Lomã© Convention

Updated Sep 8, 2024

Definition of Lomé Convention

The Lomé Convention refers to a series of economic agreements that were established between the European Economic Community (EEC) and the African, Caribbean and Pacific Group of States (ACP). These agreements aimed to provide a framework for economic cooperation and trade between the EEC (which later evolved into the European Union) and ACP countries, focusing on trade liberalization, development aid, and investment support. The fundamental goal of the Lomé Conventions was to support the development of ACP countries through preferential access to European markets, financial aid, and technical assistance, with an emphasis on promoting sustainable development and economic independence.

Example

Consider a hypothetical country in Africa that produces cocoa. Prior to its association with the Lomé Convention, this country faced high tariffs when exporting its cocoa to countries in the EEC, making its cocoa less competitive compared to other producers. However, after becoming a beneficiary of the Lomé Convention, the tariffs on its cocoa exports were significantly reduced or even eliminated, which allowed it to sell more cocoa at better prices in the European market. Additionally, the country received technical assistance to improve its agricultural practices and financial aid to build infrastructure, thereby enhancing its overall cocoa production capacity and economic stability.

Why Lomé Convention Matters

The Lomé Convention represents a landmark in the history of international trade agreements because it was among the first to recognize the need for a more equitable relationship between developed and developing countries. It matters not just for the economic benefits it provided to ACP countries, but also for its attempt to address structural imbalances in global trade. By giving non-reciprocal trade preferences to ACP countries, the Convention aimed to support these countries’ industrialization and diversification of their economies. Moreover, through its focus on sustainable development, the Lomé Convention highlighted the importance of environmental protection and social development alongside economic growth, principles that continue to guide international economic cooperation today.

Frequently Asked Questions (FAQ)

What were the key features of the Lomé Convention?

The key features of the Lomé Convention included preferential access for certain products from ACP countries to EEC markets without tariffs or with reduced tariffs, financial aid for development projects through the European Development Fund (EDF), and provisions for stabilizing export earnings of ACP states under the Stabex (Stabilization of Export Earnings) system. These features were designed to enhance trade, aid in development, and reduce vulnerability to global economic shocks.

How did the Lomé Convention evolve over time?

The Lomé Convention went through several iterations, beginning with Lomé I in 1975 and concluding with Lomé IV, which was signed in 1989 and lasted until 2000. Each successive convention sought to address emerging challenges and expand cooperation in new areas, such as environmental protection and the promotion of human rights. The Lomé Convention was eventually succeeded by the Cotonou Agreement in 2000, which further adapted the partnership to the changing global economic and political landscape.

What were the criticisms of the Lomé Convention?

Despite its innovative approach, the Lomé Convention faced criticism for its limited success in promoting sustainable development and economic independence in ACP countries. Some critics argued that the non-reciprocal preferences created dependency on European markets without sufficiently diversifying ACP economies. Others highlighted the issue of corruption and mismanagement of development aid. Additionally, the changing global trade environment, marked by the emergence of the World Trade Organization (WTO) and its rules, challenged the preferential arrangements of the Lomé Convention, leading to calls for reform and eventual renegotiation in the form of the Cotonou Agreement.

Through its comprehensive approach to North-South cooperation, the Lomé Convention marked a significant phase in the evolution of international development policy. It brought to the forefront the complex interplay between trade, aid, and development, laying the groundwork for contemporary economic partnerships aimed at fostering sustainable development across the globe.