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A further meeting in the SAARC-EU dialogue was held at the United Nations on 14 November. Leading the SAARC delegation was Lakshman Kadirgamar, Foreign Minister of Sri Lanka and Chairman of the SAARC Council of Minsters, Leading the EU delegation was Deputy Prime Minster and Foreign Minster of Belgium Lusis Michel.

The first such dialogue took place in 1998 on the initiative of Sri Lanka after the 10th Summit held in Colombo. There was no meeting last year.

The meeting this year reviewed progress in SAARC-EU cooperation as well as international developments.

Kadirgamar touched on developments in SAARC in the economic and social sphere. He said that although the 11th Summit had been delayed, SAARC had undertaken a number of initiatives in the economic and social field. He referred, in particular, to the process of tariff reductions in South Asia, the drafting of a treaty framework for a South Asian Free Trade area (SAFTA), the enhancement of the analytical capacity of SAARC on economic and financial matters, the coordination of positions of the South Asian countries on multilateral issues including at the WTO, the greater involvement of the private corporate sector in regional cooperation and a series of trade facilitation measures that had been initiated to promote greater economic cooperation. Reference was also made to work on a Social Charter for SAARC, as well as finalisation of the texts of a Convention Against Trafficking of Women and Children for Prostitution and a Convention for the Protection of Children. He said that SAARC in accordance with its Charter concentrated on social, economic, cultural and technical issues and that greater cooperation in these fields served as important confidence building measures among the countries of the region.

Michel Said that the European Union attached great importance to developing closer relations with SAARC. He said that finalisation of dates for the next SAARC Summit augured well for the region. The European Union wished to enhance cooperation with SAARC and would be proposing a three-years programme for the purpose.

Among the areas which were identified for greater cooperation were the economic field particularly facilitating the implementation of the EU-GSP scheme including cumulative rules of origin to encourage greater access of SAARC products into the European Common Market. The SAFTA process would also be able to draw from the experience of the European Union. The possibility of support for the SAARC Integrated Programme of Action (IPA) was also discussed. Region-wide issues such as the environment, health, and prevention of drug trafficking were among some of the other issues considered.

Dr Ram Sharan Mahat, Finance Minster of Nepal which will be hosting the next Summit in January 2002 also spoke on the occasion and complimented Sri Lanka for its efforts as Chairman during the last three years which had been difficult years during which the Association was nevertheless able to promote greater regional interaction in many fields including in the non-government and corporate sectors.

The Foreign Minister of Sri Lanka also said that all SAARC member states had condemned the terrorist attacks of 11 September and were supportive of a strong global consensus to eradicate this menace. The European Union delegation described the concerted efforts that had been undertaken in cooperation with the international coalition to confront the threat faced by terrorism.

Christopher Patten, European Commissioner for External Relations said that the EU and the Commission responded very positively to the developments in SAARC and said that the organisation had become even more relevant in terms of confidence building measures in the region, particularly after the events of 11 September. He said that the cumulative clause in the regional cumulative system of preferences was intended to encourage regional cooperation within SAARC. He said that in terms of the 1996 SAARC-EU Memorandum of Understanding (MoU) a three-year program document was being evolved, adding that this would be a multi-annual, coherent programme having a much more ambitious agenda. Patten stated that the program could include assistance to SAARC, building on the EU's experience, in such areas as: economic cooperation and regional integration, institution building trade and investment, rules of origin and the creation of a South Asian Free Trade area. Secondly, he said that the EU would support the Integrated Programme of Action (IPA) and noted the eleven areas for co-operation, such as communication, transport, science and technology are complementary to trade and economics. Thirdly, he said that the EU saw the role of business organisation, community based organizations and non-governmental organizations as a "key motor" for regional integration outside the official SAARC framework.

Nihal rodrigo, Secretary-General SAARC also participated in the meeting.

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