POLITICAL DIALOGUE AND COOPERATION AGREEMENT (PDCA) EU-CUBA

The European Parliament (EP) gave its consent by a large majority (567 votes to 65, with 31 abstentions) on 5 July 2017 to the conclusion of the Political Dialogue and Cooperation Agreement (PDCA) between the EU and Cuba. With the Parliament’s endorsement of the agreement, signed by the High Representative / Vice President of the Commission (HR/VP), Federica Mogherini, and the Cuban minister of foreign affairs, Bruno Rodríguez, in Brussels on 12 December 2016, the parts of the agreement that fall within EU competence (mostly related to cooperation and trade issues) can be applied on a provisional basis. As a ‘mixed agreement, the EU-Cuba PDCA can only be applied in full when it has been ratified in all the EU Member States. The signing of the PDCA and the EP’s consent to the agreement mark the culmination of three years of intensifying relations between Cuba and the EU, and at the same time opens a new phase in relations between them. It is the first such agreement between the two parties. Up to now, Cuba was the only country in Latin America that had not concluded a cooperation or political dialogue agreement with the EU. The agreement creates a new framework for political dialogue and strengthened bilateral cooperation, including in trade. For the EU, the PDCA is a tool for 'accompanying' and 'supporting' a process of change and modernisation in Cuba, supporting economic and social development and European values, including the promotion of democracy and respect for human rights. For Cuba, the agreement represents the ‘normalisation’ of its relationship with an important economic and trade partner and contributes to the diversification of its external relations.

Summary of the Agreement

The PDCA refers to a number of fundamental, shared principles in the preamble and Article One. It beings with respect for the sovereignty, territorial integrity and political independence of the Republic of Cuba, followed by references to the commitment to effective multilateralism, universal human rights and the principles of democracy, good governance and the rule of law, as well as the promotion of international peace and security. The preamble also underlines the parties’ opposition to unilateral coercive measures with extraterritorial effect and their commitment to promote their abrogation. Article One of the PDCA establishes that the central basis for relations between the EU and Cuba is equality, reciprocity and mutual respect. It also establishes that an essential element of the agreement is the respect for and the promotion of democratic principles and respect for all human rights and fundamental freedoms. It refers to both parties’ recognition that all peoples have the right to determine freely their political system and to pursue freely their economic, social and cultural development. The PDCA sets out a number of shared objectives. It sets the overall aim of consolidating and strengthening EU-Cuba relations in the areas of political dialogue, cooperation and trade and defines various specific objectives. These are: reinforcing bilateral cooperation in international fora with the aim of strengthening human rights and democracy; achieving sustainable development and ending discrimination in all its aspects; supporting efforts to achieve the goals of the 2030 Agenda for Sustainable Development; promoting trade and economic relations in conformity with WTO rules and principles; enhancing regional cooperation in the Caribbean and Latin America; and, encouraging contact, dialogue and cooperation between the societies of Cuba and EU countries at all levels. Notably, the PDCA states that a central objective is to create a comprehensive framework for dialogue and cooperation to “accompany the process of updating the economy and society in Cuba”. The agreement has three main sections: political dialogue, cooperation and sector policy dialogue, and trade and trade cooperation.

Political dialogue

This chapter covers a wide range of areas where the parties agree to establish a political dialogue, exchange views or cooperate. In addition to agreeing on a regular political dialogue at senior officials and political level, it includes the following areas:

1. Human rights. The dialogue is established with a view to enhancing practical cooperation, at multilateral and bilateral levels. The agreement stipulates that the agenda for the dialogue sessions shall ‘address in a balanced fashion civil and political rights and economic, social and cultural rights’.
2. Illicit trade in small arms. The EU and Cuba agree to cooperate at bilateral, regional and international level and to ensure coordination of their efforts to ensure effective control of the production, exports and imports of small arms and light weapons, and to prevent, combat and eradicate illicit arms trade. A regular political dialogue shall accompany this cooperation.
3. Disarmament and non-proliferation. The parties agree to cooperate and to contribute to international efforts on disarmament and the nonproliferation of weapons of mass destruction, and to establish a regular dialogue to accompany cooperation in this area.
4. The fight against terrorism. Cuba and the EU agree to cooperate in exchanges of experience and information on terrorist groups and their support networks, in accordance with international and internal law, and on means, methods and best practices to counter terrorism.
5. Serious crimes of international concern. The parties agree to cooperate to strengthen the legal framework aimed at preventing and punishing the ‘most serious crimes of concern to the international community’, stating that these crimes should be prosecuted at either internal or international level, including the International Criminal Court (ICC).
6. Unilateral coercive measures. In this provision, the parties agree to pursue a regular dialogue on the application of such measures and the prevention and mitigation of their effects.
7. Trafficking of persons. The parties agree to exchange views on preventing and combating the smuggling of migrants and trafficking in persons with a view to identifying areas for joint action, focusing on best practices and activities to identify and prosecute criminal networks.
8. Drug trafficking. In this provision, the EU and Cuba reaffirm the importance of exchanging views and best practices to identify areas for joint action to prevent and combat the production, trafficking and consumption of illicit drugs. They also agree to cooperate with third countries in reducing the production and trafficking of illicit substances.
9. Combating xenophobia and racism. This point includes a commitment to fight racism, racial discrimination, xenophobia and related intolerance, including through ratification and implementation of the International
10. Convention on the Elimination of all forms of Racial Discrimination. In addition to exchanging best practices on strategies and policies in this regard, the parties shall consider undertaking actions on combating racial discrimination in the framework of the UN and other fora.
11. Sustainable development. Based on their shared commitment to implementing the 2030 Agenda for Sustainable Development, the EU and Cuba agree to exchange views on the best ways to work together in order to achieve the sustainable development goals, for instance by identifying ways to improve practical cooperation between them.

Cooperation and policy dialogue

The comprehensive chapter on cooperation and sector policy dialogue (Part III of the PDCA) sets out a range of areas for future cooperation between the EU and Cuba. Actions in this area should complement ‘the efforts of Cuba in its economic and socially sustainable development’, in addition to promoting inclusive sustainable development, contributing to attaining the goals of the 2030 Agenda for Sustainable Development and promoting mutual trust. Similarly, bilateral cooperation must be based on agreed priorities for furthering and complementing Cuba's development strategies and policies. The PDCA establishes that cooperation must be developed through financial and technical assistance, dialogue and exchanges of views, as well as Cuba’s participation in EU regional and thematic cooperation programmes and as an associated partner in EU framework programmes. The definition of the actors of cooperation includes civil society entities — including social organisations, trade unions and cooperatives — in addition to Cuban government institutions and local authorities, international organisations and EU Member States’ development agencies.

Cooperation should take place in five main sectors:

Democracy and human rights, good governance, the rule of law, modernisation of public administration and conflict prevention and resolution. The parties define the overall principles for cooperation in this area and declare that the protection and promotion of human rights and fundamental freedoms is the first responsibility of governments. They acknowledge that it is their duty to protect all human rights and fundamental freedoms regardless of their political, economic and cultural systems. The text also recognises that democracy is based on the freely expressed will of the people to determine their own political, economic, social and cultural systems and their full participation in all aspects of life. However, it also refers to the significance of ‘national and regional particularities’ and of various historical, cultural and religious backgrounds. Cooperation on human rights may include activities seeking inter alia to promote and protect civil, political, economic, social and cultural rights for all; address human rights globally; and effectively implement international human-rights instruments and integrate the promotion and protection of human rights into internal policies and development plans. It may also aim to raise awareness and promote education in human rights and strengthen democratic and human rights related institutions and legal and institutional frameworks.

Under the PDCA, cooperation activities can be agreed with the aim of respecting the rule of law, promoting transparent, responsible, efficient and democratic institutions, promoting exchanges of best practices on good governance, accountability and transparent management and of working for more inclusive political processes that allow for genuine participation by all citizens. The EU and Cuba also agree to attach particular importance to the consolidation of the rule of law, including access to justice and a fair trial, as well as to the reinforcement of institutions related to enforcement and the administration of justice.

Cooperation on the modernisation of public administration should aim, inter alia, to increasing the effectiveness of public institutions and improving the transparent management of public resources and capacity building. Finally, cooperation on conflict prevention and resolution should aim to strengthen capacities, including support for mediation, negotiation and reconciliation processes.

Under the title ‘promotion of justice, citizen security and migration’, the PDCA establishes mechanisms for cooperation in many areas that are also included in the political dialogue chapter. They include: protection of personal data; preventing and combating drug trafficking, money laundering and organised crime; the fight against corruption; preventing and combating illicit trafficking in small arms and light weapons; the fight against terrorism; migration, trafficking of persons and smuggling of migrants. This section includes an article in which the parties recognise the contribution of civil society, including academia, think tanks and media, to the fulfilment of the objectives of the PDCA. They agree to promote greater civil society participation in the formulation and implementation of cooperation activities, including through capacity building.

Cooperation on social development and social cohesion may cover areas such as economic policies to reduce inequality and inequity; trade and investment policies; fair trade; and the development of rural and urban state and non-state enterprises.

The PDCA also mentions the promotion of efficient social policies and equitable access to social services for all, employment policies and more inclusive and comprehensive social-protection schemes. In the area of employment and social protection, the parties agree to cooperate to create more inclusive and well-functioning labour markets, extend social protection, promote social dialogue and ensure respect for core labour standards.

 One the first sectoral dialogue under the PDCA could address social issues. At the human rights dialogue meeting in May 2017, the two sides agreed to explore this possibility.

On education, the EU and Cuba agree to support the development of human resources at all levels, particularly higher education, including through promoting exchanges of students, researchers and academics. The PDCA also sets out cooperation in the health sector, consumer protection and in the field of culture, including fostering ‘balanced’ cultural exchanges and contact with civil society organisations. This part of the PDCA also deals with cooperation to promote the equal participation of women in political, economic, social and cultural life. It stipulates that the gender perspective must be included in all the relevant fields of cooperation, and that cooperation must facilitate equal access for men and women to all services and resources allowing them to exercise their fundamental rights. The parties agree to give particular attention to programmes aimed at preventing violence against women. Similarly, the EU and Cuba agree to promote the active participation of young people in society and foster cooperation between youth organisations.

The fourth title of this chapter sets out cooperation in the area of the environment, disaster risk management and climate change. Actions may include measures related, inter alia, to the transfer and use of sustainable clean technology and know-how, the promotion of sustainable production and consumption patterns, increasing the resilience of Cuba to disasters and the sustainable management of the water supply and of sanitation.

Under the heading ‘economic development’, the PDCA establishes a wide range of cooperation activities in the areas of agriculture and fisheries, sustainable tourism, science, technology and innovation, technology transfers, energy, including renewables, transport, statistics and good governance in taxation. Notably, this section includes a specific article on cooperation to support the modernisation of Cuba’s public administration and its economy through supporting the development of enterprises and cooperatives, with special emphasis on local development. This form of cooperation may take place in areas such as macroeconomic policies, statistics, trade facilitation measures, agro-industrial development, state control and oversight and the organisation of enterprises, including public enterprises. The EU and Cuba also agree to promote contacts between companies to support their insertion into ‘international markets, investments and technology transfer’.

Finally, a provision on regional integration and cooperation states that EU-Cuba cooperation shall support activities aimed at developing regional cooperation between Cuba and its Caribbean neighbours, in the context of CARIFORUM (the Caribbean states that have signed the EU-ACP Partnership Agreement). Similarly, the parties agree to promote activities aimed at developing active cooperation between Cuba and other Latin American countries and/or regions and the Caribbean in all areas included in the PDCA, paying special attention to the EU regional cooperation programmes in research and education.

Trade and investment relations

The PDCA’s third main chapter, on trade and trade cooperation, sets out the objectives of not only strengthening trade and economic relations, but also of promoting the integration of Cuba into the world economy, supporting the diversification of the Cuban economy and promoting an ‘appropriate’ business climate.

Another central aim is to increase investment flows by developing a stable environment for reciprocal investment, including through cooperation on investment issues and promoting a non-discriminatory investment regime.

On trade, the EU and Cuba recognise that the reduction of barriers to trade is a vehicle for promoting growth and economic diversification, reaffirming their interest in a rules-based multilateral trading system. In this respect, the PDCA outlines the parties’ obligations under GATT rules (most-favourednation treatment and national treatment) and confirms their commitment to the WTO agreements on trade facilitation, technical barriers to trade and trade defence.

The second part of this section includes provisions on various forms of trade-related cooperation, including between customs services, on trade facilitation, intellectual property, rules of origin, technical barriers to trade, trade defence, food safety, sanitary and phytosanitary issues, animal welfare, and cooperation to promote the production of traditional and artisanal goods. The agreement also includes a provision recognising the contribution of trade to the goal of sustainable development.

Finally, in a relatively short article on investment, the EU and Cuba agree to encourage greater flows of investment through mutual knowledge of relevant legislation, a dialogue aimed at enhancing understanding and cooperation on investment issues and the promotion of a ‘stable, transparent and non-discriminatory’ business and investment regime.

Institutional provisions

The PDCA creates two institutions to oversee the implementation of the agreement. A Joint Council, meeting at ministerial level at least every second year, will oversee the fulfilment of the objectives of the PDCA and supervise its implementation. The Council will examine any major issue arising within the framework of the PDCA, as well as ‘any other’ bilateral, multilateral or international issue of common interest. The Joint Council will adopt its decisions, which are binding on the parties, by mutual agreement.

A Joint Committee, including senior officials, will assist the Joint Council and be responsible for the general implementation of the PDCA. The Committee will meet once a year for an overall review of the implementation. It can also be convened for special meetings if the parties agree. The Joint Committee can decide to create sub-committees to deal with specific issues. The PDCA creates one such sub-committee, on cooperation-related issues.

Unlike other cooperation agreements signed by the EU, the PDCA does not create a joint parliamentary body or include references to parliamentary dialogue. Similarly, the agreement does not include provisions on the participation of representatives of civil society in its institutional structure or on consultation with civil society as regards the implementation of the PDCA. In this respect, the agreement recognises the potential contribution of civil society to the fulfilment of its objectives but largely confines its role to being one of several actors of cooperation. However, the parties agree to support greater civil society participation in development and sectorial cooperation activities.

The EU and Cuba are bound to adopt any measure needed to fulfil their obligations under the PDCA and are obliged to ensure that they comply with its objectives. If either party considers that the other has failed to fulfil its obligations under the agreement, it can take certain specific measures.

Except in cases of ‘special urgency’, it should first take the case to the Joint Council for examination and in order to seek a mutually acceptable solution. In any event, any measures taken must be those that are the least disruptive to the implementation of the agreement. The parties also agree that suspension of the PDCA should be a last resort.

Cases of ‘special urgency’ are defined as cases where one of the parties is in material breach of the agreement, consisting of either a repudiation of all or part of it or a violation of two of its essential elements: respect for democratic principles, human rights and fundamental freedoms and the rule of law, together with the commitment to disarmament and nonproliferation of weapons of mass destruction.

At a Glance

Political dialogue Areas

1. Human rights
2. Illicit trade in small arms
3. Disarmament and non-proliferation
4. The fight against terrorism
5. Serious crimes of international concern
6. Unilateral coercive measures
7. Trafficking of persons
8. Drug trafficking
9. Combating xenophobia and racism
10. Convention on the Elimination of all forms of Racial Discrimination
11. Sustainable development

Cooperation and policy dialogue Areas

1. Democracy and human rights resolution (promotion and protection of civil l, political, economic, social and cultural rights for all; address human rights globally; and effectively implementing international human-rights instruments and integrating the promotion and protection of human rights into internal policies and development plans, raising awareness and promotion of education in human rights and strengthening democratic and human rights related institutions and legal and institutional frameworks).
2. Good governance
3. Rule of law (respecting the rule of law, promoting transparent, responsible, efficient and democratic institutions, promoting exchanges of best practices on good governance, accountability and transparent management and working for more inclusive political processes that allow for genuine participation by all citizens, consolidation of the rule of law, including access to justice and a fair trial, as well as reinforcement of institutions related to enforcement and the administration of justice)
4. Modernisation of public administration (increasing the effectiveness of public institutions and improving the transparent management of public resources and capacity building).  
5. Conflict prevention and resolution (strengthening capacities, including support for mediation, negotiation and reconciliation processes).
6. Promotion of justice, citizen security and migration (protection of personal data; preventing and combating drug trafficking, money laundering and organised crime; fight against corruption; preventing and combating illicit trafficking in small arms and light weapons; fight against terrorism; migration, trafficking of persons and smuggling of migrants. Contribution of civil society, including academia, think tanks and media) greater civil society participation in the formulation and implementation of cooperation activities, including through capacity building).
7. Cooperation on social development and social cohesion (economic policies to reduce inequality and inequity; trade and investment policies; fair trade; and the development of rural and urban state and non-state enterprises).
8. Promotion of efficient social policies and equitable access to social services for all, employment policies and more inclusive and comprehensive social-protection schemes (creation of more inclusive and well-functioning labour markets, extending social protection, promoting social dialogue and ensuring respect for core labour standards).
9. Education (supporting the development of human resources at all levels, particularly higher education, including through promoting exchanges of students, researchers and academics).
10. Health sector, consumer protection and culture (fostering ‘balanced’ cultural exchanges and contact with civil society organisations, cooperation to promote the equal participation of women in political, economic, social and cultural life, inclusion of the gender perspective in all the relevant fields of cooperation, and facilitation of equal access for men and women to all services and resources allowing them to exercise their fundamental rights, programmes aimed at preventing violence against women, active participation of young people in society and foster cooperation between youth organisations).
11. Environment, disaster risk management and climate change (transfer and use of sustainable clean technology and know-how, promotion of sustainable production and consumption patterns, increasing the resilience of Cuba to disasters and the sustainable management of the water supply and of sanitation).
12. Economic Development (cooperation activities in the areas of agriculture and fisheries, sustainable tourism, science, technology and innovation, technology transfers, energy, including renewables, transport, statistics and good governance in taxation, cooperation to support the modernisation of Cuba’s public administration and its economy through supporting the development of enterprises and cooperatives, with special emphasis on local development.  This form of cooperation may take place in areas such as macroeconomic policies, statistics, trade facilitation measures, agro-industrial development, state control and oversight and the organisation of enterprises, including public enterprises, promoting contacts between companies to support their insertion into ‘international markets, investments and technology transfer).
13. Regional integration and cooperation (developing regional cooperation between Cuba and its Caribbean neighbours, in the context of CARIFORUM, promoting activities aimed at developing active cooperation between Cuba and other Latin American countries and/or regions and the Caribbean in all areas, EU regional cooperation programmes in research and education).
14. Trade and investment relations (strengthening trade and economic relations, but also promoting the integration of Cuba into the world economy, supporting the diversification of the Cuban economy and promoting an ‘appropriate’ business climate, increasing investment flows by developing a stable environment for reciprocal investment, including through cooperation on investment issues and promoting a non-discriminatory investment regime, reduction of barriers to trade  rules-based multilateral trading system, obligations under GATT rules (most-favoured nation treatment and national treatment) and  commitment to the WTO agreements on trade facilitation, technical barriers to trade and trade defence, encouraging greater flows of investment through mutual knowledge of relevant legislation, dialogue aimed at enhancing understanding and cooperation on investment issues and the promotion of a ‘stable, transparent and non-discriminatory’ business and investment regime).
15. Trade related cooperation (customs services, trade facilitation, intellectual property, rules of origin, technical barriers to trade, trade defence, food safety, sanitary and phytosanitary issues, animal welfare, and cooperation to promote the production of traditional and artisanal goods).