The EC has made a systematic attempt to improve policy coherence with development objectives. The "Everything but Arms" initiative is an important example of how further policy coherence is being sought between trade and development policies in the external relations area. There remain several policy coherence challenges, especially where internal EC policies, such as the Common Agricultural Policy and Common Fisheries Policy, come into contact with development policy. New institutional mechanisms have been developed in the EC reform process, and these help to address several coherence challenges. These could be further developed to address more complex issues.