From Africa Recovery, Vol.12#1 (August 1998), Briefs page

EU sets out proposals for new Lomé Convention

Foreign ministers of the European Union (EU) have endorsed a draft negotiating mandate for a new Lomé Convention, the trade and aid pact between the EU and 71 African, Caribbean and Pacific (ACP) countries. Before it expires in February 2000, the current convention must be revised to meet World Trade Organization (WTO) rules. The agreement, reached in Luxembourg on 30 June, comes before formal negotiations for a new pact begin in September between the European Commission, the EU's executive body, and the ACP countries.

The Commission's blueprint for a new Lomé Convention, first unveiled in February, promises that exports from ACP countries will have the same access to the EU market as under the current Lomé agreement (although in practice the share of such exports has declined, from 4.7 per cent in 1990 to 2.8 per cent in 1994). In return for this pledge, the ACP states would be expected to open up their own markets to EU exports over a transitional period of 5-10 years. However, ACP countries have argued that if they allow tariff-free access to EU goods, their economies will not withstand the competition and their public finances will be adversely affected.

The Commission acknowledged that the least developed countries (LDCs) are less prepared for free trade and therefore will need to be protected from the rigours of reciprocal trade with a powerful bloc like the EU. The proposed solution for these countries is the granting of "enhanced" preferences, or complete tariff-free access, to the European market. British Foreign Secretary Robin Cook said the compromise in Luxembourg would mean that the poorest developing countries would be able to export "essentially all products" to the EU duty-free by 2005. The ministers also agreed that any future review of the beef, banana and sugar protocols with ACP countries would be accompanied by transitional financial support for the affected countries.

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