EU and ACP agree on successor to Lomé

Date: 09/12/1999

By Gareth Harding

THE EU and the countries of the African, Caribbean and Pacific region have clinched a broad agreement on an historic aid and trade deal after two-days of marathon talks in Brussels.

A number of minor problems still remained to be ironed out, but all the major stumbling blocks to agreement on a successor to the Lomé Convention were removed in the early hours of this morning (9 December).

The two sides reached political agreement on a deal which will maintain the 71 ACP countries' preferential trade rights for eight years, but then gradually open up their economies to the rigours of free trade. The two blocs will, however, have to obtain a waiver from the World Trade Organisation for this regime to apply.

On the issue of good governance, which has been one of the biggest obstacles to an accord since talks began a year ago, the two sides agreed that aid would only be suspended if ACP governments were guilty of gross corruption.

EU member states have agreed to free up €22.8 billion of aid for ACP countries over the next seven years, which includes €13.8 billion of new money plus €9 billion in unspent funds from previous programmes.

The two sides are planning to meet again next month to finalise details of the accord, which is due to enter into force at the end of February.

The EU and the countries of the African, Caribbean and Pacific region have clinched a broad agreement on an historic aid and trade deal after two days of marathon talks in Brussels.