Palau joined the African Caribbean Pacific group in 2000, since when it has received €6 million in financial assistance from the European Development Fund (EDF).

Political dialogue

The EU's political dialogue with Palau focuses on:

• protecting its vulnerable environment, especially in relation to climate change
• defending human rights and gender issues.

 

The EU and Palau are discussing how to collaborate more closely in multilateral fora on these and other issues.

 

Aid and cooperation

The Country Strategy Paper for 2008–13 provides for a budget of €2.9m.

The main focus areas for EU assistance and cooperation are:

• renewable energy to diversify Palau's resource base, improve the security of its energy supply and strengthen its balance of payments
• environmental conservation – Palau's unique ecosystem is the basis of its growing tourism industry
• climate change negotiations – Palau, together with the Marshall Islands and FSM, launched the "Micronesia Challenge" in 2006 to conserve 30% of near-shore marine resources and 20% of forest resources by 2020.

 

Palau has signed all European Conventions on Human Rights, and is receiving EU support to ratify and implement them.

EU is ready to assist Palau to become eligible for Budget Support as a possible financing option.