Cotonou Agreement

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The Cotonou Agreement is a treaty between the European Union and the group of African, Caribbean and Pacific states (ACP countries). It was signed in June 2000 in Cotonou , the capital of Benin, by 77 ACP countries and the then fifteen Member States of the European Union. It entered into force in 2002 and is the latest agreement in the history of ACP-EU Development Cooperation.

[edit] Aims

The Cotonou Agreement is aimed at the reduction and eventual eradication of poverty while contributing to sustainable development and to the gradual integration of ACP countries into the world economy.

[edit] Main Principles

The Cotonou Agreement substituted the Lomé Convention which had been the basis for ACP-EU development cooperation since 1975. The Cotonou Agreement, however, is much broader in scope than any previous arrangement has ever been. It is designed to last for a period of 20 years and is based on four main principles:

• Equality of partners and ownership of development strategies. In principle, it is up to ACP states to determine how their societies and their economies should develop.

• Participation. In addition to the central government as the main actor, partnership under the Cotonou Agreement is open to other actors (e.g. civil society, the private sector, and local governments).

• Dialogue and mutual obligations. The Cotonou Agreement is not merely a pot of money. The signatories have assumed mutual obligations (e.g. respect for human rights) which will be monitored through continuing dialogue and evaluation.

• Differentiation and regionalisation. Cooperation agreements will vary according to each partner's level of development, needs, performance and long-term development strategy. Special treatment will be given to countries that are considered least developed or vulnerable (landlocked or island states).

[edit] Innovations

Political Dimension

The Cotonou Agreement wishes to give a stronger political foundation to ACP-EU development cooperation. Therefore, political dialogue is one of the key aspects of the arrangements and addresses new issues which have previously been outside the scope of development cooperation, such as peace and security, arms trade and migration).

Furthermore, the element of good governance has been included as a 'fundamental element' of the Cotonou Agreement, the violation of which may lead to the partial or complete suspension of development cooperation between the EU and the country in violation. It was furthermore agreed that serious cases of corruption, including acts of bribery, could trigger a consultation process and possibly lead to a suspension of aid.

New Actors

A second new feature of the Cotonou Agreement relates to the participation of non-state actors and local governments in development cooperation. They are now considered complimentary actors to central governments who traditionally have been the key actors of cooperation between the EU and the ACP countries.

Although ACP governments continue to be responsible for determining their own development strategy, non-state actors and local authorities are now involved being consulted with regard to its formulation. They are furthermore provided with access to financial resources and involved in implementation. They also receive capacity building support.

The Cotonou Agreement focuses especially on the private sector as an instrument for sustainable economic development. A new comprehensive programme has been introduced in Cotonou in order to support the private sectors of the ACP countries with new tools such as access to funding via the European Investment Bank (EIB).

Trade Cooperation

Probably the most radical change introduced by the Cotonou Agreement concerns trade cooperation. Since the First Lomé Convention in 1975, the EU has granted non-reciprocal trade preferences to their ACP partners. Under the Cotonou Agreement, however, this system will be replaced by a new scheme which is to take effect in 2008: the Economic Partnership Agreements (EPAs). These new arrangement provide for reciprocal trade agreements, meaning that not only the EU provides duty-free access to its markets for ACP exports, but ACP countries also provide duty-free access to their own markets for EU exports.

True to the Cotonou principle of differentiation, however, not all ACP countries have to open their markets to EU products after 2008. The group of least developed countries is able to either continue cooperation under the arrangements made in Lomé or the "Everything But Arms" regulation.

Non-LDCs, on the other hand, who decide they are not in a position to enter into EPAs can for example be transferred into the EU’s Generalized System of Preferences (GSP).

Programming

The Cotonou Agreement introduces the idea of performance-based partnerships and abandons the old element of "aid entitlements" (i.e. fixed allocations regardless of performance).

Under the new agreement, the EU can be more selective and flexible in the way it allocated and uses its development resources. Aid allocations will be based on an assessment of each country’s needs and performance and will include the possibility to regularly adjust financial resources in the light of this assessment. In practice, it means that more money can be channelled to "good performers" and that the share of "bad performers" can be reduced.