Trade with the EU
The Falkland Islands are not deemed part of the European Single Market. However under the current OAD, the Islands have:
- Full freedom of access to the EC market (unlike African-Caribbean-Pacific States) for products originating in the OCTs
- Free access to the EC market for non-originating products in circulation in the OCTs after the EC customs duty has been paid
- OCTs may give preference to their inhabitants for trade in services.
The most important trade issue with the EU currently is that of 'Rules of Origin' - mainly affecting the export of fish. In the 2001 OAD there is a requirement that for fish to be exported to the EU tariff-free then 50% of crew on those vessels be EU, OCT or ACP nationals, which is not realistic for FI vessels.
To overcome this the Falkland Islands Government secured a derogation of this requirement such that the rule does not apply for the Falkland Islands. Indications are that this rule is removed in the text of the new OAD which was published in 2014, along with the removal of quota limits on products originating in the Falkland Islands.