Proposal for a Council Decision concerning the conclusion of the Partnership Agreement between the African Caribbean and Pacific States on the one part, and the European Community and its Member States, on the other part
Date: 2000-05-23
Institutions: European Commission
Subjects: ACP countries, EU relations, cooperation agreement (EU), development aid

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C 240 E/5

Proposal for a Council Decision concerning the conclusion of the Partnership Agreement between
the African, Caribbean and Pacific States on the one part, and the European Community and its
Member States, on the other part

(2001/C 240 E/04)

COM(2000) 324 final (cid:151) 2000/0124(AVC)

(Submitted by the Commission on 23 May 2000)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community and in particular its Article 310 in connection
with the second phrase of article 300(2) and the second
subparagraph of paragraph 3,

Community and its Member States, on the other part,
together with the Annexes and Protocols attached thereto
and the declarations made by the Community unilaterally or
jointly with other parties that are attached to the Final Act are
hereby approved on behalf of the European Community.

Having regard to the proposal from the Commission,

The texts of the Agreement, Annexes, Protocols and the Final
Act are attached to this Decision.

Having regard to the assent of the European Parliament,

Article 2

Whereas

(1) Pursuant to Article 96 of the Partnership Agreement the
Party which considers that another Party has failed to fulfil
an obligation in respect of one of the essential elements
referred to in Article 9 may invite the other Party to hold
consultations and,
take appro-
priate measures, including where necessary, the partial or
full suspension of application of the Partnership Agreement
to the Party concerned.

in certain circumstances,

(2) Pursuant to Article 97 of the Partnership Agreement the
party which considers that a serious case of corruption has
occurred may invite the other party to hold consultations
and, in certain circumstances, take appropriate measures,
including where necessary, the partial or full suspension of
application of
to the party
the Partnership Agreement
concerned.

The President of the Council shall be authorised to designate
the person empowered to deposit the instrument of approval
as required by Article 93(2) of the Agreement on behalf of the
European Community.

Article 3

1. Where, at the initiative of the Commission or a Member
State, the Council considers that an ACP State has failed to
fulfil an obligation concerning one of the essential elements
referred to in Article 9 of the Partnership Agreement, or in
serious cases of corruption, the ACP State concerned shall be
invited unless there is special urgency to hold consultations in
accordance with Articles 96 and 97 of
the Partnership
Agreement.

The Council shall act by a qualified majority.

(3) An effective procedure should be adopted when it

is
intended to take appropriate measures under Article 96
or Article 97 of the Partnership Agreement.

In the consultations, the Community shall be represented by
the Presidency of the Council and the Commission.

(4) The position of the Community on request for derogations
from the rules of origin set out in Protocol No 1 to the
ACP-EC Partnership Agreement
is established by the
Commission in accordance with the provisions of Council
decision No . . . of . . .

(5) The Partnership Agreement between the African, Caribbean
and Pacific States on the one part, and the European
Community and its Member States, on the other part,
signed in . . . on . . . should be approved,

HAS DECIDED AS FOLLOWS:

Article 1

The Partnership Agreement between the African, Caribbean
and Pacific States on the one part, and the European

2.
If, on expiry of the deadlines set in Articles 96 and 97 for
the consultations and despite all efforts, no solution has been
found, or immediately in a case of urgency or refusal to hold
consultations,
to those Articles,
decide, on a proposal from the Commission, to take appro-
priate measures
suspension acting by a
qualified majority.

the Council may, pursuant

including partial

The Council shall act unanimously in case of a full suspension
of application of the Partnership Agreement in relation to the
ACP State concerned.

These measures shall remain in force until such time as the
Council has used the applicable procedure as set out in the first
subparagraph to take a decision amending or revoking the
measures adopted previously, or where applicable,
for the
period indicated in the Decision.

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For that purpose the Council shall proceed to review regularly
and at least every six months the above measures.

State and to the Council of Ministers at the same time as an
invitation to hold consultations.

The President of the Council shall notify the measures thus
adopted to the ACP State concerned and to the Council of
Ministers before they enter into force.

The Council’s Decision shall be published in the Official Journal
of the European Communities. Where the measures are adopted
immediately, notification thereof shall be addressed to the ACP

The European Parliament shall be immediately and fully

3.
informed on any decision taken under Paragraphs 1 and 2.

Article 4

This Decision shall be published in the Official Journal of the
European Communities.

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PARTNERSHIP AGREEMENT

between the African, Caribbean and Pacific States and the European Community and its Member
States

PREAMBLE

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 world
economy;

Asserting their resolve to make, through their co-operation, 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, development co-operation
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, the International
Convention on the Elimination of all forms of Racial Discrimination, the 1949 Geneva Conventions and
the other instruments of international humanitarian law, 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,

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
co-operation within the Agreement;

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;

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Anxious to respect basic labour rights,
conventions of the International Labour Organisation;

taking account of

the principles laid down in the relevant

Recalling the commitments within the framework of the World Trade Organisation;

have decided to conclude this Agreement:

PART 1

GENERAL PROVISIONS

TITLE I

OBJECTIVES, PRINCIPLES AND ACTORS

C h a p t e r 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
(cid:145)Parties(cid:146) 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
consistent with the
and eventually
eradicating poverty
objectives of sustainable development and the gradual
inte-
gration of the ACP countries into the world economy.

international commitments
These objectives and the Parties’
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 environ-
mental 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 sector,
increasing employment and improving access to productive
resources shall all be part of this framework. Support shall
be given to the respect of the rights of the individual and
the promotion of social development
meeting basic needs,
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 democratic society 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 (cid:151)
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 co-operation, underpinned by a legally binding system
and the existence of joint institutions, shall be exercised on the
basis of the following fundamental principles:

the partnership,

(cid:151) equality of the partners and ownership of the development
strategies: for the purposes of implementing the objectives
of
the ACP States shall determine the
development 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;

(cid:151) 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
including the private sector and civil
sections of society,
society organisations,
into the mainstream of political,
economic and social life;

(cid:151) 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 part-
nership and co-operation relations;

(cid:151) differentiation

and

regionalisation:

co-operation
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.

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Article 3

Achievement of the Agreement’s objectives

Article 6

Definitions

framework of

The contracting Parties shall, each as far as it is concerned in
appropriate
the
this Agreement,
measures, whether general or particular,
the
fulfilment of the obligations arising from this Agreement and
to facilitate the attainment of its objectives. They shall refrain
from any measures liable to jeopardise these objectives.

to ensure

take all

1.

The actors of co-operation will include:

(a) State (local, national and regional);

(b) Non-state:

(cid:151) Private sector;

C h a p t e r 2

(cid:151) Economic and social partners,

including trade union

organisations;

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
the
sovereignty. They shall establish, with the Community,
co-operation programmes
this agreement.
foreseen under
However,
the parties recognise the complementary role of
and potential for contributions by non-state actors to the devel-
opment process. To this end, under the conditions laid down in
this Agreement, non-state actors shall, where appropriate:

(cid:151) be informed and involved in consultation on co-operation
policies and strategies, on priorities
for co-operation
especially in areas that concern or directly affect them,
and on the political dialogue;

(cid:151) be provided with financial resources, under the conditions
laid down in this Agreement in order to support local
development processes;

(cid:151) be involved in the implementation of co-operation project
and programmes in areas that concern them or where these
actors have a comparative advantage;

(cid:151) be provided with capacity-building support in critical areas
these actors,
to reinforce the capabilities of
in order
regards organisation and representation,
particularly as
and
consultation mechanisms
of
the
including channels of communication and dialogue, and
to promote strategic alliances.

establishment

Article 5

Information

Co-operation will
support operation to provide more
information and create greater awareness of the basic features
of ACP-EU partnership. Co-operation will also:

(cid:151) encourage partnership and build links between ACP and EU

actors;

(cid:151) strengthen networking and exchange of expertise and

experience among the actors.

(cid:151) Civil Society in all
characteristics.

its forms according to national

Recognition by the parties of non-governmental actors
2.
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 trans-
parently.

Article 7

Capacity building

The contribution of civil
society to development can be
enhanced by strengthening community organisations and
non-profit non-governmental organisations in all spheres of
co-operation. This will require:

(cid:151) Encouraging and supporting the creation and development

of such organisations;

(cid:151) Establishing arrangements for involving such organisations
implementation and evaluation of devel-

in the design,
opment strategies and programmes.

TITLE II

THE POLITICAL DIMENSION

Article 8

Political dialogue

The Parties shall regularly engage in a comprehensive,
1.
balanced and deep political dialogue leading to commitments
on both sides.

The objective of

2.
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 co-operation as laid down in this Agreement. The
facilitate consultations between the Parties
dialogue shall
within international
the dialogue
shall also include preventing situations arising in which one
Party might deem it necessary to have recourse to the
non-execution clause.

forums. The objectives of

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The dialogue shall cover all the aims and objectives laid
3.
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
It
promote a stable and democratic political environment.
shall encompass co-operation strategies as well as global and
sectoral policies, including environment, gender, migration and
questions related to the cultural heritage.

individuals and
rights, which are legitimate aspirations of
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.

trade,

The dialogue shall focus,

4.
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
and
arms
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, demo-
cratic principles, the rule of law and good governance.

excessive military

expenditure,

drugs

fundamental

The parties reaffirm that democratisation, development and the
protection of
freedoms and human rights are
inter-related and mutually reinforcing. Democratic principles
are universally recognised principles underpinning the organi-
sation 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 mech-
anisms. On the basis of universally recognised principles, each
country develops its democratic culture.

5.
Broadly based policies to promote peace and to prevent,
manage and resolve violent conflicts shall play a prominent
role in this dialogue, as shall the need to take full account of
the objective of peace and democratic stability in the definition
of priority areas of co-operation.

The structure of government and the prerogatives of
the
different powers shall be founded on rule of law, which shall
entail
legal
in particular effective and accessible means of
redress, an independent
legal system guaranteeing equality
before the law and an executive that is fully subject to the law.

6.
The dialogue shall be conducted in a flexible manner.
Dialogue shall be formal or informal according to the need,
and conducted within and outside the institutional framework,
in the appropriate format, and at
the appropriate level
including regional, sub-regional or national level.

Respect for human rights, democratic principles and the rule of
law, which underpin the ACP-EU partnership, shall underpin
the parties and
the domestic and international policies of
constitute the essential elements of this Agreement.

Regional

and sub-regional organisations as well

7.
as
representatives of civil society organisations shall be associated
to this dialogue.

Article 9

Essential elements and fundamental element

1.
Co-operation shall be directed towards sustainable devel-
opment centred on the human person, who is the main
entails
and beneficiary of development;
protagonist
respect for and promotion of all human rights.

this

for all human rights and fundamental

Respect
including respect
based on the rule of
governance are an integral part of sustainable development.

freedoms,
for fundamental social rights, democracy
law and transparent and accountable

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 the purposes of equitable and sustainable devel-
opment. It entails clear decision-making procedures at the level
of public authorities, transparent and accountable institutions,
law in the management and distribution of
the primacy of
and
capacity
and
resources
implementing measures aiming in particular at preventing
and combating corruption.

elaborating

building

for

and constitute

Good governance, which underpins the ACP-EU partnership,
shall underpin the domestic and international policies of the
parties
this
Agreement. The parties agree that only serious cases of
corruption,
to such
corruption, as defined in Article 97 constitute a violation of
that element.

acts of bribery

fundamental

element of

including

leading

a

The parties refer to their international obligations and
2.
commitments concerning respect
for human rights. They
reiterate their deep attachment to human dignity and human

4.
The partnership shall actively support the promotion of
human rights, processes of democratisation, consolidation of
the rule of law, and good governance.

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In the context of

for the political
These areas will be an important subject
dialogue.
the parties shall
this dialogue,
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

The

Parties

1.
as
contributing to the maintenance and consolidation of a stable
and democratic political environment:

following

elements

consider

the

(cid:151) sustainable and equitable development involving, inter alia,
access to productive resources, essential services and justice;

(cid:151) greater involvement of an active and organised civil society

and the private sector.

The Parties recognise that the principles of the market
2.
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 oppor-
tunities among all segments 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
organised civil society.

for an active and

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 expen-
ditures 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
to
the fight against anti-personnel
addressing an excessive and uncontrolled spread,
illegal traf-
ficking and accumulation of small arms and light weapons.

landmines as well as

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 for co-operation are used in
accordance with the principles and objectives of
the Part-
nership, and to preventing a diversion of funds for belligerent
purposes.

situations,

In post-conflict

5.
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 co-operation.

the Parties

shall

Article 12

Coherence of Community policies and their impact on the
implementation of the Partnership Agreement

its powers,

in the exercise of

Without prejudice to Article 96, where the Community
intends,
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.

At their request, consultations shall be held promptly 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,
in writing to the
Community and submit suggestions for amendments indicating
the way their concerns should be met.

concerns

transmit

their

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the Community does not accede to the ACP States’
it shall advise them as soon as possible giving

If
submissions,
its reasons.

The Parties shall develop co-operation programmes to facilitate
the access of students from ACP States to education,
in
particular
through the use of new communication tech-
nologies.

The ACP States
information on the entry into force of such decisions,
advance whenever possible.

also be provided with adequate
in

shall

Article 13

Migration

The issue of migration shall be the subject of in-depth

1.
dialogue in the framework of the EU-ACP partnership.

The Parties reaffirm their existing obligations and commitments
in international law to ensure respect for human rights and to
eliminate all
forms of discrimination based particularly on
origin, sex, race, language and religion.

fair treatment of

The Parties agree to consider that a partnership implies,
2.
third country
with relation to migration,
integration
nationals who reside legally on their territories,
policy aiming at granting them rights
and obligations
comparable to those of their citizens, enhancing non-discrimi-
nation in economic, social and cultural
life and developing
measures against 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 treatment to
workers who are nationals of a Member State.

The Parties consider that strategies aiming at reducing
4.
poverty,
improving living and working conditions, creating
employment and developing 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
constraints associated with migratory flows with the purpose
of supporting the economic and social development of the
regions
reducing
from which migrants originate and of
poverty.

The Community shall support, through national and regional
Co-operation 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 ensure that such action is
geared towards the vocational integration of ACP nationals in
their countries of origin.

5. (a) In the framework of the political dialogue the Council of
Ministers shall examine issues arising from illegal immi-
gration 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 auth-
orities concerned shall extend to them the administrative
facilities necessary for their return.

(c) The Parties further agree that:

the return of and readmit any of

(i) (cid:151) each Member State of the European Union shall
its
accept
nationals who are
illegally present on the
territory of an ACP State, at that State’s request
and without further formalities;

(cid:151) 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 of the
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.

for

the Community 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
in
accordance with Declaration No 2 to the Treaty
In respect
establishing the European Community.
the obligations in this paragraph
of ACP States,
apply only in respect of
those persons who are
considered as their nationals in accordance to their
respective legal system.

(ii) At

international

law, bilateral

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
agreements
rules of
governing specific obligations for the readmission
and return of
their nationals. These agreements
shall also cover, if deemed necessary by any of the
Parties, arrangements for the readmission of third
Such
country nationals
agreements will
the
categories of persons covered by these arrangements
as well as the modalities of their readmission and
return.

and stateless persons.
lay down the details about

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Adequate assistance to implement these agreements
will be provided to the ACP States.

governments of the ACP States are present. Any member of the
Council of Ministers unable to attend may be represented. The
representative shall exercise all the rights of that member.

iii) For the purposes of this article, the term (cid:145)Parties(cid:146) shall
refer to the Community, any of its Member States and
any ACP State.

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.

PART 2

INSTITUTIONAL PROVISIONS

Article 14

The joint institutions

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 that
end, consultations may be held alongside its meetings.

The Council of Ministers may delegate powers to the

4.
Committee of Ambassadors.

The institutions of this Agreement are the Council of Ministers,
the Committee of Ambassadors and the Joint Parliamentary
Assembly.

The Council of Ministers

rules of
5.
procedure within six months of the entry into force of this
Agreement.

shall adopt

its

Article 15

Article 16

The Council of Ministers

The Committee of Ambassadors

The Council of Ministers shall comprise, on the one hand,
1.
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 Committee of Ambassadors shall comprise, on the
1.
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 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 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.

The Council shall meet as a rule once a year and whenever it
seems necessary,
in a form and a geographical composition
appropriate to the issues to be addressed.

2.

The functions of the Council of Ministers shall be to:

(a) conduct the political dialogue;

the

implementation of

(b) adopt the policy guidelines and take the decisions necessary
for
this
Agreement, in particular as regards development strategies
in the specific areas provided for by this Agreement or any
other area that should prove relevant, and as regards
procedures;

the provisions of

(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 mech-

anisms.

The Council of Ministers shall

take its decisions by
3.
common agreement 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

the Parties. The proceedings of

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
achieving the
this Agreement
of
objectives set therein.

and progress

towards

The Committee of Ambassadors
in
particular to prepare the Council sessions and whenever it
proves necessary.

shall meet

regularly,

The Committee shall adopt its rules of procedure within

3.
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,
the European Parliament and, on the other,
members of
representatives
members of parliament or,
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.

failing

this,

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The role of

2.
consultative body, shall be to:

the Joint Parliamentary Assembly, as a

(cid:151) promote democratic processes

through dialogue

and

consultation;

(cid:151) facilitate greater understanding between the peoples of the
European Union and those of the ACP States and raise
public awareness of development issues;

(cid:151) discuss issues pertaining to development and the ACP-EU

partnership;

(cid:151) adopt

to the
resolutions and make recommendations
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 co-operation between national parliaments,
meetings between EU and ACP members of parliament may
be arranged at regional or subregional level.

TITLE I

DEVELOPMENT STRATEGIES

C h a p t e r 1

General framework

Article 19

Principles and objectives

The central objective of ACP-EU co-operation is poverty
1.
reduction and ultimately its eradication; sustainable devel-
the ACP countries
opment; and progressive integration of
into the world economy.
co-operation
framework and orientations shall be tailored to the individual
shall promote local
circumstances of each ACP country,
ownership of economic and social reforms and the integration
of the private sector and civil society actors into the devel-
opment process.

context,

In this

2.
Co-operation 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. Co-operation shall also
refer to the international development co-operation 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.

Joint Parliamentary Assembly shall organise

regular
The
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.

Article 20

The approach

4.
The Joint Parliamentary Assembly shall adopt its rules of
procedure within six months of the entry into force of this
Agreement.

PART 3

CO-OPERATION STRATEGIES

Article 18

that

The objectives of ACP-EU development co-operation shall
1.
incorporate
be pursued through integrated strategies
social, cultural, environmental and institutional
economic,
elements that must be locally owned. Co-operation 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 development policies and reforms
pursued by the ACP States, ACP-EU co-operation strategies
shall aim at:

developing

(a) achieving rapid and sustained job-creating economic
increasing
growth,
employment,
improving access to productive economic
activities and resource, and fostering regional co-operation
and integration;

private

sector,

the

The co-operation strategies shall be based on development
strategies and economic and trade co-operation which are
interlinked and complementary. The parties shall ensure that
the efforts undertaken in both afore-mentioned areas are
mutually reinforcing.

(b) promoting human and social development helping to
ensure that the fruits of growth are widely and equitably
shared and promoting gender equality;

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(c) promoting cultural values of communities and specific
interactions with economic, political and social elements;

Co-operation shall also support improving the quality,
2.
availability and accessibility of
financial and non-financial
services to private enterprises, both formal and informal; by:

(d) promoting

reforms

institutional

development,
strengthening the institutions necessary for the consoli-
dation of democracy, good governance and for efficient
and competitive market economies; and building capacity
for development and partnership; and

and

(e) 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 co-operation the following thematic or cross-cutting
issues and institutional
themes: gender issues, environmental
development and capacity building. These areas shall also be
eligible for Community support.

The detailed texts as regards development co-operation
3.
objectives and strategies,
in particular sectoral policies and
strategies shall be incorporated in a compendium providing
operational
sectors of
in specific
co-operation. These texts may be revised, reviewed and/or
amended by the Council of Ministers on the basis of a recom-
mendation
Finance
from the
Co-operation Committee.

ACP-EC Development

guidelines

areas or

C h a p t e r 2

Areas of support

Section 1: Economic development

Article 21

(a) catalysing and leveraging flows of private savings, both
domestic and foreign, into the financing of private enter-
for developing modern
prises by supporting policies
financial sector including capital market,
insti-
tutions and sustainable microfinance operations;

financial

(b) 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 enter-
prises such as professional, technical, management, training
and commercial support services; and

(c) supporting

institutions,

and
initiatives that contribute to the development and transfer
of technologies and know-how and best practices on all
aspects of business management.

programmes,

activities

shall

business

Co-operation

promote
development
3.
through the provision of
finance, guarantee facilities and
technical support aimed at encouraging and supporting the
rehabili-
creation, establishment, expansion, diversification,
tation,
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:

restructuring, modernisation

privatisation

or

(a) creating and/or strengthening financial instruments in the

form of investment capital;

(b) improving access
information and
assistance services;

to essential
advisory,

inputs

consultancy or

such as business
technical

Investment and private sector development

1.
Co-operation 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. Co-operation shall further support:

(a) the promotion of public-private

sector dialogue and

co-operation;

(b) the development of entrepreneurial skills and business

culture;

(c) privatization and enterprise reform; and

(c) enhancement of export activities,

in particular through

capacity building in all trade-related areas; and

(d) encouraging inter-firm linkages, networks and co-operation
including those involving the transfer of technology and
know-how at national, regional and ACP-EU levels, and
partnerships with private foreign investors which are
consistent with the objectives and guidelines of ACP-EC
development co-operation.

4.
Co-operation shall support microenterprise development
through better access to financial and non-financial services; an
appropriate policy and regulatory framework for their devel-
opment; and provide training and information services on best
practices in microfinance.

(d) development and modernisation of mediation and arbi-

tration systems.

5.
Support for investment and private sector development
shall integrate actions and initiatives at macro, meso and micro
economic levels.

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Article 22

(e) strengthening the communication and the information of
populations on economic and social reforms and policies.

Macroeconomic and structural reforms and policies

1.

Co-operation shall support ACP efforts to implement:

(a) macroeconomic growth and stabilisation through disci-
in the
inflation, and improve external and fiscal
enhancing
improving the

plined fiscal and monetary policies that
reduction of
balances;
budgetary transparency and efficiency,
quality, the equity and composition of fiscal policy; and

in strengthening fiscal discipline,

result

(b) 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;

(i) liberalise trade and foreign exchange regimes and
current account convertibility, having regard to the
particular circumstances of each country;

(ii) strengthen labour and product-market reforms;

(iii) encourage financial systems reforms which help to
develop viable banking and non-banking systems,
capital markets and financial services, including micro-
finance;

(iv) improve the quality of private and public services; and

Article 23

Economic sector development

Co-operation shall support sustainable policy and institutional
reforms and the investments necessary for equitable access to
economic activities and productive resources, particularly:

(a)

the development of
training systems that help increase
productivity in both the formal and the informal sectors;

(b) capital, credit,
and use;

land, especially as regards property rights

(c) development of rural strategies aimed at establishing a
planning,

participatory

decentralised

framework
resource allocation and management;

for

(d) agricultural production strategies, national and regional
food security policies, sustainable development of water
resources and fisheries as well as marine resources within
the economic exclusive zones of
the ACP States. Any
that may be negotiated between the
fishery agreement
Community and the ACP States shall pay due consideration
to consistency with the development strategies in this area;

(v) encourage regional co-operation and progressive inte-
gration into macroeconomic and monetary policy.

(e) economic and technological

infrastructure and services,
including transport, telecommunication systems, communi-
cation services and the development of information society;

The design of macroeconomic policies and structural
2.
adjustment programmes shall reflect the socio-political back-
ground and institutional capacity of the countries concerned,
ensure a positive impact on poverty reduction and social
services access and shall be based on the following principles:

(a) the ACP States shall bear primary responsibility for the
analysis of the problems to be solved, the design and the
implementation of the reforms;

(f) development of competitive industrial, mining and energy
sectors, while encouraging private sector involvement and
development;

(g)

trade development, including the promotion of fair trade;

(h) development of business, finance and banking; and other

service sectors;

(b) support programmes shall be adapted to the different
situation in each ACP State and be sensitive to the social
conditions, culture and environment of these States;

(i)

tourism development; and

(c)

the right of the ACP States to determine the direction and
and
the
priorities shall be recognised and respected;

their development

sequencing of

strategies

(j) development of scientific, technological and research infra-
structure and services; including the enhancement, transfer
and absorption of new technologies;

(d) the pace of reforms shall be realistic and compatible with

(k) The

strengthening of

capacities

in productive

areas,

each ACP State’s capacities and resources; and

especially in public and private sectors.

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Article 24

Tourism

(e)

increasing the security of household water and improving
access to safe water and adequate sanitation;

Co-operation will aim at the sustainable development of the
tourism industry in ACP countries and sub-regions, recognising
its increasing importance to the growth of the services sector
in ACP countries 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.

(f)

improving the availability of affordable and adequate shelter
for all
through supporting low-cost and low-income
housing programmes and improving urban development;
and

(g) encouraging the promotion of participatory methods of
social dialogue as well as respect for basic social rights.

Co-operation 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
and
sustainable
programmes, as well as inter alia, improving the competitive
position of the sector, especially SMEs, investment support and
promotion, product development including the development of
in ACP countries, and strengthening
indigenous cultures
linkages between tourism and other
sectors of economic
activity.

tourism policies

Section 2: Social and human development

Article 25

Social sector development

States’

efforts

support ACP

Co-operation shall

1.
at
developing general and sectoral policies and reforms which
improve the coverage, quality of and access to basic social
local needs
infrastructure and services and take account of
and specific demands of
the most vulnerable and disad-
vantaged,
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,
co-operation shall aim at:

(a)

improving education and training, and building technical
capacity and skills;

(b) improving health systems and nutrition, eliminating hunger
and malnutrition, ensuring adequate food supply and
security;

2.
Co-operation 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 technological
and
innovation
promoting partnerships;
at
national and/or regional level.

local
round-table

expertise
discussions

research;

building

and

and

Co-operation shall promote and support the development
3.
and implementation of policies and of
social
protection and security in order to enhance social cohesion
and to promote self-help and community solidarity. The
inter-alia, be on developing
focus of
the support
solidarity, particularly by
initiatives based on economic
setting-up social development
funds adapted to local needs
and actors.

systems of

shall,

Article 26

Youth issues

Co-operation 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.
support
policies, measures and operations aimed at:

In this context, co-operation shall

(a) protecting the rights of children and youth, especially the

girl child;

(b) promoting the skills, energy, innovation and potential of
youth in order to enhance their economic, social and
cultural opportunities and enlarge their employment oppor-
tunities in the productive sector;

(c)

integrating population issues into development strategies in
order to improve reproductive health, primary health care,
family planning; and prevention of
female genital muti-
lation;

(c) helping community-based institutions to give children the
opportunity to develop their physical, psychological, social
and economic potential; and

(d) promoting the fight against HIV/AIDS;

(d) reintegrating

into

society

children

in

post-conflicts

situations through rehabilitation programmes.

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Article 27

(a) developing and strengthening the capacities of:

Cultural development

Co-operation in the area of culture shall aim at:

(a)

integrating the cultural dimension at all
opment co-operation;

levels of devel-

(b) recognising, preserving and promoting cultural values and

identities to enable inter-cultural dialogue;

(c) recognising, preserving and promoting the value of cultural
heritage; supporting the development of capacity in this
sector; and

(i) regional

integration institutions and organisations set
up by the ACP States to promote regional co-operation
and integration, and

(ii) national governments and parliaments in matters of

regional integration;

(b) fostering participation of LDC ACP States in the estab-
lishment of regional markets and sharing the benefits
therefrom;

(c)

implementation of sectoral reform policies at regional level;

(d) developing cultural industries and enhancing market access

opportunities for cultural goods and services.

(d) liberalisation of trade and payments;

Section 3: Regional co-operation and integration

Article 28

General approach

Co-operation shall provide effective assistance to achieve the
objectives and priorities which the ACP States have set them-
selves in the context of regional and sub-regional co-operation
and
intra-ACP
co-operation. Regional co-operation can also involve OCTs
and outermost regions. In this context, co-operation support
shall aim to:

inter-regional

integration,

including

and

(a)

foster the gradual
world economy;

integration of the ACP States into the

(b) accelerate economic co-operation and development both

within and between the regions of the ACP States;

(c) promote the free movement of persons, goods, services,
capital, labour and technology among ACP countries;

(d) accelerate diversification of

the ACP
States; and co-ordination and harmonisation of regional
and sub-regional co-operation policies; and

the economies of

(e) promoting cross-border

investments both foreign and
domestic, and other regional or sub-regional economic
integration initiatives; and

(f)

taking account of the net transitional costs of regional inte-
gration on budget revenue and balance of payments.

Article 30

Regional co-operation

1.
Co-operation shall, in the area of regional co-operation
support a wide variety of functional and thematic fields which
specifically address common problems and take advantage of
scale of economies, including:

(a)

infrastructure particularly transport and communications
and safety thereof and services, including the development
of regional opportunities in the area of Information and
Communication Technologies (ICT);

(b) the environment; water resource management and energy;

(c) health, education and training;

(e) promote and expand inter- and intra-ACP trade and with

third countries.

(d) research and technological development;

Article 29

and

(e) regional initiatives for disaster preparedness and mitigation;

Regional economic integration

Co-operation shall,
gration, support:

in the area of regional economic inte-

(f) other areas, including arms control, action against drugs,
and

crimes, money

laundering,

bribery

organised
corruption.

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Co-operation shall also support

2.
co-operation schemes and initiatives.

inter- and intra-ACP

(a) mainstreaming environmental sustainability into all aspects
of development co-operation and support programmes and
projects implemented by the various actors;

Co-operation shall help promote and develop a regional
3.
political dialogue in areas of conflict prevention and resolution;
human rights and democratisation; exchange, networking, and
promotion of mobility between the different actors of devel-
opment, in particular in civil society.

Section 4: Thematic and cross-cutting issues

Article 31

Gender issues

Co-operation 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. Co-operation shall help improve the access of
women to all resources required for the full exercise of their
fundamental rights. More specifically, co-operation shall create
the appropriate framework to:

(b) building and/or strengthening the scientific and technical
environmental

human and institutional
management for all environmental stakeholders;

capacity

for

(c) supporting specific measures

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:

and schemes

(i) tropical forests, water resources, coastal, marine and

fisheries resources, wildlife, soils, biodiversity;

(ii) protection of fragile ecosystems (e.g. coral reef);

(iii) renewable energy sources notably solar energy and

energy efficiency;

(a)

integrate a gender-sensitive approach and concerns at every
level of development Co-operation including macro-
economic policies, strategies and operations; and

(iv) sustainable rural and urban development;

(v) desertification, drought and deforestation;

(b) encourage the adoption of specific positive measures in

favour of women such as:

(vi) developing innovative solutions to urban environ-

mental problems; and

(i) participation in national and local politics;

(ii) support for women’s organisations;

(iii) access to basic social services, especially to education

and training, health care and family planning;

(iv) access to productive resources, especially to land and

credit and to labour market; and

(vii) promotion of sustainable tourism.

(d) Taking into account issues relating to the transport and

disposal of hazardous waste.

2.

Co-operation shall also take account of:

(a) the vulnerability of small island ACP countries, especially to

the threat posed by climate change;

(b) the worsening drought

and desertification problems
especially of least-developed and land-locked countries; and

(v) taking specific account of women in emergency aid

and rehabilitation operations.

(c)

institutional development and capacity building.

Article 32

Environment and natural resources

Co-operation

1.
and
sustainable utilisation and management of natural resources
shall aim at:

environmental

protection

on

Article 33

Institutional development and capacity building

1.
Co-operation shall pay systematic attention to institu-
tional aspects and in this context, shall support the efforts of
the ACP States to develop and strengthen structures,
insti-
tutions and procedures that help to:

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(a) promote and sustain democracy, human dignity, social
justice and pluralism, with full respect for diversity within
and among societies;

(b) improving capacity

to analyse, plan,

and
implement policies, in particular in the economic, social,
environmental, research, science and technology and inno-
vation fields;

formulate

(b) promote and sustain universal and full respect

for and
observance and protection of all human rights and funda-
mental freedoms;

(c) modernising, strengthening and reforming financial and

monetary institutions and improving procedures;

(c) develop and strengthen the rule of law; and improve access
to justice, while guaranteeing the professionalism and inde-
pendence of the judicial systems; and

(d) building the capacity at

levels
which is required to implement decentralisation policy
and to increase the participation of the population in the
development process; and

the local and municipal

(d) ensure transparent and accountable governance and admin-

istration in all public institutions.

(e) developing capacity in other critical areas such as:

2.
The Parties shall work together
bribery and corruption in all their societies.

in the fight against

(i) international negotiations; and

(ii) management and co-ordination of external aid.

3.
Co-operation 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 effi-
the lives of
ciency of government services as they affect
ordinary people. In this context, co-operation shall assist the
reform, rationalisation and the modernisation of the public
sector. Specifically, co-operation support shall focus on:

Co-operation shall

5.
and sectors of
span all
co-operation to foster the emergence of non-State actors and
the development of
and to strengthen
structures for information, dialogue and consultation between
them and the national authorities, including at regional level.

capacities;

areas

their

(a) the reform and modernisation of the civil service;

TITLE II

(b) legal and judicial reforms and modernisation of

justice

ECONOMIC AND TRADE CO-OPERATION

systems;

(c)

improvement
management;

and

strengthening

of

public

finance

Objectives and principles

C h a p t e r 1

(d) accelerating reforms of the banking and financial sector;

(e)

improvement of
reform of public procurement procedures; and

the management of public assets and

(f) political, administrative, economic and financial decentrali-

sation.

Co-operation shall also assist to restore and/or enhance
4.
critical public sector capacity and to support
institutions
needed to underpin a market economy, especially support for:

(a) developing legal and regulatory capabilities needed to cope
including

with the operation of a market economy,
competition policy and consumer policy;

Article 34

Objectives

1.
Economic and trade co-operation 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
thereby promoting their sustainable
development priorities,
development and contributing to poverty eradication in the
ACP countries.

of

and

The

ultimate

objective

economic

trade
2.
co-operation 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 actively in
multilateral trade negotiations. Given the current level of devel-
opment of the ACP countries, economic and trade co-operation
shall be directed at enabling the ACP States to manage the
challenges of globalisation and to adapt progressively to new
conditions of international trade thereby facilitating their tran-
sition to the liberalised global economy.

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To this end economic and trade co-operation shall aim at
3.
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.

Economic and trade co-operation shall be implemented in
including
the
interests and their respective levels of devel-

4.
full conformity with the provisions of the WTO,
special and differential
Parties’ mutual
opment.

taking account of

treatment,

arrangements, removing progressively barriers to trade between
them and enhancing co-operation in all areas relevant to trade.

The Parties agree that the new trading arrangements shall
2.
be introduced gradually and recognise the need, therefore, for a
preparatory period.

the non-reciprocal

In order to facilitate the transition to the new trading
3.
trade preferences applied
arrangements,
under
the 4th ACP-EC Convention shall be maintained
during the preparatory period for all ACP countries, under
the conditions defined in Annex V to the present Agreement.

Article 35

Principles

and

It shall

achievements

Economic and trade co-operation shall be based on a
1.
true, strengthened and strategic partnership.
further
be based on a comprehensive approach which builds on the
strengths
previous ACP-EC
Conventions, using all means available to achieve the objectives
above by addressing supply and demand side
set out
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.

the

of

Economic and trade co-operation shall build on regional
2.
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.

Economic and trade co-operation shall take account of
3.
the ACP
the different needs and levels of development of
the Parties reaffirm
countries and regions.
their attachment to ensuring special and differential treatment
for all ACP countries and to maintaining special treatment for
ACP LDCs and to taking due account of the vulnerability of
small, landlocked and island countries.

In this context,

C h a p t e r 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

In this context, the Parties reaffirm the importance of the
4.
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,
their
compatibility with WTO rules, with a view to safeguarding
the benefits derived therefrom, bearing in mind the special
legal status of the Sugar Protocol.

in particular as

regards

Article 37

Procedures

Economic partnership agreements shall be negotiated
1.
during the preparatory period which shall
end by 31
December 2007 at the latest. Formal negotiations of the new
trading arrangements 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.

All the necessary measures shall be taken so as to ensure
2.
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
these
negotiations.

for

to

3.
The preparatory period shall also be used for capacity-
building in the public and private sectors of ACP countries,
for
including measures
strengthening of regional organisations 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.

competitiveness,

enhance

4.
The Parties will regularly review the progress of the prep-
arations 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 prep-
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Negotiations of the economic partnership agreements will
5.
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
integration process
Group,
within the ACP.

taking into account

regional

In 2004, the Community will assess the situation of the
6.
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 possi-
to provide these countries with a new
bilities,
to their existing
framework for trade which is equivalent
situation and in conformity with WTO rules.

in order

for

Negotiations of

the economic partnership agreements
7.
shall aim notably at establishing the timetable
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
trade measures on ACP
and the socio-economic impact of
their
countries, and their capacity to adapt and adjust
to the liberalisation process. Negotiations will
economies
therefore be as
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
then
remaining in conformity with WTO rules
prevailing.

flexible as possible

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 cumu-
lation provisions, that apply to their exports.

Article 38

Joint Ministerial Trade Committee

A Joint ACP-EC Ministerial Trade Committee shall be

1.
established

The Ministerial Trade Committee

2.
shall pay special
attention to current multilateral trade negotiations and shall
examine the impact of the wider liberalisation initiatives on

It
ACP-EC trade and the development of ACP economies.
shall make any necessary recommendations with a view to
preserving the benefits of the ACP-EC trading arrangements.

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.

C h a p t e r 3

Co-operation in the international fora

Article 39

General provisions

The Parties underline the importance of

1.
their active
participation in the World Trade Organisation as well as in
other
by becoming
international organisations
members of
these organisations and closely following their
agenda and activities.

relevant

2.
They agree to co-operate closely in identifying and
furthering their common interests in international economic
and trade co-operation in particular in the WTO,
including
participation in setting and conducting the agenda in future
multilateral
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.

trade negotiations.

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
in this
in accordance with the provisions set out
efforts,
Agreement, to become active members of these organisations,
by developing the necessary capacity to negotiate, participate
effectively, monitor and implement these agreements.

Article 40

Commodities

The Parties

1.
operation of
international
increase market transparency.

recognise the need to ensure a better
to
commodity markets

and

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They confirm their willingness to step up consultations
fora and organisations

2.
between them in the international
dealing with commodities.

To this end, exchange of views shall take place at the

3.
request of either party:

(cid:151) 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;

(cid:151) when it is proposed to conclude or renew an international
set up a specialised intergovernmental

agreement or
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.

C h a p t e r 4

Trade in services

Article 41

General provisions

Article 42

Maritime transport

The Parties acknowledge the importance of cost-effective
1.
and efficient maritime transport services in a safe and clean
marine environment as the main mode of transportation facili-
tating 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.

Each Party shall grant,

3.
inter alia, a treatment no less
for ships
favourable than that accorded to its own ships,
operated by nationals or companies of the other Party, and
for ships registered in the territory of either party, with
respect
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.

to access to ports,

the use of

The Community shall support the ACP States’ efforts to
4.
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.

1.
The Parties underline the growing importance of services
in international trade and their major contribution to economic
and social development.

Article 43

They reaffirm their respective commitments under the
2.
General Agreement on Trade
and
underline the need for special and differential treatment to
ACP suppliers of services;

in Services

(GATS),

In the framework of

3.
the negotiations for progressive
liberalisation in trade and services, as provided for in article
sympathetic
XIX of GATS,
consideration to the ACP States priorities for improvement in
the EC schedule, with a view to meeting their specific interests.

the EU undertakes

to give

acquired some

The Parties further agree on the objective of extending
4.
under the economic partnership agreements, and after they
have
the MFN
experience
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.

in applying

Information and communication technologies, and
Information Society

1.
The Parties recognise the important role of information
and communication technologies, as well as the active partici-
pation in the Information Society, as a pre-requisite for the
successful
the ACP countries into the world
economy.

integration of

existing multilateral

They therefore reconfirm their respective commitments
2.
under
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.

in particular

agreements,

3.
They furthermore agree to participate fully and actively
in any future international negotiation, which might be
conducted in this area.

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,
tourism, culture and construction and
related engineering services with a view to enhancing their
competitiveness and thereby increasing the value and the
volume of their trade in goods and services.

finance,

4.
The Parties will therefore take measures that will enable
inhabitants of ACP countries easy access to information and
the
communication technologies,
following measures:

through, amongst other,

(cid:151) The development and encouragement of

the use of

affordable renewable energy resources;

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(cid:151) The development and deployment of more extensive

low-cost wireless networks.

The Parties also agree to step up co-operation between
5.
them in the area of
information and communication tech-
nologies, and the Information Society. This co-operation
shall, in particular, be directed towards greater complementary
and harmonisation of communication systems, at national,
regional and international
level and their adaptation to new
technologies.

The Parties also agree to reinforce co-operation in this
3.
area with a view to formulating and supporting effective
competition policies with the appropriate national competition
agencies that progressively ensure the efficient enforcement of
the competition rules by both private and State enterprises.
Co-operation 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.

C h a p t e r 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 co-operation in these areas by establishing 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
to
strengthen their capacity to handle all areas related to trade,
including, where necessary, improving and supporting the insti-
tutional framework.

strategies agreed between the Parties

Article 45

Competition policy

The Parties agree that the introduction and implemen-
1.
tation of effective and sound competition policies and rules
are of crucial importance in order to improve and secure an
investment
friendly climate, a sustainable industrialisation
process and transparency in the access to markets.

Article 46

Protection of intellectual property rights

1. Without prejudice to the positions of the Parties in multi-
lateral 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 including protection of geographical
indi-
cations, in line with the international standards with a view
to reducing distortions and impediments to bilateral trade.

They underline the importance,

2.
in this context, of
adherence to the Agreement on Trade-Related Aspects of Intel-
lectual 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
and
international
commercial property as referred to in Part I of the TRIPS
Agreement, in line with their level of development.

conventions on intellectual,

industrial

4.
The Community, its Member States and the ACP States
may consider the conclusion of agreements aimed at protecting
for products of
trademarks and geographical
particular interest of either Party.

indications

control and under

To ensure the elimination of distortions

2.
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
the
prohibition of agreements between undertakings, decisions by
associations of undertakings and concerted practices between
undertakings which have
the
as
prevention,
restriction or distortion of competition. The
Parties further 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.

certain conditions

their object or

effect

for

including patents

and neighbouring

For the purpose of this Agreement, intellectual property
5.
including the copyright on
includes in particular copyright,
computer programs
including
rights,
artistic designs, and industrial property which includes utility
bio-technological
models, patents
inventions and plant varieties or other effective sui generis
systems, industrial designs, geographical indications including
services,
appellations of origin,
trademarks
the legal
topographies of
protection of data bases and the protection against unfair
competition as referred to in Article 10 bis of
the Paris
Industrial Property and
the Protection of
Convention for
protection
on
information
undisclosed
of
know-how.

integrated circuits as well as

for goods or

confidential

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the preparation of

laws and regulations

The Parties further agree to strengthen their co-operation
6.
in this field. Upon request and on mutually agreed terms and
conditions co-operation shall inter alia extend to the following
areas:
the
intellectual property rights,
protection and enforcement of
the prevention of the abuse of such rights by rightholders
and the infringement of such rights by competitors, the estab-
lishment and reinforcement of domestic and regional offices
and other agencies including support for regional intellectual
property organisations involved in enforcement and protection,
including the training of personnel.

for

Article 47

Standardisation and certification

standardisation,

The Parties agree to co-operate more closely in the field
1.
of
to
remove unnecessary technical barriers and to reduce differences
between them in those areas, so as to facilitate trade.

certification and quality assurance

they reaffirm their commitment under the
In this context,
Agreement on Technical Barriers to Trade, annexed to the
WTO Agreement (TBT Agreement).

2.
Co-operation in standardisation and certification shall
aim at promoting compatible systems between the Parties
and in particular include:

(cid:151) 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
economic development of ACP countries.

(cid:151) co-operation in the area of quality management and
importance to the ACP

assurance in selected sectors of
States,

(cid:151) support

for capacity building initiatives

countries
of
metrology and standardisation,

fields

the

in

conformity

in the ACP
assessment,

(cid:151) developing functioning links between ACP and European
standardisation, conformity assessment and certification
institutions.

The Parties undertake

3.
negotiating mutual
mutual economic interest.

to consider,

recognition agreements

in due

course,
in sectors of

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 Phytos-
the WTO Agreement
anitary Measures,
(SPS-Agreement), taking account of their respective level of
development.

annexed

to

They

to reinforce

further undertake

co-ordination,
2.
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 Codex
Alimentarius, the International Office of Epizootics and the
International Plant Protection Convention, with a view to
furthering their common interests.

3.
The Parties agree to strengthen their co-operation 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 promoting the
development of international trade in such a way as to ensure
sustainable and sound management of
in
accordance with the international conventions and under-
takings 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 implementation of environment measures.

the environment,

the mutual

supportiveness

Bearing in mind the Rio Principles and with a view to
2.
reinforcing
and
environment, the Parties agree to enhance their co-operation
in this field. Co-operation shall in particular aim at the estab-
lishment of coherent national,
regional and international
reinforcement of quality controls of goods and
policies,
services
the improvement of
related to the environment,
environment-friendly production methods in relevant sectors.

trade

of

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Article 50

Trade and labour standards

The Parties reaffirm their commitment

to the inter-
1.
nationally recognised core labour standards, as defined by the
relevant ILO Conventions, and in particular the freedom of
association and the
the
abolition of forced labour, the elimination of worst forms of
child labour and non-discrimination in respect to employment.

to collective bargaining,

right

They agree to enhance co-operation in this area,

2.
particular in the following fields:

in

(cid:151) exchange of information on the respective legislation and

work regulation;

(cid:151) the

formulation of national
strengthening of existing legislation;

labour

legislation and

(cid:151) educational and awareness-raising programmes;

(cid:151) enforcement of adherence to national legislation and work

regulation.

The Parties agree that labour standards should not be

3.
used for protectionist trade purposes.

Article 51

Consumer policy and protection of consumer health

1.
The Parties agree to step up their co-operation in the area
of consumer policy and consumer health protection, having
due regard to domestic legislation to avoid barriers to trade.

Co-operation shall,

systems of mutual

2.
in particular, aim at improving the
institutional and technical capacity in this area, establishing
rapid-alert
information on dangerous
products, exchanging information and experiences on the
establishment and operation of post market surveillance of
products and product safety, improving information provided
to consumers on prices, characteristics of products and services
independent
offered,
between consumer
associations
consumer
interest representatives,
improving compatibility of consumer
policies and systems, notifying enforcement and promoting
co-operation in investigating harmful or unfair business
practices and implementing exports prohibitions in the trade
between the Parties of goods and services the marketing of
which has been prohibited in their country of production.

development
contacts

encouraging

the
and

of

this Agreement, or any
accordance with the provisions of
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.

Nothing in this Agreement, or

2.
in any arrangements
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.

Nothing in this Agreement, or

3.
in any arrangements
adopted under this Agreement, shall be construed to prevent
the
the Parties from distinguishing,
between
relevant provisions of
taxpayers who are not
in particular
with regard to their place of residence, or with regard to the
place where their capital is invested.

in the application of
fiscal
legislation,
in the same situation,

their

C h a p t e r 6

Co-operation 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.

Article 54

Food security

1. With regard to available
the
Community undertakes to ensure that export refunds can be
fixed further in advance for all ACP States in respect of a range
of products drawn up in the light of the food requirements
expressed by those States.

agricultural products,

Article 52

Tax carve-out clause

1. Without prejudice to the provisions of Article 32.1 of
the Most Favoured Nation treatment granted in
Annex IV,

Advance fixing shall be for one year and shall be applied
2.
each year throughout
it being
understood that the level of the refund will be determined in
accordance with the methods normally followed by the
Commission.

this Convention,

the life of

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Specific agreements may be concluded with those ACP
3.
States which so request in the context of their food security
policies.

The specific agreements referred to in paragraph 2 shall
4.
not put in jeopardy production and trade flows in ACP regions.

PART 4

DEVELOPMENT FINANCE CO-OPERATION

TITLE I

Co-operation shall ensure special

2.
developed ACP countries and duly take into account
vulnerability of
landlocked and island ACP countries.
addition,
also be addressed.

least
the
In
the specific needs of post-conflict countries shall

treatment

for

Article 57

Guidelines

Operations

financed within the

1.
this
Agreement shall be implemented by the ACP States and the
the concept of equality
Community in close co-operation,
between the partners being recognised.

framework of

GENERAL PROVISIONS

2.

The ACP States shall be responsible for:

C h a p t e r 1

Objectives, principles, guidelines and eligibility

Article 55

Objectives

The objectives of development finance co-operation 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 co-operation 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
In
addition, co-operation shall:

shall be taken into account.

specific potential,

(a) defining the objectives and priorities on which the

indicative programmes are based;

(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.

The ACP States and the Community shall be jointly

4.
responsible for:

(a) establishing, within the joint institutions, the guidelines for

development finance co-operation;

(a) promote local ownership at all levels of the development

(b) adopting the indicative programmes;

process;

(c) appraising projects and programmes;

(b) reflect a partnership based on mutual rights and obli-

gations;

(c) emphasise the importance of predictability and security in
resource flows, granted on highly concessional terms and
on a continuous basis;

(d) ensuring equality of conditions for participation in invi-

tations to tender and contracts;

(e) monitoring and evaluating the effects and results of

projects and programmes; and

(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

(f) ensuring the proper, prompt and efficient execution of

projects and programmes.

(e) ensure efficiency, co-ordination and consistency.

The Community shall be responsible for taking financing

5.
decisions on projects and programmes.

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Unless otherwise provided for in this Agreement, all
6.
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 60

Scope of financing

Article 58

Eligibility for financing

The following entities or bodies shall be eligible for

1.
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

The scope of financing may include, inter alia, depending on
the needs and the types of operation considered most appro-
priate, support to:

(a) measures which contribute to attenuate the debt burden
and balance of payments problems of the ACP countries;

(b) macroeconomic and structural reforms and policies;

(c) mitigation of adverse effects of

instability in export

earnings;

(c)

joint bodies set up by the ACP States and the Community
to pursue certain specific objectives.

(e)

institutional development and capacity building;

(d) sectoral policies and reforms;

Subject to the agreement of the ACP State or ACP States
the following shall also be eligible for financial

2.
concerned,
support:

(f)

technical co-operation programmes; and

(a) national and/or regional public or semi-public agencies,
departments or local authorities of the ACP States and, in
institutions and development
particular,
banks;

financial

their

(b) companies,

firms and other private organisations and

private operators of ACP States;

(g) humanitarian and emergency assistance including assistance
to refugees and displaced persons, short-term rehabilitation
measures and disaster preparedness.

Article 61

Nature of financing

1.

The nature of financing shall, inter alia, include:

(c) enterprises of a Community Member State to enable them,
to undertake

in addition to their own contribution,
productive projects in the territory of an ACP State;

(a) projects and programmes;

(d) ACP or Community financial

promoting and financing private investments
States; and

intermediaries providing,
in ACP

(e) agents of decentralised co-operation and other non-State
actors from the ACP States and from the Community.

C h a p t e r 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.

(b) credit lines, guarantee schemes and equity participation;

(c) budgetary support, either directly, for the ACP States whose
convertible and freely transferable, or
funds generated by the

currencies are
indirectly,
various Community instruments;

from counterparts

(d) the human and material resources necessary for effective
and

supervision

projects

and

of

administration
programmes;

(e) sectoral and general

import support programmes which

may take the form of:

(i) sectoral

import

programmes

including financing of

procurement
productive system and supplies
services;

through
inputs

direct
in the
to improve social

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(ii) sectoral

import programmes in the form of foreign
financing
instalments

for

in

exchange
sectoral imports; and

released

(iii) general

foreign
import programmes in the form of
exchange released in instalments for financing general
imports covering a wide range of products.

Direct budgetary assistance in support of macroeconomic

2.
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.

Similar direct budgetary assistance shall be granted
3.
gradually to sectoral policies in substitution for individual
projects.

The instruments of

import programmes or budgetary
4.
support defined above can also be used to support eligible
ACP States
intra-regional
implementing reforms aimed at
economic liberalisation which generate net transitional costs.

5.
In the framework of the Agreement, the European Devel-
opment 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 European Community’s budget, shall be used
to finance projects, programmes and other forms of operations
contributing to the achievement of
this
Agreement.

the objectives of

6.
The funds provided under the Agreement may be used to
cover the total costs of both the local and foreign expenditure
cost
of projects
financing.

and programmes,

including

recurrent

TITLE II

FINANCIAL CO-OPERATION

C h a p t e r 1

Financial resources

Article 62

Overall amount

1.
amount of

For the purposes set out in this Agreement, the overall
financial assistance and the

the Community’s

detailed terms and conditions of financing are provided for
in the annexes to this Agreement.

Should an ACP State fail

to ratify this Agreement or
2.
denounce it, the Contracting Parties shall adjust the amounts
of
in the Financial Protocol.
Adjustment of the financial resources shall also apply upon:

the resources provided for

(a) the accession to the Agreement of new ACP 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:

(a) the level of development, the geographical situation and
economic and financial circumstances of these States;

(b) the nature of the project or programme, its economic and
financial return as well as its social and cultural impact;
and

(c)

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 recipient
through 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 or the loan contract,
after taking into account administrative costs, exchange and
financial risks and the cost of technical assistance given to
the final recipient.

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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 individual
projects and to administer the funds placed at its disposal
under the conditions provided for in this Agreement and by
mutual agreement between the parties.

EDF can be mobilised in support of
debt relief initiatives.

internationally agreed

At the request of an ACP State, the Community may

2.
grant:

Article 65

Co-financing

(a) assistance in studying and finding practical solutions to
debt-servicing

indebtedness
difficulties and balance of payments problems;

including

domestic

debt,

1.
The financial resources provided for in this Agreement
to
the request of
may be applied, at
co-financing undertaken in particular with development
agencies and institutions, Community Member States, ACP
States, third countries or international or private financial insti-
tutions, firms or export credit agencies.

the ACP States,

(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.

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 State concerned.

Co-financing may be in the form of

joint or parallel
3.
financing. Preference shall be given in each case to the
solution, which is more suitable from the point of view of
cost-effectiveness.
shall be taken to
In addition, measures
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.

and

The process of consultation and co-ordination with other
4.
should
and
donors
co-financiers
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.

strengthened

be

C h a p t e r 2

Debt and structural adjustment support

Article 66

Support for debt relief

In order to attenuate the debt burden of the ACP States
1.
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

In order

to contribute to the servicing of

3.
the debt
resulting from loans from the Bank’s own resources, special
in accordance
loans and risk capital,
with arrangements to be made on a case-by-case basis with
the Commission, use the available foreign currency referred
to in this Agreement for such servicing, as and when debt
repayment
required for
falls due and up to the amount
payments in national currency.

the ACP States may,

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 econ-
omically 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 macro-
economic or sectoral level, and permit an overall evaluation of
the reform efforts. Quick disbursement shall be an important
feature of support programmes.

The ACP States and the Community recognise the
2.
level
necessity to encourage reform programmes at regional
ensuring that,
in the preparation and execution of national
programmes, 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;

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(b) support the harmonisation and co-ordination of macro-
economic
and
customs areas, so as to fulfil the dual aim of regional inte-
gration and of structural reform at national level; and

and sectoral policies,

including fiscal

(c)

take account of the net transitional costs of regional inte-
gration on budget revenue and balance of payments, either
through general import programmes or budgetary support.

3.
ACP States undertaking or contemplating reform 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 multi-
lateral donors, or that are agreed with such donors but not
necessarily financially supported by them, shall be treated as
having automatically satisfied the requirements for adjustment
assistance.

Structural adjustment support shall be mobilised in a
5.
flexible manner and in the form of sectoral and general
import programmes or budgetary support.

adjustment programmes

The preparation, appraisal and financing decision for
6.
structural
carried out
according to the provisions on implementation procedures of
this Agreement with due regard to the quick disbursing feature
of structural adjustment programmes. On a case-by-case basis,
retroactive financing of a limited part of imports of ACP-EC
origin may be permissible.

shall be

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.

The purpose of support

2.
in cases of short-term fluc-
tuations 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 insta-
bility of export earnings in particular from agricultural and
mining products.

The extreme dependence of the ACP States’ economies on
3.
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, land-
locked 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.

C h a p t e r 4

Support for sectoral policies

Article 69

Co-operation

1.
instruments and modalities provided for in the Agreement:

support,

through

shall

the

various

The implementation of each support programme shall
7.
ensure that
the eligibility of ACP economic operators for
access to the resources of the programme is as wide and trans-
parent as possible and that the procurement procedures accord
with the administrative and commercial practices in the State
concerned, while ensuring the best possible price/quality ratio
on imported goods and the necessary consistency with the
progress
the
procedures for supporting structural adjustment.

internationally

harmonising

achieved

for

(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.

C h a p t e r 3

2.

This support shall be provided as appropriate through:

Support in cases of short-term fluctuations in export
earnings

(a) sectoral programmes;

Article 68

(b) budgetary support;

1.
The Parties recognise that instability of export earnings,
particularly in the agricultural and mining sectors, may
adversely affect the development of the ACP States and jeop-
ardise the attainment of their development requirements. A

(c)

investments;

(d) rehabilitation;

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(e)

training;

(f)

technical assistance; and

(g)

institutional support.

C h a p t e r 5

Microprojects and decentralised co-operation

Article 70

In order to respond to the needs of local communities with
regard to development, and to encourage all agents of decen-
tralised co-operation which are in a position to contribute to
the autonomous development of the ACP States to put forward
and implement initiatives, co-operation shall support, within
the framework laid down in the rules and national legislation
the
of
the ACP States concerned and the provisions of
In this
indicative programme, such development operations.
context, co-operation shall support:

(a) micro-projects at local level which have an economic and
impact on the life of the people, meet a demon-
social
strated and observed priority need, and shall be undertaken
at the initiative and with the active participation of the
local community which shall benefit therefrom; and

(b) decentralised co-operation,

in particular where

such
operations combine efforts and resources of decentralised
agents from the ACP States and their counterparts from the
Community. This form of co-operation 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 decentralised co-operation operations
the
may be supported from the financial
Agreement. Projects or programmes under
form of
co-operation 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
initiatives by local
indicative programme or the results of
communities or decentralised agents.

resources of
this

Contributions for the financing of micro-projects and
2.
decentralised co-operation 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 may 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);

financial,

(b) by the agents of decentralised co-operation, provided that
resources
the
brought
in by such agents shall not normally be less
than 25 % of the estimated cost of the project/programme;
and

technical material

and other

(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 decen-
laid down in the
those
tralised co-operation shall be
Agreement,
in particular those referred to in multi-annual
programmes.

C h a p t e r 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
long as necessary to deal with the
maintained for as
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 discrimi-
nation between victims on grounds of 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:

(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 integration
and, 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;

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(d) address the needs arising from the displacement of people
(refugees, displaced persons
following
natural or man-made disasters so as to meet, for as long
as necessary, all the needs of refugees and displaced persons
they may be) and facilitate action for their
(wherever
voluntary repatriation and re-integration in their country
of origin; and

and returnees)

C h a p t e r 7

Investment and private sector development support

Article 74

Co-operation shall, through financial and technical assistance,
support the policies and strategies for investment and private
sector development as set out in this Agreement.

(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.

Article 75

Investment promotion

Similar assistance, as set out above, may be granted to
4.
ACP States taking in refugees or returnees to meet acute needs
not covered by emergency assistance.

The ACP States, the Community and its Member States, within
the scope of
their respective competencies, recognising the
importance of private investment in the promotion of their
development co-operation and acknowledging the need to
take steps to promote such investment, shall:

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.

(a)

implement measures to encourage participation in their
development efforts by private investors who comply
with the objectives and priorities of ACP-EC development
co-operation and with the appropriate laws and regulations
of their respective States;

Humanitarian and emergency assistance operations shall
6.
be undertaken either at the request of the ACP country affected
by the crisis situation, the Commission, international organi-
sations 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.

(b) 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;

(c) encourage the EU private sector to invest and to provide
specific assistance to its counterparts in the ACP countries
under mutual business co-operation and partnerships;

Article 73

assistance under

1.
Post-emergency action, aimed at physical and social reha-
bilitation consequent on the results of natural disasters or
extraordinary circumstances having comparable effects, may
be undertaken with Community
this
Agreement. Such action, using effective and flexible mech-
anisms, must ease the transition from the emergency phase
to the development phase, promote the socio-economic reinte-
gration 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 sustainable development policy for the ACP
country concerned.

(d) facilitate partnerships and joint ventures by encouraging

co-financing;

(e) sponsor sectoral investment fora to promote partnerships

and external investment;

(f)

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;

(g) support

capacity

promotion
promoting and facilitating foreign investment;

agencies

building
and

domestic

for
institutions

investment
in

involved

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.

(h) disseminate information on investment opportunities and
business operating conditions in the ACP States; and

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regional and ACP-EU private sector
(i) promote national,
in
co-operation and partnerships,
business dialogue,
through an ACP-EU private sector business
particular
forum. Support
for operations of an ACP-EU private
sector business forum shall be provided in pursuit of the
following objectives:

Loans from the Bank’s own resources shall be granted in
2.
accordance with its statute and with the terms and conditions
laid down in Annex II to this Agreement.

(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 between 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; and

(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.
Co-operation 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
this purpose. To this end, co-operation shall
capital
provide, in particular:

for

(a) grants for financial and technical assistance to support
policy reforms, human resource development, institutional
capacity-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 inter-
mediaries,
facilitation and promotion and
competitiveness enhancement activities;

investment

(b) advisory and consultative services to assist in creating a
responsive investment climate and information base to
guide and encourage the flow of capital;

in support of domestic

for equity or quasi-equity investments, guar-
(c) risk-capital
antees
and foreign private
investment and loans or lines of credit on the conditions
laid down in Annex II (cid:145)Terms and conditions of financing(cid:146)
to this Agreement; and

(d) loans from the Bank’s own resources.

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. Co-operation shall
therefore ensure the increasing availability and use of risk
insurance as a risk-mitigating mechanism in order to boost
investor confidence in the ACP States.

Co-operation shall offer guarantees and assist with guar-
investment.

2.
antees
Specifically, co-operation shall provide support to:

covering

qualified

funds

risks

for

(a) reinsurance schemes to cover foreign direct investment by
eligible investors; against legal uncertainties and the major
risks of expropriation, currency transfer restriction, war
Investors
and civil disturbance, and breach of contract.
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

particular, domestic financial
encouraging the development of the financial sector.

funds,

in
institutions or investors for

involving,

Co-operation shall also provide support

to capacity-
3.
institutional support and participation in the core
building,
funding of national and/or regional
initiatives to reduce the
commercial risks for investors (inter alia guarantee funds, regu-
latory bodies, arbitration mechanisms and judiciary systems to
enhance the protection of investments improving the export
credit systems).

4.
Co-operation 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
private and other public organisations. The ACP and the EC
will within the framework of the ACP-EC Development Finance
Co-operation Committee undertake a joint
study on the
proposal to set up an ACP-EC Guarantee Agency to provide
and manage investment guarantee programmes.

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Article 78

Investment protection

(a) be demand-driven and thus made available only at the
the ACP State or States concerned, and

request of
adapted to recipient needs;

The ACP States and the Community and its Member
1.
respective competencies,
their
States, within the scope of
affirm the need to promote and protect
either Party’s
investments on 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.

(b) complement and support ACP efforts to identify their own

requirements;

(c) be monitored and followed up to guarantee effectiveness;

In order to encourage European investment

in devel-
2.
opment 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.

The Parties also agree to introduce, within the economic
3.
partnership agreements, and while respecting the respective
competencies of
the Community and its Member States,
general principles on protection and promotion of investments,
which will endorse the best results agreed in the competent
international fora or bilaterally.

TITLE III

TECHNICAL CO-OPERATION

Article 79

Technical co-operation shall assist the ACP States in the
1.
development of national and regional manpower resources, the
for devel-
sustained development of
opment
strengthening ACP
success,
consulting firms and organisations, as well as exchange
arrangements involving consultants from both ACP and EU
firms.

the institutions critical
alia

including inter

technical

shall be

Furthermore,

co-operation,

2.
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 co-operation shall
contribute to the achievement of project and programme goals,
including efforts to strengthen management capacity of the
National
Technical
and Regional Authorising Officers.
assistance shall:

and

(d) encourage the participation of ACP experts, consultancy
in
and
firms
contracts financed from the Fund and identify ways of
employing qualified national and regional personnel on
Fund projects;

research institutions

educational

(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;

constraints

(f) aim at developing knowledge of national and regional
manpower
and establish a
register of ACP experts, consultants and consultancy firms
suitable for employment on projects and programmes
financed from the Fund;

and potential

(g) support intra-ACP technical assistance in order to promote
the
technical
exchange between the ACP States of
assistance, management and professional expertise;

(h) develop action programmes

long-term institution
building and staff development as an integral part of
project and programme planning, account being taken of
the necessary financial requirements;

for

(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’
implementation and

in project planning,

capacities
evaluation, as well budget management.

3.
Technical assistance may be provided in all areas of
this
co-operation and within the limits of
Agreement. The activities covered would be diverse in scope
and nature, and would be tailored to meet the needs of the
ACP States.

the mandate of

4.
Technical co-operation may be either of a specific or a
general nature. The ACP-EC Development Finance Co-operation
Committee shall establish the guidelines for the implementation
of technical co-operation.

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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
re-installation
through
developed
incentives.

appropriate

countries

(b) examine the problems arising from the implementation of
development co-operation activities and propose appro-
priate 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

TITLE IV

PROCEDURES AND MANAGEMENT SYSTEMS

(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.

Article 81

Procedures

field. The

Management procedures shall be transparent, easy to apply and
shall enable the decentralisation of tasks and responsibilities to
the
implementation of ACP-EU development
co-operation shall be open to non-State actors in areas that
concern them. The
for
the
programming,
management of financial and technical co-operation are laid
down in Annex IV on Implementation and management
procedures. The Council of Ministers may review, revise and
amend these provisions on the basis of a recommendation
from the ACP-EU Development
Finance Co-operation
Committee.

detailed procedural provisions
implementation

preparation,

and

Article 82

Executing agents

3.
The ACP-EC Committee, which shall meet every quarter,
shall be composed, on a basis of parity, of representatives of
the Community appointed by the
the ACP States and of
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.

The Council of Ministers shall

lay down the ACP-EC
4.
in particular the conditions
Committee’s rules of procedure,
for
the
representation and the number of members of
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
co-operation. These experts shall make recommendations to
the Committee on possible ways of removing such difficulties
and bottlenecks.

For the implementation of financial and technical co-operation
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.

PART 5

GENERAL PROVISIONS FOR THE LEAST-DEVELOPED,
LANDLOCKED AND ISLAND ACP STATES

Article 83

ACP-EC Development Finance Co-operation Committee

the objectives of development

The Council of Ministers shall at

least once a year
1.
examine whether
finance
co-operation are being attained and shall examine the general
and specific problems resulting from the implementation of
that co-operation. To this end, an ACP-EC Development
Finance Co-operation Committee, hereinafter referred to as
(cid:145)the ACP-EC Committee’, shall be set up within the Council
of Ministers.(cid:146)

2.

The ACP-EC Committee shall, inter alia:

(a) ensure the overall achievement of the objectives and prin-
ciples of development finance co-operation and establish
general guidelines for their effective and timely implemen-
tation;

C h a p t e r 1

General provisions

Article 84

1.
To enable LDLIC’s to take full advantage of the oppor-
tunities offered by the Convention so as to step up their
respective rates of development, co-operation shall ensure
special treatment for the least-developed ACP countries and
take due account of
landlocked and
island ACP countries. It shall also take into consideration the
needs of countries in post-conflict situations.

the vulnerability of

2.
Independently of the specific measures and provisions for
the least-developed,
landlocked and island countries in the
the Convention, special attention shall
different chapters of
be paid in respect of these groups as well as countries in
post-conflict situations to:

(a) the strengthening of regional co-operation

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(b) transport and communications’ infrastructure;

a third State in a comparable situation accedes
Agreement.

to the

(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
of
implementation
adjustment; and

dimension

social

stage,

the

of

(e)

the implementation of food strategies and integrated devel-
opment programmes.

C h a p t e r 2

Least-developed ACP States

Article 85

1.
The least-developed ACP States shall be accorded 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:

Article 88

The provisions adopted in respect of the landlocked ACP States
are contained in the following Articles: 2, 32, 35, 56, 68, 84,
87.

C h a p t e r 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 is 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

(a) a third State in a comparable situation accedes to this

Agreement; and

The provisions adopted in respect of the island ACP States are
contained in the following Articles: 2, 32, 35, 56, 68, 84, 89.

(b) the

economic

situation of

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.

an ACP

State

Article 86

The provisions adopted in respect of the least-developed ACP
States are contained in the following Articles: 2, 29, 32, 35, 37,
56, 68, 84, 85.

C h a p t e r 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

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

to the special provisions

Subject
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 terri-
tories of the ACP States.

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Article 93

Ratification and entry into force

This Agreement shall be ratified or approved by the
1.
signatory Parties in accordance with their respective constitu-
tional rules and procedures.

The instruments of

ratification or approval of

this
2.
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 ACP States. The
Secretariats shall promptly notify the signatory States and the
Community.

This Agreement shall enter into force on the first day of
3.
the
the second month following the date of deposit of
instruments of ratification of
the Member States and of at
least two-thirds of 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 do so 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.

The rules of procedure of the joint institutions set up
5.
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
in the absence of normally established government
which,
institutions, have not been able to sign or
ratify this
Agreement. This support may concern institution building
and economic
taking
and social development
the most vulnerable
particular account of
sections of
In this context, such countries
will be able to draw on the funds provided for in Part 4 of
this Agreement for financial and technical co-operation.

the population.

the needs of

activities,

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.

Article 94

Accession

Any request for accession to this Agreement made by an
1.
independent
and
economic and social situation are comparable to those of the
ACP States shall be presented to the Council of Ministers.

characteristics

State whose

structural

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 notify the 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 devel-
opment co-operation financing. The Council of Ministers may
lay down the conditions 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 the 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 to the European Union.

If

from the date of

Any new Member State of the European Union shall become a
contracting party to this Agreement
its
accession by means of a clause to this effect in the act of
the act of accession to the Union does not
accession.
provide for such automatic accession of the Member State to
this Agreement, the Member State concerned shall accede 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 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.

Article 95

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.

Duration of the agreement and revision clause

This Agreement is hereby concluded for a period of 20

1.
years, commencing on 1 March 2000.

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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
for which a special
on economic and trade co-operation,
review procedure is provided for. Notwithstanding this time
limit,
if one party requests 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
the
contracting Parties shall enter into negotiations with a view
to examining any possible amendments to the provisions that
were the subject of the notification.

this five-year period,

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 appro-
priate measures as regards human rights, democratic prin-
ciples and the rule of law

1. Within the meaning of this Article, the term (cid:145)Party(cid:146) 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 thorough examination of
situation with a view to seeking a solution
the
acceptable to the Parties. To this end,
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.

it shall

The consultations shall be conducted at the level and in
the form considered most appropriate for finding a
solution.

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
the
reasons for taking them have disappeared.

shall be revoked as

soon as

(b) The term (cid:145)cases of special urgency(cid:146) shall refer to excep-
tional 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 urgency procedure
shall
inform the other Party and the Council of
Ministers separately of the fact unless it does not have
time to do so.

(c) The (cid:145)appropriate measures(cid:146) 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
is
understood that suspension would be a measure of
last resort.

the application of

this agreement.

It

If measures are taken in cases of special urgency, they
shall be immediately notified to the other Party and the
the Party
Council of Ministers. At
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).

the request of

Article 97

Consultation procedure and appropriate measures as
regards corruption

The Parties consider that when the Community is a
1.
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.

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In all cases,

If the consultations do not lead to a solution acceptable
3.
to both Parties or if consultation is refused, the Parties shall
take the appropriate measures.
it is above all
incumbent 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
In the
selection of these measures, priority must be given to those
which least disrupt the application of
It is
understood that suspension would be a measure of last resort.

to the seriousness of

this agreement.

the situation.

4. Within the meaning of this Article, the term (cid:145)Party(cid:146) refers
to the Community and the Member States of the European
Union, of the one part, and each ACP State, of the other part.

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 on
the 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
appoint an arbitrator within 30 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.

tration regulation of the Permanent Court of Arbitration
for International Organisations and States. The arbi-
trators’ decisions
shall be taken by majority vote
within three months.

(d) Each Party to the dispute shall be bound to take the
the

the decision of

measures necessary to carry out
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.

Article 100

Status of the texts

The protocols and annexes attached to this Agreement shall
form an integral part thereof. The annexes No II, III, IV and
VI may be revised, reviewed and/or amended by the Council of
Ministers on the basis of a recommendation from the ACP-EC
Development Finance Co-operation Committee.

(b) The two arbitrators shall in turn appoint a third arbi-
trator within 30 days. In the event of failure to do so,
the
either Party may ask the Secretary General of
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 arbi-

This Agreement, drawn up in two copies in the Danish, Dutch,
Italian, Portuguese,
English, Finnish, French, German, Greek,
Spanish and Swedish languages, all
texts being equally
authentic, shall be deposited in the archives of the General
the Council of
Secretariat of
the European Union and the
the ACP States, which shall both transmit a
Secretariat of
the Signatory
certified copy to the government of each of
States.