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close this bookEU-ACP Negotiations on Post Lomé IV Convention - The Stand of Uganda Civil Society (DENIVA, 1999, 55 p.)
View the document(introduction...)
View the documentForeword
View the documentPreface and Acknowledgements
View the documentCHAPTER 1 - The Lomé Convention - An Introduction
View the documentCHAPTER 2 - Lomé Convention Provisions and areas of Co-operation
View the documentCHAPTER 3 - The European Union: Structure and History
View the documentCHAPTER 4 - The Lomé IV Convention mid-term review - The main innovations
View the documentCHAPTER 5 - Relations between the EU and ACP Countries - A Review of the Green Paper
View the documentCHAPTER 6 - Involvement of the Civil Society Organisations
View the documentCHAPTER 7 - Conclusion and Recommendations
View the documentBibliography
View the documentImportant Contacts
View the documentAbbreviations and Acronyms

CHAPTER 2 - Lomé Convention Provisions and areas of Co-operation

The Lomé IV Convention identifies 13 areas of co-operation between the EU and the ACP states. These are:

· Environment
· Agricultural co-operation, food security and rural development
· Development of fisheries
· Co-operation on commodities
· Industrial development, manufacturing and processing
· Mining development
· Energy development
· Enterprise development
· Development of services
· Trade development
· Cultural and social co-operation
· Regional co-operation
· Sustainable management of forest resources.

Main Sectors of EU Support and Assistance

· Social infrastructure

· Preservation and protection of the environment

· Education and training programmes

· Industrial promotion and information

· Promotion and development of small and medium size enterprises

· Micro-projects for grassroots development

· Transport and communications

· Fisheries development

· Investment promotion and support measures

· Support for development operations put forward by economic, cultural, social and educational organisations

· Development and optimal utilisation of human resources with special regard to the role of women in development

· Assisting professional and business organisations with the aim of improving production and marketing of products on external trade

· Support for structural adjustment programmes

· Contribution to debt reduction measures

Furthermore and within the general framework of sectors of intervention, the Convention contains provisions that may be utilised for the following:

· Private Sector Promotion
· Financing projects and programmes through the European Investment Bank (EIB) aimed at:

Þ Private sector promotion
Þ Promoting the private sector in industry
Þ Agro-industry, tourism and energy
Þ Transport and telecommunications linked to these sectors

Motivation of private investment-

The commission is to encourage dissemination of information on the nature and availability of investment guarantees and insurance mechanisms to facilitate investment in ACP states.

Support to micro-projects-

To respond to the needs of local communities, the EU aims to finance micro-projects in which the community must participate actively.

Technical support-

Will cover the development of ACP states' skills in project planning, implementation and evaluation as well as studies on prospects and resources available for economic development.

Industrial development-

The Centre for Development of Industry (CDI) has been created and is empowered to set up and strengthen industrial undertakings in the ACP states.

Commodity Co-operation

Specified agricultural products from ACP states enter the European Community market on duty free basis and these include:

· Sugar
· Beef and veal
· Bananas
· Coffee
· Rum
· Tea
· Horticultural products
· Fisheries
· Coconut oil
· Sheep and lamb skin
· Vanilla
· Raw sisal
· Gum arable
· Pyrethrum
· Cashew nuts
· French beans
· Mangoes

In relation to sugar and beef, the East African countries have a quota in the Community market which has never been fulfilled. They, like other ACP states, also benefit from the EU commodity price stabilisation scheme, whereby the EU guarantees payment to ACP states minimum income from specified commodity falls below a set level, so as to stabilise the ACP income from the commodity in question.

The price stabilisation scheme is known as STABEX (stabilisation of export earnings) when agricultural products are involved. It is also known as SYSMIN (stabilisation of mineral earnings) when minerals are involved. Coffee, palm oil, cotton, tea are some of the products that are covered under the STABEX scheme.

Financial provisions

The EU gives assistance to the ACP states through the European Development Fund (EDF). The EDF is meant to provide development assistance to AGP states and the following funds are available:

· Structural adjustment facility
· Emergency aid and aid to refugees
· Interest rate subsidies
· Regional co-operation
· National indicative programme

The following entities, are eligible for financial support under the convention:

· National or regional public or semi-public agencies, departments or local authorities

· Companies and firms of ACP states

· Enterprises of European Community member states to enable them, in addition to their own contribution, to undertake productive projects in the territory of an ACP state

· ACP or community financial intermediary providing financing to small and medium size enterprises, as well as financial institutions promoting and financing private investments in ACP states

· Groups of producers who are nationals of the ACP states

· Agents of decentralised co-operation from ACP states and from the community to enable them to undertake economic, cultural, social and education projects and programmes in the ACP states.

Benefits from the Lomé Convention

· Duty free access to the EC market
· European development funds
· Stabex funds
· Capacity building and training
· Technical support
· Guaranteed sugar and beet quota
· Development finance
· Regional initiatives
· Transport and infrastructure development/rehabilitation
· Information data
· Cultural assistance
· Institutional support
· Emergency aid
· Foreign exchange earnings
· Solidarity and political leverage from ACP group as an entity
· Creating export capacity and competitiveness
· Support for processing, marketing distribution and transportation (PMDT)
· Support for foreign direct investment
· Social dimension (poverty reduction/alleviation)
· Decentralised co-operation
· Community development programme and community trust fund
· Assistance to overcome negative impact of Structural adjustment programmes
· Debt reduction
· Provision of risk capital and loans
· Centre for agriculture and rural co-operation at Wageningen, Netherlands.