1887

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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Executive Summary

The increasing integration of markets for factors of production and products, driven by technological change, new systems of control and production, and the liberalisation of trade and capital markets, has generated both costs and benefits for the ACP countries. It has eroded their traditional comparative advantages in resource based and labour intensive production. At the same time, the new technologies, combined with trade liberalisation, have also opened up new production and market opportunities, both directly for exporters and indirectly for small and medium-sized sub-contractors.

English

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