Cotonou Agreement

The Cotonou Agreement is an international agreement between the European Community and the ACP States, which governs the particular relationship (particularly favorable tariff conditions) of the EC with those States in which it is for the most part are former colonies of EU Member States. He moves between the poles of the trade and development policies of the EU.

The agreement was the successor to the Lomé Convention - signed on 23 June 2000 - which expired on 29 February 2000. It outlines the intergovernmental relationship of the parties in the area of ​​development aid, trade, investment and human rights and runs 2020.

The contract was signed in June 2000 in Benin. In contrast to its predecessor, the Lomé Convention, the Cotonou Agreement also dealt with human rights and governance. 79 ACP countries and the then 15 Member States of the European Union signed the agreement, which entered into force in 2002.

Under the agreement, the unilateral trade preferences, which provide the EU treaties under the Lomé Convention with the ACP States, with economic partnership agreements (so-called Economic Partnership Agreements ( EPAs) ) to replace that provide for reciprocal trade preferences. Under this agreement, the EU is the ACP exports not only free access to their markets, but ACP countries will have to make freely available their own markets for EU exports. In addition to the reciprocity in the Cotonou Agreement also applies to the differentiation, so that the least developed countries are treated differently than the more developed.

The financing is based mainly from the European Development Fund (EDF) and by loans from the European Investment Bank. Germany, with around 23% of the second largest contributor to the EDF in France.

Prehistory

By signing this Agreement, continues a now more than 25 -year tradition of cooperation and partnership between the EC and third world countries, at the beginning of 1963, the Yaoundé Convention was. On a multilateral basis then assisted the EEC with funding from the European Development Fund projects mainly in Africa, mainly in the former French and Belgian colonies. After Britain joined the EC in 1975 were later repeatedly renewed Lomé former British colonies in Africa, involved in the Caribbean and in the Pacific in the development cooperation. The undersigned in the following years three other Lomé Convention guaranteed the ACP trade preferences, facilitating their access to the common market and the internal market and led a price stabilization mechanism for certain products, the aim of which was to secure the export earnings. Between 1975 and 2000, the European Development Fund ACP funds in the amount of EUR 40 billion.

The opened under the Austrian EU Presidency on 30 September 1998 ACP -EU negotiations on a new partnership agreement could be successfully concluded on February 3, 2000. The negotiations were preceded by two years of intensive consultations that have been carried out starting from an EC Green Paper on a broad basis. The signing originally in the Fiji Islands scheduled was held in Cotonou ( Benin) on 23 June 2000.

Content

The Agreement, signed in Cotonou, Benin, from the European Community and its Member States and 77 African, Caribbean and Pacific States (ACP States ) on 23 June 2000 partnership agreement creates the legal framework for a comprehensive twenty -year partnership between 79 ACP countries, the Community and its Member States, including trade, political relations and development cooperation. The agreement replaces the expired on 29 February 2000 Lomé IV Its aim is to re-focus of development policies on strategies for poverty alleviation and to the combined areas of policy, trade policy and development policy. In this context, the new EC - ACP Partnership Agreement is based on five interdependent pillars:

Respect for human rights, democratic principles and the rule of law are essential elements of partnership. In the event of violations of these essential elements, a consultation process was provided. If there is a special urgency, appropriate measures may be taken without prior consultation. The Agreement also provides for a commitment to good governance as an important basis of partnership and consultation procedure in serious cases of corruption. In addition, the agreement includes provisions for an intensified political dialogue between the Parties on matters which are of mutual interest, such as, inter alia, Arms trade and military expenditure, drugs and organized crime, peace building and conflict prevention. For the first time the issue of immigration in the agreement into account.

The Agreement contains innovative provisions to promote participation concepts to strengthen the participation of civil society, business and social partners:

• Provision of relevant information on the ACP - EC Partnership Agreement, especially in the ACP States,
• Consultation of civil society in reforms and policies in the economic, social and institutional fields that are to be supported by the EU,
• Simplification of the participation of non -state actors in the implementation of programs and projects
• Appropriate support for institution building in favor of non-state actors
• Promoting networking and connections between actors

The central goal of the new partnership, the fight against poverty is defined in the general provisions of the Agreement and the relevant provisions of the development strategies. The cooperation strategies take into account the internationally agreed commitments, including the conclusions of the conferences of the United Nations and the international objectives of development cooperation, in particular the Development Assistance Committee of the OECD strategy.

For the cooperation strategies in the new agreement, a global approach is proposed in which the objectives and priorities are in the foreground. In contrast to the Lomé Convention, which contained a detailed description of the areas of support, the Parties have decided to consolidate the detailed policy and operational guidelines in a by the ACP- EC Council of Ministers to be approved compendium of reference texts. These reference texts are intended to supplement, detailed design or development of components already included in the main text of the Agreement represents the texts can be reviewed and amended by the ACP- EC Council of Ministers. The compendium will be updated depending on the development of the cooperation needs. This approach thus allows a flexible approach to regularly adjust the individual policy guidelines for the various areas of cooperation without the elements of the Agreement itself being called into question. The agreement stipulates that the objectives of the ACP-EC development cooperation shall be pursued through integrated strategies that incorporate economic, social, cultural, environmental and institutional elements that must make it their own, the actors in the country concerned. In this way, a uniform framework for supporting the development strategies of the ACP countries is created, ensuring complementarity and interaction between the individual elements.

The following thematic or cross-cutting issues are systematically integrated into all areas of cooperation: gender issues, environmental issues and institutional development and capacity building. These areas are also eligible for support from the community into consideration.

The agreement in this case has the private sector in the ACP countries a key role in achieving the development goals in the context of poverty reduction, particularly in the areas of productivity improvement and promotion of employment, and looks funding strategies at the macro, meso and micro level before. Particular attention is paid to the promotion of investment.

The economic and trade cooperation is aimed at:

• To promote the smooth and gradual integration of ACP countries into the world economy,
• To strengthen the production, supply and trading capacity,
• To create new trade dynamics and incentives for investment
• To ensure compatibility with WTO rules.

In the area of ​​trade issues, the EC and the ACP States agreed to conclude WTO-compatible reform, which replaces the previous one-sided market preferences by passing in 2008 into force, regional economic partnerships. The negotiations to be launched in 2002. In a preparatory phase, the markets should be opened gradually and asymmetrically. The aim is to obtain the favorable competitive position of ACP countries in the internal market. For the interim rules in force from 2000 to 2008, the ACP States and the Community to the WTO have applied for an exemption ( waiver ).

In addition, a cooperation in the following areas relevant to trade is provided: cooperation in international fora, trade in services, the protection of intellectual property rights, competition policy, standardization and certification, phytosanitary measures, trade and environment, trade and promotion of core labor standards, and consumer protection.

Cooperation for development finance is carried out on the basis of the conditions laid down by the ACP States on a national and regional level development objectives, strategies and priorities in line with these. It is based on the following principles: ( a) promoting ownership at all levels of the development process; ( b ) recognition of the partnership based on mutual rights and obligations; ( c ) highlighting the importance of predictability and security in resource flows that are continuously provided on highly concessional terms; ( d ) Flexibility and adaptation to the situation in each ACP State and to the specific characteristics of the project or program; ( e) ensuring the efficiency, coordination and consistency.

In terms of financial cooperation, therefore, a number of radical changes were introduced. Allocations will be made on the basis of an assessment not only of the needs, but also the basis of each country. It was a new system moving programming introduced which allows the Community and the beneficiary countries, regularly adjust their cooperation program. The financial instruments are summarized and used more efficiently. So are all provided by EDF through two financial instruments - for grants and for venture capital or loans for the private sector separately - forgiven.

The STABEX and SYSMIN regulations to stabilize export earnings of agricultural and mining products of the ACP States to be abandoned. In view of the sensitivity of the ACP economies to fluctuations in export earnings was agreed to deal with the implications of such fluctuations, but to do so in a much more coherent manner in the programming process and in order to support general or sectoral reform efforts.

For the period 2000-2007 funding in a total volume of around EUR 25 billion will be in favor of the ACP countries. The initial allocation of the 9th European Development Fund ( EDF) estimated at EUR 13.5 billion; come to EUR 9.9 billion in remaining balances of previous EDFs and EUR 1.7 billion from its own resources of the EIB.

The ACP - EC Partnership Agreement has a term of twenty years, but may be reviewed after five years. The financial records are closed for a period of five years. Some elements of the Agreement, such as the implementation procedures and guidelines for sectoral policies, if necessary, by the EC - ACP Council of Ministers, which meets usually once a year, reviewed and adjusted. This new concept will allow for greater flexibility and adaptation of the cooperation system in a changing world. For the trade agreements a special schedule is set.

As a so-called mixed agreement shall be submitted to the Cotonou Agreement ratified by the EC Member States because it includes areas of competence of the European Communities and the EC Member States. A likewise ratify -requiring internal agreement of the 15 EC Member States, signed 18 September 2000 on the edge of the Council, sets out the respective roles of the Commission and Member States in the programming and implementation of assistance and sets up the 9th European Development Fund. A second, signed in Brussels on 18 September 2000 Internal Agreement for the implementation of the ACP- EC Partnership Agreement measures to be taken and procedures to clarify the conditions under which in the areas within their competence, in the of the Community's representatives ACP - EC Council of Ministers are determined to be occupied common attitudes and empowers the Council to take appropriate decisions in accordance with Articles 96 and 97 of the ACP -EC Agreement.

The ACP -EC Partnership Agreement shall enter into force once it has been ratified by all EU Member States and at least two thirds of the ACP States. By decision of the ACP / EC Council of 27 July 2000 on the application from 2 August 2000 on transitional measures, however, the provisions of the Cotonou Agreement in the majority are anticipatory in force, except for the allocation of financial resources of the 9th EDF. For the newly acceding EU states, the agreement provides that these automatically become a party to the Agreement of a clause in the Act from the date of their accession. Should a clause not investigated, the Member State concerned shall accede by depositing an instrument of accession with the General Secretariat of the EU Council.

Importance

With the partnership agreement now there is a modern, comprehensive and contractual instrument of North -South cooperation. The agreement of the European Union serves as an important foreign policy tool.

The agreement is valid for more than two thirds of all developing countries. The codified with the ACP cooperation serves as a model for cooperation between the European Union and other developing countries with which framework agreements were usually taken and be. For developing countries, outside the circle of the ACP countries, it is significant that the agreement has now been agreed eliminates the different trade policy towards developing countries at the latest by the year 2007.