Laos, EU launch Global Gateway flagship to develop coffee, tea and forest value chains

The Lao government, the European Union (EU) and its member states France and Germany on Thursday (March 14) in Vientiane officially launched the multimillion-euro Global Gateway flagship to develop coffee, tea, and forest value chains and bolster their access to markets.

(From third left to right) Mrs Jutta Urpilainen, Mr Khamjane Vongphosy, Mr Phet Phomphiphak and relevant officials and diplomats gather for a group photo at the launch ceremony.

The flagship “Team Europe Partnership with Lao PDR to increase sustainable and inclusive Trade, Investment and Connectivity in the Agriculture and Forestry sectors – TICAF” programme aims to support the development of sustainable and inclusive value chains of coffee, tea and forest-based products which Laos is trading with the EU.
To facilitate access to national, regional and global markets, TICAF will also support better connectivity to regional and international markets through the rehabilitation of national road 2 leading to Thailand and Vietnam.
The programme is co-financed with grants from the EU (€28 million) France (€4.65 million), Germany (€11 million), and a concessional loan from the European Investment Bank (€50 million).
The launch was attended by guests of honour including European Commissioner for International Partnerships, Mrs Jutta Urpilainen; Minister for Planning and Investment, Mr Khamjane Vongphosy; French Ambassador, Mrs Siv-Leng Chhuor; and German Ambassador, Mrs Annette Knobloch.
Amongst other high-level participants were the Minister of Agriculture and Forestry, Mr Phet Phomphiphak; Minister of Public Works and Transport, Mr Ngampasong Muongmany; and the Ambassador of the European Union to Laos, Mrs Ina Marciulionyte.
Mrs Urpilainen highlighted the TICAF’s contribution to improving the livelihoods of rural communities through income diversification and the promotion of decent work conditions, as well as increasing domestic production, exports of sustainable agricultural and forest-based products, and public revenue.
She noted that “TICAF marks a milestone and is an excellent illustration of how we have translated our Global Gateway and Green Deal objectives in our partnership with Laos, while ensuring a meaningful contribution to the Sustainable Development Goals and leaving no one behind”.
Mr Khamjane said “I highly value the assistance provided to Laos under the Team Europe Strategy 2021-2025 with a focus on Green and Inclusive Growth, Human Capital and Good Governance. This cooperation highlights the harmonisation and consolidation of resources from Development Partners to support the implementation of priorities outlined in the 9th National Socio-Economic Development Plan for 2021-2025.”
The TICAF seeks to foster cooperation between Laos and the EU in reducing deforestation and enhancing sustainable forest and land use, and promoting cultivation of more crops that are resilient to climate change. This means working together to help Laos preserve and sustainably use its rich natural resources, in line with its National Green Growth Strategy to 2030.
The launch featured a traditional Lao coffee dance at the opening. This was followed by a welcome speech from the Minister of Planning and Investment, a keynote speech from the European Commissioner, and remarks by the leaders of line ministries and EU Member State representatives in Laos.
The TICAF programme is the flagship programme of the Team Europe Strategy in Laos. It will further promote partnerships between government, the National University of Laos, private sector operators and local communities, and be supported by other Team Europe initiatives in Laos to enhance skills development, social protection, trade and business facilitation, and the rehabilitation of rural roads.
EU Global Gateway: This is a new strategy of the EU that was initiated in 2021. It stands for sustainable and trusted connections that work for people and the planet. It helps to tackle the most pressing global challenges, from fighting climate change, to improving health systems, and boosting competitiveness and the security of global supply chains. Global Gateway is implemented through a Team Europe approach, bringing together the EU, its Member States, European Financial Institutions and the private sector for a transformational impact.
Team Europe in Laos: Based on the success of the “European Joint Programming for Laos 2016-2020”, European Partners (EU, Finland, France, Germany, Hungary, Ireland, Luxembourg and Switzerland) adopted their “Team Europe Strategy in the Lao PDR for 2021-2025”.
The Team Europe Strategy for 2021-2025 focuses on cooperation in Laos in 3 broad priority areas: i) green and inclusive growth, ii) human capital; and iii) good governance.
Within these 3 priority areas, we will specifically support interventions in the following 6 cooperation sectors: agriculture and rural development; natural resources and the environment; private sector development, trade and tourism; education, including technical vocational education and training; health; and good governance.
This cooperation places a particular focus on women, youth, digitalisation, decent work, nutrition, and collaboration with civil society organisations.

By Times Reporters
 (Latest Update March 15, 2024)