Chapter 2. INEQUALITY AND SOCIAL COHESION

Article 32. Social Cohesion and Protection

1. The Parties shall aim to enhance social cohesion by progressively achieving greater equality and social inclusiveness and by ensuring that human and social development advances in parallel with economic development, leaving no one behind. Special attention shall be paid to those who are in disadvantaged, vulnerable and marginalised situations, including the elderly and orphans, in line with the principles of solidarity and non-discrimination. In particular, they shall promote:

(a) economic policies oriented to a more inclusive society, allowing for better distribution of income and value created;

(b) equitable and sound fiscal and wage policies, allowing for better redistribution of wealth, ensuring adequate levels of social expenditure and reducing the informal economy;

(c) effective social policies and equitable access to social services, social assistance and security, and justice; and

(d) employment policies designed to achieve full and productive employment and decent work for all, including for young people and persons with disabilities, and to achieve equal pay for equal work.

2. The Parties shall promote the development and implementation of policies and systems of social protection and security in order to eradicate poverty and enhance social cohesion. They acknowledge the transformative role in societies of social protection policies and systems, fostering equity, promoting social inclusion and dialogue with social partners, and strengthening inclusive and equitable economic growth. They commit to building progressively universal, nationally owned

social protection systems, including the adoption of minimum social protection floors.

3. The Parties shall promote the rights of persons with disabilities to ensure their full inclusion in society and their equal participation in the labour market, taking into account their specific needs. They shall take concrete steps to sign, ratify and fully implement the UN Convention on the Rights of Persons with Disabilities, done at New York on 13 December 2006.

Article 33. Decent Work

1. The Parties reaffirm their commitment to achieving full and productive employment and decent work for all women and men, including for young people and persons with disabilities. To that end, they shall promote the Decent Work Agenda as set out in the 2008 International Labour Organization (ILO) Declaration on Social Justice for a Fair Globalization.

2. The Parties reaffirm their obligations as members of the ILO and their commitments under the ILO Declaration on Fundamental Principles and Rights at Work and its Follow-Up. They reaffirm their commitment to social dialogue and to the promotion and effective implementation of the internationally recognised core labour standards, as defined by the relevant ILO conventions and protocols on the freedom of association and the right to collective bargaining, the abolition of forced labour and ending of modern slavery and human trafficking, the elimination of child labour with priority given to the worst forms, minimum age at work, equal remuneration and non-discrimination in respect of employment. They shall make sustained and continuous efforts to ratify or accede to, as appropriate, those conventions and protocols if they have not yet done so.

3. The Parties shall promote safe and secure working environments for all workers. They shall adopt and implement measures and policies regarding occupational safety and health, both in the formal and informal economy, and shall work towards establishing and maintaining an effective labour inspection system, in line with international labour standards as defined by the ILO.

Chapter 3. POPULATION AND DEVELOPMENT

Article 34. Demography

1. The Parties acknowledge that demographic growth and demographic shifts can have a significant impact on development gains and economic progress, and shall work together towards an integrated approach that minimises the challenges and maximises the benefits of the demographic dividend. To that end, they shall aim to establish, support, maintain and sustain structural reforms and transformations in economic and social systems to create decent education, employment and livelihood opportunities for an emerging young population.

2. The Parties shall support inclusive policy dialogue processes and incorporate demographic trends and projections into all policies in order to empower and promote the full and active participation of children and young people in society, and to empower and safeguard the needs of the elderly and enable their active engagement.

3. The Parties shall enhance urbanisation that is inclusive and sustainable, through effective urban governance and planning, with a view to minimising any adverse impact on the environment and addressing any other negative social and economic consequences caused by rapid population growth in urban areas. They shall work to effectively address the challenges and opportunities presented by rapid urbanisation, including through national urban policies, participatory integrated urban planning, delivery of municipal services including waste management, and financing of urban development and infrastructures, in order to create resilient and liveable cities and towns.

Article 35. Youth

1. The Parties agree to promote the active participation of young people in society, including in the development, implementation, and follow-up of policies affecting them. This shall include:

(a) support in acquiring knowledge, skills and capabilities to engage fully in society, including skills relevant to the labour market, through education, vocational and technical training, and access to digital technologies;

(b) the creation of decent employment opportunities, including through support for youth entrepreneurship; and

(c) the promotion of youth empowerment and responsible citizenship, by opening spaces for active youth participation in political and cultural life, and in building and sustaining peace, including with a view to countering radicalisation and violent extremism.

2. The Parties agree that the provision of a safe and nurturing environment for children is a vital element in fostering a healthy young population, able to reach its full potential, including physical, psychological, social and economic dimensions. They shall work to ensure that girls' and boys' rights and needs are recognised and realised from birth and early childhood to adolescence and their transition into adulthood. They shall work to improve the protection of children and their participation in decisions that concern them.

Article 36. Gender Equality and Women and Girls' Empowerment

1. The Parties acknowledge that gender equality and women's economic empowerment are essential to achieving equitable sustainable development and inclusive growth. They shall undertake reforms, including through the creation and consolidation of legal frameworks, to give women equal rights to economic and financial resources, as well as access to, ownership of and control over land and natural resources, inheritance, and other forms of property. They shall undertake actions to increase the full and effective participation of women in political life.

The Parties shall, in addition to equal access to employment and decent work conditions, promote the recognition of unpaid care and domestic work through the provision of public services, infrastructure and social protection policies, and the promotion of shared responsibilities within the household and the family at large.

2. The Parties commit to the full and effective implementation of the Beijing Declaration and Platform for Action and the Programme of Action of the International Conference on Population and Development and the outcomes of their review conferences and commit to sexual and reproductive health and rights, in that context.

3. The Parties acknowledge that menstrual health management is important for women's and girls' health, as well as for their dignity, mobility and well-being, and they therefore agree to promote adequate and appropriate supporting measures.

Chapter 4. CULTURE

Article 37. Culture and Sustainable Development

1. The Parties reaffirm that culture is a key element of sustainable development and an integral component of its social, economic and environmental dimensions. They commit to the integration of a cultural perspective in their development policies and strategies, by taking into consideration cultural specificities, and local and indigenous knowledge systems.

2. The Parties shall strengthen the contribution of cultural actors to sustainable development through their participation in enhanced dialogue, professional networks and multi-stakeholder partnerships.

Article 38. Cultural Diversity and Mutual Understanding

1. The Parties recognise that all human beings have the right to participate freely in the cultural life of the community, in line with the Universal Declaration of Human Rights, and commit to protecting and conserving cultural rights and freedom of artistic expression.

2. The Parties agree to promote a vision of human and social development that incorporates dialogue among cultures and the recognition of cultural diversity as common heritage of humanity. They commit to strengthening mutual understanding and knowledge of their respective cultures, with due respect for diversity, universal values and human rights, by fostering the cultural dimension in education, as well as cultural exchanges and joint initiatives geared towards encouraging intercultural dialogue.

3. The Parties recognise the role that culture plays in the preservation of peace and national cohesion. They affirm that respect for the diversity of cultures, tolerance, dialogue and cooperation, in a climate of mutual trust and understanding, are key to establishing and maintaining peace and security and in reconciliation processes, as well as restoring the collective memory and the social linkages among communities. They shall strengthen the role of culture in building resilience, as well as achieving sustainable post-crisis recovery and reconstruction, particularly in urban development.

Article 39. Cultural Heritage and Creative Sectors

1. The Parties shall promote the recognition of heritage as a unifying factor, which may reflect diverse identities and legacies, while nurturing the creation of shared values. They shall work to safeguard, preserve, conserve and develop both tangible and intangible cultural heritage, in accordance with international standards and conventions as a vehicle for social cohesion, creativity and innovation.

2. The Parties agree that the cultural and creative sectors, including contemporary arts, are central to inclusive economic growth, diversification and the creation of job opportunities. To that end, they shall support cultural entrepreneurship and the long-term development of the cultural and creative sectors.

3. The Parties shall take measures, in accordance with existing international law, to prevent and combat the illicit import, export and transfer of ownership of cultural property. They shall promote conservation, capacity building and collaboration among cultural heritage professionals, source communities and cultural institutions, and shall pursue international cooperation and continuous dialogue to promote access to cultural heritage.

Title IV. INCLUSIVE, SUSTAINABLE ECONOMIC GROWTH AND DEVELOPMENT

Article 40.

1. The Parties recognise the importance of strengthening their economic relations in their mutual interest and for mutual benefit, with a view to achieving structural economic transformation through inclusive, sustainable economic growth and development in line with the SDGs, taking into account their respective levels of development. They shall pursue integrated strategies that incorporate the economic, social and environmental dimensions of sustainable development. They shall take appropriate measures to generate decent jobs for all and support the transition to low emission, resource-efficient economies. They shall support the socio-economic empowerment of marginalised groups, women and youth.

2. The Parties shall support private sector development, and shall attract and retain domestic and foreign investment, including investments from their diaspora. They shall bolster trade and cooperate on science, technology, innovation and research with a view to establishing strong, competitive and diversified economies, deepening regional integration, and fostering the integration of OACPS Members' economies into regional and global value chains. They shall work towards improved macroeconomic and financial stability to generate increased investment and strengthen sustainable economic growth. They agree to enhance productive and regulatory capacities, strengthen entrepreneurship and promote manufacturing and industrialisation, focusing on innovation and value addition in the productive and services sectors. The Parties shall cooperate to strengthen capacities to facilitate structural economic transformation and to enhance sustainable trade.

3. The Parties shall promote public-private dialogue focusing on issues that positively impact their efforts on economic transformation and sustainable economic growth, and shall engage with all relevant stakeholders and ensure respect for, and protection of, human rights and core labour standards.

Chapter 1. INVESTMENT

Article 41. Mobilisation of Sustainable and Responsible Investment

1. The Parties undertake to mobilise sustainable and responsible investment with a view to enhancing inclusive and sustainable economic growth and development. To that end, they shall establish a conducive investment climate, which attracts domestic and foreign investment, including investment from their diaspora, and maintains the right to regulate through transparent, predictable and efficient regulatory, administrative and policy frameworks.

2. The Parties agree to support the necessary economic and institutional reforms and policies that are grounded in a country's overall development strategy and that are coherent and synergistic at national, regional and international levels with a view to creating a conducive environment for sustainable investment and facilitating the development of a dynamic, viable and competitive private sector.

3. The Parties shall cooperate to establish sound financial systems to mobilise investment for sustainable projects. They shall take measures to support investment by increasing access to financing through technical assistance, grants, guarantees and innovative financial instruments to mitigate risk, boost investor confidence and leverage private and public sources of finance. In doing so, they shall also take account of the need to address market failures or sub-optimal investment situations while ensuring additionality of investment that would not have taken place without those support measures. They shall pay special attention to the priority sectors set out in Article 44(6).

4. The Parties agree to improve the regulatory environment as well as the quality, availability and accessibility of financial and non-financial services, to support the development of micro, small and medium-sized enterprises (MSMEs) in the context of domestic investment mobilisation.

5. The Parties understand and recognise the importance of responsible investment by the relevant actors as a means to achieving long-term sustainable economic, social and environmental value. In support of that objective, they shall promote corporate social responsibility (CSR) practices and responsible business conduct (RBC), including internationally recognised implementation guidelines, standards and applicable instruments that provide guidance to investors, governments and other actors on implementation of CSR and RBC as a complement to national laws and other applicable legislation.

Article 42. Investment Facilitation and Protection

1. The Parties agree to facilitate investment through legislation, regulations and policies aimed at reducing regulatory and administrative barriers, enhancing transparency and avoiding harmful competition for investment. They agree that such measures shall be developed in a transparent manner, and made publicly available to encourage public-private dialogue and provide the opportunity for all stakeholders to participate.

2. The Parties shall cooperate to promote the effective utilisation of digital tools to facilitate investment.

3. The Parties, in line with their respective strategies, agree on the importance of providing legal certainty and adequate protection to established investments, the treatment of which shall be non-discriminatory in nature and shall include effective dispute prevention and resolution mechanisms. In that regard, they reaffirm the importance of concluding international investment agreements that fully preserve their sovereign right to regulate investment for legitimate public policy purposes.

4. The Parties shall strengthen the capacity of relevant public and private institutions to effectively promote and facilitate investment, and to prevent and handle investment-related disputes.

Chapter 2. ECONOMIC GROWTH, DIVERSIFICATION AND INDUSTRIALISATION

Article 43. Inclusive and Sustainable Growth

1. The Parties agree on the importance of economic transformation, private sector development and industrial advancement for inclusive and sustainable growth. They shall promote full and productive employment and decent work for all through enhanced competitiveness, diversification, digitalisation, innovation, access to finance, value addition in the manufacturing and services sectors, and linkages among sectors and industries. They shall pay particular attention to local MSMEs and to the formalisation of informal economic activities.

2. The Parties shall promote the transition to a low-emission and resource-efficient economy. They shall support sustainable consumption and production approaches, environmentally sound waste- and chemicals-management and measures reducing all forms of pollution. The Parties agree that well-managed urbanisation is a critical element in advancing sustainable economic development. They shall therefore cooperate on effectively addressing the challenges and opportunities presented by rapid urbanisation, and shall support urban development and infrastructures and effective rural-urban linkages.

3. The Parties agree to cooperate in the area of employment and social affairs, in particular to support the economic and social inclusion and empowerment of women, youth and the poorest and most vulnerable. They further agree to ensure respect for labour and social standards enshrined in the conventions and protocols of the ILO and to ensure access to justice under due process, including appropriate and effective remedies.

Article 44. Economic Transformation and Industrialisation

1. The Parties shall strengthen cooperation in the area of economic transformation, including industrialisation. They shall promote the transition from commodity dependence to diversified economies and promote beneficiation of natural resources, value addition and integration into regional and global value chains. They agree on the important role that the services sector plays in economic transformation and industrialisation.

2. The Parties shall cooperate to support the development of productive capacities, improved productivity, diversification and competitiveness. They shall endeavour to overcome supply-side constraints through, inter-alia, promoting technological innovation and enhancement and its dissemination, improved business and investment climates, strengthened regulatory capacities, macroeconomic stability as well as the development of efficient capital markets and sound financial systems for improved access to finance, particularly for the private sector. To that end, they affirm the importance of the digitalisation of the economy in accelerating productive capacity development. The focus shall be on sectors and industries with high value addition and high potential for decent job creation.

3. The Parties commit to improving macroeconomic and financial stability by pursuing sound and transparent fiscal and monetary policies and to promoting economic and structural reforms so as to create a conducive environment for increased investments and to foster private sector development. The Parties further recognise the importance of the independence of central banks in the setting of their policy objectives and in the conduct of monetary policies. They further agree to maintain dialogue and exchange information between their authorities, as appropriate, to improve the understanding of the fundamentals of the Parties' respective economies.

4. The Parties shall intensify efforts in technical and vocational education and training as well as in research and innovation, and link such measures more effectively to the opportunities and skills needs of the labour market. They shall cooperate to leverage each other's experiences, including in the development of productive capacities through skills development and promotion of technology transfer, fostering linkages between firms of OACPS Members and of the EU Party, with an emphasis on MSMEs.

5. The Parties reaffirm the significant role of infrastructure in addressing supply-side constraints and in the development of competitive regional and sub-regional value chains through the facilitation of the efficient movement of goods, services and capital. They shall cooperate to develop efficient and sustainable infrastructure, including air, land and sea transport, energy, water, and digital connectivity with due regard to the diverse needs of the least developed, landlocked and island economies. Accordingly, they shall cooperate to mobilise public and private resources including through investment for infrastructure development.

6. The Parties, with a commitment to pursue shared economic growth, agree to cooperate, inter alia, on the following areas, which shall be regarded as priority sectors: agriculture and agribusiness, livestock and leather, the blue economy, fisheries, mining and extractive industries, cultural and creative industries, sustainable tourism, sustainable energy, ICT and transport. The Parties underscore the significant role of those sectors in value addition, decent job creation, enhancing productive capacities and to the overall efforts on economic transformation. They shall accordingly cooperate to identify the drivers of growth for each sector, to mobilise investment and to address the constraints that undermine the establishment of backward and forward linkages.

7. The Parties shall promote dialogue, stimulate transfer of skills and technology, work to improve value chains, and strengthen cooperation for cross-fertilisation of experiences and dissemination of best practices in the agriculture sector. They shall also cooperate to support mechanisms and frameworks to increase sustainable and quality agricultural production.

Article 45. Private Sector Development

1. The Parties, recognising the importance of private sector development for economic transformation and job creation, shall aim to promote entrepreneurship and to develop and improve the competitiveness of enterprises. Particular focus shall be given to MSMEs, including start-ups, particularly through the promotion of enabling legal, administrative and institutional frameworks, with a view to their successful integration into sustainable supply and value chains. Attention shall also be paid to the informal sector and to upgrading informal economic activities into formal ones, and to encouraging the integration of sustainability-related objectives in business models. The Parties further agree to support the development of entrepreneurship among women and youth in the context of their economic empowerment and the promotion of inclusive development. They affirm the importance of building regional and national capacities in order to improve competitiveness in medium and high-tech manufacturing.

2. The Parties shall promote public-private sector dialogue and cooperation, including through private-sector business forums. They shall strengthen cooperation for cross-fertilisation of experiences and dissemination of best practices that foster entrepreneurship, promote business-to business dialogue and contacts, and stimulate transfers of skills and technology.

3. The Parties agree on the need to set up strategies and to develop better financial inclusion policies and appropriate legislation, and to improve access to finance and to financial and non financial services, including through innovative financing mechanisms, with particular attention to the provision of affordable credit for family farmers, smallholders, MSMEs, women and youth entrepreneurs.

4. The Parties acknowledge that both public and private sources of finance play a key role in supporting private sector development, particularly through tools and mechanisms such as public-private partnerships (PPP) and blended finance, and in stimulating investment across relevant sectors, including infrastructure development. Accordingly, they shall cooperate to develop transparent and predictable frameworks and strategies for the use of PPPs, including strengthening institutional capabilities to negotiate, implement and monitor projects under a PPP arrangement.

Chapter 3. SCIENCE, TECHNOLOGY, INNOVATION AND RESEARCH

Article 46. Science, Technology and Innovation

1. The Parties recognise the role of science, technology and innovation (STI) in expanding the frontiers of knowledge, in accelerating transition and leapfrogging towards sustainable development through economic transformation, value-chain addition and inter-firm linkages, in fostering knowledge development and human empowerment, particularly of women and youth, and in supporting decision- and policy-makers in the pursuit of sustainable development.

2. The Parties shall work towards developing knowledge societies. They agree to invest in human capital, promote the adoption of coherent and comprehensive policy and regulatory frameworks, and develop infrastructure connectivity and digital tools.

3. The Parties shall enhance cooperation on the basis of mutual benefit, building on existing mechanisms while exploring new paths in funding STI, subject to appropriate and effective protection of intellectual property rights. They shall promote indigenous, traditional and local knowledge as a tool for bridging knowledge and technology gaps in relevant sectors.

4. The Parties shall encourage investment in the creation, diffusion and transfer of new technologies, with particular attention to clean and innovative technologies that protect the environment. They shall promote renewable energy and cooperate in the development of productive and regulatory capacity.

5. The Parties shall address the potential impact of technologies on society, tackle issues related to cybersecurity and assure protection of personal data, and consider the effects of disruptive technology, including artificial intelligence and robotics.

6. The Parties recognise the role of space as an enabler for social and economic benefits, including in the areas of environment, climate change, ocean governance, transport, energy, agriculture, mining, and forestry. They shall cooperate on matters of common interest in civil space activities such as space research, Global Navigation Satellite Systems applications and services, development of satellite augmentation systems, use of Earth Observation applications and services and Earth Science.

Article 47. Research and Development

1. The Parties agree that research and development is critical in the creation of economic prosperity and opportunities for decent work, and can make a pivotal contribution to achieving the objectives of this Agreement.

2. The Parties shall encourage the generation and dissemination of new knowledge, taking account of its potential impacts, including harmful effects, on the environment and society. They shall support skills enhancement to keep pace with technological advances and innovation, and shall support mobility and training of researchers. They shall promote partnerships between industry, academia and the public sector as well as activities of the private sector aimed at gathering knowledge and testing ideas in order to generate new products with real commercial potential, paying special attention to women and youth as innovators.

3. The Parties shall promote investments in research and development especially in high added-value segments of value chains, and shall endeavour to address societal challenges especially in the areas of environment, climate change, energy, food safety and security, and health.

Article 48. ICT and the Digital Economy

1. The Parties shall cooperate to reduce the digital divide by promoting cooperation with regard to the development of the digital society to benefit citizens and businesses through accessibility to digital technologies, including ICT adapted to local circumstances. The Parties shall support measures that enable easy access to ICT through, among others, the use of affordable and renewable energy sources and the development and redeployment of low-cost wireless networks. They shall also work towards greater complementarity and harmonisation of communication systems and their adaptation to new technologies.

2. The Parties agree on the central role of the digital economy as an amplifier and accelerator for change that can drive significant economic diversification, create jobs and enable leapfrog growth. They agree to advance digitalisation with a view to reducing transaction costs and lessening information asymmetries, with the overarching aims of improving productivity and sustainability.

3. The Parties shall promote and support digital entrepreneurship, particularly by women and youth, and the digital transformation of MSMEs. They shall encourage the development of e-commerce to revamp supply chains and expand markets, and encourage the expansion of e-banking, including to reduce costs of remittances, and the deployment of e-governance solutions.

4. The Parties shall cooperate on developing and managing privacy and data protection policies, promoting measures to facilitate data flows, and supporting the regulatory framework to promote the production, sale and delivery of digital products and services.