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.



Options for Trade Co-operation

The Commission Green Paper exaggerates both the difficulty of obtaining a renewed W T O waiver for the Lomé Convention after 2000 and the possibility of challenge from non-ACP countries. At the same time, the ACP states need to carefully consider whether or not it is in their interests to extend Lomé trade preferences on industrial products to a wider group of developing countries to enable the Convention to be more easily defended in the WTO. The advantages and disadvantages of a renewal of the Lomé Convention and the alternative of a Free Trade Agreement with the EU are considered.


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