If Scotland gains it's independence from the United Kingdom of Great Britain and Northern Ireland, what happens to the legal status of the British Overseas Territories such as the Falkland Islands?

Under Part IV of the Treaty on the Functioning of the European Union (Articles 198 to 204), "the Member States agree to associate with the Union the non-European countries and territories which have special relations with Denmark, France, the Netherlands and the United Kingdom" (Article 198).The European acquis does not apply to OCTs; instead, the detailed rules and procedures for the Association are provided for by the Council Decision 2013/755/EU* on the Association of the OCTs with the European Union which was adopted on 25 November 2013. Its objectives include:

  • The establishment of close economic relations between the EU and the OCTs as a whole, amongst others through an improvement of the trade arrangements;
  • The promotion of EU's values, standards and interests in the wider world via the OCTs;
  • The enhancement of OCTs' competitiveness;
  • The strengthening of OCTs' resilience and reduction of their vulnerability;
  • The establishment of a more reciprocal relationship between EU and OCTs based on mutual interests and shared values;
  • The promotion of cooperation of OCTs with third partners.

This Decision replaces the Council Decision 2001/822/EC, which expired on 31 December 2013. It is the outcome of long consultations and negotiations between the Commission (Task Force OCT), OCTs and Member States. It aims to modernise the relationship of the EU with its OCTs, moving beyond development cooperation and focusing on a reciprocal relationship based on mutual interests.

The OAD offers a modernised trade regime that focuses on three main areas: trade in goods, trade in services and cooperation on trade-related issues. This is expected to have a positive effect on the OCT trading environment. It will rank OCTs among the EU's most favoured trading partners. not only because of the OCTs' duty- and quota-free access to the EU market for goods, but also because the OCTs will automatically receive better terms of trade in services and establishment. In addition, by changing the conditions under which OCT goods and services access the EU market, it should become easier for OCTs to translate market openings into real export opportunities.

In the case of Greenland, the EU has a comprehensive partnership, which is complementary to the OCT association arrangements under the OAD, and which is based on: (i) Council Decision 2014/137 of 14 March 2014on relations between the European Community on the one hand, and Greenland and the Kingdom of Denmark on the other**; and (ii) the Fisheries Partnership Agreement of 30 July 2006*** between the European Community on the one hand, and the Government of Denmark and the Home Rule Government of Greenland, on the other hand.