Global Gateway: EU and Lao People’s Democratic Republic launch new flagship to develop coffee, tea and forest value chains
Today, European Commissioner for International Partnerships Jutta Urpilainen launched a new Global Gateway flagship “Team Europe Partnership with Laos to boost sustainable trade and investments in agriculture and forestry sectors (TICAF)”. Commissioner Urpilainen inaugurated the flagship together with the representatives of the Lao Government as well as EU Member States France and Germany. The launch took place during the Commissioner’s visit to Lao People’s Democratic Republic (PDR).
Commissioner Urpilainen said: “My first visit to South-East Asia provides an excellent opportunity for the EU and Lao People’s Democratic Republic to advance our bilateral cooperation as well as the EU-ASEAN partnership, fostering sustainable development and inclusive growth. The Team Europe Partnership with Laos to boost sustainable trade and investments in agriculture and forestry sectors (TICAF) is a significant step in accomplishing our shared goals, in line with the EU Global Gateway investment strategy. Together, we are building a future where economic prosperity goes hand in hand with environmental sustainability, leaving no one behind.”
The Global Gateway flagship “Team Europe Partnership with Laos to boost sustainable trade and investments in agriculture and forestry sectors (TICAF)” focuses on coffee, tea and forest-based value chains, and connectivity to markets. It seeks to further cooperation in reducing deforestation and promoting sustainable land use. TICAF also contributes to improving the livelihoods of rural communities through income diversification and the promotion of decent work conditions, as well as increasing domestic production, exports of sustainable agricultural and forest-based products, and public revenue. The flagship is co-financed with France, Germany and the European Investment Bank, in a Team Europe approach, bringing together EU, its Member States, European Financial Institutions and the private sector.
Given Lao PDR’s ASEAN chairmanship this year, Commissioner Urpilainen will take the opportunity of this visit to also discuss the implementation of the EU-ASEAN strategic partnership priorities with Prime Minister Sonexay Siphandone and Deputy Prime Minister Saleumxay Kommasith. Moreover, Commissioner will visit the Pha That Luang Stupa as well as the Thongkang primary school to meet with local teachers and students and appreciate the country’s premiere digital learning platform supported by the EU.
Background
Global Gateway is the EU's positive offer to reduce the worldwide investment disparity and boost smart, clean and secure connections in digital, energy and transport sectors, and to strengthen health, education and research systems.
The Global Gateway strategy embodies a Team Europe approach that brings together the European Union, EU Member States, and European development finance institutions. Together, we aim to mobilise up to €300 billion in public and private investments from 2021 to 2027, creating essential links rather than dependencies, and closing the global investment gap.
Cooperation between the European Union (EU) and Laos in the
economic sector has been developing over the years, focusing on various areas
to promote sustainable development, trade, and investment. Here are the key
aspects of this cooperation:
### Key Areas of Cooperation:
1. *Trade and Investment*: The EU is an important
trading partner for Laos, providing access to European markets for Laotian
goods. The EU has supported initiatives to improve the regulatory framework and
facilitate trade, helping to boost exports of products such as textiles, coffee,
and handicrafts.
2. *Development Assistance*: The EU provides
development aid to Laos through various programs aimed at enhancing economic
growth and reducing poverty. This assistance often focuses on infrastructure,
agriculture, and rural development, as well as capacity building for government
institutions.
3. *Sustainable Development*: The EU and Laos
collaborate on sustainable development initiatives, particularly in the areas
of environmental protection and climate change. This includes projects aimed at
promoting sustainable agriculture, resource management, and renewable energy.
4. *Capacity Building*: The EU supports
capacity-building initiatives to strengthen the skills and knowledge of Laotian
institutions and businesses. This includes training programs, workshops, and
exchanges that enhance governance, regulatory frameworks, and business practices.
5. *Bilateral Agreements*: The EU and Laos engage in
bilateral agreements to promote cooperation in various sectors, including
economic development, trade facilitation, and investment protection. These
agreements are designed to create a conducive environment for business and investment.
6. *Regional Cooperation*: Laos is part of the ASEAN
(Association of Southeast Asian Nations) community, and the EU engages with
ASEAN as a whole. This regional cooperation enhances economic ties and
facilitates joint initiatives that benefit Laos and its neighbors.
7. *Support for SMEs*: The EU aims to promote the
development of small and medium-sized enterprises (SMEs) in Laos by providing
technical assistance and fostering access to finance. This support is crucial
for job creation and economic diversification.
### Conclusion
Overall, the cooperation between the EU and Laos in the
economic sector is characterized by efforts to enhance trade, support
sustainable development, and build institutional capacity. This partnership
aims to improve the economic resilience of Laos while promoting a more
integrated and sustainable approach to development.
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