellency, Nikenike Vurobaravu in Port Vila in October marking the commencement of her diplomatic work in Vanuatu as the EU’s chief diplomat in the Pacific.
Political Relations
Political Relations Between the European Union and the Republic of Vanuatu
Vanuatu consists of a chain of 13 principal islands and a population of 300,000.
Vanuatu participates in policy dialogues within the ACP-EU institutions from senior officials to parliamentary and ministerial levels. The EU also cooperates closely with Vanuatu to ensure our shared commitment to universal values and human rights principles are upheld at the international level. The EU and Vanuatu hold High-Level 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 Port Vila in April 2024.
Vanuatu 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.
Trade and Economic Relations
Trade and Economic Relations between the EU and Vanuatu
Vanuatu is a Small Island Developing State (SIDS), categorised as Lower Middle-Income Country.
Vanuatu's economy has in the last decades shifted gradually from the primary sector to services. The latter now accounts for about 70% of GDP (with tourism playing a dominant role), whilst primary sectors jointly contribute to around 22% of GDP (subsistence agriculture provides a living for 70% of the population, but contributes only 19% of the GDP). The industry sector represents about 10% of GDP, mainly driven by construction. Agri-business processing has a high potential.
The primary sector provides employment to about 63% of the population, followed by services (29%) and industry (7%).
Vanuatu's graduation from Least Developed Country status in December 2020 implies that it will be losing its duty-free quota-free access to the EU market under the ‘Everything But Arms (EBA)’ preferences at the end of the transition period, in 2023. To be able to continue to export all its products to the EU market free of tariffs and quotas, Vanuatu may accede to the EU-Pacific Economic Partnership Agreement (EPA). Otherwise, it will trade with the EU under the Generalised Scheme of Preferences (GSP).
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To be able to continue to export all its products to the EU market free of tariffs and quotas, Vanuatu may accede to the EU-Pacific Economic Partnership Agreement (EPA). Otherwise, it will trade with the EU under the Generalised Scheme of Preferences (GSP).
Copyright: Julius Sliver
Development Cooperation
The European Union’s Development Cooperation with Vanuatu
Vanuatu is a Small Island Developing State located on the earthquake-prone “ring of fire” and sitting at the centre of the Pacific cyclone belt. It has been ranked as one of the most at-risk countries in the world due to a frequent occurrence of cyclones, earthquakes, tsunamis and volcanic eruptions. Most of the Vanuatu's population lives in rural areas where agricultural production is the main source of livelihood.
Under the European Union's 11th European Development Fund (EDF) 2014 - 2020, Vanuatu has been benefitting from the EUR 30 million Vanuatu Value Chain (VaVaC) Budget Support Programme and the accompanied Technical Assistance, supporting the Vanuatu Government in implementation of the national trade and agricultural policies in fruits and vegetables, beef and coconut value chains.
In addition, under the EDF 11th Vanuatu Civil Society Organisations and Technical Cooperation Facility (CSOTCF), a number of projects aiming at food security and economic empowerment of women are being implemented.
Vanuatu also benefits from several regional programmes that fall under the following priority sectors: Climate Action and Environmental Sustainability, Inclusive and Sustainable Economic Development, and Fundamental Values and Human Development.
Global Gateway
The EU's Global Gateway strategy encourages public and private investment in infrastructure, green energy, education and research for sustainable development.
The Global Gateway is the EU's positive offer of cooperation to our partner countries in support of their own strategic autonomy, aligning partner countries and EU interests by increasing high-quality geostrategic investments and promoting sustainable finance. The Global Gateway represents the European Union's effort to reduce the global investment gap and boost smart, clean and secure connections in the digital, energy and transport sectors, as well as to strengthen health, education and research systems. It provides sustainable investment opportunities to increase the prosperity and security of our global partners and Europe.
Covering five main themes (digital, climate and energy, transport, health and education and research) it is implemented through the Team Europe approach.
In Vanuatu, the EU is working on the following flagship initiative which falls within the scope of the Global Gateway:
The EUR 10 million Climate Resilient Sheltering Schools (CRSS) initiative is a direct response to the needs of vulnerable Pacific countries, such as Vanuatu. Aligned with the Pacific Leaders' call, this rapid response action under NDICI-Global Europe aims to make schools and society in general more resilient to natural hazards, and to link humanitarian aid and development action.
The overall objective of the CRSS is to ensure that Vanuatu’s education system is better prepared for and more resilient to the impact of climate-related disasters.