Lome - trade Flashcards
Since 1975 what has the Lome convention been?
Been EU’s comprehensive trade and aid agreement with developing countries in Africa, the Caribbean and the Pacific
What is Lome the capital of?
Togo
What has reduced the once significant benefits of Lome?
Globalisation and free trade
When did negotiations for a new agreement?
September 1998
What is the EU’s favoured option for the new agreement?
Create a series of regional free-trade areas linking the Union with groups of developing countries
What is the Lome convention?
Is an agreement linking the 15 member states of the EU to the 71 member African, Caribbean and Pacific group of states, the so called ACP states
What countries belong in the ACP category?
48 in Africa
15 in the Caribbean
8 in the Pacific
(All Europe’s former colonies)
How poor are many of the ACP states?
Of the 50 countries identified by the UN as the world’s poorest, 41 are in the ACP group
What 2 components was Lome split into?
Aid and trade
Between 1996-2000 how much financial aid was given?
14.7 billion ECU (one ECU worth about 65p)
What is one distinguishing feature of the union’s aid programme?
Concentrates more than others on agricultural and rural development projects, which constitute more than 50% of total expenditure
How is aid distributed?
Evenly between recipient countries
Compared to the USA and Japan what is Lome aid programme considered to be?
Less concerned with strategic and commercial interests and more focused on development
What does the union support?
Supports organisations and development projects with a regional dimension, like transport networks or electricity grids that operate between two or more countries
What does Lome garuntee for trade?
Special access to the European market place
What dies special access to European markets mean for ACP countries?
Taxes in the forms of tariffs, paid by American, Japanese and other exporters when they send goods to Europe aren’t paid by ACP exporters
In 1999 what were ACP exports like?
100% of ACP industrial exports and almost 80% of agricultural products entered EU market without having to pay any tariff
What does the non-reciprocal character of the agreement mean?
Although ACP exporters don’t have to pay tariffs on goods entering Europe, they are allowed to tax European made products entering their countries
How successful had Lome been in the east 15-20 years/
Suggests that Lome trade preferences have not acted as a great stimulus to ACP exporters
In 1983 what % of EU imports came from ACP states?
6.5%
In 1994 what % of EU imports came from ACP states?
3%
