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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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ACP-EU Relations in a Changing World Economy

The rapid pace of technological change, the liberalisation of markets and the spread of new systems of organising and controlling production have eroded the traditional sources of comparative advantage of the ACP countries in resource and labour intensive goods, and the relative importance of trade preferences. The Uruguay Round of multilateral trade negotiations has accelerated this process and placed substantial new obligations on ACP members of the WTO. At the same time, these fundamental changes in the world economy open up a complex variety of new opportunities in international trade.

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