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ACPEU Trade and Aid Cooperation

Post Lomé IV

image of ACPEU Trade and Aid Cooperation

The Lomé IV Convention, which provides the framework for development cooperation between the European Union (EU) and 71 African, Caribbean and Pacific (ACP) states, expires in the year 2000. The form that a successor arrangement would take, will be of considerable importance to the ACP countries, more than half of which belong to the Commonwealth. This study examines the possible options for the next phase of ACPEU cooperation, addressing the diverse trade and development interests of ACP countries.

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Future Prospects for ACP Exports to the EU for Agricultural and Horticultural Products Covered by the CAP

The EU's Common Agricultural Policy (CAP) will continue to provide substantial border protection to EU agriculture for some years to come, despite the outcome of the Uruguay Round of GATT negotiations, and the renewed efforts to secure CAP reform. Thus, the Article 168 tariff concessions of the Lomé Convention, and of the commodity protocols, will continue to provide potential benefits for ACP states for some years to come. Even for fruit and vegetables, the preferential margin is of value, although instances occur in which the GSP concessions for the leastdeveloped developing countries are more generous than those available under Lomé.

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