EU-ACP Economic Partnership Agreements and Development: The Crucial Role of Institutional Capacity Building

The European Union (EU) is the most important trading partner of the African, Caribbean and Pacific (ACP) countries, absorbing more than one third of their total exports in 2002. Between 1975 and 2000, trade relations between the two groups of countries have been governed by the Lomé Conventions nonreciprocal trade preferential regime. The EU granted almost free access to the vast majority of products originating from the ACP countries. This preferential regime was meant to enhance export growth and foster economic diversification among ACP economies. However, after more than 25 years, results have not lived up to expectations. Globally speaking, the Lomé regime has neither stopped the marginalization of the ACP countries in international trade, nor led to significant export diversification. The share of ACP exports in total EU imports has decreased from 6,7 per cent in 1976 to less than 3 per cent in 2003. Besides, ACP exports have remained concentrated in a few numbersof commodities, with only five products (oil, diamonds, cacao, fisheries and wood) accounting for around 60 per cent of total ACP exports to the EU in 2003. In addition, the Lomé system has been the subject of several legal actions at the World Trade Organization (WTO).