Losing Lome: The Potential Impact of the Commission Guidelines on the ACP (African, Caribbean and Pacific Countries) Non-Least Developed Countries

The Lom IV Convention is due for renewal in 2000, and the EC guidelines on future EU-ACP relations are currently before member State governments. The new guidelines include a proposal that aid be focussed on countries with a proven commitment to poverty eradication and conflict prevention, and offer Lom-style access to non-ACP Least Developed Countries (LLDCs). This article argues that the Commission guidelines fail to respond to ACP trade interests, and sit uneasily with the stated development aims of previous Lom conventions. ACP non-LLDCs will have to choose between negotiating ill-defined Free Trade Agreements (FTA) or acceeding to the Generalized System of Preferences (GSP), markedly reducing access to EU markets. The costs – in foreign exchange foregone and livelihoods destroyed – could be considerable, as is shown by case studies of Zimbabwe, Ghana and the Windward Islands. Recommendations are made as to how EU trade preferences for ACP countries might best meet the needs of the majority, including a ten-year waiver, allowing scope to adjust to new competitive pressures and to begin diversification of export bases; and simplified access to EU markets for the LLDCs. App., bibliogr., sum.