Joint Assembly of the Convention concluded between the African, Caribbean and Pacific States and the European Union (ACP-EU) - Resolutions adopted on ACP-EU trade relations (ACP-EU/2134/97/fin.)

The ACP-EU Joint Assembly,

- meeting in Brussels from 17 to 20 March 1997,

A. recalling the high priority accorded to the development of trade as a means of accelerating the growth of ACP economies and for their harmonious and gradual integration into the world economy in the Lomé IV Convention as revised by the agreement signed in Mauritius on 4 November 1995, and in particular the recognition by the Contracting Parties of the fundamental importance of trade in energizing the development process in ACP countries,

B. recognizing the bold and far-reaching macro economic reforms undertaken by many ACP countries which have resulted in tariff reduction in step with WTO principles and the removal of import restrictions, liberalization of the financial sector including the removal of exchange controls, the creation of an attractive and secure investment climate and the privatization of major state enterprises,

C. recognizing also the concerted effort of ACP countries to boost their exports and to diversify their export base,

D. emphasizing the need for these vigorous, determined and painful initiatives on the part of ACP countries to be met with appropriate supportive responses by their EU partners, in the form of policies which give concrete encouragement and effective support to them in the context of a secure, reliable and predictable trading environment,

E. noting in this regard the important role of appropriate foreign direct investment, joint venture partnerships and investment for on-lending in support of, for example, the development of SMEs,

F. concerned that despite their efforts and achievements in restructuring their economies, ACP countries still do not attract adequate levels of investment, particularly from the EU,

G. emphasizing the continued value and importance of the preferential access arrangements enjoyed by the ACP countries, and recognizing that so far these have tended to be utilised for the export of commodities rather than of manufactured goods,

H. noting that preferential access arrangements contribute to socio-economic development as well as the creation of a stable and predictable environment essential for investment and enhancing competitiveness,

I. recognizing the need and importance to give support to ACP economies confronted with new competition as a result of the globalization and liberalization of the international economy,

J. noting with concern in this regard, that despite the liberalization efforts of the developing countries and the principle of special and differential treatment for developing countries, as a permanent legal feature of the world trading system, industrialized countries have failed so far to honour commitments enshrined in the WTO agreements and are continuing to promote Free Trade Areas as a means of accelerating the economic development of developing countries,

1. Affirms the continuing value and relevance of the Lomé arrangements, including their trade and investment support mechanisms and the need to preserve and enhance them;

2. Calls on the Community and its Member States to reaffirm the principle of preferential treatment underpinning ACP-EU cooperation;

3. Instructs its Co-Presidents to forward this resolution to the ACP-EU Council, to the Commission and the signatories to the Lomé Convention.