RESTRICTEDWORLD TRADE
ORGANIZATIONG/C/W/187/Add.3
14 April 2000
(00-1510)
Council for Trade in Goods Original:  English/
French/
Spanish
REQUEST FOR A WTO WAIVER
New ACP-EC Partnership Agreement
Addendum
The following communication, dated 13 April 2000, has been received from the Permanent
Delegation of the European Communities.
_______________
In response to requests from delegations, the full text of the Post-Lomé Agreement is attached
for information.  French and Spanish translations of the complete text of the Agreement will becirculated shortly.G/C/W/187/Add.3
Page 2
DECISION
OF THE ACP-EC COUNCIL OF MINISTERS
WTO WAIVER
The ACP-EC Council of Ministers;
1. RECALLING  that on 14 October 1996, the WTO General Council decided to extend until 29
February 2000 the waiver for the fourth ACP-EC Convention of Lomé;
2. STRESSING that trade preferences represent pivotal and indispensable instrument of
development;
3. AWARE of the central importance of the Lomé Convention for the socio-economic development
of ACP countries;
4. RECOGNISING the importance of trade and investment for the development of ACP countries
and considering that trade and investment can best operate and be enhanced in a stable andpredictable global environment;
5. RECOGNISING  that the ultimate objective of ACP-EU economic and trade cooperation is to
enable the ACP States to integrate successfull y in the global economy within the multilateral
trading system and the need to conclude with the EU new WTO compatible trading arrangements
after a preparatory period.
6. DECIDES to invite the competent authorities of both sides to request an appropriate waiver to
permit the European Community to provide preferential treatment for products originating in ACPStates as provided for in the trade regime applicable during the preparatory period as jointly
agreed by the ACP-EC Ministers and annexed to this decision;
7. CONFIRMS that this trade regime applicable throughout the preparatory period will provide for
preferential treatment substantially equivalent to  the trade regime of the fourth Lomé Convention;
8. CONFIRMS that it will be applied as from 1
st March 2000 on the basis of a decision of the ACP-
EC Council of Ministers;
9. CONFIRMS  that in this context, WTO compatible new trading arrangements will be concluded
during the preparatory period.G/C/W/187/Add.3
Page 3
Proposal for a
COUNCIL DECISION
PARTNERSHIP AGREEMENT BETWEEN THE AFRICAN CARIBBEAN AND PACIFIC
STATES AND THE EUROPEAN COMMUNITY AND ITS MEMBER STATESG/C/W/187/Add.3
Page 4
Proposal for a
COUNCIL DECISION
PARTNERSHIP AGREEMENT BETWEEN THE AFRICAN CARIBBEAN AND PACIFIC
STATES AND THE EUROPEAN COMMUNITY AND ITS MEMBER STATES
TABLE OF CONTENTS
I. PREAMBLE..................................................................................................................... .........6
II. PART 1 : GENERAL PROVISIONS......................................................................................8
A. T ITLE I - O BJECTIVES , PRINCIPLES AND ACTORS ........................................................................8
1. Chapter 1 : Objectives and principles.....................................................................................8
2. Chapter 2 : The actors of the partnership ..............................................................................9
B. T ITLE II - T HE POLITICAL DIMENSION .......................................................................................10
III. PART 2 : INSTITUT IONAL PROV ISIONS .......................................................................16
IV. PART 3 : COOPERAT ION STRATEG IES.........................................................................19
A. T ITLE I - D EVELOPMENT STRATEGIES ......................................................................................19
1. Chapter 1 : General framework ............................................................................................19
2. Chapter 2 : Areas of support ................................................................................................. 20
(a) Section 1 : Econom ic development...........................................................................................2 0
(b) Section 2 : Social and human development : ............................................................................23
(c) Section 3 : Regional Coop eration & inte gration.......................................................................25
(d) Section 4 : Thematic an d cross-cuttin g issues ..........................................................................26
B. T ITLE II - E CONOMIC AND TRADE COOPERATION ....................................................................30
1. Chapter 1 : Objectives and principles...................................................................................30
2. Chapter 2 : New trading arrangements ................................................................................313. Chapter 3 : Cooperation in  the internat ional fora...............................................................33
4. Chapter 4 : Trade in Services ................................................................................................ 34
5. Chapter 5 : Trade-related areas ............................................................................................35
6. Chapter 6 : Cooperation in other areas ................................................................................39
V. PART 4 : DEVELOPMENT FINANCE COOPE RATION................................................41
A. T
ITLE I – G ENERAL PROVISIONS ...............................................................................................41
1. Chapter 1 : Objectives, principl es, guidelines and eligibility..............................................41
2. Chapter 2 : Scope and Nature of Financing .........................................................................43
B. T ITLE II – F INANCIAL COOPERATION .......................................................................................45
1. Chapter 1 : Financial resources.............................................................................................4 5G/C/W/187/Add.3
Page 5
2. Chapter 2 : Debt and Structural Adjustment support ........................................................46
3. Chapter 3 : Support in cases of short-term fluctuations in export earnings .....................48
4. Chapter 4 : Support for sectoral policies..............................................................................49
5. Chapter 5 : Microprojects and decentralised cooperation..................................................49
6. Chapter 6 - Humanitarian and emergency assistance.........................................................50
7. Chapter 7 : Investment and private sector development support ......................................52
C. T ITLE III – T ECHNICAL COOPERATION .....................................................................................54
D. T ITLE IV – P ROCEDURES AND MANAGEMENT SYSTEMS ..........................................................56
VI. PART 5 : GENERAL PROVISIONS FOR THE LEAST-DEVELOPED,
LANDLOCKED AND ISL AND ACP ST ATES...................................................................58
1. Chapter 1 : General provisions..............................................................................................5 8
2. Chapter 2 : Least-developed ACP States..............................................................................58
3. Chapter 3 : Landlocked ACP States .....................................................................................594. Chapter 4 : Island ACP States...............................................................................................5 9
VII. PART 6 : FINAL PROVISIONS...........................................................................................60G/C/W/187/Add.3
Page 6
I. PREAMBLE
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, on the one hand, and the
Georgetown Agreement establishing the Group of African, Caribbean and Pacific States, on the other;
Affirming their commitment to work together towards the achievement of the objectives of poverty
eradication, sustainable development and the gradual integration of the ACP countries into the worldeconomy;
Asserting their resolve to make, through their cooperation, a significant contribution to the economic,
social and cultural development of the ACP States and to the greater well-being of their population,
helping them facing the challenges of globalisation and strengthening the ACP-EU partnership in the
effort to give the process of globalisation a stronger social dimension;
Reaffirming their willingness to revitalise their special relationship and to implement a comprehensive
and integrated approach for a strengthened partnership based on political dialogue, developmentCooperation and economic and trade relations;
Acknowledging that a political environment guaranteeing peace, security and stability, respect for human
rights, democratic principles and the rule of law, and good governance is part and parcel of long term
development; acknowledging that responsibility for establishing such an environment rests primarily with
the countries concerned;
Acknowledging that sound and sustainable economic policies are prerequisites for development;
Referring to the principles of the Charter of the United Nations, and recalling the Universal Declaration
of Human Rights, the conclusions of the 1993 Vienna Conference on Human Rights, the Covenants on
Civil and Political Rights and on Economic, Social and Cultural Rights, the Convention on the Rights of
the Child, the Convention on the Elimination of all forms of Discrimination against Women, theInternational Convention on the Elimination of all forms of Racial Discrimination, the 1949 Geneva
Conventions, the 1954 Convention relating to the status of stateless persons, the 1951 Geneva Convention
relating to the Status of Refugees, the 1967 New York Protocol relating to the Status of Refugees, and the
other instruments of international humanitarian law;
Considering the Convention for the Protection of Human Rights and Fundamental Freedoms of the
Council of Europe, the African Charter on Human and Peoples’ Rights and the American Convention on
Human Rights as positive regional contributions to the respect of human rights in the European Union
and in the ACP States;
Recalling the Libreville and Santo Domingo declarations of the Heads of State and Government of the
ACP countries at their Summits in 1997 and 1999;
Considering that the development targets and principles agreed in United Nations Conferences and the
target, set by the OECD Development Assistance Committee, to reduce by one half the proportion of
people living in extreme poverty by the year 2015 provide a clear vision and must underpin ACP-EU
Cooperation within the Agreement;G/C/W/187/Add.3
Page 7
Paying particular attention to the pledges made at the Rio, Vienna, Cairo, Copenhagen, Beijing, Istanbul
and Rome UN conferences and acknowledging the need for further action to be taken in order to achieve
the goals and implement the action programmes which have been drawn up in those fora;
Anxious to respect basic labour rights, taking account of the principles laid down in the relevant
conventions of the International Labour Organisation;
Recalling the commitments within the framework of the World Trade Organisation;
have decided to conclude this Agreement:G/C/W/187/Add.3
Page 8
II. PART 1 : GENERAL PROVISIONS
A. TITLE I - O BJECTIVES , PRINCIPLES AND ACTORS
1. Chapter 1 : Objectives and principles
Article 1
Objectives of the partnership
The Community and its Member States, of the one part, and the ACP States, of the other part, hereinafter
referred to as the "Parties" hereby conclude this Agreement in order to promote and expedite the
economic, cultural and social development of the ACP States, with a view to contributing to peace and
security and to promoting a stable and democratic political environment.
The partnership shall be centred on the objective of reducing and eventually eradicating poverty
consistent with the objectives of sustainable development and the gradual integration of the ACP
countries into the world economy.
These objectives and the Parties’ international commitments shall inform all development strategies and
shall be tackled through an integrated approach taking account at the same time of the political,
economic, social, cultural and environmental aspects of development. The partnership shall provide a
coherent support framework for the development strategies adopted by each ACP State.
Sustained economic growth, developing the private se ctor, increasing employme nt and improving access
to productive resources shall all be part of this framework. Support shall be given to the respect of therights of the individual and meeting basic needs, the promotion of social development and the conditions
for an equitable distribution of the fruits of growth. Regional and sub-regional integration processes
which foster the integration of the ACP countries into the world economy in terms of trade and private
investment shall be encouraged and supported. Building the capacity of the actors in development and
improving the institutional framework necessary for social cohesion, for the functioning of a democraticsociety and market economy, and for the emergence of an active and organised civil society shall be
integral to the approach. Systematic account shall be taken of the situation of women and gender issues in
all areas - political, economic and social. The principles of sustainable management of natural resources
and the environment shall be applied and integrated at every level of the partnership.
Article 2
Fundamental principles
ACP-EC cooperation, underpinned by a legally binding system and the existence of joint institutions,
shall be exercised on the basis of the following fundamental principles :
– equality of the partners and ownership of the development strategies: for the purposes of
implementing the objectives of the partnership, the ACP States shall determine thedevelopment strategies for their economies and societies in all sovereignty and with due
regard for the essential elements described in Article 9; the partnership shall encourage
ownership of the development strategies by the countries and populations concerned;
– participation: apart from central government as the main partner, the partnership shall be
open to different kinds of other actors, in order to encourage the integration of all sections of
society, including the private sector and civil society organisations, into the mainstream of
political, economic and social life;G/C/W/187/Add.3
Page 9
– the pivotal role of dialogue and the fulfilment of mutual obligations: the obligations
assumed by the Parties in the framework of their dialogue shall be central to their
partnership and Cooperation relations;
– differentiation and regionalisation: Cooperation arrangements and priorities shall vary
according to a partner’s level of development, its needs, its performance and its long-term
development strategy. Particular emphasis shall be placed on the regional dimension.Special treatment shall be given to the least-developed countries. The vulnerability of
landlocked and island countries shall be taken into account.
Article 3
Achievement of the Agreement’s objectives
The contracting Parties shall, each as far as it is concerned in the framework of this Agreement, take
all appropriate measures, whether general or particular, to ensure the fulfilment of the obligations
arising from this Agreement and to facilitate the at tainment of its objectives. They shall refrain from
any measures liable to jeopardise these objectives.
2. Chapter 2 : The actors of the partnership
Article 4
General approach
The ACP States shall determine the development principles, strategies and models of their economies
and societies in all sovereignty. They shall establish, with the Community, the Cooperation
programmes foreseen under this agreement. However, the parties recognise the complementary role of
and potential for contributions by non-state actors to the development process. To this end, under the
conditions laid down in this Agreement, non-state actors shall, where appropriate:
– be informed and involved in consultation on Cooperation policies and strategies, on
priorities for Cooperation especially in areas that concern or directly affect them, and on the
political dialogue;
– be provided with financial resources, under the conditions laid down in this Agreement in
order to support local development processes;
– be involved in the implementation of Cooperation project and programmes in areas that
concern them or where these actors have a comparative advantage;
– be provided with capacity-building support in  critical areas in order to reinforce the
capabilities of these actors, particularly as regards organisation and representation, and the
establishment of consultation mechanisms including channels of communication anddialogue, and to promote strategic alliances.G/C/W/187/Add.3
Page 10
Article 5
Information
Cooperation will support operation to provide more information and create greater awareness of the
basic features of ACP-EU partnership. Cooperation will also:
– encourage partnership and build links between ACP and EU actors;
– strengthen networking and exchange of expertise and experience among the actors.
Article 6.
Definitions
1. The actors of Cooperation will include:
(a) State (local, national and regional);
(b) Non-state:
– Private sector;
– Economic and social partners, including trade union organisations;
– Civil Society in all its forms according to national characteristics.
2. Recognition by the parties of non-governmental actors shall depend on the extent to which
they address the needs of the population, on their specific competencies and whether they
are organised and managed democratically and transparently.
Article 7
Capacity building
The contribution of civil society to developmen t can be enhanced by strengthening community
organisations and non-profit non-governmental organi sations in all spheres of Cooperation. This will
require:
– Encouraging and supporting the creation and development of such organisations;
– Establishing arrangements for involving such  organisations in the design, implementation
and evaluation of development strategies and programmes.
– 
B. TITLE II - T HE POLITICAL DIMENSION
Article 8
Political dialogue
1. The Parties shall regularly engage in a comprehensive, balanced and deep political dialogue
leading to commitments on both sides.G/C/W/187/Add.3
Page 11
2. The objective of this dialogue shall be to exchange information, to foster mutual
understanding, and to facilitate the establishment of agreed priorities and shared agendas, in
particular by recognising existing links between the different aspects of the relations
between the Parties, and the various areas of cooperation as laid down in this Agreement.
The dialogue shall facilitate consultations be tween the Parties within international forums.
The objectives of the dialogue shall also include preventing situations arising in which oneParty might deem it necessary to have recourse to the non-execution clause.
3. The dialogue shall cover all the aims and objectives laid down in the Agreement as well as
all questions of common, general, regional or sub-regional interest. Through dialogue, the
Parties shall contribute to peace, security and stability and promote a stable and democratic
political environment. It shall encompass cooperation strategies as well as global and
sectoral policies, including environment, gender, migration and questions related to the
cultural heritage.
4. The dialogue shall focus, inter alia, on specific political issues of mutual concern or of
general significance for the attainment of the objectives of the Agreement, such as the arms
trade, excessive military expenditure, drugs and organised crime, or ethnic, religious or
racial discrimination. The dialogue shall also encompass a regular assessment of the
developments concerning the respect for human rights, democratic principles, the rule of lawand good governance.
5. Broadly based policies to promote peace and to prevent, manage and resolve violent
conflicts shall play a prominent role in this di alogue, as shall the need to take full account of
the objective of peace and democratic stability in the definition of priority areas of
cooperation.
6. The dialogue shall be conducted in a flexible manner. Dialogue shall be formal or informal
according to the need, and conducted within a nd outside the institutional framework, in the
appropriate format, and at the appropriate level including regional, sub-regional or national
level.
7. Regional and sub-regional organisations as well as representatives of civil society
organisations shall be associated to this dialogue.
Article 9
Essential Elements and  Fundamental Element
1. Cooperation shall be directed towards sustainable development centred on the human
person, who is the main protagonist and beneficiary of development; this entails respect forand promotion of all human rights.
Respect for all human rights and fundamental freedoms, including respect for fundamental
social rights, democracy based on the rule of law and transparent and accountable
governance are an integral part of sustainable development.
2. The parties refer to their international obligat ions and commitments concerning respect for
human rights. They reiterate their deep attachment to human dignity and human rights,
which are legitimate aspirations of individuals and peoples. Human rights are universal,indivisible and inter-related. The parties undertake to promote and protect all fundamental
freedoms and human rights, be they civil and political, or economic, social and cultural. In
this context, the parties reaffirm the equality of men and women.G/C/W/187/Add.3
Page 12
The parties reaffirm that democratisation, development and the protection of fundamental
freedoms and human rights are inter-related and mutually reinforcing. Democratic principles
are universally recognised principles underpinning the organisation of the state to ensure the
legitimacy of its authority, the legality of its actions reflected in its constitutional, legislative
and regulatory system, and the existence of participatory mechanisms. On the basis of
universally recognized principles, each country develops its democratic culture.
The structure of government and the prerogatives of the different powers shall be founded
on rule of law, which shall entail in particular effective and accessible means of legal
redress, an independent legal system guaranteeing equality before the law and an executive
that is fully subject to the law.
Respect for human rights, democratic principles and the rule of law, which underpin the
ACP-EU partnership, shall underpin the domestic and international policies of the parties
and constitute the essential elements of this Agreement.
3. In the context of a political and institutional environment that upholds human rights,
democratic principles and the rule of law, good governance is the transparent and
accountable management of human, natural, economic and financial resources for thepurposes of equitable and sustainable development. It entails clear decision-making
procedures at the level of public authorities, transparent and accountable institutions, the
primacy of law in the management and distribution of resources and capacity building for
elaborating and implementing measures aiming in particular at preventing and combating
corruption.
Good governance, which underpins the ACP-EU  partnership, shall underpin the domestic
and international policies of the parties and constitute a fundamental element of this
Agreement. The parties agree that only serious cases of corruption, including acts of bribery
leading to such corruption, as defined in article 97 constitute a violation of that element.
4. The partnership shall actively support the promotion of human rights, processes of
democratisation, consolidation of the rule of law, and good governance.
These areas will be an important subject for the political dialogue. In the context of this
dialogue, the parties shall attach particular importance to the changes underway and to the
continuity of the progress achieved.  This regular assessment shall take into account each
country’s economic, social, cultural and historical context.
These areas will also be a focus of support for development strategies. The Community shall
provide support for political, institutional and legal reforms and for building the capacity of
public and private actors and civil society in the framework of strategies agreed jointly
between the State concerned and the Community.
Article 10
Other elements of the political environment
1. The Parties consider the following elements as contributing to the maintenance and
consolidation of a stable and democratic political environment:
– sustainable and equitable development involving, inter alia, access to productive
resources, essential services and justice;
– greater involvement of an active and organised civil society and the private sector.G/C/W/187/Add.3
Page 13
2. The Parties recognise that the principles of the market economy, supported by transparent
competition rules and sound economic and social policies, contribute to achieving the
objectives of the partnership.
Article 11
Peace-building policies, conflict prevention and resolution
1. The Parties shall pursue an active, comprehensive and integrated policy of peace-building and
conflict prevention and resolution within the framework of the Partnership. This policy shall be
based on the principle of ownership. It shall in particular focus on building regional, sub-
regional and national capacities, and on preventing violent conflicts at an early stage by
addressing their root-causes in a targeted manner, and with an adequate combination of all
available instruments.
2. The activities in the field of peace-building, conflict prevention and resolution shall in particular
include support for balancing political, economic, social and cultural opportunities among allsegments of society, for strengthening the democratic legitimacy and effectiveness of
governance, for establishing effective mechanisms for the peaceful conciliation of group
interests, for bridging dividing lines among different segments of society as well as support for
an active and organised civil society.
3. Relevant activities shall also include, inter alia, support for mediation, negotiation and
reconciliation efforts, for effective regional management of shared, scarce natural resources, for
demobilisation and reintegration of former combatants into the society, for addressing the
problem of child soldiers, as well as for suitable action to set responsible limits to military
expenditures and the arms trade, including through support for the promotion and application of
agreed standards and codes of conduct. In this context, particular emphasis shall be given to thefight against anti-personnel landmines as well as to addressing an excessive and uncontrolled
spread, illegal trafficking and accumulation of small arms and light weapons.
4. In situations of violent conflict the Parties shall take all suitable action to prevent an
intensification of violence, to limit its territorial spread, and to facilitate a peaceful settlement of
the existing disputes. Particular attention shall be paid to ensuring that financial resources forcooperation are used in accordance with the principles and objectives of the Partnership, and to
preventing a diversion of funds for belligerent purposes.
5. In post-conflict situations, the Parties shall take all suitable action to facilitate the return to a
non-violent, stable and self-sustainable situation. The Parties shall ensure the creation of the
necessary links between emergency measures, rehabilitation and development cooperation.
Article 12
Coherence of community policies and thei r impact on the implementation of the
partnership Agreement
Without prejudice to Article 96, where the Community intends, in the exercise of its powers, to take a
measure which might affect the interests of the ACP States, as far as this Agreement’s objectives are
concerned, it shall inform in good time the said States of its intentions. Towards this end, the
Commission shall communicate simultaneously to the Secretariat of the ACP States its proposal for
such measures. Where necessary, a request for information may also take place on the initiative of the
ACP States.G/C/W/187/Add.3
Page 14
At their request, consultations shall be held promp tly so that account may be taken of their concerns
as to the impact of those measures before any final decision is made.
After such consultations have taken place, the ACP States may, in addition, transmit their concerns in
writing to the Community and submit suggestions fo r amendments indicating the way their concerns
should be met.
If the Community does not accede to the ACP States’ submissions, it shall advise them as soon as
possible giving its reasons.
The ACP States shall also be provided with ade quate information on the entry into force of such
decisions, in advance whenever possible.
Article 13
Migration
1. The issue of migration shall be the subject of in-depth dialogue in the framework of the EU-
ACP partnership.
The Parties reaffirm their existing obligati ons and commitments in international law to
ensure respect for human rights and to eliminate all forms of discrimination basedparticularly on origin, sex, race, language and religion.
2. The Parties agree to consider that a partnership implies, with relation to migration, fair
treatment of third country nationals who reside legally on their territories, integration policy
aiming at granting them rights and obligations comparable to those of their citizens,
enhancing non-discrimination in economic, social and cultural life and developing measuresagainst racism and xenophobia.
3. The treatment accorded by each Member State to workers of ACP countries legally
employed in its territory, shall be free from any discrimination based on nationality, as
regards working conditions, remuneration and dismissal, relative to its own nationals.
Further in this regard, each ACP State shall accord comparable non-discriminatory treatmentto workers who are nationals of a Member State.
4. The Parties consider that strategies aiming at reducing poverty, improving living and
working conditions, creating employment and de veloping training contribute in the long
term to normalising migratory flows.
The parties will take account, in the framework of development strategies and national and
regional programming, of structural constraint s associated with migratory flows with the
purpose of supporting the economic and social development of the regions from which
migrants originate and of reducing poverty.
The Community shall support, through national and regional Cooperation programmes, the
training of ACP nationals in their country of origin, in another ACP country or in a Member
State of the European Union. As regards training in a Member State, the Parties shall ensurethat such action is geared towards the vocational integration of ACP nationals in their
countries of origin.
The Parties shall develop Cooperation programmes to facilitate the access of students from
ACP States to education, in particular thro ugh the use of new communication technologies.G/C/W/187/Add.3
Page 15
5. (a) In the framework of the political dialogue the Council of Ministers shall examine
issues arising from illegal immigration with a view to establishing, where appropriate,
the means for a prevention policy.
(b) In this context the Parties agree in particular to ensure that the rights and dignity of
individuals are respected in any procedure initiated to return illegal immigrants to
their countries of origin. In this connection the authorities concerned shall extend tothem the administrative facilities necessary for their return.
(c) The Parties further agree that:
(i) - each Member State of the European Union shall accept the return of and
readmit any of its nationals who are illegally present on the territory of
an ACP State, at that State's request and without further formalities;
- each of the ACP States shall accept the return of and readmit any of its
nationals who are illegally present on the territory of a Member State ofthe European Union, at that Member State's request and without further
formalities.
The Member States and the ACP States will provide their nationals with appropriate
identity documents for such purposes.
In respect of the Member States of the European Union, the obligations in this
paragraph apply only in respect of those persons who are to be considered their
nationals for the Community purposes in accordance with Declaration n°2 to the
Treaty establishing the European Community. In respect of ACP States, the
obligations in this paragraph apply only in respect of those persons who areconsidered as their nationals in accordance to their respective legal system.
(ii) At the request of a Party, negotiations shall be initiated with ACP States aiming
at concluding in good faith and with due regard for the relevant rules of
international law, bilateral agreements governing specific obligations for the
readmission and return of their nationals. Theses agreements shall also cover, ifdeemed necessary by any of the Parties, arrangements for the readmission of
third country nationals and stateless persons. Such agreements will lay down
the details about the categories of persons covered by these arrangements as
well as the modalities of their readmission and return.
Adequate assistance to implement these agreements will be provided to the
ACP States.
(iii) For the purposes of this article, the term " Parties" shall refer to the
Community, any of its Member States and any ACP State.G/C/W/187/Add.3
Page 16
III. PART 2 : INSTITUTIONAL PROVISIONS
Article 14
The joint institutions
The institutions of this Agreement are the Council of Ministers, the Committee of Ambassadors and the
Joint Parliamentary Assembly.
Article 15
The Council of Ministers
1. The Council of Ministers shall comprise, on the one hand, the members of the Council of the
EU and members of the Commission of the European Communities and, on the other, a
member of the government of each ACP State.
The office of the President of the Council of Ministers shall be held alternately by a member of
the Council of the European Union and a member of the government of an ACP State.
The Council shall meet as a rule once a year and whenever it seems necessary, in a form and ageographical composition appropriate to the issues to be addressed.
2. The functions of the Council of Ministers shall be to:
(a) conduct the political dialogue;
(b) adopt the policy guidelines and take the decisions necessary for the implementation of
the provisions of this Agreement, in particular as regards development strategies inthe specific areas provided for by this Agreement or any other area that should prove
relevant, and as regards procedures;
(c) examine and resolve any issue liable to impede the effective and efficient
implementation of this Agreement or present an obstacle to achieving its objectives;
(d) ensure the smooth functioning of the consultation mechanisms.
3. The Council of Ministers shall take its decisions by common agreement of the Parties. The
proceedings of the Council of Ministers shall be valid only if half the members of the
Council of the European Union, one member of the Commission and two-thirds of the
members representing the governments of the ACP States are present.
It may take decisions that are binding on the Parties and frame resolutions, recommendations
and opinions. It shall examine and take into consideration resolutions and recommendations
adopted by the Joint Parliamentary Assembly.
The Council of Ministers shall conduct an ongoing dialogue with the representatives of the
social and economic partners and other actors of civil society in the ACP and the EU. To thatend, consultations may be held alongside its meetings.
4. The Council of Ministers may delegate powers to the Committee of Ambassadors.
5. The Council of Ministers shall adopt its rules of procedure within six months of the entry
into force of this Agreement.G/C/W/187/Add.3
Page 17
Article 16
The Committee of Ambassadors
1. The Committee of Ambassadors shall comprise, on the one hand, the permanent representative
of each Member State to the EU and a representative of the Commission and, on the other, the
head of mission of each ACP state to the EU.
The office of Chairman of the Committee of Ambassadors shall be held alternately by a
Permanent Representative of a Member State designated by the Community, and a head of
mission representing an ACP State, designated by the ACP States.
2. The Committee shall assist the Council of Ministers in the fulfilment of its tasks and carry out
any mandate entrusted to it by the Council. In this context, it shall monitor implementation of
this Agreement and progress towards achieving the objectives set therein.
The Committee of Ambassadors shall meet regularly, in particular to prepare the Council
sessions and whenever it proves necessary.
3. The Committee shall adopt its rules of procedure within six months of the entry into force of
this Agreement.
Article 17
The Joint Parliamentary Assembly
1. The Joint Parliamentary Assembly shall be composed of equal numbers of EU and ACP
representatives. The members of the Joint Parliamentary Assembly shall be, on the one hand,
members of the European Parliament and, on the other, members of parliament or, failing this,
representatives designated by the parliament of each ACP state. In the absence of a parliament,
the attendance of a representative from the ACP state concerned shall be subject to the prior
approval of the Joint Parliamentary Assembly.
2. The role of the Joint Parliamentary Assembly, as a consultative body, shall be to:
– promote democratic processes through dialogue and consultation;
– facilitate greater understanding between the peoples of the European Union and those
of the ACP States and raise public awareness of development issues;
–  discuss issues pertaining to development and the ACP-EU partnership;
– adopt resolutions and make recommendations to the Council of Ministers with a view
to achieving the objectives of this Agreement.
3. The Joint Parliamentary Assembly shall meet twice a year in plenary session, alternately in the
European Union and in an ACP state. With a view to strengthening regional integration and
fostering Cooperation between national parliaments, meetings between EU and ACP membersof parliament may be arranged at regional or subregional level.
The Joint Parliamentary Assembly shall organise regular contacts with representatives of the
ACP-EU economic and social partners and the other actors of civil society in order to obtain
their views on the attainment of the objectives of this Agreement.G/C/W/187/Add.3
Page 18
4. The Joint Parliamentary Assembly shall adopt its rules of procedure within six months of the
entry into force of this Agreement.G/C/W/187/Add.3
Page 19
IV. PART 3 : COOPERATION STRATEGIES
Article 18
The cooperation strategies shall be based on development strategies and economic and trade
cooperation, which are interlinked and complementary.The parties shall ensure that the efforts
undertaken in both afore-mentioned areas are mutually reinforcing.
A. TITLE I - D EVELOPMENT STRATEGIES
1. Chapter 1 : General framework
Article 19
Principles and objectives
1. The central objective of ACP-EU cooperation is poverty reduction and ultimately its
eradication; sustainable development; and progressive integration of the ACP countries into the
world economy.  In this context, cooperation framework and orientations shall be tailored to the
individual circumstances of each ACP country, shall promote local ownership of economic and
social reforms and the integration of the private sector and civil society actors into the
development process.
2. Cooperation shall refer to the conclusions of United Nations Conferences and to the objectives,
targets and action programmes agreed at international level and to their follow up as a basis for
development principles.  Cooperation shall also refer to the international developmentcooperation targets and shall pay particular attention to putting in place qualitative and
quantitative indicators of progress.
3. Governments and non state actors in each ACP country shall initiate consultations on
country development strategies and community support thereto.
Article 20
The Approach
1. The objectives of ACP-EU development cooperation shall be pursued through integrated
strategies that incorporate economic, social, cultural, environmental and institutional elements
that must be locally owned. Cooperation shall thus provide  a coherent enabling framework of
support to ACP’s own development strategies, ensuring complementarity and interaction
between the various elements.  In this context, and within the framework of developmentpolicies and reforms pursued by the ACP States, ACP-EU cooperation strategies shall aim at :
– achieving rapid and sustained job-creating economic growth, developing the private
sector, increasing employment, improving access to productive economic activities
and resource, and fostering regional Cooperation and integration;
– promoting human and social development helping to ensure that the fruits of growth
are widely and equitably shared and promoting gender equality ;
– promoting cultural values of communities and specific interactions with economic,
political and social elements;G/C/W/187/Add.3
Page 20
– promoting institutional reforms and development, strengthening the institutions
necessary for the consolidation of democracy, good governance and for efficient and
competitive market economies; and building capacity for development and
partnership; and
– promoting environmental sustainability, regeneration and best practices, and the
preservation of natural resource base.
2. Systematic account shall be taken in mainstreaming into all areas of cooperation the following
thematic or cross-cutting themes : gender issues, environmental issues and institutional
development and capacity building. These areas shall also be eligible for Community support.
3. The detailed texts as regards development cooperation objectives and strategies, in particular
sectoral policies and strategies shall be incorporated in a compendium providing operational
guidelines in specific areas or sectors of cooperation. These texts may be revised, reviewedand/or amended by the Council of Ministers.
2. Chapter 2 : Areas of support
(a) Section 1 : Economic development
Article 21
Investment and Private sector development
1. Cooperation shall support the necessary economic and institutional reforms and policies at
national and/or regional level, aiming at creating a favourable environment for private
investment, and the development of a dynamic, viable and competitive private sector.
Cooperation shall further support:
– the promotion of public-private sector dialogue and Cooperation;
– the development of entrepreneurial skills and business culture;
– privatization and enterprise reform; and
– development and modernization of mediation and arbitration systems.
2. Cooperation shall also support improving the quality, availability and accessibility of
financial and non-financial services to private enterprises, both formal and informal; by:
– catalysing and leveraging flows of private savings, both domestic and foreign, into the
financing of private enterprises by supporting policies for developing modern
financial sector, including capital market,  financial institutions and sustainablemicrofinance operations;
– the development and strengthening of business institutions and intermediary
organisations, associations, chambers of commerce and local providers from the
private sector supporting and providing non-financial services to enterprises such as
professional, technical, management, training and commercial support services, andG/C/W/187/Add.3
Page 21
– supporting institutions, programmes, activities and initiatives that contribute to the
development and transfer of technologies and know-how and best practice on all
aspects of business management.
3. Cooperation shall promote business development through the provision of finance guarantee
facilities and technical support aimed at  encouraging and supporting the creation,
establishment, expansion, diversification, rehabilitation, restructuring, modernization or
privatization of dynamic, viable and competitive enterprises in all economic sectors as well
as financial intermediaries, such as development finance and venture capital institutions, and
leasing companies by:
– creating and/or strengthening financial instruments in the form of investment capital;
– improving access to essential inputs such as business information and advisory,
consultancy or technical assistance services,
– enhancement of export activities, in particular through capacity building in all trade
related areas, and
– encouraging inter-firm linkages, networks and Cooperation including those involving
the transfer of technology and know-how (a t national, regional and ACP-EU levels),
and partnerships with private foreign investors which are consistent with the
objectives and guidelines of ACP-EC Development Cooperation.
4. Cooperation shall support microenterprise development through better access to financial
and non-financial services; an appropriate policy and regulatory framework for their
development; and provide training and information services on best practices in
microfinance.
5. Support for investment and private sector development shall integrate actions and initiatives
at macro, meso and micro economic levels.
Article 22
Macroeconomic and structural reforms and policies
1. Cooperation shall support ACP efforts to implement :
– macroeconomic, growth and stabilisation through disciplined fiscal and monetary
policies that result in the reduction of inflation, and improve external and fiscal
balances; in strengthening fiscal discipline, enhancing budgetary transparency andefficiency, improving the quality, the equity and composition of fiscal policy; and
– structural policies designed to reinforce the role of the different actors, especially the
private sector and improve  the environment  for increases in business, investment and
employment; and to
– liberalise trade and foreign exchange regimes and current account
convertibility, having regard to the particular circumstances of each country;
– strengthen labour and product market reforms;G/C/W/187/Add.3
Page 22
– encourage financial systems reforms which help to develop viable banking and
non-banking systems, capital markets and financial services, including micro-
finance;
– Improve the quality of private and public services; and
– encourage regional Cooperation and progressive integration in macroeconomic
and monetary policy.
2. The design of macroeconomic policies and structural adjustment programmes shall reflect
the socio-political background and institutional capacity of the countries concerned, ensure a
positive impact on poverty reduction and social services access, and shall be based on thefollowing principles :
– the ACP states shall bear primary responsibility for the analysis of the problems to be
solved, the design and the implementation of the reforms;
– support programs shall be adapted to the different situation in each ACP State and be
sensitive to the social conditions, culture and environment of these States;
– the right of the ACP States to determine the direction, and the sequencing of their
development strategies and priorities shall be recognised and respected;
– the pace of reforms shall be realistic and compatible with each ACP States capacities
and resources; and
– strengthening the communication and the information of populations on economic
and social reforms and policies.
Article 23
Economic sector development
Cooperation will support sustainable policy and institutional reforms and the investments necessary
for equitable access  to economic activities and productive resources, particularly:
– the development of training systems that help increase productivity in both the formal
and the informal sectors;
– capital, credit, land, especially as regards property rights and use;
– development of rural strategies aimed at establishing a framework for participatory
decentralized planning, resource allocation and management;
– agricultural production strategies, national and regional food security policies,
sustainable development of water resources and fisheries as well as marine resourceswithin the economic exclusive zones of the ACP States. Any fishery agreement that
may be negotiated between the Community and the ACP States shall pay due
consideration to consistency with the development strategies in this area;
– economic and technological infrastructure and services, including transport,
telecommunication systems, communication services and the development ofinformation society;G/C/W/187/Add.3
Page 23
– development of competitive industrial, mining and energy sectors, while encouraging
private sector involvement and development;
– trade development, including the promotion of fair trade;
– development of  business, finance and banking; and other service sectors ;
– tourism development; and
– development of scientific,  technological and research infrastructure and services;
including the enhancement, transfer and absorption of new technologies;
– The strengthening of capacities in productive areas, especially in public and private
sectors.
Article 24
Tourism
Cooperation will aim at the sustainable developmen t of the tourism industry in ACP countries and
sub-regions, recognising its increasing importance to the growth of the services sector in ACPcountries and to the expansion of their global trade, its ability to stimulate other sectors of economic
activity, and the role it can play in poverty eradication.
Cooperation programmes and projects will support the efforts of ACP countries to establish and
improve the countries legal and institutional framework and resources for the development and
implementation of sustainable tourism policies and programmes, as well as inter alia, improving thecompetitive position of the sector, especially SMEs, investment support and promotion, product
development including the development of indigenous cultures in ACP countries, and strengthening
linkages between tourism and other sectors of economic activity.
(b) Section 2 : Social and human development :
Article 25
Social sector development
1. Cooperation shall support ACP States’ efforts at developing general and sectoral policies
and reforms which improve the coverage, quality of and access to basic social infrastructure
and services and take account of local needs and specific demands of the most vulnerable
and disadvantaged, thus reducing the inequalities of access to these services. Special
attention shall be paid to ensuring adequate levels of public spending in the social sectors. In
this context,  cooperation  shall aim at :
– improving education and training, and building technical capacity and skills;
– improving health systems and nutrition, eliminating hunger and malnutrition, ensuring
adequate food supply and security;
– integrating population issues into development strategies in order to improve
reproductive health, primary health care, family planning; and prevention of femalegenital mutilation;G/C/W/187/Add.3
Page 24
– promoting the fight against HIV/AIDS;
– increasing the security of household water and improving access to safe water and
adequate sanitation;
– improving the availability of affordable and adequate shelter for all through
supporting low-cost and low-income housing programs and improving urban
development; and
– encouraging the promotion of participatory methods of social dialogue as well as
respect for basic social rights.
2. Cooperation shall also support capacity-building in social areas, such as : programmes for
training in the design of social policies and modern methods for managing social projects
and programmes; policies conducive to technol ogical innovation and research; building
local expertise and promoting partnerships; and round-table discussions at national and/or
regional level.
3. Cooperation shall promote and support the development and implementation of policies and
of systems of social protection and security in order to enhance social cohesion and to
promote self-help and community solidarity. The focus of the support shall, inter-alia, be on
developing initiatives based on economic solidarity, particularly by setting-up social
development funds adapted to local needs and actors.
Article 26
Youth issues
Cooperation shall also support the establishment of a coherent and comprehensive policy for realising
the potential of youth so that they are better integrated into society to achieve their full potential. In
this context, Cooperation shall support policies, measures and operations aimed at :
– protecting the rights of children and youth, especially the girl child;
– promoting the skills, energy, innovation and potential of youth in order to enhance their
economic, social and cultural opportunities and enlarge their employment opportunities in
the productive sector;
– helping community based institutions, to give children the opportunity to develop their
physical, psychological, social and economic potential; and
– reintegrating into society children in post conflicts situations through rehabilitation
programmes;
Article 27
Cultural development
Cooperation in the area of culture shall aim at:– integrating the cultural dimension at all levels of development Cooperation;
– recognizing, preserving and promoting cultural values and identities to enable inter-cultural
dialogue;G/C/W/187/Add.3
Page 25
– recognising, preserving and promoting the value of cultural heritage; supporting the
development of capacity in this sector; and
– developing cultural industries and enhancing market access opportunities for cultural goods
and services;
(c) Section 3 : Regional Cooperation & integration
Article 28
General approach
Cooperation shall provide effective assistance to achieve the objectives and priorities which the ACP
States have set themselves in the context of regional and sub-regional Cooperation and integration,
including inter-regional and intra-ACP Cooperati on. Regional Cooperation can also involve OCTs
and outermost regions. In this context, Cooperation support shall aim to:
– foster the gradual integration of the ACP States into the world economy;
– accelerate economic Cooperation and development both within and between the regions of
the ACP States;
– promote the free movement of persons, goods, services, capital, labour and technology
among ACP countries;
– accelerate diversification of the economies of the ACP States; and -co-ordination and
harmonization of regional and sub-regional Cooperation policies; and
– promote and expand inter and intra-ACP trade and with third countries.
Article 29
Regional economic integration
Cooperation shall, in the area of regional economic integration, support:
– developing and strengthening the capacities of:
– regional integration institutions and organizations set up by the ACP States to
promote regional Cooperation and integration, and
– national governments and parliaments in matters of regional integration;
– fostering participation of LDC ACP States in the establishment of regional markets and
sharing the benefits therefrom;
– implementation of sectoral reform policies at regional level;
– liberalisation of trade and payments;
– promoting cross-border investments both foreign and domestic, and other regional or sub-
regional economic integration initiatives; andG/C/W/187/Add.3
Page 26
– taking account of the net transitional costs of regional integration on budget revenue and
balance of payments.
Article 30
Regional Cooperation
1. Cooperation shall, in the area of  regional Cooperation support a wide variety of functional
and thematic fields which specifically address common problems and take advantage of
scale of economies, including:
– infrastructure particularly transport and communications and safety thereof and
services, including the development of regional opportunities in the area ofInformation and Communication Technologies (ICT);
– the environment; water resource management; energy;
– health, education and training;
– research and technological development;
– regional initiatives for disaster preparedness and mitigation; and
– other areas, including arms control, action against drugs, organized crimes, money
laundering, bribery and corruption.
2. Cooperation will also support Inter and Intra-ACP cooperation schemes and initiatives.
3. Cooperation may help promote and develop a regional political dialogue in areas of conflict
prevention and resolution; human rights and democratization; exchange, networking, and
promotion of mobility between the different ac tors of development, in particular civil
society.
(d) Section 4 : Thematic and cross-cutting issues
Article 31
Gender issues
Cooperation shall help strengthen policies and programmes that improve, ensure and broaden the
equal  participation of men and  women in all spheres of political, economic, social and cultural life.
Cooperation shall help improve the access of women   to all resources required for the full exercise of
their fundamental rights. More specifically, Coopera tion shall create the appropriate framework to:
– integrate a gender sensitive approach and concerns at every level of development
Cooperation including macroeconomic policies, strategies and operations; and
– encourage the adoption of specific positive measures in favour of women such as:
– participation in national and local politics;
– support for women’s organisations;G/C/W/187/Add.3
Page 27
– access to basic social services, especially to education and training, health care and
family planning;
– access to productive resources especially to land and credit and to labour market; and
– taking specific account of women in emergency aid and rehabilitation operations.
Article 32
Environment and natural resources
1. Cooperation on environmental protection and sustainable utilisation and management of
natural resources shall aim at :
– mainstreaming environmental sustainability into all aspects of development
Cooperation, and support programmes and projects implemented by the various
actors;
– building and/or strengthening the scientific and technical human and institutional
capacity for environmental management, for all environmental stakeholders;
– supporting specific measures and schemes aimed  at addressing critical sustainable
management issues, and also relating to current and future regional and international
commitments concerning mineral and natural resources, such as:
– energy sources notably solar energy and energy efficiency;
– sustainable rural and urban development;
– desertification, drought and deforestation;
– developing innovative solutions to urban environmental problems;  and
– promotion of sustainable tourism.
– Taking into account issues relating to the transport and disposal of hazardous waste.
2. Cooperation shall also take account of :
– the vulnerability of small island ACP countries, especially to the threat posed by
climate change; and
– the worsening drought and desertification problems especially of least developed and
land-locked countries.
– Institutional development and capacity buildingG/C/W/187/Add.3
Page 28
Article 33
Institutional development and capacity building
1. Cooperation shall pay systematic attention to institutional aspects and in this context, shall
support the efforts of the ACP States to develop and strengthen structures, institutions andprocedures that help to:
– Promote and sustain democracy, human dignity, social justice and pluralism, with full
respect for diversity within and among societies;
– Promote and sustain universal and full respect for, and observance and protection of
all human rights and fundamental freedoms;
– Develop and strengthen the rule of law; and improve access to justice, while
guaranteeing the professionalism and independence of the judicial systems; and
– Ensure transparent and accountable governance and administration in all public
institutions.
2. The parties shall work together in the fight against bribery and corruption  in all their
societies.
3. Cooperation shall support ACP States efforts to  develop their public institutions into a
positive force for growth and development, and to achieve major improvements in the
efficiency of government services as they affect the lives of ordinary people. In this context,
Cooperation shall assist the reform, rationalization and the modernization of the public
sector. Specifically, Cooperation support shall focus on:
– the reform and modernization of the civil service;
– legal and judicial reforms and modernisation of justice systems;
– improvement and strengthening of public finance management;
– accelerating reforms of the banking and financial sector;
– improvement of the management of public assets and reform of public procurement
procedures; and
– political, administrative, economic and financial decentralization.
4. Cooperation shall also assist to restore and/or enhance critical public sector capacity, and  to
support institutions needed to underpin a market economy; especially support for:
– developing legal and regulatory capabilities needed to cope with the operation of a
market economy, including competition policy and consumer policy;
– improving capacity to analyse, plan, formulate and implement policies, in particular
in the economic, social, environmental, research, science and technology, and
innovation fields;
– modernising, strengthening and reforming financial and monetary institutions and
improving procedures;G/C/W/187/Add.3
Page 29
– building the capacity at the local and municipal levels which is required to implement
decentralization policy, and to increase the participation of the population in the
development process; and
– developing capacity in other critical areas, such as:
– international negotiations; and
– management and coordination of external aid.
5. Cooperation shall span all areas and sectors of Cooperation to foster the emergence of non-
state actors and the development of their capacities; and to strengthen structures for
information, dialogue and consultation between them and the national authorities, includingat regional level.G/C/W/187/Add.3
Page 30
B. TITLE II - E CONOMIC AND TRADE COOPERATION
1. Chapter 1 : Objectives and principles
Article 34
Objectives
1. Economic and trade cooperation shall aim at fostering the smooth and gradual integration of
the ACP States into the world economy, with due regard for their political choices and
development priorities, thereby promoting their sustainable development and contributing to
poverty eradication in the ACP countries.
2. The ultimate objective of economic and trade cooperation is to enable the ACP States to
play a full part in international trade.  In this  context, particular regard shall be had to the
need for the ACP States to participate active ly in multilateral trade negotiations. Given the
current level of development of the ACP countries, economic and trade cooperation shall bedirected at enabling the ACP States to manage the challenges of globalisation and to adapt
progressively to new conditions of international trade thereby facilitating their transition to
the liberalised global economy.
3. To this end economic and trade cooperation shall aim at enhancing the production, supply
and trading capacity of the ACP countries as well as their capacity to attract investment. It
shall further aim at creating a new trading dynamic between the parties, at strengthening the
ACP countries trade and investment policies and at improving the ACP countries’ capacity
to handle all issues related to trade.
4. Economic and trade cooperation shall be implemented in full conformity with the provisions
of the WTO, including special and differential treatment, taking account of the Parties'
mutual interests and their respective levels of development.
Article 35
Principles
1. Economic and trade cooperation shall be based on a true, strengthened and strategic
partnership.  It shall further be based on a comprehensive approach which builds on the
strengths and achievements of the previous ACP-EC Conventions, using all means availableto achieve the objectives set out above by addressing supply and demand side constraints.
In this context, particular regard shall be had to trade development measures as a means of
enhancing ACP States’ competitiveness. Appropriate weight shall therefore be given to
trade development within  the ACP States' development strategies, which the Community
shall support.
2. Economic and trade cooperation shall build on regional integration initiatives of ACP States,
bearing in mind that regional integration is a key instrument for the integration of ACP
countries into the world economy.
3. Economic and trade cooperation shall take account of the different needs and levels of
development of the ACP countries and regions. In this context, the Parties reaffirm their
attachment to ensuring special and differential treatment for all ACP countries and toG/C/W/187/Add.3
Page 31
maintaining special treatment for ACP LDCs a nd to taking due account of the vulnerability
of small, landlocked and island countries.
2. Chapter 2 : New trading arrangements
Article 36
Modalities
1. In view of the objectives and principles set out above, the Parties agree to conclude new
WTO compatible trading arrangements, removing progressively barriers to trade between
them and enhancing cooperation in all areas relevant to trade.
2. The Parties agree that the new trading arrangements shall be introduced gradually and
recognize the need, therefore, for a preparatory period.
3. In order to facilitate the transition to the new trading arrangements, the non-reciprocal trade
preferences applied under the 4th ACP-EC C onvention shall be maintained during the
preparatory period for all ACP countries, under the conditions defined in Annex V to the
present Agreement.
4. In this context, the Parties reaffirm the impor tance of the commodity protocols, attached to
Annex V of this Agreement.  They agree on the need to review them in the context of the
new trading arrangements, in particular as regards their compatibility with WTO rules, with
a view to safeguarding the benefits derived therefrom, bearing in mind the special legalstatus of the Sugar Protocol.
Article 37
Procedures
1. Economic partnership agreements shall be negotiated during the preparatory period which
shall end by 31 December 2007 at the latest. Formal negotiations of the new tradingarrangements shall start in September 2002 and the new trading arrangements shall enter
into force by 1 January 2008, unless earlier dates are agreed between the Parties.
2. All the necessary measures shall be taken so as to ensure that the negotiations are
successfully concluded within the preparatory period. To this end, the period up to the start
of the formal negotiations of the new trading arrangements shall be actively used to make
initial preparations for these negotiations.
3. The preparatory period shall also be used for capacity-building in the public and private
sectors of ACP countries, including measures to enhance competitiveness, for strengthening
of regional organizations and for support to regional trade integration initiatives, where
appropriate with assistance to budgetary adjustment and fiscal reform, as well as for
infrastructure upgrading and development, and for investment promotion. In this context, theCommunity will provide specific support from regional programmes in accordance with the
provisions of Annex IV (implementation an d management procedures) to groups of ACP
States who are committed to negotiate economic partnership agreements with the EU.
4. The Parties will regularly review the progress of the preparations and negotiations and, will
in 2006 carry out a formal and comprehensive review of the arrangements planned for all
countries to ensure that no further time is needed for preparations or negotiations.G/C/W/187/Add.3
Page 32
5. Negotiations of the economic partnership ag reements will be undertaken with ACP
countries which consider themselves in a position to do so, at the level they consider
appropriate and in accordance with the procedures agreed by the ACP Group, taking into
account regional integration process within the ACP.
6. In 2004, the Community will assess the situation of the non-LDC which, after consultations
with the Community decide that they are not in  a position to enter into economic partnership
agreements and will examine all alternative possibilities, in order to provide these countrieswith a new framework for trade which is equivalent to their existing situation and in
conformity with WTO rules.
7. Negotiations of the economic partnership agreements shall aim notably at establishing the
timetable for the progressive removal of barriers to trade between the parties, in accordance
with the relevant WTO rules.  On the Community side trade liberalisation shall build on the
acquis and shall aim at improving current market access for the ACP countries through inter
alia, a review of the rules of origin.  Negotiations shall take account of the level of
development and the socio-economic impact of trade measures on ACP countries, and theircapacity to adapt and adjust their economies to the liberalisation process.  Negotiations will
therefore be as flexible as possible in establishing the duration of a sufficient transitional
period, the final product coverage, taking into account sensitive sectors, and the degree of
asymmetry in terms of timetable for tariff dismantlement, while remaining in conformity
with WTO rules then prevailing.
8. The Parties shall closely co-operate and collaborate in the WTO with a view to defending
the arrangements reached, in particular with regard to the degree of flexibility available.
9. The Community will start by the year 2000, a process which by the end of multilateral trade
negotiations and at the latest 2005 will allow duty free access for essentially all products
from all LDC building on the level of the existing trade provisions of the fourth ACP-EC
Convention and which will simplify and review the rules of origin, including cumulation
provisions, that apply to their exports.
Article 38
Joint Ministerial Trade Committee
1. A Joint ACP-EC Ministerial Trade Committee shall be established
2. The Ministerial Trade Committee shall pay special attention to current multilateral trade
negotiations and shall examine the impact of the wider liberalisation initiatives on ACP-EC
trade and the development of ACP economies.  It shall make any necessary
recommendations with a view to preserving the benefits of the ACP-EC tradingarrangements.
3. The Ministerial Trade Committee shall meet at least once a year. Its rules of procedure shall
be laid down by the Council of Ministers. It shall be composed of representatives of the
ACP States and of the Community appointed by the Council of Ministers.G/C/W/187/Add.3
Page 33
3. Chapter 3 : Cooperation in  the international fora
Article 39
General Provisions
1. The Parties underline the importance of their active participation in the World Trade
Organisation as well as in other relevant international organisations by becoming members
of these organisations and closely following their agenda and activities.
2. They agree to co-operate closely in identi fying and furthering their common interests in
international economic and trade Cooperation in particular in the WTO, including
participation in setting and conducting the agenda in future multilateral trade negotiations.
In this context, particular attention shall be paid to improve access to the Community and
other markets for products and services originating in the ACP countries.
3. They also agree on the importance of flexibility in WTO rules to take account of the ACP's
level of development as well of the difficulties faced in meeting their obligations. They
further agree on the need for technical assistance to enable the ACP countries to implement
their commitments.
4. The Community agrees to assist the ACP States in their efforts, in accordance with the
provisions set out in this Agreement, to become active members of these organisations, by
developing the necessary capacity to negotiate, participate effectively, monitor andimplement these agreements.
Article 40
Commodities
1. The Parties recognise the need to ensure a better operation of international commodity
markets and to increase market transparency.
2. They confirm their willingness to step up co nsultations between them in the international
fora  and organisations dealing with commodities.
3. To this end, exchange of views shall take place at the request of either party :
– regarding the operation of existing international agreements or specialised
intergovernmental working parties with the aim of improving them and making them
more effective, consistent with market trends ;
– when it is proposed to conclude or renew an international agreement or set up a
specialised intergovernmental working party.
The aim of such exchanges of views shall be to take account of the respective interest of
each party.  They may take place, where necessary, in the framework of the Ministerial
Trade Committee.G/C/W/187/Add.3
Page 34
4. Chapter 4 : Trade in Services
Article 41
General Provisions
1. The Parties underline the growing importance of services in international trade and their
major contribution to economic and social development.
2. They reaffirm their respective commitments under the General Agreement on Trade in
Services (GATS), and underline the need for special and differential treatment to ACPsuppliers of services;
3. In the framework of the negotiations for progressive liberalisation in trade and services, as
provided for in article XIX of GATS, the EU undertakes to give sympathetic considerationto the ACP States priorities for improvement in the EC schedule, with a view to meeting
their specific interests.
4. The Parties further agree on the objective of extending under the economic partnership
agreements, and after they have acquired some experience in applying the MFN treatment
under GATS, their partnership to encompass the liberalisation of services in accordance
with the provisions of GATS and particularly those relating to the participation of
developing countries in liberalisation agreements.
5. The Community shall support the ACP States' efforts to strengthen their capacity in the
supply of services. Particular attention shall be paid to services related to labour, business,
distribution, finance, tourism, culture and construction and related engineering services with
a view to enhancing their competitiveness an d thereby increasing the value and the volume
of their trade in goods and services.
Article 42
Maritime Transport
1. The Parties acknowledge the importance of cost-effective and efficient maritime transport
services in a safe and clean marine environment as the main mode of transportationfacilitating international trade and thereby constituting one of the forces behind economic
development and the development of trade.
2. They undertake to promote the liberalisation of maritime transport and to this end apply
effectively the principle of unrestricted access to the international maritime transport market
on a non-discriminatory and commercial basis.
3. Each Party shall grant, inter alia, a treatment no less favourable than that accorded to its own
ships, for ships operated by nationals or companies of the other Party, and for ships
registered in the territory of either party,  with respect to access to ports, the use of
infrastructure and auxiliary maritime services of those ports, as well as related fees and
charges, customs facilities and the assignment of berths and facilities for loading and
unloading.G/C/W/187/Add.3
Page 35
4. The Community shall support the ACP States' ef forts to develop and promote cost-effective
and efficient maritime transport services in the ACP States with a view to increasing the
participation of ACP operators in international shipping services.
Article 43
Information and Communication Technologies, and Information Society
1. The Parties recognize the important role of information and communication technologies, as
well as the active participation in the Information Society, as a pre-requisite for thesuccessful integration of the ACP countries into the world economy.
2. They therefore reconfirm their respective commitments under existing multilateral
agreements, in particular the protocol on Basic Telecommunications attached to the GATS,and invite those ACP countries, which are not yet members to these agreements, to accede
to them.
3. They furthermore agree to participate fully and actively in any future international
negotiation, which might be conducted in this area.
4. The Parties will therefore take measures that will enable inhabitants of ACP countries easy
access to information and communication technologies, through, amongst other, thefollowing measures :
– The development and encouragement of the use of affordable renewable energy
resources;
– The development and deployment of more extensive low-cost wireless networks.
5. The Parties also agree to step up cooperation between them in the area of information and
communication technologies, and the Information Society. This cooperation shall, in
particular, be directed towards greater complementary and harmonization of communication
systems, at national, regional and international level and their adaptation to new
technologies.
5. Chapter 5 : Trade-related areas
Article 44
General Provisions
1. The Parties acknowledge the growing importance of new areas related to trade in facilitating
progressive integration of the ACP States into the world economy.  They therefore agree to
strengthen their cooperation in these areas by es tablishing full and co-ordinated participation
in the relevant international fora and agreements.
2. The Community shall support the ACP States' efforts, in accordance with the provisions set
out in this Agreement and the development strategies agreed between the Parties to
strengthen their capacity to handle all areas related to trade, including, where necessary,
improving and supporting the institutional framework.G/C/W/187/Add.3
Page 36
Article 45
Competition Policy
1. The Parties agree that the introduction and implementation of  effective and sound
competition policies and rules are of crucial importance in order to improve and secure aninvestment friendly climate, a sustainable industrialisation process and transparency in the
access to markets.
2. To ensure the elimination of distortions to sound competition and with due consideration to
the different levels of development and economic needs of each ACP country, they
undertake to implement national or regional rules and policies including the control and
under certain conditions the prohibition of agreements between undertakings, decisions by
associations of undertakings and concerted practices between undertakings which have as
their object or effect the prevention, restriction or distortion of competition.  The Partiesfurther agree to prohibit the abuse by one or more undertakings of a dominant position in the
common market of the Community or in the territory of ACP States.
3. The Parties also agree to reinforce cooperation in this area with a view to formulating and
supporting effective competition policies with the appropriate national competition agencies
that progressively ensure the efficient enforcem ent of the competition rules by both private
and state enterprises.  Cooperation in this area shall, in particular, include assistance in the
drafting of an appropriate legal framework and its administrative enforcement with
particular reference to the special situation of the least developed countries.
Article 46
Protection of Intellectual Property Rights
1. Without prejudice to the positions of the Parties in multilateral negotiations, the Parties
recognise the need to ensure an adequate and effective level of protection of intellectual,
industrial and commercial property rights, and other rights covered by TRIPS includingprotection of geographical indications, in line with the international standards with a view to
reducing distortions and impediments to bilateral trade.
2. They underline the importance, in this context, of adherence to the Agreement on Trade-
Related Aspects of Intellectual Property Rights (TRIPS) to the WTO Agreement and the
Convention on Biological Diversity (CBD).
3. They also agree on the need to accede to all relevant international conventions on
intellectual, industrial and commercial property as referred to in Part I of the TRIPS
Agreement, in line with their level of development.
4. The Community, its Member States and the ACP States may consider the conclusion of
agreements aimed at protecting trademarks and geographical indications for products of
particular interest of either Party.
5. For the purpose of this Agreement, intellectual property includes in particular copyright,
including the copyright on computer programmes and neighbouring rights, including artistic
designs, and industrial property which includes utility models, patents including patents for
bio-technological inventions and plant varieties or other effective sui generis systems,
industrial designs, geographical indications including appellations of origin, trademarks for
goods or services, topographies of integrated circuits as well as the legal protection of dataG/C/W/187/Add.3
Page 37
bases and the protection against unfair competition as referred to in Article 10 bis of the
Paris Convention for the Protection of Industrial Property and protection of undisclosed
confidential information on know how.
6. The Parties further agree to strengthen their cooperation in this field. Upon request and on
mutually agreed terms and conditions cooperatio n shall inter alia extend to the following
areas: the preparation of laws and regulations for the protection and enforcement of
intellectual property rights, the prevention of the abuse of such rights by rightholders and the
infringement of such rights by competitors, the establishment and reinforcement of domestic
and regional offices and other agencies including support for regional intellectual propertyorganisations involved in enforcement and protection, including the training of personnel.
Article 47
Standardisation and Certification
1. The Parties agree to co-operate more closely in the field of standardisation, certification and
quality assurance to remove unnecessary technical barriers and to reduce differences
between them in those areas, so as to facilitate trade.
In this context, they reaffirm their commi tment under the Agreement on Technical Barriers
to trade, annexed to the WTO Agreement (TBT Agreement).
2. Cooperation in standardisation and certification shall aim at promoting compatible systems
between the Parties and in particular include:
– measures, in accordance with the TBT Agreement, to promote greater use of
international technical regulations, standards and conformity assessment procedures,
including sector specific measures, in accordance with the level of economicdevelopment of ACP countries.
– cooperation in the area of quality management and assurance in selected sectors of
importance to the ACP States,
– support for capacity building initiatives in the ACP countries in the fields of
conformity assessment, metrology and standardisation,
– developing functioning links between ACP and European standardisation, conformity
assessment and certification institutions.
3. The Parties undertake to consider, in due course, negotiating mutual recognition agreements
in sectors of mutual economic interest.
Article 48
Sanitary and Phytosanitary Measures
1. The Parties recognise the right of each Party to adopt or to enforce sanitary and
phytosanitary measures necessary to protect human, animal or plant life or health, subject to
the requirement that these measures do not constitute a means of arbitrary discrimination or
a disguised restriction to trade, generally.  To this end, they reaffirm their commitments
under the Agreement on the Application of Sanitary and Phytosanitary Measures, annexedto the WTO Agreement (SPS-Agreement), taking account of their respective level of
development.G/C/W/187/Add.3
Page 38
2. They further undertake to reinforce co-ordination, consultation and information as regards
notification and application of proposed sanitary and phytosanitary measures, in accordance
with the SPS-Agreement whenever these measures might affect the interests of either Party.
They also agree on prior consultation and co-ordination within the CODEXALIMENTARIUS, the International Office of Epizodics and the International Plant
Protection Convention, with a view to  furthering their common interests.
3. The Parties agree to strengthen their cooperation with a view to reinforcing the capacity of
the public and the private sector of the ACP countries in this field.
Article 49
Trade and Environment
1. The Parties reaffirm their commitment to prom oting the development of international trade
in such a way as to ensure sustainable and sound management of the environment, in
accordance with the international conventions and undertakings in this area and with due
regard to their respective level of development.  They agree that the special needs and
requirements of ACP States should be taken into account in the design and implementationof environment measures.
2. Bearing in mind the Rio Principles and with a view to reinforcing the mutual supportiveness
of trade and environment, the Parties agree to enhance their cooperation in this field.Cooperation shall in particular aim at the establishment of coherent national, regional and
international policies, reinforcement of quality controls of goods and services related to the
environment, the improvement of environment-friendly production methods in relevant
sectors.
Article 50
Trade and Labour Standards
1. The Parties reaffirm their commitment to th e internationally recognised core labour
standards, as defined by the relevant ILO Conventions, and in particular the freedom of
association and the right to collective bargaining, the abolition of forced labour, the
elimination of worst forms of child labour and non-discrimination in respect to employment.
2. They agree to enhance cooperation in this area, in particular in the following fields:
– exchange of information on the respective legislation and work regulation;
– the formulation of national labour legislation and strengthening of existing legislation;
– educational and awareness-raising programmes.
– Enforcement of adherence to national legislation and work regulation.
3. The Parties agree that labour standards should not be used for protectionist trade purposes.G/C/W/187/Add.3
Page 39
Article 51
Consumer Policy and Protection of Consumer Health
1. The Parties agree to step up their cooperation in the area of consumer policy and consumer
health protection, having due regard to domestic legislation to avoid barriers to trade.
2. Cooperation shall, in particular, aim at improving the institutional and technical capacity in
this area, establishing rapid-alert systems of mutual information on dangerous products,
exchanging information and experiences on the establishment and operation of post marketsurveillance of products and product safety, improving information provided to consumers
on prices, characteristics of products and services offered, encouraging the development of
independent consumer associations and contacts between consumer interest representatives,
improving compatibility of consumer policies and systems, notifying enforcement and
promoting cooperation in investigating harmful or unfair business practices andimplementing exports prohibitions in the trade between the Parties of goods and services the
marketing of which has been prohibited in their country of production.
Article 52
Tax Carve-out Clause
1. Without prejudice to the provisions of Article 32.1 of annex IV, the Most Favoured Nation
treatment granted in accordance with the provisions of this Agreement, or any arrangement
adopted under this Agreement, does not apply to tax advantages which the Parties are
providing or may provide in the future on the basis of agreements to avoid double taxation
or other tax arrangements, or domestic fiscal legislation.
2. Nothing in this Agreement, or in any arrang ements adopted under this Agreement, may be
construed to prevent the adoption or enforcement of any measure aimed at preventing the
avoidance or evasion of taxes pursuant to the tax provisions of agreements to avoid double
taxation or other tax arrangements, or domestic fiscal legislation.
3. Nothing in this Agreement, or in any arrang ements adopted under this Agreement, shall be
construed to prevent the Parties from distinguishing, in the application of the relevant
provisions of their fiscal legislation, between taxpayers who are not in the same situation, in
particular with regard to their place of residence, or with regard to the place where their
capital is invested.
6. Chapter 6 : Cooperation in other areas
Article 53
Fishery Agreements
1. The Parties declare their willingness to negotiate fishery agreements aimed at guaranteeing
sustainable and mutually satisfactory conditions for fishing activities in ACP States.
2. In the conclusion or implementation of such agreements, the ACP States shall not discriminate
against the Community or among the Member States, without prejudice to special arrangements
between developing States within the same geographical area, including reciprocal fishing
arrangements, nor shall the Community discriminate against ACP States.G/C/W/187/Add.3
Page 40
Article 54
Food security
1. With regard to available agricultural products, the Community undertakes to ensure that
export refunds can be fixed further in advance for all ACP States in respect of a range ofproducts drawn up in the light of the food requirements expressed by those States.
2. Advance fixing shall be for one year and shall be applied each year throughout the life of
this Convention, it being understood that the level of the refund will be determined inaccordance with the methods normally followed by the Commission.
3. Specific agreements may be concluded with those ACP States which so request in the
context of their food security policies.
4. The specific agreements referred to in paragraph 2 shall not put in jeopardy production and
trade flows in ACP regions.G/C/W/187/Add.3
Page 41
V. PART 4 : DEVELOPMENT FINANCE COOPERATION
A. TITLE I – G ENERAL PROVISIONS
1. Chapter 1 : Objectives, principl es, guidelines and eligibility
Article 55
Objectives
The objectives of development finance cooperation shall be, through the provision of adequate
financial resources and appropriate technical assistance, to support and promote the efforts of ACP
States to achieve the objectives set out in this Agreement on the basis of mutual interest and in a spirit
of interdependence.
Article 56
Principles
1. Development finance cooperation shall be implemented on the basis of and be consistent
with the development objectives, strategies and priorities established by the ACP States, at
both national and regional levels. Their respective geographical, social and cultural
characteristics, as well as their specific potential, shall be taken into account. In addition,
cooperation shall:
(a) promote local ownership at all levels of the development process;
(b) reflect a partnership based on mutual rights and obligations;
(c) emphasize the importance of predictability and security in resource flows, granted on
highly concessional terms and on a continuous basis;
(d) be flexible and appropriate to the situation in each ACP State as well as adapted to the
specific nature of the project or programme concerned; and
(e) ensure efficiency, coordination and consistency.
2. Cooperation shall ensure special treatment for Least Developed ACP countries and duly take
into account the vulnerability of landlocked and island ACP countries. In addition, the
specific needs of post-conflict countries shall also be addressed.
Article 57
Guidelines
1. Operations financed within the framework of this Agreement shall be implemented by the
ACP States and the Community in close coopera tion, the concept of equality between the
partners being recognised.
2. The ACP States shall be responsible for:
(a) defining the objectives and priorities on which the indicative programmes are based;G/C/W/187/Add.3
Page 42
(b) choosing projects and programmes;
(c) preparing and presenting the dossiers of projects and programmes;
(d) preparing, negotiating and concluding contracts;
(e) implementing and managing projects and programmes; and
(f) maintaining projects and programmes.
3. Without prejudice to the provisions above, eligible non-state actors may also be responsible
for proposing and implementing programmes and projects in areas concerning them.
4. The ACP States and the Community shall be jointly responsible for:
(a) establishing, within the joint institutio ns, the guidelines for development finance
cooperation;
(b) adopting the indicative programmes;
(c) appraising projects and programmes;
(d) ensuring equality of conditions for participation in invitations to tender and contracts;
(e) monitoring and evaluating the effects and results of projects and programmes; and
(f) ensuring the proper, prompt and efficient execution of projects and programmes.
5. The Community shall be responsible for taking financing decisions on projects and
programmes.
6. Unless otherwise provided for in this Agreement, all decisions requiring the approval of
either Contracting Party shall be approved, or be deemed approved, within 60 days of
notification by the other party.
Article 58
Eligibility for financing
1. The following entities or bodies shall be eligible for financial support provided under the
Agreement:
(a) ACP States;
(b) regional or inter-state bodies to which one or more ACP States belong and which are
authorised by those States; and
(c) joint bodies set up by the ACP States and the Community to pursue certain specific
objectives.
2. Subject to the agreement of the ACP State or ACP States concerned, the following shall also
be eligible for financial support:G/C/W/187/Add.3
Page 43
(a) national and/or regional public or semi-public agencies, departments or local
authorities of the ACP States and, in particular, their financial institutions and development
banks;
(b) companies, firms and other private organisations and private operators of ACP States;
(c) enterprises of a Community Member State to enable them, in addition to their own
contribution, to undertake productive projects in the territory of an ACP State;
(d) ACP or Community financial intermedia ries providing, promoting and financing
private investments in ACP States; and
(e) agents of decentralised cooperation and other non-state actors from the ACP States
and from the Community.
2. Chapter 2 : Scope and Nature of Financing
Article 59
Within the framework of the priorities established by the ACP State or States concerned at both
national and regional levels, support may be given to projects, programmes and other forms of
operations contributing to the objectives set out in this Agreement.
Article 60
Scope of Financing
The scope of financing may include, inter alia, depending on the needs and the types of operation
considered most appropriate, support to:
measures which contribute to attenuate the debt burden and balance of payments problems of the ACP
countries;
macroeconomic and structural reforms and policies;mitigation of adverse effects of instability in export earnings;
sectoral policies and reforms;
institutional development and capacity building;
technical cooperation programmes; and
humanitarian and emergency assistance including assistance to refugees and displaced persons, short-
term rehabilitation measures and disaster preparedness.G/C/W/187/Add.3
Page 44
Article 61
Nature of Financing
1. The nature of financing shall, inter alia, include:
(a) projects and programmes;(b) credit lines, guarantee schemes and equity participation;
(c) budgetary support, either directly, for the ACP States whose currencies are
convertible and freely transferable, or indirectly, from counterparts funds generated by the
various Community instruments;
(d) the human and material resources necessary for effective administration and
supervision of projects and programmes;
(e) sectoral and general import support programmes which may take the form of:
i. sectoral import programmes through direct procurement including financing of
inputs in the productive system and supplies to improve social services;
ii. sectoral import programmes in the form of foreign exchange released in
instalments for financing sectoral imports; and
iii. general import programmes in the form of foreign exchange released in
instalments for financing general imports covering a wide range of products.
2. Direct budgetary assistance in support of macroeconomic or sectoral reforms shall be
granted where:
(a) public expenditure management is transparent, accountable and effective;
(b) well defined macroeconomic or sectoral policies established by the country itself and
agreed to by its main donors are in place; and
(c) public procurement is open and transparent.
3. Similar direct budgetary assistance shall be granted gradually to sectoral policies in
substitution for individual projects.
4. The instruments of import programmes or budgetary support defined above can also be used
to support eligible ACP States implementing reforms aimed at intra-regional economic
liberalisation which generate net transitional costs.
5. In the framework of the Agreement, the European Development Fund (hereinafter referred
to as the Fund) including counterpart funds, unexpended balance from previous Funds, own
resources of the European Investment Bank (hereinafter referred to as the Bank) and where
appropriate resources drawn from the Euro pean Community's budget, shall be used to
finance projects, programmes and other forms of operations contributing to the achievement
of the objectives of this Agreement.
6. The funds provided under the Agreement may be used to cover the total costs of both the
local and foreign expenditure of projects and programmes, including recurrent cost
financing.G/C/W/187/Add.3
Page 45
B. TITLE II – F INANCIAL COOPERATION
1. Chapter 1 : Financial resources
Article 62
Overall amount
1. For the purposes set out in this Agreement, the overall amount of the Community's financial
assistance and the detailed terms and conditions of financing are provided for in the annexes
to this Agreement.
2. Should an ACP State fail to ratify this Agreement or denounce it , the Contracting Parties
shall adjust the amounts of the resources provided for in the Financial Protocol. Adjustment
of the financial resources shall also apply upon:
(a) the accession to the Agreement of new AC P States which did not take part in its
negotiation; and
(b) the enlargement of the Community.
Article 63
Methods of financing
The methods of financing for each project or programme shall be determined jointly by the ACP State
or States concerned and the Community by reference to:
the level of development, the geographical situation and economic and financial circumstances of
these States;
 the nature of the project or programme, its economic and financial return as well as its social and
cultural impact; and
in the case of loans, to factors guaranteeing their servicing.
Article 64
On-lending operations
1. Financial assistance may be made available to or through the ACP States concerned or,
subject to the provisions of this Agreement through eligible financial institutions or directly
to any other eligible beneficiary. Where financial assistance is granted to the final recipientthrough an intermediary or directly to the final beneficiary in the private sector:
(a) the terms and conditions on which the assistance may be made available by the
intermediary to the final recipient or directly to the final beneficiary in the private sector
shall be laid down in the financing agreement or loan contract; and
(b) any financial benefit accruing to the intermediary from the on-lending transaction or
resulting from direct lending operations to the final beneficiary in the private sector, shall be
used for development purposes on the conditions laid down in the financing agreement orG/C/W/187/Add.3
Page 46
the loan contract, after taking into account admi nistrative costs, exchange and financial risks
and the cost of technical assistance given to the final recipient.
2. Where the financing is undertaken through an on-lending body based and/or operating in the
ACP States, it shall be the responsibility of that body to select and appraise individualprojects and to administer the funds placed at its disposal under the conditions provided for
in this Agreement and by mutual agreement between the parties.
Article 65
Co-financing
1. The financial resources provided for in this Ag reement may be applied, at the request of the
ACP States, to co-financing undertaken in particular with development agencies and
institutions, Community Member States, ACP States, third countries or international or
private financial institutions, firms or export credit agencies.
2. Special consideration shall be given to the possibility of co-financing in cases where
Community participation will encourage the participation of other sources of finance and
where such financing may lead to an advantageous financial package for the ACP Stateconcerned.
3. Co-financing may be in the form of joint or parallel financing. Preference shall be given in
each case to the solution, which is more suitable from the point of view of cost-effectiveness. In addition, measures shall be taken to co-ordinate and harmonise operations
of the Community and those of other co-financing bodies in order to minimise the number
of procedures to be undertaken by the ACP States and to render those procedures more
flexible.
4. The process of consultation and co-ordination with other donors and co-financiers should be
strengthened and developed, where possible, through the establishment of co-financing
framework agreements and co-financing policies and procedures should be reviewed to
ensure effectiveness and the best terms and conditions possible.
2. Chapter 2 : Debt and Structural Adjustment support
Article 66
Support for debt relief
1. In order to attenuate the debt burden of the ACP States and their balance-of-payment
problems, the parties agree to use the resources provided for in this Agreement to contribute
to debt relief initiatives approved at international level for the benefit of ACP countries. In
addition, on a case by case basis, the use of resources which have not been committed in the
framework of past indicative programmes shall be accelerated through the quick-disbursing
instruments provided for in this Agreement.  The Community furthermore commits itself to
examine how in the longer term other resources  than the EDF can be mobilised in support of
internationally agreed debt relief initiatives.
2. At the request of an ACP State, the Community may grant:G/C/W/187/Add.3
Page 47
(a) assistance in studying and finding practical solutions to indebtedness including
domestic debt, debt-servicing difficulties and balance of payments problems;
(b) training in debt management and international financial negotiations as well as
support for training workshops, courses and seminars in these fields; and
(c) assistance to develop flexible techniques and instruments of debt management.
3. In order to contribute to the servicing of th e debt resulting from loans from the Bank's own
resources, special loans and risk capital, the ACP States may, in accordance with
arrangements to be made on a case-by-case basis with the Commission, use the available
foreign currency referred to in this Agr eement for such servicing, as and when debt
repayment falls due and up to the amount required for payments in national currency.
4. Given the seriousness of the international debt problem and its impact on economic growth,
the parties declare their readiness to continue  to exchange views, within the context of
international discussions, on the general problem of debt, and without prejudice to specific
discussions taking place in the relevant fora.
Article 67
Structural adjustment support
1. The Agreement shall provide support for macroeconomic and sectoral reforms implemented
by the ACP States. In this framework, the Parties shall ensure that adjustment is
economically viable and socially and politically bearable. Support shall be given in the
context of a joint assessment between the Community and the ACP State concerned on the
reform measures being undertaken or contemplated either at macroeconomic or sectoral
level, and permit an overall evaluation of the reform efforts. Quick disbursement shall be animportant feature of support programmes.
2. The ACP States and the Community recognise the necessity to encourage reform
programmes at regional level ensuring that, in the preparation and execution of nationalprogrammes, due consideration is given to regional activities which have an influence on
national development. To this end, support for structural adjustment shall also seek to:
(a) incorporate, from the beginning of the diagnosis, measures to encourage regional
integration and take account of the consequences of trans-border adjustment;
(b) support the harmonisation and co-ordination of macroeconomic and sectoral policies,
including fiscal and customs areas, so as to fulfil the dual aim of regional integration and of
structural reform at national level; and
(c) take account of the net transitional costs of regional integration on budget revenue
and balance of payments, either through general import programmes or budgetary support.
3. ACP States undertaking or contemplating refo rm at the macroeconomic or sectoral level
shall be eligible for structural adjustment assistance, giving consideration to the regional
context, their effectiveness and the likely impact on the economic, social and political
dimension of development and on economic and social hardships being experienced.
4. The ACP States undertaking reform programmes that are acknowledged and supported at
least by the principal multilateral donors, or that are agreed with such donors but notG/C/W/187/Add.3
Page 48
necessarily financially supported by them, shall be treated as having automatically satisfied
the requirements for adjustment assistance.
5. Structural adjustment support shall be mobilised in a flexible manner and in the form of
sectoral and general import programmes or budgetary support.
6. The preparation, appraisal and financing decision for structural adjustment programmes
shall be carried out according to the provisions on implementation procedures of this
Agreement with due regard to the quick disbursing feature of structural adjustmentprogrammes. On a case-by-case basis, retroactive financing of a limited part of imports of
ACP-EC origin may be permissible.
7. The implementation of each support programme shall ensure that the eligibility of ACP
economic operators for access to the resources of the programme is as wide and transparent
as possible and that the procurement procedures accord with the administrative and
commercial practices in the State concerned, wh ile ensuring the best possible price/quality
ratio on imported goods and the necessary consistency with the progress achieved
internationally for harmonising the procedures for supporting structural adjustment.
3. Chapter 3 : Support in cases of short-term fluctuations in export earnings
Article 68
1. The Parties recognize that instability of export earnings, particularly in the agricultural and
mining sectors, may adversely affect the deve lopment of the ACP States and jeopardise the
attainment of their development requirements. A system of additional support in order to
mitigate the adverse effects of any instability in  export earnings, including in the agricultural
and mining sectors, is therefore set up within the financial envelope for support to long-term
development.
2. The purpose of support in cases of short-term fluctuations in export earnings is to safeguard
macroeconomic and sectoral reforms and policies that are at risk as a result of a drop in
revenue and remedy the adverse effects of instability of export earnings in particular from
agricultural and mining products.
3. The extreme dependence of the ACP States’ economies on exports, in particular from the
agricultural and mining sectors, shall be taken into account in the allocation of resources in
the year of application. In this context, the least developed, landlocked and island ACP
States shall receive more favourable treatment.
4. The additional resources shall be provided in accordance with the specific modalities of the
support mechanism as set out in Annex II on Terms and Conditions of Financing.
5. The Community shall also provide support for market based insurance schemes designed for
ACP States seeking to protect themselves against the risk of fluctuations in export earnings.G/C/W/187/Add.3
Page 49
4. Chapter 4 : Support for sectoral policies
Article 69
1. Cooperation shall support, through the various instruments and modalities provided for in
the Agreement:
(a) social and economic sectoral policies and reforms;
(b) measures to enhance productive sector activity and export competitiveness;
(c) measures to expand social sector services; and
(d) thematic and cross cutting issues.
2. This support shall be provided as appropriate through:
(a) sectoral programmes;
(b) budgetary support;
(c) investments;(d) rehabilitation;
(e) training;
(f) technical assistance; and
(g) institutional support.
5. Chapter 5 : Microprojects and decentralised cooperation
Article 70
In order to respond to the needs of local communitie s with regard to development, and to encourage
all agents of decentralized cooperation which are in a position to contribute to the autonomous
development of the ACP States to put forward an d implement initiatives, cooperation shall support,
within the framework laid down in the rules and national legislation of the ACP States concerned and
the provisions of the indicative programme, such development operations. In this context, cooperation
shall support :
(a) micro-projects at local level which have an economic and social impact on the life of the
people, meet a demonstrated and observed priority need, and shall be undertaken at theinitiative and with the active participation of the local community which shall benefit
therefrom; and
(b) decentralized cooperation, in particular where such operations combine efforts and resources
of decentralised agents from the ACP States and their counterparts from the Community. ThisG/C/W/187/Add.3
Page 50
form of cooperation shall enable the mobilisation of capabilities, innovative operating
methods and resources of decentralised agents for the development of the ACP State.
Article 71
1. Microprojects and decentralized cooperation operations may be supported from the financial
resources of the Agreement. Projects or programmes under this form of cooperation may or
may not be linked to programmes in the sectors of concentration of the indicative
programmes, but may be a way of achieving the specific objectives of the indicative
programme or the results of initiatives by local communities or decentralised agents.
2. Contributions for the financing of micro-projects and decentralized cooperation shall be
made by the Fund, in which case the contribution shall not normally exceed three-quarters
of the total cost of each project and ma y not exceed the limit set in the indicative
programme. The remaining balance shall be provided:
(a) by the local community concerned in case of micro-projects (either in kind or in the
form of services or cash and adapted to its capacity to contribute);
(b) by the agents of decentralized cooperation, provided that the financial, technical
material and other resources brought in by such agents shall not normally be less than 25%
of the estimated cost of the project/programme; and
(c) exceptionally by the ACP State concerned, either in the form of a financial
contribution or through the use of public equipment or the supply of services.
3. The procedures applicable to projects and programmes financed within the framework of
microprojects or decentralized cooperation shall be those laid down in the Agreement, in
particular those referred to in multi-annual programmes.
6. Chapter 6 - Humanitarian and emergency assistance
Article 72
1. Humanitarian and emergency assistance shall be accorded to the population in ACP States
faced with serious economic and social difficulties of an exceptional nature resulting from
natural disasters, man-made crises such as wars and other conflicts or extraordinary
circumstances having comparable effects. The humanitarian and emergency assistance shall
be maintained for as long as necessary to deal with the emergency needs resulting from
these situations.
2. Humanitarian and emergency assistance shall be granted exclusively according to the needs
and interests of victims of disasters and in line with the principles of international
humanitarian law. In particular, there shall be no discrimination between victims on groundsof race, ethnic origin, religion, gender, age, nationality or political affiliation and free access
to and protection of victims shall be guaranteed as well as the security of humanitarian
personnel and equipment.
3. Humanitarian and emergency assistance shall aim to:G/C/W/187/Add.3
Page 51
(a) safeguard human lives in crises and immediate post-crisis situations brought about by
natural disasters, conflict or war;
(b) contribute to the financing and delivery of humanitarian aid and to the direct access to
it of its intended beneficiaries by all logistical means available;
(c) carry out short-term rehabilitation and reconstruction to enable the parts of the
population affected to benefit once more from a minimum of socio-economic integrationand, as soon as possible, create the conditions for a resumption of development on the basis
of long-term objectives set by the ACP country concerned;
(d) address the needs arising from the displacement of people (refugees, displaced
persons and returnees) following natural or man-made disasters so as to meet, for as long as
necessary, all the needs of refugees and displaced persons (wherever they may be) and
facilitate action for their voluntary repatriation and re-integration in their country of origin;
and
(e) assist the ACP State in setting up disaster prevention and preparedness mechanisms,
including prediction and early-warning systems,  with a view to reducing the consequences
of disasters.
4. Similar assistance, as set out above, may be granted to ACP States taking in refugees or
returnees to meet acute needs not covered by emergency assistance.
5. Underlining the developmental nature of the assistance granted in accordance with this
article, assistance may be used exceptionally together with the indicative programme at the
request of the State concerned.
6. Humanitarian and emergency assistance operations shall be undertaken either at the request
of the ACP country affected by the crisis situation, the Commission, international
organisations or local or international non-state organisations. Such assistance shall be
administered and implemented under procedures permitting operations that are rapid,
flexible and effective.  The Community shall take adequate steps to facilitate speedy action,
which is required to meet the immediate needs for which emergency assistance is needed.
Article 73
1. Post-emergency action, aimed at physical and social rehabilitation consequent on the results
of natural disasters or extraordinary circumstances having comparable effects, may beundertaken with Community assistance under this Agreement. Such action, using effective
and flexible mechanisms, must ease the transition from the emergency phase to the
development phase, promote the socio-economic reintegration of the parts of the population
affected, remove as far as possible the causes of the crisis and strengthen institutions and the
ownership by local and national actors of their role in formulating a sustainabledevelopment policy for the ACP country concerned.
2. Short-term emergency action shall only in exceptional circumstances be financed under the
EDF where such assistance cannot be financed from the Community’s budget.G/C/W/187/Add.3
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7. Chapter 7 : Investment and private sector development support
Article 74
Cooperation shall, through financial and technical assistance, support the policies and strategies for
investment and private sector development as set out in this Agreement.
Article 75
Investment promotion
The ACP States, the Community and its Member States, within the scope of their respective
competencies, recognising the importance of pr ivate investment in the promotion of their
development cooperation and acknowledging the need to  take steps to promote such investment, shall
:
implement measures to encourage participation in their development efforts by private
investors who comply with the objectives and priorities of ACP-EC development cooperation
and with the appropriate laws and regulations of their respective States;
take measures and actions which help to create and maintain a predictable and secure
investment climate as well as enter into negotiations on agreements which will improve such
climate;
encourage the EU private sector to invest and to provide specific assistance to its counterparts
in the ACP countries under mutual business cooperation and partnerships;
facilitate partnerships and joint ventures by encouraging co-financing;
sponsor sectoral investment fora to prom ote partnerships and external investment;
support efforts of the ACP States to attract financing, with particular emphasis on private
financing, for infrastructure investments and revenue generating infrastructure critical for the
private sector;
support capacity building for domestic investment promotion agencies and institutions
involved in promoting and facilitating foreign investment;
disseminate information on investment opportunities and business operating conditions in the
ACP States; and
promote national, regional and ACP-EU privat e sector business dialogue, cooperation and
partnerships, in particular through an ACP-EU  private sector business forum.  Support for
operations of an ACP-EU private sector business  forum shall be provided in pursuit of the
following objectives:
i. to facilitate dialogue within the ACP/EU private sector and between the ACP/EU
private sector and the bodies established under the Agreement;
ii. to analyse and periodically provide the relevant bodies with information on the whole
range of issues concerning relations betw een the ACP and EU private sectors in the
context of the Agreement or, more generally, of economic relations between the
Community and the ACP countries; andG/C/W/187/Add.3
Page 53
iii. to analyse and provide the relevant bodies with information on specific problems of a
sectoral nature relating to, inter alia, branches of production or types of products at
regional or sub-regional level.
Article 76
Investment finance and support
1. Cooperation shall provide long-term financial resources, including risk capital, to assist in
promoting growth in the private sector and help  to mobilise domestic and foreign capital for
this purpose. To this end, cooperation shall provide, in particular:
(a) grants for financial and technical assistance to support policy reforms, human
resource development, institutional capacit y-building or other forms of institutional
support related to a specific investment, measures to increase the competitiveness of
enterprises and to strengthen the capacities of the private financial and non-financial
intermediaries, investment facilitation and promotion and competitiveness
enhancement activities;
(b) advisory and consultative services to assist in creating a responsive investment
climate and information base to guide and encourage the flow of capital;
(c) risk-capital for equity or quasi-equity investments, guarantees in support of domestic
and foreign private investment and loans or lines of credit on the conditions laid
down in Annex II “Terms and Conditions of Financing” to this Agreement; and
(d) loans from the Bank's own resources.
2. Loans from the Bank’s own resources shall be granted in accordance with its statute and
with the terms and conditions laid down in Annex II to this Agreement.
Article 77
Investment guarantees
1. Investment guarantees are an increasingly important tool for development finance as they
contribute to reducing project risks and inducing private capital flows. Cooperation shall
therefore ensure the increasing availability and use of risk insurance as a risk-mitigatingmechanism in order to boost investor confidence in the ACP States.
2. Cooperation shall offer guarantees and assist with guarantees funds covering risks for
qualified investment. Specifically, cooperation shall provide support to:
(a) reinsurance schemes to cover foreign direct investment by eligible investors; against
legal uncertainties and the major risks of expropriation, currency transfer restriction,
war and civil disturbance, and breach of contract. Investors may insure projects for
any combination of the four types of coverage;
(b) guarantee programmes to cover risk in the form of partial guarantees for debt
financing. Both partial risk and partial credit guarantee shall be available; and
(c) national and regional guarantee funds, involving, in particular, domestic financial
institutions or investors for encouraging the development of the financial sector.G/C/W/187/Add.3
Page 54
3. Cooperation shall also provide support to ca pacity-building, institutional support and
participation in the core funding of national and/or regional initiatives to reduce the
commercial risks for investors (inter alia guarantee funds, regulatory bodies, arbitration
mechanisms and judiciary systems to enhance the protection of investments improving theexport credit systems).
4. Cooperation shall provide such support on the basis of complementary and added value with
respect to private and/or public initiatives and, whenever feasible, in partnership with privateand other public organisations. The ACP and th e EC will within the framework of the ACP-
EC Development Finance Cooperation Committee undertake a joint study on the proposal to
set up an ACP-EC Guarantee Agency to provide and manage investment guarantee
programmes.
Article 78
Investment protection
1. The ACP States and the Community and its Me mber States, within the scope of their
respective competencies, affirm the need to promote and protect either Party’s investmentson their respective territories, and in this context affirm the importance of concluding, in
their mutual interest, investment promotion and protection agreements which could also
provide the basis for insurance and guarantee schemes.
2. In order to encourage European investment in development projects of special importance
to, and promoted by the ACP States, the Community and the Member States, on the one
hand and the ACP States on the other, may also conclude agreements relating to specific
projects of mutual interest where the Community and European enterprises contribute
towards their financing.
3. The Parties also agree to introduce, within the economic partnership agreements, and while
respecting the respective competencies of the Community and its Member States, general
principles on protection and promotion of invest ments, which will endorse the best results
agreed in the competent international fora or bilaterally.
C. TITLE III – T ECHNICAL COOPERATION
Article 79
1. Technical cooperation shall assist the ACP States in the development of national and
regional manpower resources, the sustained development of the institutions critical fordevelopment success, including inter alia strengthening ACP consulting firms and
organisations, as well as exchange arrangements involving consultants from both ACP and
EU firms.
2. Furthermore, technical cooperation, shall be cost-effective and relevant to the need for
which it is intended, and shall also favour the transfer of know-how and increase national
and regional capabilities. Technical cooperation shall contribute to the achievement of
project and programme goals, including efforts to strengthen management capacity of the
National and Regional Authorising Officers. Technical assistance shall:G/C/W/187/Add.3
Page 55
(a) be demand-driven and thus made available only at the request of the ACP State or
States concerned, and adapted to recipient needs;
(b) complement and support ACP efforts to  identify their own requirements;
(c) be monitored and followed up to guarantee effectiveness;
(d) encourage the participation of ACP experts, consultancy firms and educational and
research institutions in contracts financed from the Fund and identify ways ofemploying qualified national and regional personnel on Fund projects;
(e) encourage the secondment of ACP national cadres as consultants to an institution in
their own country, or a neighbouring country, or to a regional organisation;
(f) aim at developing knowledge of national and regional manpower constraints and
potential and establish a register of ACP experts, consultants and consultancy firms
suitable for employment on projects and programmes financed from the Fund;
(g) support intra-ACP technical assistance in order to promote the exchange between the
ACP States of technical assistance, management and professional expertise;
(h) develop action programmes for long-term institution building and staff development
as an integral part of project and programme planning, account being taken of the
necessary financial requirements;
(i) support arrangements to enhance the capacity of the ACP States to build up their own
expertise; and
(j) give special attention to the development of the ACP States' capacities in project
planning, implementation and evaluation, as well budget management.
3. Technical assistance may be provided in all areas of cooperation and within the limits of the
mandate of this Agreement. The activities covered would be diverse in scope and nature,
and would be tailored to meet the needs of the ACP States.
4. Technical cooperation may be either of a specific or a general nature. The ACP-EC
Development Finance Cooperation Committee shall establish the guidelines for the
implementation of technical cooperation.
Article 80
With a view to reversing the brain drain from the ACP States, the Community shall assist ACP States
which so request to facilitate the return of qualified ACP nationals resident in developed countries
through appropriate re-installation incentives.G/C/W/187/Add.3
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D. TITLE IV – P ROCEDURES AND MANAGEMENT SYSTEMS
Article 81
Procedures
Management procedures shall be transparent, easy to apply and shall enable the decentralisation of
tasks and responsibilities to the field. The implem entation of ACP-EU development cooperation shall
be open to non-state actors in areas that concern them. The detailed procedural provisions forprogramming, preparation, implementation and the management of financial and technical
cooperation are laid down in Annex IV on Implem entation and Management Procedures. The ACP-
EU Council of Ministers may review, revise and amend these provisions on the basis of a proposal
from the ACP-EU Development Finance Cooperation Committee.
Article 82
Executing agents
For the implementation of financial and technical cooperation under this Agreement, executing agents
are designated. Detailed provisions for the responsibilities of the executing agents are laid down in
Annex IV on Implementation and Management Procedures.
Article 83
ACP-EC Development Finance Cooperation Committee
1. The Council of Ministers shall at least once a year examine whether the objectives of
development finance cooperation are being attained and shall examine the general and
specific problems resulting from the implementation of that cooperation. To this end, an
ACP-EC Development Finance Cooperation Committee, hereinafter referred to as ‘theACP-EC Committee’, shall be set up within the Council of Ministers.
2. The ACP-EC Committee shall, inter alia :
(a) ensure the overall achievement of the objectives and principles of development
finance cooperation and establish general guidelines for their effective and timely
implementation;
(b) examine the problems arising from the implementation of development cooperation
activities and propose appropriate measures;
(c) review the annexes to the Agreement to  ensure their continued relevance and
recommend any appropriate amendments to the Council of Ministers for approval; and
(d) examine the operations deployed within the framework of the Agreement to attain the
objectives of promoting private sector development and investment and the operations of the
Investment Facility.
3. The ACP-EC Committee, which shall meet every quarter, shall be composed, on a basis of
parity, of representatives of the ACP States and of the Community appointed by the Council
of Ministers, or their authorised representatives. It shall meet at ministerial level whenever
one of the parties so requests and at least once a year.G/C/W/187/Add.3
Page 57
4. The Council of Ministers shall lay down the ACP-EC Committee's rules of procedure, in
particular the conditions for representation and the number of members of the Committee,
the detailed arrangements for their deliberations and the conditions for holding the chair.
5. The ACP-EC Committee may convene meetings of experts to study the cause of any
difficulties and bottlenecks, which may impede the efficient implementation of development
cooperation. These experts shall make recommendations to the Committee on possible ways
of removing such difficulties and bottlenecks.G/C/W/187/Add.3
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VI. PART 5 : GENERAL PROVISIONS FOR THE LEAST-DEVELOPED,
LANDLOCKED AND ISLAND ACP STATES
1. Chapter 1 : General provisions
Article 84
1. To enable LDLIC’s to take full advantage of the opportunities offered by the Convention so
as to step up their respective rates of development, cooperation shall ensure special
treatment for the least developed ACP countries and take due account of the vulnerability of
landlocked and island ACP countries. It shall also take into consideration the needs of
countries in post-conflict situations.
2. Independently of the specific measures and provisions for the least-developed, landlocked
and island countries in the different chapters of the Convention, special attention shall be
paid in respect of these groups as well as countries in post-conflict situations to :
(a) the strengthening of regional cooperation
(b) transport and communications’ infrastructure;
(c) the efficient exploitation of marine resources and the marketing of products so produced
and, in the case of landlocked countries, inland fisheries;
(d) structural adjustment where account shall be taken of the level of development of these
countries and equally, at the implementation stage, of the social dimension of
adjustment; and
(e) the implementation of food strategies and integrated development programmes.
2. Chapter 2 : Least-developed ACP States
Article 85
1. The least-developed ACP States shall be acco rded a special treatment in order to enable
them to overcome the serious economic and social difficulties hindering their development
so as to step up their respective rates of development.
2. The list of least-developed countries is given in Annex VI. It may be amended by a decision
of the Council of Ministers where :
(a) a third State in a comparable situation accedes to this Agreement; and
(b) the economic situation of an ACP State changes considerably and durably to the
extent that it needs to be included in the least-developed category or its inclusion in
that category is no longer justified.G/C/W/187/Add.3
Page 59
Article 86
The provisions adopted in respect of the least-de veloped ACP States are contained in the following
Articles : 2, 29, 32, 35, 37, 56, 68, 84, 85.
3. Chapter 3 : Landlocked ACP States
Article 87
1. Specific provisions and measures shall be established to support landlocked ACP States in
their efforts to overcome the geographical difficulties and other obstacles hampering their
development so as to enable them to step up their respective rates of development.
2. The list of landlocked ACP States in given in Annex VI. It may be amended by decision of
the Council of Ministers when a third state in a comparable situation accedes to the
Agreement.
Article 88
The provisions adopted in respect of the landloc ked ACP States are contained in the following
Articles : 2, 32, 35, 56, 68, 84, 87.
4. Chapter 4 : Island ACP States
Article 89
1. Specific provisions and measures shall be established to support island ACP States in their
efforts to overcome the natural and geographical difficulties and other obstacles hampering
their development so as to enable them to step up their respective rates of development.
2. The list of island ACP States in given in Annex VI. It may be amended by decision of the
Council of Ministers when a third state in a comparable situation accedes to the Agreement.
Article 90
The provisions adopted in respect of the island ACP States are contained in the following Articles : 2,
32, 35, 56, 68, 84, 89.G/C/W/187/Add.3
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VII. PART 6 : FINAL PROVISIONS
Article 91
Conflict between this Agreement and other treaties
No treaty, convention, agreement or arrangement of any kind between one or more Member States of the
Community and one or more ACP States may impede the implementation of this Agreement.
Article 92
Territories concerned
Subject to the special provisions regarding the relations between the ACP States and the French
overseas departments provided for therein, this Agreement shall apply, on the one hand, to the
territories in which the Treaty establishing the European Community is applied and under the
conditions laid down in that Treaty and, on the other hand, to the territories of the ACP States.
Article 93
Ratification and entry into force
1. This Agreement shall be ratified or approved by the signatory Parties in accordance with
their respective constitutional rules and procedures.
2. The instruments of ratification or approval of this Agreement shall be deposited in the case
of the ACP States, with the General Secretariat of the Council of the European Union and in
the case of the Community and the Member States, with the General Secretariat of the ACPStates. The Secretariats shall promptly notify the signatory States and the Community.
3. This Agreement shall enter into force on the fi rst day of the second month following the date
of deposit of the instruments of ratification of the Member States and of at least two-thirdsof the ACP States, and of the instrument of approval of this Agreement by the Community.
4. An ACP signatory State that has not completed the procedures set out in paragraphs 1 and 2
by the date on which this Agreement enters into force as provided for in paragraph 3 may doso only within the 12 months following that date, without prejudice to the provisions of
paragraph 6.
For such States this Agreement shall become applicable on the first day of the second month
following the completion of these procedures. These States shall recognise the validity of
any measure taken to implement the Agreement after the date of its entry into force.
5. The rules of procedure of the joint institutions set up under this Agreement shall lay down
the conditions under which the representatives of signatory States referred to in paragraph 4
may attend those institutions as observers.
6. The Council of Ministers may decide to accord special support to ACP States party to
previous ACP-EC Conventions which, in the absence of normally established government
institutions, have not been able to sign or ratify this Agreement.  This support may concerninstitution building and economic and social development activities, taking particular
account of the needs of the most vulnerable sections of the population. In this context, suchG/C/W/187/Add.3
Page 61
countries will be able to draw on the funds provided for in Part 4 of this Agreement for
financial and technical Cooperation.
By derogation from paragraph 4, the countries concerned which are signatories to the
Agreement may complete the ratification procedures within twelve months of the restoration
of government institutions.
The countries concerned which have neither signed nor ratified the Agreement may accede
to it by means of the accession procedure provided for in Article 94.
Article 94
Accession
1. Any request for accession to this Agreement made by an independent State whose structural
characteristics and economic and social situation are comparable to those of the ACP States
shall be presented to the Council of Ministers.
If the request is approved by the Council of Ministers, the State concerned shall accede to
this Agreement by depositing an act of accession with the General Secretariat of the Council
of the European Union, which shall send a certified copy to the ACP Secretariat and notifythe Member States. The Council of Ministers may lay down any amending measures that
might be necessary.
The State concerned shall enjoy the same rights and be subject to the same obligations as the
ACP States.  Its accession may not infringe on the benefits enjoyed by the ACP States
signatory to this Agreement under the provisions on development Cooperation financing.
The Council of Ministers may lay down the cond itions and specific arrangements for the
accession of an individual State in a special protocol that shall form an integral part of the
Agreement.
2. The Council of Ministers shall be advised of any request made by a third State to become a
member of an economic grouping of ACP States.
3. The Council of Ministers shall be advised of any request made by a third State to become a
member of the European Union. During th e negotiations between the Union and the
applicant State, the Community shall provide the ACP States with any relevant information
and they in turn shall convey their concerns to the Community so that it can take them fully
into account.  The ACP Secretariat shall be notified by the Community of any accession tothe European Union.
Any new Member State of the European Union shall become a contracting party to this
Agreement from the date of its accession by means of a clause to this effect in the act of
accession. If the act of accession to the Union does not provide for such automatic accession
of the Member State to this Agreement, the Member State concerned shall accede bydepositing an act of accession with the General Secretariat of the Council of the European
Union, which shall send a certified copy to the ACP Secretariat and notify the Member
States.
The Parties shall review the effects of the accession of new Member States on this
Agreement. The Council of Ministers may decide on any transitional or amending measures
that might be necessary.G/C/W/187/Add.3
Page 62
Article 95
 Duration of the agreement and revision clause
1. This Agreement is hereby concluded for a period of twenty years, commencing on 1 March
2000.
2. Financial protocols are defined for each five-year period.
3. The Community and the Member States, on the one hand, and the ACP States, on the other,
shall notify the other party not later than 12 months before the expiry of each five-year
period of any review of the provisions they desire to make with a view to a possible
amendment of the Agreement. This shall not apply, however, to the provisions on economic
and trade Cooperation, for which a specia l review procedure is provided for.
Notwithstanding this time limit, if one party re quests the review of any provisions of the
Agreement, the other party shall have a period of two months in which to request the
extension of the review to other provisions related to those which were the subject of the
initial request.
Ten months before the expiry of this five-year period, the contracting Parties shall enter into
negotiations with a view to examining any possi ble amendments to the provisions that were
the subject of the notification.
Article 93 shall also apply to the amendments made.The Council of Ministers shall adopt any transitional measures that may be required in
respect of the amended provisions until they come into force.
4. Eighteen months before the end of the total period of the Agreement, the contracting Parties
shall enter into negotiations in order to examine what provisions shall subsequently govern
their relations.
The Council of Ministers shall adopt any transitional measures that may be required until the
new Agreement comes into force.
Article 96
Essential elements: consultation procedure and appropriate measures as regards human rights,
democratic principles and the rule of law
1. Within the meaning of this Article, the te rm “Party” refers to the Community and the
Member States of the European Union, of the one part, and each ACP State, of the other
part.
2. (a) If, despite the political dialogue conducted regularly between the Parties, a Party
considers that the other Party has failed to fulfil an obligation stemming from respect
for human rights, democratic principles and the rule of law referred to in paragraph 2
of Article 9, it shall, except in cases of special urgency, supply the other Party and the
Council of Ministers with the relevant information required for a thoroughexamination of the situation with a view to seeking a solution acceptable to the
Parties. To this end, it shall invite the other Party to hold consultations that focus on
the measures taken or to be taken by the party concerned to remedy the situation.
The consultations shall be conducted at the level and in the form considered most
appropriate for finding a solution.G/C/W/187/Add.3
Page 63
The consultations shall begin no later than 15 days after the invitation and shall
continue for a period established by mutual agreement, depending on the nature and
gravity of the violation. In any case, the consultations shall last no longer than 60
days.
If the consultations do not lead to a solution acceptable to both Parties, if consultation
is refused, or in cases of special urgency, appropriate measures may be taken. These
measures shall be revoked as soon as the reasons for taking them have disappeared.
(b) The term “cases of special urgency” shall refer to exceptional cases of particularly
serious and flagrant violation of one of the essential elements referred to in paragraph
2 of Article 9, that require an immediate reaction.
The Party resorting to the special emergenc y procedure shall inform the other Party
and the Council of Ministers separately of the fact unless it does not have time to doso.
(c) The “appropriate measures” referred to in this Article are measures taken in
accordance with international law, and proportional to the violation. In the selection
of these measures, priority must be given to those which least disrupt the application
of this agreement. It is understood that suspension would be a measure of last resort.
If measures are taken in cases of special urgency, they shall be immediately notified
to the other Party and the Council of Ministers. At the request of the Party concerned,
consultations may then be called in order to examine the situation thoroughly and, if
possible, find solutions. These consultations shall be conducted according to the
arrangements set out in the second and third subparagraphs of paragraph (a).
Article 97
Consultation procedure and appropriate measures as regards corruption
1. The Parties consider that when the Community is a significant partner in terms of financial
support to economic and sectoral policies and programmes, serious cases of corruption
should give rise to consultations between the parties.
2. In such cases either Party may invite the other to enter into consultations. Such consultations
shall begin no later than 21 days after the invitation and shall last no longer than 60 days.
3. If the consultations do not lead to a solution acceptable to both Parties or if consultation is
refused, the Parties shall take the appropriate measures.  In all cases, it is above allincumbent on the Party where the serious cases of corruption have occurred to take the
measures necessary to remedy the situation immediately. The measures taken by either party
must be proportional to the seriousness of the situation. In the selection of these measures,
priority must be given to those which least disrupt the application of this agreement. It is
understood that suspension would be a measure of last resort.
4. Within the meaning of this Article, the te rm “Party” refers to the Community and the
Member States of the European Union, of the one part, and each ACP State, of the other
part.G/C/W/187/Add.3
Page 64
Article 98
Dispute settlement
1. Any dispute arising from the interpretation or application of this Agreement between one or
more Member States or the Community, on the one hand, and one or more ACP States onthe other, shall be submitted to the Council of Ministers.
Between meetings of the Council of Ministers, such disputes shall be submitted to the
Committee of Ambassadors.
2. (a) If the Council of Ministers does not succeed in settling the dispute, either Party may
request settlement of the dispute  by arbitration.  To this end, each Party shall appointan arbitrator within thirty days of the request for arbitration. In the event of failure to
do so, either Party may ask the Secretary General of the Permanent Court of
Arbitration to appoint the second arbitrator.
(b) The two arbitrators shall in turn appoint a third arbitrator within thirty days. In the
event of failure to do so, either Party may ask the Secretary General of the Permanent
Court of Arbitration to appoint the third arbitrator.
(c) Unless the arbitrators decide otherwise, the procedure applied shall be that laid down
in the optional arbitration regulation of the Permanent Court of Arbitration for
International Organisations and States. The arbitrators' decisions shall be taken by
majority vote within three months.
(d) Each Party to the dispute shall be bound to take the measures necessary to carry out
the decision of the arbitrators.
(e) For the application of this procedure, the Community and the Member States shall be
deemed to be one Party to the dispute.
Article 99
Denunciation clause
This Agreement may be denounced by the Community and its member States in respect of each ACP
State and by each ACP State in respect of the Community and its Member States, upon six months’
notice.G/C/W/187/Add.3
Page 65
Article 100
Status of the texts
The protocols and annexes attached to this Agreement shall form an integral part thereof. The annexes
n° I, II, III, IV & VI may be revised, reviewed and/or amended by the Council of Ministers on the
basis of a proposal from the ACP-EC Development Finance Cooperation Committee.
This Agreement, drawn up in two copies in the Danish, Dutch, English, Finnish, French, German,
Greek, Italian, Portuguese, Spanish and Swedish languages, all texts being equally authentic, shall be
deposited in the archives of the General Secretariat of the Council of the European Union and the
Secretariat of the ACP States, which shall both transmit a certified copy to the government of each of
the Signatory States.
Done at Brussels, […]
For the Council
The President
[…]