The Cotonou agreement, signed in Cotonou on 23 June 2000, revised in Luxembourg on 25 June 2005, revised in Ouagadougou on 22 June 2010, and multiannual financial framework 2014-20.
Date: 2014-03-06
Institutions: Directorate-General for International Cooperation and Development
Subjects: ACP countries, ACP-EU relationship, Cotonou Agreement, EU financing, cooperation agreement, revision of an agreement

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EUROPEAN COMMISSION

The Cotonou Agreement

Signed in Cotonou on 23 June 2000
Revised in Luxembourg on 25 June 2005
Revised in Ouagadougou on 22 June 2010

and multiannual ﬁnancial 
framework 2014–20

2014

Development and Cooperation — EuropeAid

Information for readers

Please note that only the text of the Agreement amending the Partnership Agreement published 
in the paper edition of the Oﬃcial Journal of the European Union is deemed authentic.

The latest modiﬁcations adopted between December 2007 and June 2013 are in blue. 

Any comments or suggestions for improvements can be addressed to the European Commission, 
Directorate-General  for  Development  and  Cooperation  —  EuropeAid,  Unit  Planning  ACP  and 
Horizontal Coordination.

Following  the  entry  into  force  of  the  Lisbon  Treaty,  the  European  Union  has  replaced  and 
succeeded  the  European  Community  and  from  that  date  exercises  all  rights  and  assumes  all 
obligations of the European Community. References to ‘the European Community’ in the text of 
the Agreement are, where appropriate, to be read as ‘the European Union’. However, although the 
EU has signalled this change to its ACP partners, the formal title and text of this Agreement have 
not yet been formally updated. Thus the formal title of this Agreement remains ‘the Partnership 
Agreement between the members of the African, Caribbean and Paciﬁc Group of States of the 
one part, and the European Community and its Member States of the other part’.

OJ L 317, 15.12.2000
OJ L 141, 7.6.2003
OJ L 297, 22.9.2004
OJ L 385, 29.12.2004
OJ L 209, 11.8.2005
OJ L 287, 28.10.2005
OJ L 247, 9.9.2006
OJ L 25, 30.1.2008
OJ L 171, 1.7.2008
OJ L 352, 31.12.2008
OJ L 168, 30.6.2009
OJ L 287, 4.11.2010
OJ L 174, 4.7.2012
OJ L 173, 26.6.2013

LIST OF COUNTRIES SIGNATORIES 
OF THE AGREEMENT AMENDING 
FOR THE SECOND TIME THE 
PARTNERSHIP AGREEMENT

IN OUAGADOUGOU ON 22 JUNE 2010

THE COTONOU AGREEMENT

5

HIS MAJESTY THE KING OF THE BELGIANS,
THE PRESIDENT OF THE REPUBLIC OF BULGARIA,
THE PRESIDENT OF THE CZECH REPUBLIC,
HER MAJESTY THE QUEEN OF DENMARK,
THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY,
THE PRESIDENT OF THE REPUBLIC OF ESTONIA,
THE PRESIDENT OF IRELAND,
THE PRESIDENT OF THE HELLENIC REPUBLIC,
HIS MAJESTY THE KING OF SPAIN,
THE PRESIDENT OF THE FRENCH REPUBLIC,
THE PRESIDENT OF THE ITALIAN REPUBLIC,
THE PRESIDENT OF THE REPUBLIC OF CYPRUS,
THE PRESIDENT OF THE REPUBLIC OF LATVIA,
THE PRESIDENT OF THE REPUBLIC OF LITHUANIA,
HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG,
THE PRESIDENT OF THE REPUBLIC OF HUNGARY,
THE PRESIDENT OF MALTA,
HER MAJESTY THE QUEEN OF THE NETHERLANDS,
THE FEDERAL PRESIDENT OF THE REPUBLIC OF AUSTRIA,
THE PRESIDENT OF THE REPUBLIC OF POLAND,
THE PRESIDENT OF THE PORTUGUESE REPUBLIC,
THE PRESIDENT OF ROMANIA,
THE PRESIDENT OF THE REPUBLIC OF SLOVENIA,
THE PRESIDENT OF THE SLOVAK REPUBLIC,
THE PRESIDENT OF THE REPUBLIC OF FINLAND,
THE GOVERNMENT OF THE KINGDOM OF SWEDEN,
HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT BRITAIN AND 
NORTHERN IRELAND,
Contracting Parties to the Treaty on European Union and the Treaty on the 
Functioning of the European Union, hereina(cid:3)er referred to as ‘the Member 
States’,
and
THE EUROPEAN UNION, hereina(cid:3)er referred to as ‘the Union’ or ‘the EU’,
of the one part, and
THE PRESIDENT OF THE REPUBLIC OF ANGOLA,
HER MAJESTY THE QUEEN OF ANTIGUA AND BARBUDA,
THE HEAD OF STATE OF THE COMMONWEALTH OF THE BAHAMAS,
THE HEAD OF STATE OF BARBADOS,
HER MAJESTY THE QUEEN OF BELIZE,
THE PRESIDENT OF THE REPUBLIC OF BENIN,

6

THE COTONOU AGREEMENT

THE PRESIDENT OF THE REPUBLIC OF BOTSWANA,
THE PRESIDENT OF BURKINA FASO,
THE PRESIDENT OF THE REPUBLIC OF BURUNDI,
THE PRESIDENT OF THE REPUBLIC OF CAMEROON,
THE PRESIDENT OF THE REPUBLIC OF CAPE VERDE,
THE PRESIDENT OF THE CENTRAL AFRICAN REPUBLIC,
THE PRESIDENT OF THE UNION OF THE COMOROS,
THE PRESIDENT OF THE DEMOCRATIC REPUBLIC OF CONGO,
THE PRESIDENT OF THE REPUBLIC OF CONGO,
THE GOVERNMENT OF THE COOK ISLANDS,
THE PRESIDENT OF THE REPUBLIC OF CÔTE D’IVOIRE,
THE PRESIDENT OF THE REPUBLIC OF DJIBOUTI,
THE GOVERNMENT OF THE COMMONWEALTH OF DOMINICA,
THE PRESIDENT OF THE DOMINICAN REPUBLIC,
THE PRESIDENT OF THE STATE OF ERITREA,
THE PRESIDENT OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA,
THE PRESIDENT OF THE REPUBLIC OF THE FIJI ISLANDS,
THE PRESIDENT OF THE GABONESE REPUBLIC,
THE PRESIDENT AND HEAD OF STATE OF THE REPUBLIC OF THE GAMBIA,
THE PRESIDENT OF THE REPUBLIC OF GHANA,
HER MAJESTY THE QUEEN OF GRENADA,
THE PRESIDENT OF THE REPUBLIC OF GUINEA,
THE PRESIDENT OF THE REPUBLIC OF GUINEA-BISSAU,
THE PRESIDENT OF THE CO-OPERATIVE REPUBLIC OF GUYANA,
THE PRESIDENT OF THE REPUBLIC OF HAITI,
THE HEAD OF STATE OF JAMAICA,
THE PRESIDENT OF THE REPUBLIC OF KENYA,
THE PRESIDENT OF THE REPUBLIC OF KIRIBATI,
HIS MAJESTY THE KING OF THE KINGDOM OF LESOTHO,
THE PRESIDENT OF THE REPUBLIC OF LIBERIA,
THE PRESIDENT OF THE REPUBLIC OF MADAGASCAR,
THE PRESIDENT OF THE REPUBLIC OF MALAWI,
THE PRESIDENT OF THE REPUBLIC OF MALI,
THE GOVERNMENT OF THE REPUBLIC OF THE MARSHALL ISLANDS,
THE PRESIDENT OF THE ISLAMIC REPUBLIC OF MAURITANIA,
THE PRESIDENT OF THE REPUBLIC OF MAURITIUS,
THE GOVERNMENT OF THE FEDERATED STATES OF MICRONESIA,
THE PRESIDENT OF THE REPUBLIC OF MOZAMBIQUE,
THE PRESIDENT OF THE REPUBLIC OF NAMIBIA,
THE GOVERNMENT OF THE REPUBLIC OF NAURU,

THE COTONOU AGREEMENT

7

THE PRESIDENT OF THE REPUBLIC OF NIGER,
THE PRESIDENT OF THE FEDERAL REPUBLIC OF NIGERIA,
THE GOVERNMENT OF NIUE,
THE GOVERNMENT OF THE REPUBLIC OF PALAU,
HER MAJESTY THE QUEEN OF THE INDEPENDENT STATE OF PAPUA NEW GUINEA,
THE PRESIDENT OF THE REPUBLIC OF RWANDA,
HER MAJESTY THE QUEEN OF SAINT KITTS AND NEVIS,
HER MAJESTY THE QUEEN OF SAINT LUCIA,
HER MAJESTY THE QUEEN OF SAINT VINCENT AND THE GRENADINES,
THE HEAD OF STATE OF THE INDEPENDENT STATE OF SAMOA,
THE PRESIDENT OF THE DEMOCRATIC REPUBLIC OF SÃO TOMÉ AND PRÍNCIPE,
THE PRESIDENT OF THE REPUBLIC OF SENEGAL,
THE PRESIDENT OF THE REPUBLIC OF SEYCHELLES,
THE PRESIDENT OF THE REPUBLIC OF SIERRA LEONE,
HER MAJESTY THE QUEEN OF SOLOMON ISLANDS,
THE PRESIDENT OF THE REPUBLIC OF SOUTH AFRICA,
THE PRESIDENT OF THE REPUBLIC OF SURINAME,
HIS MAJESTY THE KING OF THE KINGDOM OF SWAZILAND,
THE PRESIDENT OF THE UNITED REPUBLIC OF TANZANIA,
THE PRESIDENT OF THE REPUBLIC OF CHAD, 
THE PRESIDENT OF THE DEMOCRATIC REPUBLIC OF TIMOR-LESTE,
THE PRESIDENT OF THE TOGOLESE REPUBLIC,
HIS MAJESTY THE KING OF TONGA,
THE PRESIDENT OF THE REPUBLIC OF TRINIDAD AND TOBAGO,
HER MAJESTY THE QUEEN OF TUVALU,
THE PRESIDENT OF THE REPUBLIC OF UGANDA,
THE GOVERNMENT OF THE REPUBLIC OF VANUATU,
THE PRESIDENT OF THE REPUBLIC OF ZAMBIA,
THE GOVERNMENT OF THE REPUBLIC OF ZIMBABWE,
which states are hereina(cid:3)er referred to as ‘ACP States’,
of the other part,

HAVING REGARD to the Treaty on the Functioning of the European Union, on the 
one  hand,  and  the  Georgetown  Agreement  establishing  the  Group  of  African, 
 Caribbean and Paciﬁc States (ACP), on the other;

HAVING  REGARD  to  the  Partnership  Agreement  between  the  members  of  the 
 African,  Caribbean  and  Paciﬁc  Group  of  States,  of  the  one  part,  and  the  Euro-
pean Community and its Member States, of the other part, signed in Cotonou on 

8

THE COTONOU AGREEMENT

23  June  2000,  as  ﬁrst  amended  in  Luxembourg  on  25  June  2005  (hereina(cid:3)er 
referred to as ‘the Cotonou Agreement’);

CONSIDERING  that  Article  95(1)  of  the  Cotonou  Agreement  lays  down  that  the 
duration of the Agreement shall be 20 years, commencing on 1 March 2000;

CONSIDERING  that  the  Agreement  amending  the  Cotonou  Agreement  for  the 
ﬁrst time was signed in Luxembourg on 25 June 2005 and entered into force on 
1 July 2008;

HAVE DECIDED to sign this Agreement amending the Cotonou Agreement for the 
second time and to this end have designated as their Plenipotentiaries:

FOR HIS MAJESTY THE KING OF THE BELGIANS,
FOR THE PRESIDENT OF THE REPUBLIC OF BULGARIA,
FOR THE PRESIDENT OF THE CZECH REPUBLIC,
FOR HER MAJESTY THE QUEEN OF DENMARK,
FOR THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY,
FOR THE PRESIDENT OF THE REPUBLIC OF ESTONIA,
FOR THE PRESIDENT OF IRELAND,
FOR THE PRESIDENT OF THE HELLENIC REPUBLIC,
FOR HIS MAJESTY THE KING OF SPAIN,
FOR THE PRESIDENT OF THE FRENCH REPUBLIC,
FOR THE PRESIDENT OF THE ITALIAN REPUBLIC,
FOR THE PRESIDENT OF THE REPUBLIC OF CYPRUS,
FOR THE PRESIDENT OF THE REPUBLIC OF LATVIA,
FOR THE PRESIDENT OF THE REPUBLIC OF LITHUANIA,
FOR HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG,
FOR THE PRESIDENT OF THE REPUBLIC OF HUNGARY,
FOR THE PRESIDENT OF MALTA,
FOR HER MAJESTY THE QUEEN OF THE NETHERLANDS,
FOR THE FEDERAL PRESIDENT OF THE REPUBLIC OF AUSTRIA,
FOR THE PRESIDENT OF THE REPUBLIC OF POLAND,
FOR THE PRESIDENT OF THE PORTUGUESE REPUBLIC,
FOR THE PRESIDENT OF ROMANIA,
FOR THE PRESIDENT OF THE REPUBLIC OF SLOVENIA,
FOR THE PRESIDENT OF THE SLOVAK REPUBLIC,
FOR THE PRESIDENT OF THE REPUBLIC OF FINLAND,
FOR THE GOVERNMENT OF THE KINGDOM OF SWEDEN,

THE COTONOU AGREEMENT

9

FOR HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT BRITAIN 
AND  NORTHERN IRELAND,
FOR THE EUROPEAN UNION,
FOR THE PRESIDENT OF THE REPUBLIC OF ANGOLA,
FOR HER MAJESTY THE QUEEN OF ANTIGUA AND BARBUDA,
FOR THE HEAD OF STATE OF THE COMMONWEALTH OF THE BAHAMAS,
FOR THE HEAD OF STATE OF BARBADOS,
FOR HER MAJESTY THE QUEEN OF BELIZE,
FOR THE PRESIDENT OF THE REPUBLIC OF BENIN,
FOR THE PRESIDENT OF THE REPUBLIC OF BOTSWANA,
FOR THE PRESIDENT OF BURKINA FASO,
FOR THE PRESIDENT OF THE REPUBLIC OF BURUNDI,
FOR THE PRESIDENT OF THE REPUBLIC OF CAMEROON,
FOR THE PRESIDENT OF THE REPUBLIC OF CAPE VERDE,
FOR THE PRESIDENT OF THE CENTRAL AFRICAN REPUBLIC,
FOR THE PRESIDENT OF THE UNION OF THE COMOROS,
FOR THE PRESIDENT OF THE DEMOCRATIC REPUBLIC OF CONGO,
FOR THE PRESIDENT OF THE REPUBLIC OF CONGO,
FOR THE GOVERNMENT OF THE COOK ISLANDS,
FOR THE PRESIDENT OF THE REPUBLIC OF CÔTE D’IVOIRE,
FOR THE PRESIDENT OF THE REPUBLIC OF DJIBOUTI,
FOR THE GOVERNMENT OF THE COMMONWEALTH OF DOMINICA,
FOR THE PRESIDENT OF THE DOMINICAN REPUBLIC,
FOR THE PRESIDENT OF THE STATE OF ERITREA,
FOR THE PRESIDENT OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA,
FOR THE PRESIDENT OF THE REPUBLIC OF THE FIJI ISLANDS,
FOR THE PRESIDENT OF THE GABONESE REPUBLIC,
FOR THE PRESIDENT AND HEAD OF STATE OF THE REPUBLIC OF THE GAMBIA,
FOR THE PRESIDENT OF THE REPUBLIC OF GHANA,
FOR HER MAJESTY THE QUEEN OF GRENADA,
FOR THE PRESIDENT OF THE REPUBLIC OF GUINEA,
FOR THE PRESIDENT OF THE REPUBLIC OF GUINEA-BISSAU,
FOR THE PRESIDENT OF THE CO-OPERATIVE REPUBLIC OF GUYANA,
FOR THE PRESIDENT OF THE REPUBLIC OF HAITI,
FOR THE HEAD OF STATE OF JAMAICA,
FOR THE PRESIDENT OF THE REPUBLIC OF KENYA,
FOR THE PRESIDENT OF THE REPUBLIC OF KIRIBATI,
FOR HIS MAJESTY THE KING OF THE KINGDOM OF LESOTHO,
FOR THE PRESIDENT OF THE REPUBLIC OF LIBERIA,
FOR THE PRESIDENT OF THE REPUBLIC OF MADAGASCAR,

10

THE COTONOU AGREEMENT

FOR THE PRESIDENT OF THE REPUBLIC OF MALAWI,
FOR THE PRESIDENT OF THE REPUBLIC OF MALI,
FOR THE GOVERNMENT OF THE REPUBLIC OF THE MARSHALL ISLANDS,
FOR THE PRESIDENT OF THE ISLAMIC REPUBLIC OF MAURITANIA,
FOR THE PRESIDENT OF THE REPUBLIC OF MAURITIUS,
FOR THE GOVERNMENT OF THE FEDERATED STATES OF MICRONESIA,
FOR THE PRESIDENT OF THE REPUBLIC OF MOZAMBIQUE,
FOR THE PRESIDENT OF THE REPUBLIC OF NAMIBIA,
FOR THE GOVERNMENT OF THE REPUBLIC OF NAURU,
FOR THE PRESIDENT OF THE REPUBLIC OF NIGER,
FOR THE PRESIDENT OF THE FEDERAL REPUBLIC OF NIGERIA,
FOR THE GOVERNMENT OF NIUE,
FOR THE GOVERNMENT OF THE REPUBLIC OF PALAU,
FOR HER MAJESTY THE QUEEN OF THE INDEPENDENT STATE OF PAPUA NEW 
GUINEA,
FOR THE PRESIDENT OF THE REPUBLIC OF RWANDA,
FOR HER MAJESTY THE QUEEN OF SAINT KITTS AND NEVIS,
FOR HER MAJESTY THE QUEEN OF SAINT LUCIA,
FOR HER MAJESTY THE QUEEN OF SAINT VINCENT AND THE GRENADINES,
FOR THE HEAD OF STATE OF THE INDEPENDENT STATE OF SAMOA,
FOR THE PRESIDENT OF THE DEMOCRATIC REPUBLIC OF SÃO TOMÉ AND 
PRÍNCIPE,
FOR THE PRESIDENT OF THE REPUBLIC OF SENEGAL,
FOR THE PRESIDENT OF THE REPUBLIC OF SEYCHELLES,
FOR THE PRESIDENT OF THE REPUBLIC OF SIERRA LEONE,
FOR HER MAJESTY THE QUEEN OF SOLOMON ISLANDS,
FOR THE PRESIDENT OF THE REPUBLIC OF SOUTH AFRICA,
FOR THE PRESIDENT OF THE REPUBLIC OF SURINAME,
FOR HIS MAJESTY THE KING OF THE KINGDOM OF SWAZILAND,
FOR THE PRESIDENT OF THE UNITED REPUBLIC OF TANZANIA,
FOR THE PRESIDENT OF THE REPUBLIC OF CHAD,
FOR THE PRESIDENT OF THE DEMOCRATIC REPUBLIC OF TIMOR-LESTE,
FOR THE PRESIDENT OF THE TOGOLESE REPUBLIC,
FOR HIS MAJESTY THE KING OF TONGA,
FOR THE PRESIDENT OF THE REPUBLIC OF TRINIDAD AND TOBAGO,
FOR HER MAJESTY THE QUEEN OF TUVALU,
FOR THE PRESIDENT OF THE REPUBLIC OF UGANDA,
FOR THE GOVERNMENT OF THE REPUBLIC OF VANUATU,
FOR THE PRESIDENT OF THE REPUBLIC OF ZAMBIA,
FOR THE GOVERNMENT OF THE REPUBLIC OF ZIMBABWE,

PARTNERSHIP AGREEMENT 
BETWEEN THE MEMBERS OF 
THE AFRICAN, CARIBBEAN AND 
PACIFIC GROUP OF STATES OF THE 
ONE PART, AND THE EUROPEAN 
COMMUNITY AND ITS MEMBER 
STATES OF THE OTHER PART

SIGNED IN COTONOU ON 23 JUNE 2000

REVISED IN LUXEMBOURG ON 25 JUNE 2005

REVISED IN OUAGADOUGOU ON 22 JUNE 2010

AND MULTIANNUAL FINANCIAL FRAMEWORK 2014(cid:2)20

THE COTONOU AGREEMENT

13

CONTENTS

PREAMBLE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

PART 1 — GENERAL PROVISIONS  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

TITLE I — OBJECTIVES, PRINCIPLES AND ACTORS  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  17

TITLE II — THE POLITICAL DIMENSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  21

PART 2 — INSTITUTIONAL PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

PART 3 — COOPERATION STRATEGIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

TITLE I — DEVELOPMENT STRATEGIES  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

TITLE II — ECONOMIC AND TRADE COOPERATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

PART 4 — DEVELOPMENT FINANCE COOPERATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

TITLE I — GENERAL PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

TITLE II — FINANCIAL COOPERATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

TITLE III — TECHNICAL COOPERATION   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

TITLE IV — PROCEDURES AND MANAGEMENT SYSTEMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

PART 5 —  GENERAL PROVISIONS FOR THE LEAST DEVELOPED, LANDLOCKED 

AND ISLAND ACP STATES (LDLICS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

PART 6 — FINAL PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100

ANNEXES TO THE AGREEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .107

ANNEX I — FINANCIAL PROTOCOL  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .109

ANNEX IA —  MULTI-ANNUAL FINANCIAL FRAMEWORK OF COOPERATION 

UNDER THIS AGREEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .111

ANNEX IB —  MULTI-ANNUAL FINANCIAL FRAMEWORK 

FOR THE PERIOD 2008 TO 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112

ANNEX IC —  MULTI-ANNUAL FINANCIAL FRAMEWORK 

FOR THE PERIOD 2014 TO 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .115

ANNEX II — TERMS AND CONDITIONS OF FINANCING  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .118

ANNEX III — INSTITUTIONAL SUPPORT, CDE AND CTA   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .131

ANNEX IV — IMPLEMENTATION AND MANAGEMENT PROCEDURES . . . . . . . . . . . . . . . . . . . .136

ANNEX V —  TRADE REGIME APPLICABLE DURING THE PREPARATORY PERIOD 

REFERRED TO IN ARTICLE 37(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .170

ANNEX VI —  LIST OF THE LEAST DEVELOPED, LANDLOCKED 

AND ISLAND ACP STATES (LDLICS)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .171

ANNEX VII —  POLITICAL DIALOGUE AS REGARDS HUMAN RIGHTS, DEMOCRATIC 

PRINCIPLES AND THE RULE OF LAW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .173

PROTOCOLS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .175

PROTOCOL 1 — On the operating expenditure of the joint institutions . . . . . . . . . . . . . . . .177

PROTOCOL 2 — On privileges and immunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .179

PROTOCOL 3 — On South Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  184

FINAL ACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .189

DECLARATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .197

14

THE COTONOU AGREEMENT

PREAMBLE

HAVING REGARD TO the Treaty establishing the European Community, on the one 
hand, and the Georgetown Agreement establishing the Group of African, Carib-
bean and Paciﬁc States (ACP), on the other;

AFFIRMING their commitment to work together towards the achievement of the 
objectives of poverty eradication, sustainable development and the gradual inte-
gration of the ACP countries into the world economy;

ASSERTING their resolve to make, through their cooperation, a signiﬁcant contri-
bution 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 imple-
ment a comprehensive and integrated approach for a strengthened partnership 
based  on  political  dialogue,  development  cooperation  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 Discrimina-
tion, the 1949 Geneva Conventions and the other instruments of international hu-
manitarian law, the 1954 Convention relating to the status of stateless persons, 
the  1951  Geneva  Convention  relating  to  the  Status  of  Refugees  and  the  1967 
New York Protocol relating to the Status of Refugees;

THE COTONOU AGREEMENT

15

CONSIDERING the Convention for the Protection of Human Rights and Fundamen-
tal Freedoms of the Council of Europe, the African Charter on Human and Peo-
ples’ 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;

REAFFIRMING that the most serious crimes of concern to the international com-
munity must not go unpunished and that their eﬀective prosecution must be en-
sured by taking measures at national level and by enhancing global collaboration;

CONSIDERING  that  the  establishment  and  eﬀective  functioning  of  the  Interna-
tional Criminal Court constitute an important development for peace and inter-
national justice;

RECALLING the declarations of the successive Summits of the Heads of State 
and Government of ACP States;

CONSIDERING that the Millennium Development Goals emanating from the Mil-
lennium Declaration adopted by the United Nations General Assembly in 2000, in 
particular the eradication of extreme poverty and hunger, as well as the develop-
ment  targets  and  principles  agreed  in  the  United  Nations  Conferences,  provide 
a clear vision and must underpin ACP–EC cooperation within this Agreement; ac-
knowledging that the EU and the ACP States need to make a concerted eﬀort 
to accelerate progress towards attaining the Millennium Development Goals;

SUBSCRIBING  to  the  aid  eﬀectiveness  agenda  started  in  Rome,  pursued  in 
Paris and further developed in the Accra Agenda for Action;

PAYING particular attention to the pledges made and objectives agreed at major 
UN and other international conferences and acknowledging the need for further 
action to be taken in order to achieve the goals and implement the action pro-
grammes which have been drawn up in those fora;

AWARE  of  the  serious  global  environmental  challenge  posed  by  climate 
change,  and  deeply  concerned  that  the  most  vulnerable  populations  live  in 
developing  countries,  in  particular  in  Least  Developed  Countries  and  Small 
Island ACP States, where climate-related phenomena such as sea level rise, 
coastal erosion, ﬂooding, droughts and desertiﬁcation are threatening their 
livelihoods and sustainable development;

16

THE COTONOU AGREEMENT

ANXIOUS to respect basic labour rights, taking account of the principles laid down 
in the relevant conventions of the International Labour Organisation;

RECALLING  the  commitments  within  the  framework  of  the  World  Trade 
Organisation,

HAVE DECIDED TO CONCLUDE THIS AGREEMENT:

THE COTONOU AGREEMENT

17

PART 1 
GENERAL PROVISIONS

TITLE I 
OBJECTIVES, PRINCIPLES AND ACTORS 

CHAPTER 1 
OBJECTIVES AND PRINCIPLES 

ARTICLE 1 
Objectives of the partnership

The Community and its Member States, of the one part, and the ACP States, of the 
other part, hereina(cid:3)er referred to as the ‘Parties’ hereby conclude this Agreement 
in order to promote and expedite the economic, cultural and social development 
of the ACP States, with a view to contributing to peace and security and to pro-
moting a stable and democratic political environment.

The partnership shall be centred on the objective of reducing and eventually erad-
icating poverty consistent with the objectives of sustainable development and the 
gradual integration of the ACP countries into the world economy.

These objectives and the Parties’ international commitments, including the Mil-
lennium Development Goals, shall inform all development strategies and shall 
be tackled through an integrated approach taking account at the same time of the 
political,  economic,  social,  cultural  and  environmental  aspects  of  development. 
The partnership shall provide a coherent support framework for the development 
strategies adopted by each ACP State.

Sustained  economic  growth,  developing  the  private  sector,  increasing  employ-
ment and improving access to productive resources shall all be part of this frame-
work.  Support  shall  be  given  to  the  respect  of  the  rights  of  the  individual  and 
meeting  basic  needs,  the  promotion  of  social  development  and  the  conditions 
for  an  equitable  distribution  of  the  fruits  of  growth.  Regional  and  sub-regional 
integration processes which foster the integration of the ACP countries into the 
world  economy  in  terms  of  trade  and  private  investment  shall  be  encouraged 
and supported. Building the capacity of the actors in development and improving 
the institutional framework necessary for social cohesion, for the functioning of 
a democratic society and market economy, and for the emergence of an active 
and organised civil society shall be integral to the approach. Systematic account 

18

THE COTONOU AGREEMENT

shall be taken of the situation of women and gender issues in all areas — politi-
cal,  economic  and  social.  The  principles  of  sustainable  management  of  natural 
resources and the environment, including climate change, shall be applied and 
integrated at every level of the partnership.

ARTICLE 2 
Fundamental principles

ACP–EC cooperation, underpinned by a legally binding system and the existence 
of joint institutions, shall be guided by the internationally agreed aid eﬀective-
ness agenda regarding ownership, alignment, harmonisation, results-orient-
ed aid management and mutual accountability, exercised on the basis of the 
following fundamental principles:

—  equality of the partners and ownership of the development strategies: for 
the  purposes  of  implementing  the  objectives  of  the  partnership,  the  ACP 
States shall determine the development strategies for their economies and 
societies in all sovereignty and with due regard for the essential and fun-
damental elements described in Article 9; the partnership shall encourage 
ownership of the development strategies by the countries and populations 
concerned; EU development partners shall align their programmes with 
these strategies;

—  participation: apart from central government as the main partner, the part-
nership  shall  be  open  to  ACP  parliaments,  and  local  authorities  in  ACP 
States and diﬀerent kinds of other actors in order to encourage the integra-
tion of all sections of society, including the private sector and civil society 
organisations, into the mainstream of political, economic and social life;

— 

the  pivotal  role  of  dialogue  and  the  fulﬁlment  of  mutual  obligations  and 
accountability: the obligations assumed by the Parties in the framework of 
their dialogue shall be central to their partnership and cooperation relations; 
the Parties shall work closely together in determining and implementing 
the  necessary  processes  of  donor  alignment  and  harmonisation,  with 
a view to securing a key role for ACP States in these processes;

—  diﬀerentiation and regionalisation: cooperation arrangements and priorities 
shall vary according to a partner’s level of development, its needs, its perfor-
mance and its long-term development strategy. Special treatment shall be 
given to the least developed countries. The vulnerability of landlocked and 

THE COTONOU AGREEMENT

19

island countries shall be taken into account. Particular emphasis shall be 
put on regional integration, including at continental level.

ARTICLE 3 
Achievement of this Agreement’s objectives

The Parties shall, each as far as it is concerned in the framework of this Agree-
ment, take all appropriate measures, whether general or particular, to ensure the 
fulﬁlment of the obligations arising from this Agreement and to facilitate the at-
tainment of the objectives thereof. They shall refrain from any measures liable to 
jeopardise these objectives.

CHAPTER 2 
THE ACTORS OF THE PARTNERSHIP 

ARTICLE 4 
General approach

The ACP States shall determine the development principles, strategies and mod-
els of their economies and societies in all sovereignty. They shall establish, with 
the Community, the cooperation programmes provided for under this Agreement. 
However, the parties recognise the complementary role of and potential for con-
tributions  by  non-state  actors,  ACP  national  parliaments  and  local  decentral-
ised  authorities  to  the  development  process,  particularly  at  the  national  and 
regional  levels.  To  this  end,  under  the  conditions  laid  down  in  this  Agreement, 
non-state actors, ACP national parliaments and local decentralised authorities, 
shall, where appropriate:

—  be informed and involved in consultation on cooperation policies and strate-
gies, on priorities for cooperation especially in areas that concern or directly 
aﬀect them, and on the political dialogue;

—  be provided with capacity-building support in critical areas in order to 
reinforce  the  capabilities  of  these  actors,  particularly  as  regards  or-
ganisation  and  representation,  and  the  establishment  of  consultation 
mechanisms including channels of communication and dialogue, and to 
promote strategic alliances.

20

THE COTONOU AGREEMENT

Non-state actors and local decentralised authorities shall, where appropriate:

—  be provided with ﬁnancial resources, under the conditions laid down in this 

Agreement in order to support local development processes;

—  be involved in the implementation of cooperation projects and programmes 
in  areas  that  concern  them  or  where  these  actors  have  a  comparative 
advantage;

ARTICLE 5 
Information

Cooperation will support operation to provide more information and create great-
er awareness of the basic features of the ACP–EU Partnership.

Cooperation will also:

—  encourage partnership and build links between ACP and EU actors;

— 

strengthen networking and exchange of expertise and experience among the 
actors.

ARTICLE 6 
Deﬁnitions

1. The actors of cooperation will include:

(a)  State (local, regional and national), including ACP national parliaments;

(b)  ACP  regional  organisations  and  the  African  Union.  For  the  purpose  of 
this Agreement the notion of regional organisations or levels shall also 
include sub-regional organisations or levels;

(c)  Non-state:

—  private sector;

—  economic and social partners, including trade union organisations;

— 

civil society in all its forms according to national characteristics.

THE COTONOU AGREEMENT

21

2. Recognition by the parties of non-state actors shall depend on the extent to 
which they address the needs of the population, on their speciﬁc competencies 
and whether they are organised and managed democratically and transparently.

ARTICLE 7 
Capacity building

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

—  encouraging  and  supporting  the  creation  and  development  of  such 

organisations;

—  establishing  arrangements  for  involving  such  organisations  in  the  design, 
implementation and evaluation of development strategies and programmes.

TITLE II 
THE POLITICAL DIMENSION

ARTICLE 8 
Political dialogue

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

2. The objective of this dialogue shall be to exchange information, to foster mu-
tual understanding, and to facilitate the establishment of agreed priorities and 
shared agendas, in particular by recognising existing links between the diﬀerent 
aspects of the relations between the Parties and the various areas of cooperation 
as  laid  down  in  this  Agreement.  The  dialogue  shall  facilitate  consultations  and 
strengthen  cooperation  between  the  Parties  within  international  fora  as  well 
as promote and sustain a system of eﬀective multilateralism. The objectives 
of the dialogue shall also include preventing situations arising in which one Party 
might deem it necessary to have recourse to the consultation procedures envis-
aged in Articles 96 and 97.

3. The dialogue shall cover all the aims and objectives laid down in this Agree-
ment as well as all questions of common, general or regional interest, including 
issues  pertaining  to  regional  and  continental  integration.  Through  dialogue, 

22

THE COTONOU AGREEMENT

the Parties shall contribute to peace, security and stability and promote a stable 
and democratic political environment. It shall encompass cooperation strategies, 
including the aid eﬀectiveness agenda, as well as global and sectoral policies, 
including environment, climate change, gender, migration and questions related 
to  the  cultural  heritage.  It  shall  also  address  global  and  sectoral  policies  of 
both Parties that might aﬀect the achievement of the objectives of develop-
ment cooperation.

4. The dialogue shall focus, inter alia, on speciﬁc political issues of mutual concern 
or of general signiﬁcance for the attainment of the objectives of this Agreement, 
such as the arms trade, excessive military expenditure, drugs, organised crime or 
child labour, or discrimination of any kind, such as race, colour, sex, language, 
religion, political or other opinion, national or social origin, property, birth or 
other  status.  The  dialogue  shall  also  encompass  a  regular  assessment  of  the 
developments concerning the respect for human rights, democratic principles, the 
rule of law and good governance.

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 deﬁni-
tion  of  priority  areas  of  cooperation.  The  dialogue  in  this  context  shall  fully 
involve the relevant ACP regional organisations and the African Union, where 
appropriate.

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 institu-
tional framework, including the ACP Group, the Joint parliamentary Assembly, in 
the appropriate format, and at the appropriate level including national, regional, 
continental or all-ACP level.

7. Regional organisations as well as representatives of civil society organisations 
shall  be  associated  with  this  dialogue,  as  well  as  ACP  national  parliaments, 
where appropriate.

8. Where appropriate, and in order to prevent situations arising in which one Party 
might deem it necessary to have recourse to the consultation procedure foreseen 
in Article 96, dialogue covering the essential elements shall be systematic and 
formalised in accordance with the modalities set out in Annex VII.

THE COTONOU AGREEMENT

23

ARTICLE 9 
Essential elements regarding human rights, democratic principles and the 
rule of law, and fundamental element regarding good governance

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

Respect  for  all  human  rights  and  fundamental  freedoms,  including  respect  for 
fundamental social rights, democracy based on the rule of law and transparent 
and accountable governance are an integral part of sustainable development.

2. The Parties refer to their international obligations and commitments concerning 
respect for human rights. They reiterate their deep attachment to human dignity 
and  human  rights,  which  are  legitimate  aspirations  of  individuals  and  peoples. 
Human rights are universal, indivisible and interrelated. 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.

The  Parties  reaﬃrm  that  democratisation,  development  and  the  protection  of 
fundamental freedoms and human rights are interrelated and mutually reinforc-
ing. Democratic principles are universally recognised principles underpinning the 
organisation of the state to ensure the legitimacy of its authority, the legality of 
its actions reﬂected in its constitutional, legislative and regulatory system, and 
the existence of participatory mechanisms. On the basis of universally recognised 
principles, each country develops its democratic culture.

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

Respect for human rights, democratic principles and the rule of law, which under-
pin the ACP–EU Partnership, shall underpin the domestic and international poli-
cies of the Parties and constitute the essential elements of this Agreement.

3. In the context of a political and institutional environment that upholds human 
rights, democratic principles and the rule of law, good governance is the trans-
parent and accountable management of human, natural, economic and ﬁnancial 

24

THE COTONOU AGREEMENT

resources for the purposes of equitable and sustainable development. It entails 
clear decision-making procedures at the level of public authorities, transparent 
and accountable institutions, the primacy of law in the management and distribu-
tion of resources and capacity building for elaborating and implementing meas-
ures aiming in particular at preventing and combating corruption.

Good  governance,  which  underpins  the  ACP–EU  Partnership,  shall  underpin  the 
domestic and international policies of the Parties and constitute a fundamental 
element  of  this  Agreement.  The  Parties  agree  that  serious  cases  of  corruption, 
including acts of bribery leading to such corruption, as referred to in Article 97 
constitute a violation of that element.

4.  The  Partnership  shall  actively  support  the  promotion  of  human  rights,  pro-
cesses of democratisation, consolidation of the rule of law, and good governance.

These areas will be an important subject for the political dialogue. In the context 
of  this  dialogue,  the  Parties  shall  attach  particular  importance  to  the  changes 
underway and to the continuity of the progress achieved. This regular assessment 
shall  take  into  account  each  country’s  economic,  social,  cultural  and  historical 
context.

These areas will also be a focus of support for development strategies. The Com-
munity 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.

The principles underlying the essential and fundamental elements as deﬁned 
in this Article shall apply equally to the ACP States on the one hand, and to 
the European Union and its Member States, on the other hand.

ARTICLE 10 
Other elements of the political environment

1. The Parties consider the following elements as contributing to the maintenance 
and consolidation of a stable and democratic political environment:

— 

sustainable and equitable development involving, inter alia, access to pro-
ductive resources, essential services and justice;

THE COTONOU AGREEMENT

25

—  greater involvement of ACP national parliaments, local decentralised au-
thorities, where appropriate, and of an active and organised civil society 
and the private sector.

2. The Parties recognise that the principles of the social market economy, sup-
ported 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, response to 
situations of fragility 

1. The Parties acknowledge that without development and poverty reduction 
there will be no sustainable peace and security, and that without peace and 
security there can be no sustainable development. The Parties shall pursue an 
active, comprehensive and integrated policy of peace building and conﬂict preven-
tion and resolution, and human security, and shall address situations of fra-
gility within the framework of the Partnership. This policy shall be based on the 
principle of ownership and shall in particular focus on building national, regional 
and continental capacities, and on preventing violent conﬂicts at an early stage 
by  addressing  their  root-causes,  including  poverty,  in  a  targeted  manner,  and 
with an adequate combination of all available instruments.

The Parties acknowledge that new or expanding security threats need to be 
addressed, such as organised crime, piracy and traﬃcking of, notably, people, 
drugs and weapons. The impacts of global challenges like international ﬁnan-
cial market shocks, climate change and pandemics also need to be taken into 
account.

The Parties emphasise the important role of regional organisations in peace 
building and conﬂict prevention and resolution and in tackling new or expand-
ing security threats with, in Africa, a key responsibility for the African Union.

2. The interdependence between security and development shall inform the 
activities  in  the  ﬁeld  of  peace  building,  conﬂict  prevention  and  resolution 
which shall combine short and long-term approaches, which encompass and 
go beyond crisis management. Activities to tackle new or expanding security 
threats shall, inter alia,  support law enforcement, including cooperating  on 
border controls, enhancing the security of the international supply chain, and 
improving air, maritime and road transport safeguards.

26

THE COTONOU AGREEMENT

Activities  in  the  ﬁeld  of  peace  building,  conﬂict  prevention  and  resolution 
shall in particular include support for balancing political, economic, social and 
cultural  opportunities  among  all  segments  of  society,  for  strengthening  the 
democratic legitimacy and eﬀectiveness of governance, for establishing eﬀec-
tive  mechanisms  for  the  peaceful  conciliation  of  group  interests,  for  active 
involvement of women, for bridging dividing lines among diﬀerent segments 
of society as well as support for an active and organised civil society. In this 
respect, particular attention shall be paid to developing early warning sys-
tems and peace-building mechanisms that would contribute to the preven-
tion of conﬂicts.

3. Relevant activities shall also include, inter alia, support for mediation, nego-
tiation  and  reconciliation  eﬀorts,  for  eﬀective  regional  management  of  shared, 
scarce  natural  resources,  for  demobilisation  and  reintegration  of  former  com-
batants  into  the  society,  for  addressing  the  problems  of  child  soldiers  and  of 
violence  against  women  and  children.  Suitable  action  shall  be  taken  to  set 
responsible limits to military expenditure and arms trade, including through sup-
port for the promotion and application of agreed standards and codes of conduct, 
as well as to combat activities that fuel conﬂict.

3a. Particular emphasis shall be given to the ﬁght against antipersonnel landmines 
and explosive remnants of war as well as to addressing the illicit manufacture, 
transfer,  circulation  and  accumulation  of  small  arms  and  light  weapons  and 
their ammunition, including inadequately secured and poorly managed stocks 
and stockpiles and their uncontrolled spread.

The  Parties  agree  to  coordinate,  observe  and  fully  implement  their  respec-
tive obligations under all relevant international conventions and instruments, 
and, to this end, they undertake to cooperate at the national, regional and 
continental levels.

3b. The Parties also undertake to cooperate in the prevention of mercenary activi-
ties in accordance with their obligations under all relevant international conven-
tions and instruments, and their respective legislations and regulations.

4. In order to address situations of fragility in a strategic and eﬀective man-
ner, the parties shall share information and facilitate preventive responses 
combining diplomatic, security and development cooperation tools in a coher-
ent way. They shall agree on the best way to strengthen capabilities of states 
to fulﬁl their core functions and to stimulate political will for reform while 

THE COTONOU AGREEMENT

27

respecting the principle of ownership. In situations of fragility, political dia-
logue is especially important and shall be further developed and reinforced.

5. In situations of violent conﬂict the Parties shall take all suitable action to pre-
vent 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 cooperation are used in accordance with 
the principles and objectives of the Partnership, and to preventing a diversion of 
funds for belligerent purposes.

6. In post-conﬂict situations, the Parties shall take all suitable action to stabilise 
the  situation  during  the  transition  in  order  to  facilitate  the  return  to  a  non-
violent, stable and democratic situation. The Parties shall ensure the creation of 
the  necessary  links  between  emergency  measures,  rehabilitation  and  develop-
ment cooperation.

7. In promoting the strengthening of peace and international justice, the Parties 
reaﬃrm their determination to:

— 

share experience in the adoption of legal adjustments required to allow for 
the ratiﬁcation and implementation of the Rome Statute of the International 
Criminal Court; and

—  ﬁght against international crime in accordance with international law, giving 

due regard to the Rome Statute.

The Parties shall seek to take steps towards ratifying and implementing the Rome 
Statute and related instruments.

ARTICLE 11A 
Fight against terrorism

The Parties reiterate their ﬁrm condemnation of all acts of terrorism and under-
take to combat terrorism through international cooperation, in accordance with 
the Charter of the United Nations and international law, relevant conventions and 
instruments and in particular full implementation of UN Security Council Resolu-
tions  1373  (2001)  and  1456  (2003)  and  other  relevant  UN  resolutions.  To  this 
end, the Parties agree to exchange:

28

THE COTONOU AGREEMENT

— 

information on terrorist groups and their support networks; and

— 

views on means and methods to counter terrorist acts, including in technical 
ﬁelds and training, and experiences in relation to the prevention of terrorism.

ARTICLE 11B 
Cooperation in countering the proliferation of weapons of mass destruction

1. The Parties consider that the proliferation of weapons of mass destruction and 
their means of delivery, both to state and non-state actors, represents one of the 
most serious threats to international stability and security.

The Parties therefore agree to cooperate and to contribute to countering the pro-
liferation of weapons of mass destruction and their means of delivery through full 
compliance with and national implementation of their existing obligations under 
international  disarmament  and  non-proliferation  treaties  and  agreements  and 
other relevant international obligations.

The  Parties  agree  that  this  provision  constitutes  an  essential  element  of  this 
Agreement.

2. The Parties furthermore agree to cooperate and to contribute to the objective 
of non-proliferation by:

— 

— 

taking steps to sign, ratify or accede to, as appropriate, and fully implement 
all other relevant international instruments;

the establishment of an eﬀective system of national export controls, con-
trolling  the  export  as  well  as  transit  of  weapons  of  mass  destruction  re-
lated goods, including weapons of mass destruction end-use control on dual 
use technologies and containing eﬀective sanctions for breaches of export 
controls.

Financial and technical assistance in the area of cooperation to counter the pro-
liferation of weapons of mass destruction will be ﬁnanced by speciﬁc instruments 
other than those intended for the ﬁnancing of ACP–EC cooperation.

3. The Parties agree to establish a regular political dialogue that will accompany 
and consolidate their cooperation in this area.

THE COTONOU AGREEMENT

29

4. If, a(cid:3)er having conducted a strengthened political dialogue, a Party, informed 
in  particular  by  reports  by  the  International  Atomic  Energy  Agency  (IAEA),  the 
Organisation for the Prohibition of Chemical Weapons (OPCW) and other relevant 
multilateral institutions, considers that the other Party has failed to fulﬁl an ob-
ligation stemming from paragraph 1, it shall, except in cases of special urgency, 
supply the other Party and both the ACP and the EC Councils of Ministers with the 
relevant  information  required  for  a  thorough  examination  of  the  situation  with 
a view to seeking a solution acceptable to the Parties. To this end, it shall invite 
the other Party to hold consultations that focus on the measures taken or to be 
taken by the Party concerned to remedy the situation.

5. 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 30 days a(cid:3)er the invitation and shall 
continue for a period established by mutual agreement, depending on the nature 
and gravity of the violation. In no case shall the dialogue under the consultation 
procedure last longer than 120 days.

6. If the consultations do not lead to a solution acceptable to both Parties, if con-
sultation is refused or in cases of special urgency, appropriate measures may be 
taken. These measures shall be revoked as soon as the reasons for taking them 
no longer prevail.

ARTICLE 12 
Coherence of Community policies and their impact on  
the implementation of this Agreement

The Parties are committed to addressing policy coherence for development in 
a targeted, strategic and partnership-oriented way, including strengthening 
dialogue on issues of policy coherence for development. The Union acknowl-
edges  that  Union  policies,  other  than  development  policy,  can  support  the 
development priorities of ACP States in line with the objectives of this Agree-
ment.  On  this  basis  the  Union  will  enhance  the  coherence  of  those  policies 
with a view to attaining the objectives of this Agreement.

Without prejudice to Article 96, where the Community intends, in the exercise of 
its powers, to take a measure which might aﬀect the interests of the ACP States, 
as far as this Agreement’s objectives are concerned, it shall inform in good time 
the ACP Group of its intentions. Towards this end, the Commission shall regularly 

30

THE COTONOU AGREEMENT

inform the Secretariat of the ACP Group of planned proposals and communi-
cate simultaneously 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 deci-
sion is made.

A(cid:3)er  such  consultations  have  taken  place,  the  ACP  States  and  the  ACP  Group 
may, in addition, transmit their concerns in writing to the Community as soon as 
possible and submit suggestions for amendments indicating the way their con-
cerns should be met.

If the Community does not accede to the ACP States’ submissions, it shall advise 
them as soon as possible giving its reasons.

The ACP Group shall also be provided with adequate information on the entry into 
force of such decisions, in advance whenever possible.

ARTICLE 13 
Migration

1. The issue of migration shall be the subject of in depth dialogue in the frame-
work of the ACP–EU Partnership.

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

2. The Parties agree to consider that a partnership implies, with relation to migra-
tion, fair treatment of third country nationals who reside legally on their territo-
ries, integration policy aiming at granting them rights and obligations comparable 
to those of their citizens, enhancing non-discrimination in economic, social and 
cultural life and developing 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 COTONOU AGREEMENT

31

4. The Parties consider that strategies aiming at reducing 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 na-
tional and regional programming, of structural constraints associated with migra-
tory ﬂows with the purpose of supporting the economic and social development of 
the regions from which migrants originate and of reducing poverty.

The  Community  shall  support,  through  national  and  regional  Cooperation  pro-
grammes,  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.

The Parties shall develop cooperation programmes to facilitate the access of stu-
dents from ACP States to education, in particular through the use of new com-
munication technologies.

5. (a) 

(b) 

 In the framework of the political dialogue the Council of Ministers shall 
examine issues arising from illegal immigration with a view to establish-
ing, where appropriate, the means for a prevention policy.

 In this context the Parties agree in particular to ensure that the rights 
and dignity of individuals are respected in any procedure initiated to re-
turn illegal immigrants to their countries of origin. In this connection the 
authorities concerned shall extend to them the administrative facilities 
necessary for their return.

(c) 

The Parties further agree that:

(i)  —  each Member State of the European Union shall accept the return 
of and readmission of any of its nationals who are illegally pre-
sent on the territory of an ACP State, at that state’s request and 
without further formalities;

  —  each of the ACP States shall accept the return of and readmis-
sion of any of its nationals who are illegally present on the terri-
tory of a Member State of the European Union, at that Member 
State’s request and without further formalities.

32

THE COTONOU AGREEMENT

The Member States and the ACP States will provide their nationals with ap-
propriate identity documents for such purposes.

In respect of the Member States of the European Union, the obligations in 
this paragraph apply only in respect of those persons who are to be consid-
ered their nationals for the Community purposes in accordance with Decla-
ration No 2 to the Treaty establishing the European Community. In respect 
of  ACP  States,  the  obligations  in  this  paragraph  apply  only  in  respect  of 
those persons who are considered as their nationals in accordance with their 
respective legal system.

(ii)  at the request of a Party, negotiations shall be initiated with ACP States 
aiming  at  concluding  in  good  faith  and  with  due  regard  for  the  rel-
evant rules of international law, bilateral agreements governing spe-
ciﬁc obligations for the readmission and return of their nationals. These 
agreements shall also cover, if deemed necessary by any of the Par-
ties, arrangements for the readmission of third country nationals and 
stateless persons. Such agreements will lay down the details about the 
categories of persons covered by these arrangements as well as the 
modalities of their readmission and return.

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

(iii)  for the purposes of this point (c), the term ‘Parties’ shall refer to the 

Community, any of its Member States and any ACP State.

THE COTONOU AGREEMENT

33

PART 2 
INSTITUTIONAL PROVISIONS

ARTICLE 14 
The joint institutions

1. The joint institutions of this Agreement are the Council of Ministers, the Com-
mittee of Ambassadors and the Joint Parliamentary Assembly.

2. The joint institutions and the institutions set up under the Economic Part-
nership Agreements, without prejudice to the relevant provisions of existing 
or future Economic Partnership Agreements, shall endeavour to ensure coor-
dination, coherence and complementarity, as well as an eﬀective and recipro-
cal ﬂow of information.

ARTICLE 14A 
Meetings of Heads of State or Government

The Parties shall meet at the level of Heads of State or Government, upon 
joint agreement, in an appropriate format.

ARTICLE 15 
The Council of Ministers

1. The Council of Ministers shall comprise, on the one hand, the members of the 
Council of the European Union and members of the Commission of the European 
Communities and, on the other, a member of the government of each ACP State.

The oﬃce of the President of the Council of Ministers shall be held alternately by 
a member of the Council of the European Union and a member of the government 
of an ACP State.

The Council shall meet as a rule once a year on the initiative of the President and 
whenever it seems necessary, in a form and a geographical composition appro-
priate to the issues to be addressed. Such meetings will provide for high-level 
consultations on matters which are of speciﬁc concern to the Parties, comple-
menting the work that is being done in the Joint Ministerial Trade Committee, 
as set out in Article 38, and in the ACP–EC Development Finance Cooperation 
Committee, as set out in Article 83, which feed into the annual regular Council 
of Ministers meetings.

34

THE COTONOU AGREEMENT

2. The functions of the Council of Ministers shall be to:

(a)  conduct the political dialogue;

(b)  adopt  the  policy  guidelines  and  take  the  decisions  necessary  for  the  im-
plementation of the provisions of 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;

(c)  examine and resolve any issue liable to impede the eﬀective and eﬃcient 
implementation  of  this  Agreement  or  present  an  obstacle  to  achieving  its 
objectives;

(d)  ensure the smooth functioning of the consultation mechanisms.

3. The Council of Ministers shall take its decisions by common agreement of the 
Parties. The proceedings of the Council of Ministers shall be valid only if half the 
members of the Council of the European Union, one member of the Commission 
and two thirds of the members representing the governments of the ACP States 
are present. Any member of the Council of Ministers unable to attend may be rep-
resented. The representative shall exercise all the rights of that member.

It may take decisions that are binding on the Parties and frame resolutions, rec-
ommendations and opinions, during the annual regular meeting, or by written 
procedure. It shall report annually to the Joint Parliamentary Assembly on the 
implementation of this Agreement. It shall examine and take into consideration 
resolutions and recommendations adopted by the Joint Parliamentary Assembly.

The Council of Ministers shall conduct an ongoing dialogue with the representa-
tives 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.

4. The Council of Ministers may delegate powers to the Committee of Ambassadors.

5. The Council of Ministers shall adopt its rules of procedure within six months of 
the entry into force of this Agreement.

THE COTONOU AGREEMENT

35

ARTICLE 16 
The Committee of Ambassadors

1. The Committee of Ambassadors shall comprise, on the one hand, the perma-
nent representative of each Member State to the European Union and a repre-
sentative of the Commission and, on the other, the head of mission of each ACP 
State to the European Union.

The oﬃce of Chairman of the Committee of Ambassadors shall be held alternately 
by a Permanent Representative of a Member State designated by the Community, 
and a head of mission representing an ACP State, designated by the ACP States.

2. The Committee shall assist the Council of Ministers in the fulﬁlment of its tasks 
and carry out any mandate entrusted to it by the Council. In this context, it shall 
monitor implementation of this Agreement and progress towards achieving the 
objectives set therein.

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

3. The Committee shall adopt its rules of procedure within six months of the entry 
into force of this Agreement.

ARTICLE 17 
The Joint Parliamentary Assembly

1.  The  Joint  Parliamentary  Assembly  shall  be  composed  of  equal  numbers  of 
EU and ACP representatives. The members of the Joint Parliamentary Assembly 
shall be, on the one hand, members of the European Parliament and, on the other, 
members of parliament or, failing this, representatives designated by the parlia-
ment of each ACP State. In the absence of a parliament, the attendance of a rep-
resentative from the ACP State concerned shall be subject to the prior approval of 
the Joint Parliamentary Assembly.

2. The role of the Joint Parliamentary Assembly, as a consultative body, shall be to:

—  promote democratic processes through dialogue and consultation;

— 

facilitate greater understanding between the peoples of the European Union 
and those of the ACP States and raise public awareness of development issues;

36

THE COTONOU AGREEMENT

—  discuss issues pertaining to development and the ACP–EU Partnership, in-
cluding  the  Economic  Partnership  Agreements,  other  trading  arrange-
ments, the European Development Fund and Country and Regional Strat-
egy  Papers.  To  this  end,  the  Commission  shall  transmit  such  Strategy 
Papers for information to the Joint Parliamentary Assembly;

—  discuss the annual report of the Council of Ministers on the implementa-
tion of this Agreement, and adopt resolutions and make recommendations 
to  the  Council  of  Ministers  with  a  view  to  achieving  the  objectives  of  this 
Agreement;

—  advocate for institutional development and capacity building of national 

parliaments in accordance with Article 33(1) 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 strengthen-
ing regional integration and fostering cooperation between national parliaments, 
meetings between EU and ACP members of parliament shall be arranged at re-
gional level.

Such meetings at regional level will be organised in pursuance of the objec-
tives laid down in Article 14(2) of this Agreement.

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

THE COTONOU AGREEMENT

37

PART 3 
COOPERATION STRATEGIES

ARTICLE 18

The  cooperation  strategies  shall  be  based  on  development  strategies  and  eco-
nomic and trade cooperation which are interlinked and complementary. The Par-
ties shall ensure that the eﬀorts undertaken in both aforementioned areas are 
mutually reinforcing.

TITLE I 
DEVELOPMENT STRATEGIES 

CHAPTER 1 
GENERAL FRAMEWORK

ARTICLE 19 
Principles and objectives

1. The central objective of ACP–EC cooperation is poverty reduction and ultimately 
its eradication; sustainable development; and progressive integration of the ACP 
countries  into  the  world  economy.  In  this  context,  cooperation  framework  and 
orientations shall be tailored to the individual circumstances of each ACP country, 
shall promote local ownership of economic and social reforms and the integration 
of the private sector and civil society actors into the development process.

2. Cooperation shall refer to the conclusions of United Nations Conferences and to 
the objectives, targets and action programmes agreed at international level and 
to their follow up as a basis for development principles. Cooperation shall also re-
fer to the international development cooperation targets and shall pay particular 
attention to putting in place qualitative and quantitative indicators of progress. 
The Parties will make concerted eﬀorts to accelerate progress towards the 
attainment of the Millennium Development Goals.

3. Governments and non-State actors in each ACP country shall initiate consulta-
tions on country development strategies and community support thereto.

38

THE COTONOU AGREEMENT

ARTICLE 20 
The Approach

1. The objectives of ACP–EC development cooperation shall be pursued through 
integrated  strategies  that  incorporate  economic,  social,  cultural,  environmental 
and  institutional  elements  that  must  be  locally  owned.  Cooperation  shall  thus 
provide a coherent enabling framework of support to the ACP’s own development 
strategies,  ensuring  complementarity  and  interaction  between  the  various  ele-
ments, in particular at, and between, the national and regional levels. In this 
context and within the framework of development policies and reforms pursued 
by the ACP States, ACP–EC cooperation strategies at national and, where appro-
priate, at regional levels shall aim at:

(a)  achieving rapid and sustained job-creating economic growth, developing the 
private sector, increasing employment, improving access to productive eco-
nomic activities and resources;

(aa)  fostering regional cooperation and integration;

(b)  promoting human and social development helping to ensure that the fruits 

of growth are widely and equitably shared and promoting gender equality;

(c)  promoting cultural values of communities and speciﬁc interactions with eco-

nomic, political and social elements;

(d)  promoting institutional reforms and development, strengthening the institu-
tions necessary for the consolidation of democracy, good governance and 
for  eﬃcient  and  competitive  market  economies;  and  building  capacity  for 
development and partnership; 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 coopera-
tion the following thematic or cross-cutting themes: human rights, gender issues, 
democracy,  good  governance,  environmental  sustainability,  climate  change, 
communicable and non-communicable diseases and institutional development 
and capacity building. These areas shall also be eligible for Community support.

THE COTONOU AGREEMENT

39

3. The detailed texts as regards development cooperation objectives and strate-
gies, in particular sectoral policies and strategies shall be incorporated in a com-
pendium  providing  operational  guidelines  in  speciﬁc  areas  or  sectors  of  coop-
eration.  These  texts  may  be  revised,  reviewed  and/or  amended  by  the  Council 
of  Ministers  on  the  basis  of  a  recommendation  from  the  ACP–EC  Development 
Finance Cooperation Committee.

CHAPTER 2 
AREAS OF SUPPORT

SECTION 1 
ECONOMIC DEVELOPMENT 

ARTICLE 21 
Investment and private sector development

1.  Cooperation  shall  support  the  necessary  economic  and  institutional  reforms 
and policies at national and/or regional level, aiming at creating a favourable envi-
ronment for investment, and the development of a dynamic, viable and competi-
tive private sector. Cooperation shall further support:

(a) 

the promotion of public–private sector dialogue and cooperation;

(b) 

the development of entrepreneurial skills and business culture;

(c)  privatisation and enterprise reform; and

(d)  development and modernisation of mediation and arbitration systems.

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

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

(b)  development  and  strengthening  of  business  institutions  and  intermediary 
organisations,  associations,  chambers  of  commerce  and  local  providers 

40

THE COTONOU AGREEMENT

from the private sector supporting and providing non-ﬁnancial services to 
enterprises such as professional, technical, management, training and com-
mercial support services; and

(c) 

supporting institutions, programmes, activities and initiatives that contrib-
ute to the development and transfer of technologies and know-how and best 
practices on all aspects of business management.

3. Cooperation shall promote business development through the provision of ﬁ-
nance, guarantee facilities and technical support aimed at encouraging and sup-
porting  the  creation,  establishment,  expansion,  diversiﬁcation,  rehabilitation, 
restructuring, modernisation or privatisation 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:

(a)  creating  and/or  strengthening  ﬁnancial  instruments  in  the  form  of  invest-

ment capital;

(b) 

improving access to essential inputs such as business information and advi-
sory, consultancy or technical assistance services;

(c)  enhancing  export  activities,  in  particular  through  capacity  building  in  all 

trade-related areas; and

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

4.  Cooperation  shall  support  microenterprise  development  through  better  ac-
cess to ﬁnancial and non-ﬁnancial services; an appropriate policy and regulatory 
framework for their development; and provide training and information services 
on best practices in microﬁnance.

5.  Support  for  investment  and  private  sector  development  shall  integrate  ac-
tions and initiatives at macro, meso and micro economic levels and promote the 
search for innovative ﬁnancing mechanisms, including the blending and lever-
aging of private and public sources for development funding.

THE COTONOU AGREEMENT

41

6. Cooperation shall support investments in basic infrastructure by the public 
sector  aimed  at  private  sector  development,  economic  growth  and  poverty 
eradication.

ARTICLE 22 
Macroeconomic and structural reforms and policies

1. Cooperation shall support ACP eﬀorts to implement:

(a)  macroeconomic growth and stabilisation through disciplined ﬁscal and mon-
etary policies that result in the reduction of inﬂation, and improve external 
and ﬁscal balances, by strengthening ﬁscal discipline, enhancing budgetary 
transparency and eﬃciency, improving the quality, the equity and composi-
tion of ﬁscal policy; and

(b)  structural policies designed to reinforce the role of the diﬀerent actors, es-
pecially the private sector and improve the environment for enhanced do-
mestic  resource  mobilisation  and  increases  in  business,  investment  and 
employment, as well as:

(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 ser-
vices, including micro ﬁnance;

(iv) 

improve the quality of private and public services; and

(v)  encourage regional cooperation and progressive integration of macro-

economic and monetary policies.

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

42

THE COTONOU AGREEMENT

(a) 

the ACP States shall bear primary responsibility for the analysis of the prob-
lems to be solved, the design and the implementation of the reforms;

(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;

(c) 

the  right  of  the  ACP  States  to  determine  the  direction  and  the  sequenc-
ing  of  their  development  strategies  and  priorities  shall  be  recognised  and 
respected;

(d) 

the pace of reforms shall be realistic and compatible with each ACP State’s 
capacities and resources; and

(e) 

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

ARTICLE 23 
Economic sector development

Cooperation  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, land, especially as regards property rights and use;

(c)  development of rural strategies aimed at establishing a framework for par-
ticipatory decentralised planning, resource allocation and management;

(d) 

the development of strategies with a view to enhancing agricultural pro-
duction  and  productivity  in  ACP  States  by  providing,  in  particular,  the 
necessary  ﬁnancing  for  agricultural  research,  agricultural  inputs  and 
services,  supportive  rural  infrastructure,  and  risk  reduction  and  man-
agement. Support shall include public and private investments in agri-
culture, encouragement to develop agricultural policies and strategies, 
strengthening of farmer and private sector organisations, management 
of  natural  resources,  and  development  and  functioning  of  agricultural 

THE COTONOU AGREEMENT

43

markets. The agricultural production strategies shall reinforce national 
and regional food-security policies and regional integration. In this con-
text, cooperation shall support ACP eﬀorts to enhance the competitive-
ness of their commodity exports and to adapt their commodity export 
strategies in the light of evolving trade conditions;

(e)  sustainable  development  of  water  resources,  based  on  integrated  water 
resources  management  principles,  ensuring  equitable  and  sustainable 
distribution of shared water resources between their diﬀerent uses;

(f)  sustainable  development  of  aquaculture  and  ﬁsheries  which  include 
both inland ﬁsheries and marine resources within the economic exclusive 
zones of the ACP States;

(g)  economic and technological infrastructure and services, including transport, 
telecommunication systems, communication services and the development 
of information society;

(h)  development of competitive industrial, mining and energy sectors, while en-

couraging private sector involvement and development;

(i) 

trade development, including the promotion of fair trade;

(j)  development of business, ﬁnance and banking; and other service sectors;

(k) 

tourism development;

(l) 

development  of  scientiﬁc,  technological  and  research  infrastructure  and 
services;  including  the  enhancement,  transfer  and  absorption  of  new 
technologies;

(m)  the strengthening of capacities in productive areas, especially in public and 

private sectors;

(n) 

the promotion of traditional knowledge; and

(o)  development and implementation of speciﬁc adaptation strategies ad-
dressing the impact of preference erosion, possibly including activities 
mentioned in points (a) to (n) above.

44

THE COTONOU AGREEMENT

ARTICLE 23A 
Fisheries

Recognising the key role that ﬁsheries and aquaculture play in ACP countries 
through their positive contribution to employment creation, revenue gener-
ation,  food  security,  and  livelihoods  of  rural  and  coastal  communities,  and 
hence to poverty reduction, cooperation shall aim at further developing the 
aquaculture  and  ﬁsheries  sectors  of  ACP  countries  in  order  to  increase  the 
associated social and economic beneﬁts in a sustainable manner.

Cooperation programmes and activities shall support, inter alia, the develop-
ment and implementation of sustainable aquaculture and ﬁsheries develop-
ment  strategies  and  management  plans  in  ACP  countries  and  regions;  the 
mainstreaming  of  aquaculture  and  ﬁsheries  into  national  and  regional  de-
velopment  strategies;  the  development  of  the  infrastructure  and  technical 
know-how necessary to enable ACP countries to yield maximum sustainable 
value  from  their  ﬁsheries  and  aquaculture;  capacity  building  of  ACP  coun-
tries to overcome external challenges that hinder them from taking full ad-
vantage of their ﬁsheries resources; and the promotion and development of 
joint ventures for investment in the ﬁsheries and aquaculture sectors of ACP 
countries. Any ﬁshery agreement that may be negotiated between the Com-
munity and the ACP States shall give due consideration to consistency with 
the development strategies in this area.

High-level consultations, including at ministerial level, may be held upon joint 
agreement with a view to developing, improving and/or strengthening ACP–
EU development cooperation in sustainable aquaculture and ﬁsheries.

ARTICLE 24 
Tourism

Cooperation  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.

Cooperation programmes and projects will support the eﬀorts of ACP countries 
to establish and improve the countries’ legal and institutional framework and re-
sources for the development and implementation of sustainable tourism policies 

THE COTONOU AGREEMENT

45

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

SECTION 2 
SOCIAL AND HUMAN DEVELOPMENT 

ARTICLE 25 
Social sector development

1. Cooperation shall support ACP States’ eﬀorts at developing general and sec-
toral policies and reforms which improve the coverage, quality of and access to 
basic social infrastructure and services and take account of local needs and spe-
ciﬁc demands of the most vulnerable and disadvantaged, thus reducing the in-
equalities of access to these services. Special attention shall be paid to ensuring 
adequate levels of public spending in the social sectors. In this context, coopera-
tion shall aim at:

(a) 

(b) 

improving education and training at all levels, working towards recogni-
tion of tertiary education qualiﬁcations, establishment of quality assur-
ance systems for education, including education and training delivered 
online or through other non-conventional means, and building technical 
capacity and skills;

improving health systems, in particular equitable access to comprehen-
sive  and  quality  health  care  services,  and  nutrition,  eliminating  hunger 
and malnutrition, and ensuring adequate food supply and security, including 
through supporting safety nets;

(c) 

integrating  population  issues  into  development  strategies  in  order  to  im-
prove reproductive health, primary health care, family planning; and preven-
tion of female genital mutilation;

(d)  promoting the ﬁght against:

—  HIV/AIDS,  ensuring  the  protection  of  sexual  and  reproductive  health 

and rights of women;

46

THE COTONOU AGREEMENT

—  other poverty-related diseases, particularly malaria and tuberculosis;

(e) 

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

(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.

2. Cooperation shall also support capacity-building in social areas such as pro-
grammes  for  training  in  the  design  of  social  policies  and  modern  methods  for 
managing  social  projects  and  programmes;  policies  conducive  to  technological 
innovation and research; building local expertise and promoting partnerships; and 
round-table discussions at national and/or regional level.

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

ARTICLE 26 
Youth issues

Cooperation shall also support the establishment of a coherent and comprehen-
sive policy for realising the potential of youth so that they are better integrated 
into society to achieve their full potential. In this context, cooperation shall sup-
port policies, measures and operations aimed at:

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

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

THE COTONOU AGREEMENT

47

(c)  helping community-based institutions to give children the opportunity to de-

velop their physical, psychological, social and economic potential;

(d) 

reintegrating into society children in post conﬂict situations through rehabili-
tation programmes; and

(e)  promoting the active participation of young citizens in public life and foster-

ing student exchanges and interaction of ACP and EU youth organisations.

ARTICLE 27 
Culture and development

Cooperation in the area of culture shall aim at:

(a) 

integrating the cultural dimension at all levels of development cooperation;

(b) 

recognising, preserving and promoting cultural values and identities to en-
able inter cultural dialogue;

(c) 

recognising, preserving and promoting the value of cultural heritage; sup-
porting the development of capacity in this sector;

(d)  developing  cultural  industries  and  enhancing  market  access  opportunities 

for cultural goods and services;

(e) 

recognising and supporting the role of cultural actors and cultural net-
works, and their contribution to sustainable development; and

(f)  promoting the cultural dimension in education and the participation of 

youth in cultural activities.

SECTION 3 
REGIONAL COOPERATION AND INTEGRATION 

ARTICLE 28 
General approach

1.  ACP–EU  cooperation  shall  provide  eﬀective  assistance  to  achieve  the  objec-
tives and priorities which the ACP States have set themselves in the context of 
regional cooperation and integration.

48

THE COTONOU AGREEMENT

2. In conformity with the general objectives set out in Articles 1 and 20, ACP–
EU cooperation shall aim to:

(a)  promote peace and stability, as well as conﬂict prevention and resolution;

(b)  enhance economic development and economic cooperation through the 
build-up of larger markets, the free movement of persons, goods, ser-
vices, capital, labour and technology among ACP countries, the acceler-
ated diversiﬁcation of the economies of the ACP States, the promotion 
and  expansion  of  trade  among  ACP  countries  and  with  third  countries 
and the gradual integration of the ACP States into the world economy;

(c)  promote the management of sustainable development challenges with 
a transnational dimension through, inter alia, coordination and harmoni-
sation of regional cooperation policies.

3. Under the conditions set out in Article 58, cooperation shall also support 
inter-regional and intra-ACP cooperation such as that involving:

(a)  one or several ACP regional organisations, including at continental level;

(b)  European Overseas Countries and Territories (OCTs) and outermost regions;

(c)  non-ACP developing countries.

ARTICLE 29 
ACP–EU cooperation in support of regional cooperation and integration

1. In the areas of stability, peace and conﬂict prevention, cooperation shall 
support:

(a) 

the promotion and development of a regional political dialogue in areas 
of conﬂict prevention and resolution; human rights and democratisation; ex-
change, networking, and promotion of mobility between the diﬀerent actors 
of development, in particular in civil society;

(b) 

the promotion of regional initiatives and policies on security-related is-
sues, including arms control, action against drugs, organised crimes, money 
laundering, bribery and corruption.

THE COTONOU AGREEMENT

49

2. In the area of regional economic integration, cooperation shall support:

(a) 

the participation of Least Developed Countries (LDC) ACP States in the es-
tablishment of regional markets and sharing the beneﬁts therefrom;

(b) 

the implementation of sectoral economic reform policies at regional level;

(c) 

the liberalisation of trade and payments;

(d) 

the promotion of cross border investments both foreign and domestic, and 
other regional economic integration initiatives;

(e) 

the mitigation of the eﬀects of net transitional costs of regional integration 
on budget revenue and balance of payments; and

(f) 

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

3. In the area of regional policies for sustainable development, cooperation 
shall support the priorities of ACP regions and, in particular:

(a) 

the environment and the sustainable management of natural resources, 
including water and energy, and addressing climate change;

(b)  food security and agriculture;

(c)  health, education and training;

(d) 

research and technological development; and

(e) 

regional  initiatives  for  disaster  preparedness  and  mitigation  as  well  as 
post-disaster reconstruction.

ARTICLE 30 
Capacity building in support of ACP regional cooperation and integration

With a view to realising the eﬀectiveness and eﬃciency of regional policies, 
cooperation shall develop and strengthen the capacities of:

50

THE COTONOU AGREEMENT

(a) 

regional integration institutions and organisations set up by the ACP States 
and  those  with  ACP  State  participation  that  promote  regional  cooperation 
and integration;

(b)  national  governments  and  parliaments  in  matters  of  regional  integration; 

and

(c)  non-State actors, including the private sector.

SECTION 4 
THEMATIC AND CROSS-CUTTING ISSUES 

ARTICLE 31 
Gender issues

Cooperation shall help strengthen policies and programmes that improve, ensure 
and broaden the equal participation of men and women in all spheres of political, 
economic, social and cultural life. Cooperation shall help improve the access of 
women to all resources required for the full exercise of their fundamental rights. 
More speciﬁcally, cooperation shall create the appropriate framework to:

(a) 

integrate a gender-sensitive approach and concerns at every level of devel-
opment  cooperation  including  macroeconomic  policies,  strategies  and  op-
erations; and

(b)  encourage  the  adoption  of  speciﬁc  positive  measures  in  favour  of  women 

such as:

(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

(v) 

taking speciﬁc account of women in emergency aid and rehabilitation 
operations.

THE COTONOU AGREEMENT

51

ARTICLE 31A 
HIV/AIDS

Cooperation shall support the eﬀorts of ACP States to develop and strength-
en across all sectors policies and programmes aimed at addressing the HIV/
AIDS pandemic and preventing it from hampering development. It shall sup-
port ACP States in scaling up towards and sustaining universal access to HIV/
AIDS prevention, treatment, care and support and shall in particular aim at:

(a)  supporting the development and implementation of comprehensive mul-
ti-sectoral strategies and plans for HIV/AIDS as a priority in national and 
regional development plans;

(b) 

involving,  in  national  responses  to  HIV/AIDS,  all  appropriate  develop-
ment sectors and ensuring a broad mobilisation of stakeholders at all 
levels;

(c)  strengthening national health systems and addressing shortages in hu-
man resources for health as the basis for ensuring universal access to, 
and the eﬀective integration of, HIV/AIDS prevention, treatment and care 
and other health services;

(d)  addressing  gender  inequality,  gender-based  violence  and  abuse,  as 
drivers of the HIV/AIDS pandemic and intensifying eﬀorts to safeguard 
women’s  and  girls’  rights,  develop  eﬀective  gender  sensitive  HIV/AIDS 
programmes and services for women and girls, including those related 
to  sexual  and  reproductive  health  and  rights,  and  to  support  the  full 
involvement of women in planning and decision making related to HIV/
AIDS strategies and programmes;

(e)  developing supportive legal and policy frameworks and removing puni-
tive laws, policies, practices, stigma and discrimination that undermine 
human  rights,  increase  vulnerability  to  HIV/AIDS  and  inhibit  access  to 
eﬀective  HIV/AIDS  prevention,  treatment,  care  and  support,  including 
medicines, commodities and services for people living with HIV/AIDS and 
for the populations most at risk;

(f)  scaling  up  access  to  evidence-based,  comprehensive  HIV/AIDS  preven-
tion,  which  address  the  local  drivers  of  the  epidemic  and  the  speciﬁc 
needs of women, young people and the populations most at risk; and

52

THE COTONOU AGREEMENT

(g)  ensuring universal and reliable access to safe, high-quality and aﬀord-
able medicines, and to health commodities, including sexual and repro-
ductive health commodities.

ARTICLE 32 
Environment and natural resources

1. Cooperation on environmental protection and sustainable utilisation and man-
agement of natural resources shall aim at:

(a)  mainstreaming environmental sustainability into all aspects of development 
cooperation and support programmes and projects implemented by the vari-
ous actors;

(b)  building  and/or  strengthening  the  scientiﬁc  and  technical  human  and  in-
stitutional  capacity  for  environmental  management  for  all  environmental 
stakeholders;

(c) 

supporting speciﬁc measures and schemes aimed at addressing critical sus-
tainable management issues and also relating to current and future regional 
and  international  commitments  concerning  mineral  and  natural  resources 
such as:

(i) 

tropical forests, water resources, coastal, marine and ﬁsheries resourc-
es, wildlife, soils, biodiversity;

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

(iii) 

renewable energy sources notably solar energy and energy eﬃciency;

(iv)  sustainable rural and urban development;

(v)  desertiﬁcation, drought and deforestation;

(vi)  developing innovative solutions to urban environmental problems; and

(vii)  promotion of sustainable tourism.

(d)  Taking into account issues relating to the transport and disposal of hazard-

ous waste.

THE COTONOU AGREEMENT

53

2. Cooperation 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 de-
veloped and land locked countries; and

(c) 

Institutional development and capacity building

ARTICLE 32A 
Climate change

The Parties acknowledge that climate change is a serious global environmen-
tal challenge and a threat to the achievement of the Millennium Development 
Goals requiring adequate, predictable and timely ﬁnancial support. For these 
reasons, and in accordance with the provisions of Article 32, and particularly 
of point (a) of paragraph 2 thereof, cooperation shall:

(a) 

recognise the vulnerability of ACP States and in particular of small is-
lands and low-lying ACP States to climate-related phenomena such as 
coastal  erosion,  cyclones,  ﬂooding  and  environmentally  induced  dis-
placements,  and  in  particular  of  least  developed  and  landlocked  ACP 
States to increasing ﬂoods, drought, deforestation and desertiﬁcation;

(b)  strengthen and support policies and programmes to mitigate and adapt 
to the consequences of, and threat posed by, climate change including 
through institutional development and capacity building;

(c)  enhance the capacity of ACP States in the development of, and the par-

ticipation in, the global carbon market; and

(d)  focus on the following activities:

(i) 

integrating  climate  change  into  development  strategies  and  pov-
erty reduction eﬀorts;

(ii) 

raising the political proﬁle of climate change in development coop-
eration, including through appropriate policy dialogue;

54

THE COTONOU AGREEMENT

(iii)  assisting ACP states to adapt to climate change in relevant sectors 
such as agriculture, water management and infrastructure, includ-
ing through transfer and adoption of relevant and environmentally 
sound technologies;

(iv)  promoting disaster risk reduction, reﬂecting that an increasing pro-

portion of disasters are related to climate change;

(v)  providing  ﬁnancial  and  technical  support  for  mitigation  action  of 
ACP  states  in  line  with  their  poverty  reduction  and  sustainable 
development objectives, including reducing emissions from defor-
estation and forest degradation and reducing emissions in the agri-
cultural sector;

(vi)  improving  weather  and  climate  information  and  forecasting  and 

early warning systems; and

(vii)  promoting renewable energy sources, and low-carbon technologies 

that enhance sustainable development.

ARTICLE 33 
Institutional development and capacity building

1. Cooperation shall pay systematic attention to institutional aspects and in this 
context,  shall  support  the  eﬀorts  of  the  ACP  States  to  develop  and  strengthen 
structures, institutions and procedures that help to:

(a)  promote and sustain democracy, human dignity, social justice and pluralism, 

with full respect for diversity within and among societies;

(b)  promote and sustain universal and full respect for and observance and pro-

tection of all human rights and fundamental freedoms;

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

(d)  ensure  transparent  and  accountable  governance  and  administration  in  all 

public institutions.

THE COTONOU AGREEMENT

55

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

3. Cooperation shall support ACP States’ eﬀorts to develop their public institutions 
into a positive force for growth and development and to achieve major improve-
ments in the eﬃciency of government services as they aﬀect the lives of ordinary 
people. In this context, cooperation shall assist the reform, rationalisation and the 
modernisation of the public sector. Speciﬁcally, cooperation support shall focus 
on:

(a) 

the reform and modernisation of the civil service;

(b) 

legal and judicial reforms and modernisation of justice systems;

(c) 

improvement  and  strengthening  of  public  ﬁnance  and  ﬁscal  management 
with a view to developing economic activities in ACP countries and in-
creasing  their  tax  revenues,  whilst  fully  respecting  the  sovereignty  of 
the ACP States in this area.

Measures may include:

(i) 

enhancing capacities for domestic revenue management, including 
the building of eﬀective, eﬃcient and sustainable tax systems;

(ii)  promoting the participation in international tax cooperation struc-
tures and processes with a view to facilitating the further develop-
ment of and eﬀective compliance with international standards;

(iii)  supporting  implementation  of  international  best  practices  in  tax 
matters,  including  the  principle  of  transparency  and  exchange  of 
information, in those ACP countries that have committed to them;

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

(e) 

improvement of the management of public assets and reform of public pro-
curement procedures; and

(f)  political, administrative, economic and ﬁnancial decentralisation.

 
56

THE COTONOU AGREEMENT

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

(a)  developing legal and regulatory capabilities needed to cope with the opera-
tion of a market economy, including competition policy and consumer policy;

(b) 

improving  capacity  to  analyse,  plan,  formulate  and  implement  policies,  in 
particular  in  the  economic,  social,  environmental,  research,  science  and 
technology and innovation ﬁelds;

(c)  modernising,  strengthening  and  reforming  ﬁnancial  and  monetary  institu-

tions and improving procedures;

(d)  building the capacity at the local and municipal levels which is required to 
implement decentralisation policy and to increase  the  participation  of the 
population in the development process; and

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

(i) 

international negotiations; and

(ii)  management and coordination of external aid.

5.  Cooperation  shall  span  all  areas  and  sectors  of  cooperation  to  foster  the 
emergence of non-state actors and the development of their capacities; and to 
strengthen structures for information, dialogue and consultation between them 
and the national authorities, including at regional level.

TITLE II 
ECONOMIC AND TRADE COOPERATION

CHAPTER 1 
OBJECTIVES AND PRINCIPLES

ARTICLE 34 
Objectives

1. Economic and trade cooperation shall aim at fostering the smooth and gradual 
integration of the ACP States into the world economy, with due regard for their 

THE COTONOU AGREEMENT

57

political choices and development priorities, thereby promoting their sustainable 
development and contributing to poverty eradication in the ACP countries.

2. The ultimate objective of economic and trade cooperation is to enable the ACP 
States to play a full part in international trade. In this context, particular regard 
shall be had to the need for the ACP States to participate actively in multilateral 
trade negotiations. Given the current level of development of the ACP countries, 
economic and trade cooperation shall be directed at enabling the ACP States to 
manage the challenges of globalisation and to adapt progressively to new con-
ditions  of  international  trade  thereby  facilitating  their  transition  to  the  liberal-
ised global economy. In this context, close attention should be paid to many 
ACP countries’ vulnerability resulting from their dependency on commodities 
or a few key products, including value-added agro-industry products, and the 
risk of preference erosion.

3. To this end, economic and trade cooperation shall aim, through national and 
regional development strategies as deﬁned in Title I, at enhancing the produc-
tion,  supply  and  trading  capacity  of  the  ACP  countries  as  well  as  their  capac-
ity 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,  at  reducing  their  dependency  on  commodities,  at  promoting  more 
diversiﬁed economies and at improving the ACP countries’ capacity to handle all 
issues related to trade.

4. Economic and trade cooperation shall be implemented in full conformity with 
the provisions of the World Trade Organisation (WTO), including special and dif-
ferential treatment, taking account of the Parties’ mutual interests and their re-
spective levels of development. It shall also address the eﬀects of preference 
erosion in full conformity with multilateral commitments.

ARTICLE 35 
Principles

1. Economic and trade cooperation shall be based on a true, strengthened and 
strategic partnership. It shall further be based on a comprehensive approach which 
builds on the strengths and achievements of the previous ACP–EC Conventions.

2. Economic and trade cooperation shall build on regional integration initiatives 
of ACP States. Cooperation in support of regional cooperation and integration 
as  deﬁned  in  Title  I  and  economic  and  trade  cooperation  shall  be  mutually 

58

THE COTONOU AGREEMENT

reinforcing. Economic and trade cooperation shall address, in particular, sup-
ply and demand side constraints, notably interconnectivity of infrastructure, 
economic diversiﬁcation and trade development measures as a means of en-
hancing ACP States’ competitiveness. Appropriate weight shall therefore be 
given to the corresponding measures in the ACP States’ and regions’ develop-
ment  strategies,  which  the  Community  shall  support,  in  particular  through 
the provision of aid for trade.

3. Economic and trade cooperation shall take account of the diﬀerent needs and 
levels of development of the ACP countries and regions. In this context, the Par-
ties reaﬃrm 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.

CHAPTER 2 
NEW TRADING ARRANGEMENTS 

ARTICLE 36 
Modalities

1. In view of the objectives and principles set out above, the Parties agree to take 
all the necessary measures to ensure the conclusion of new WTO-compatible 
Economic Partnership Agreements, removing progressively barriers to trade be-
tween them and enhancing cooperation in all areas relevant to trade.

2. The Economic Partnership Agreements, as development instruments, aim 
to  foster  smooth  and  gradual  integration  of  the  ACP  States  into  the  world 
economy, especially by making full use of the potential of regional integration 
and South–South trade.

3. The Parties agree that these new trading arrangements shall be introduced 
gradually.

ARTICLE 37 
Procedures

1. During the negotiations of the Economic Partnership Agreements, capac-
ity building shall be provided in accordance with the provisions of Title I and 
Article 35 to the public and private sectors of ACP countries, including measures 
to enhance competitiveness, for strengthening of regional organisations and for 

THE COTONOU AGREEMENT

59

support  to  regional  trade  integration  initiatives,  where  appropriate  with  assis-
tance  to  budgetary  adjustment  and  ﬁscal  reform,  as  well  as  for  infrastructure 
upgrading and development, and for investment promotion.

2. The Parties will regularly review the progress of negotiations as foreseen in 
Article 38.

3.  Negotiations  of  the  Economic  Partnership  Agreements  will  be  pursued  with 
ACP countries which consider themselves in a position to do so, at the level they 
consider appropriate and in accordance with the procedures agreed by the ACP 
Group and with a view to supporting regional integration process within the ACP.

4. Negotiations of the Economic Partnership Agreements shall aim notably at es-
tablishing the timetable for the progressive removal of barriers to trade between 
the Parties, in accordance with the relevant WTO rules. On the Community side 
trade liberalisation shall build on the acquis and shall aim at improving current 
market access for the ACP countries through inter alia, a review of the rules of 
origin. Negotiations shall take account of the level of development and the so-
cioeconomic  impact  of  trade  measures  on  ACP  countries,  and  their  capacity  to 
adapt and adjust their economies to the liberalisation process. Negotiations will 
therefore  be  as  ﬂexible  as  possible  in  establishing  the  duration  of  a  suﬃcient 
transitional period, the ﬁnal product coverage, taking into account sensitive sec-
tors, and the degree of asymmetry in terms of timetable for tariﬀ dismantlement, 
while remaining in conformity with WTO rules then prevailing.

5. The Parties shall closely cooperate and collaborate in the WTO with a view to 
explaining and justifying the arrangements reached, in particular with regard to 
the degree of ﬂexibility available.

6. The Parties shall discuss further how to simplify and review the rules of ori-
gin, including cumulation provisions, that apply to their exports.

7.  Once  ACP  States  have  concluded  an  Economic  Partnership  Agreement, 
those ACP States which are not Parties to such Agreement can seek accession 
at any time.

8. In the context of ACP–EU cooperation in support of ACP regional coopera-
tion and integration as outlined in Title I, and in accordance with Article 35, 
the Parties shall pay particular attention to the needs arising from the imple-
mentation of the Economic Partnership Agreements. The principles outlined in 

60

THE COTONOU AGREEMENT

Article 1 of Annex IV to this Agreement shall apply. To that eﬀect, the Parties 
agree on the use of existing or new regional ﬁnancing mechanisms through 
which  resources  from  the  multi-annual  ﬁnancial  framework  of  cooperation 
and other additional resources could be channelled.

ARTICLE 37A 
Other trading arrangements

1. In the context of the current trade policy trends aiming at greater liberali-
sation of trade the EU and the ACP States may take part in negotiations and 
implementation of agreements leading to further multilateral and bilateral 
trade liberalisation. Such liberalisation may lead to the erosion of the prefer-
ences granted to the ACP States and aﬀect their competitive position in the 
EU market, as well as their development eﬀorts, which the EU is concerned 
to support.

2. In accordance with the objectives of economic and trade cooperation, the 
EU  shall  endeavour  to  pursue  measures  to  overcome  possible  negative  im-
pacts of liberalisation, with a view to maintaining signiﬁcant preferential ac-
cess within the multilateral trading system for ACP States for as long as is 
feasible and to ensure that any unavoidable reduction in preference is phased 
in over as long a period as possible.

ARTICLE 38 
Joint Ministerial Trade Committee

1. A Joint ACP–EC Ministerial Trade Committee shall be established.

2. The Ministerial Trade Committee shall discuss any trade-related issue of con-
cern to all ACP States and, in particular, regularly monitor the negotiations 
and implementation of Economic Partnership Agreements. It shall pay special 
attention to current multilateral trade negotiations and shall examine the impact 
of  the  wider  liberalisation  initiatives  on  ACP–EC  trade  and  the  development  of 
ACP economies. It shall report and make appropriate recommendations to the 
Council of Ministers, including on any supportive measures, with a view to en-
hancing 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.

THE COTONOU AGREEMENT

61

ARTICLE 38A 
Consultations

1. Where new measures or measures stipulated in programmes adopted by 
the Community for the approximation of laws and regulations in order to fa-
cilitate trade are likely to aﬀect the interests of one or more ACP States, the 
Community shall, prior to adopting such measures, inform the Secretariat of 
the ACP Group and the ACP States concerned.

2. In order to enable the Community to take into consideration the interests 
of the ACP Group, consultations shall be held at the request of the latter in 
accordance with the provisions of Article 12 of this Agreement, with a view to 
reaching a satisfactory solution.

3.  Where  existing  Community  rules  or  regulations  adopted  in  order  to  fa-
cilitate trade aﬀect the interests of one or more ACP States or where these 
interests are aﬀected by the interpretation, application or administration of 
such rules or regulations, consultations shall be held at the request of the ACP 
States concerned in accordance with the provisions of Article 12 with a view 
to reaching a satisfactory solution.

4. With a view to ﬁnding a satisfactory solution, the Parties may also bring up 
within the Joint Ministerial Trade Committee any other problems relating to 
trade which might result from measures taken or envisaged by the Member 
States.

5. The Parties shall inform each other of such measures in order to ensure 
eﬀective consultations.

6.  The  Parties  agree  that  holding  consultations  within,  and  providing  infor-
mation  through,  the  institutions  of  an  Economic  Partnership  Agreement  on 
matters within the scope of such agreements shall be deemed to also satisfy 
the  provisions  of  this  Article  and  of  Article  12  of  this  Agreement,  provided 
that the ACP States likely to be aﬀected are all signatories to the Economic 
Partnership Agreement within which the consultations were held or informa-
tion was provided.

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THE COTONOU AGREEMENT

CHAPTER 3 
COOPERATION IN THE INTERNATIONAL FORA

ARTICLE 39 
General Provisions

1. The Parties underline the importance of their active participation in the WTO 
as well as in other relevant international organisations by becoming members of 
these organisations and closely following their agenda and activities.

2. They agree to cooperate closely in identifying and furthering their common in-
terests in international economic and trade cooperation in particular in the WTO, 
including participation in setting and conducting the agenda in future multilateral 
trade negotiations. In this context, particular attention shall be paid to improve 
access to the Community and other markets for products and services originating 
in the ACP countries.

3. They also agree on the importance of ﬂexibility in WTO rules to take account 
of the ACP’s level of development as well of the diﬃculties faced in meeting their 
obligations. They further agree on the need for technical assistance to enable the 
ACP countries to implement their commitments.

4. The Community agrees to assist the ACP States in their eﬀorts, in accordance 
with the provisions set out in this Agreement, to become active members of these 
organisations, by developing the necessary capacity to negotiate, participate ef-
fectively, monitor and implement these agreements.

ARTICLE 40 
Commodities

1.  The  Parties  recognise  the  need  to  ensure  a  better  operation  of  international 
commodity markets and to increase market transparency.

2. They conﬁrm their willingness to step up consultations between them in the 
international fora and organisations dealing with commodities.

3. To this end, exchange of views shall take place at the request of either Party:

THE COTONOU AGREEMENT

63

— 

regarding the operation of existing international agreements or specialised 
intergovernmental  working  parties  with  the  aim  of  improving  them  and 
making them more eﬀective, consistent with market trends;

—  when it is proposed to conclude or renew an international agreement or set 

up a specialised intergovernmental working party.

The aim of such exchanges of views shall be to take account of the respective 
interest of each party. They may take place, where necessary, in the framework of 
the Ministerial Trade Committee.

CHAPTER 4 
TRADE IN SERVICES

ARTICLE 41 
General Provisions

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

2. They reaﬃrm their respective commitments under the General Agreement on 
Trade in Services (GATS), and underline the need for special and diﬀerential treat-
ment to ACP suppliers of services.

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

4.  The  Parties  further  agree  on  the  objective  of  extending  under  the  economic 
partnership  agreements,  and  a(cid:3)er  they  have  acquired  some  experience  in  ap-
plying the Most Favoured Nation (MFN) treatment under GATS, their partnership 
to encompass the liberalisation of services in accordance with the provisions of 
GATS and particularly those relating to the participation of developing countries 
in liberalisation agreements.

5.  The  Community  shall  support,  through  national  and  regional  development 
strategies  as  deﬁned  in  Title  I  and  in  conformity  with  Article  35,  the  ACP 
States’ eﬀorts to strengthen their capacity in the supply of services. Particular 
attention shall be paid to services related to labour, business, distribution, ﬁnance, 

64

THE COTONOU AGREEMENT

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.

ARTICLE 42 
Maritime Transport

1. The Parties acknowledge the importance of cost-eﬀective and eﬃcient mari-
time transport services in a safe and clean marine environment as the main mode 
of transportation facilitating 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 mar-
itime transport market on a non-discriminatory and commercial basis.

3. Each Party shall grant, inter alia, a treatment no less favourable than that ac-
corded to its own ships, for ships operated by nationals or companies of the other 
Party, and for ships registered in the territory of either party, with respect to ac-
cess to ports, the use of infrastructure and auxiliary maritime services of those 
ports, as well as related fees and charges, customs facilities and the assignment 
of berths and facilities for loading and unloading.

4. The Community shall support,  through  national  and  regional  development 
strategies  as  deﬁned  in  Title  I  and  in  conformity  with  Article  35,  the  ACP 
States’ eﬀorts to develop and promote cost eﬀective and eﬃcient maritime trans-
port services in the ACP States with a view to increasing the participation of ACP 
operators in international shipping services.

ARTICLE 43 
Information and Communication Technologies, and Information Society

1.  The  Parties  recognise  the  important  role  of  information  and  communication 
technologies,  as  well  as  the  active  participation  in  the  Information  Society,  as 
a prerequisite for the successful integration of the ACP countries into the world 
economy.

2. They therefore reconﬁrm their respective commitments under existing multilat-
eral agreements, in particular the protocol on Basic Telecommunications attached 

THE COTONOU AGREEMENT

65

to the GATS, and invite those ACP countries, which are not yet members of these 
agreements, to accede to them.

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

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

— 

— 

— 

the  development  and  encouragement  of  the  use  of  aﬀordable  renewable 
energy resources;

the development and deployment of more extensive low-cost wireless net-
works; and

the development and encouragement of the use of local content for Infor-
mation and Communication Technologies.

5.  The  Parties  also  agree  to  step  up  cooperation  between  them  in  the  area  of 
information and communication technologies, and the Information Society. This 
cooperation  shall,  through  national  and  regional  development  strategies  as 
deﬁned in Title I and in conformity with Article 35, in particular be directed to-
wards greater complementarity and harmonisation of communication systems, at 
national, regional and international level and their adaptation to new technologies.

CHAPTER 5 
TRADE RELATED AREAS

ARTICLE 44 
General Provisions

1. The Parties acknowledge the growing importance of new areas related to trade 
in facilitating progressive integration of the ACP States into the world economy. 
They  therefore  agree  to  strengthen  their  cooperation  in  these  areas  by  estab-
lishing  full  and  coordinated  participation  in  the  relevant  international  fora  and 
agreements.

2. The Community shall support the ACP States’ eﬀorts, through national and 
regional development strategies as deﬁned in Title I and in conformity with 

66

THE COTONOU AGREEMENT

Article 35, to strengthen their capacity to handle all areas related to trade, in-
cluding, where necessary, improving and supporting the institutional framework.

ARTICLE 45 
Competition Policy

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

2.  To  ensure  the  elimination  of  distortions  to  sound  competition  and  with  due 
consideration to the diﬀerent levels of development and economic needs of each 
ACP country, they undertake to implement national or regional rules and policies 
including the control and under certain conditions the prohibition of agreements 
between undertakings, decisions by associations of undertakings and concerted 
practices between undertakings which have as their object or eﬀect the preven-
tion, 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.

3.  The  Parties  also  agree  to  reinforce  cooperation  in  this  area  with  a  view  to 
formulating  and  supporting  eﬀective  competition  policies  with  the  appropriate 
national competition agencies that progressively ensure the eﬃcient enforcement 
of the competition rules by both private and state enterprises. Cooperation in this 
area shall, in particular, through national and regional development strategies 
as  deﬁned  in  Title  I  and  in  conformity  with  Article  35,  include  assistance  in 
the  dra(cid:3)ing  of  an  appropriate  legal  framework  and  its  administrative  enforce-
ment  with  particular  reference  to  the  special  situation  of  the  Least  Developed 
Countries.

ARTICLE 46 
Protection of Intellectual Property Rights

1. Without prejudice to the positions of the Parties in multilateral negotiations, the 
Parties recognise the need to ensure an adequate and eﬀective level of protec-
tion  of  intellectual,  industrial  and  commercial  property  rights,  and  other  rights 
covered by TRIPS including protection of geographical indications, in line with the 
international standards with a view to reducing distortions and impediments to 
bilateral trade.

THE COTONOU AGREEMENT

67

2.  They  underline  the  importance,  in  this  context,  of  adherence  to  the  Agree-
ment on Trade Related Aspects of Intellectual Property Rights (TRIPS) to the WTO 
Agreement and the Convention on Biological Diversity (CBD).

3. They also agree on the need to accede to all relevant international conventions 
on intellectual, industrial and commercial property as referred to in Part I of the 
TRIPS Agreement, in line with their level of development.

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

5.  For  the  purpose  of  this  Agreement,  intellectual  property  includes  in  particu-
lar copyright, including the copyright on computer programmes, and neighbour-
ing rights, including artistic designs, and industrial property which includes util-
ity models, patents including patents for bio-technological inventions and plant 
varieties or other eﬀective sui generis systems, industrial designs, geographical 
indications including appellations of origin, trademarks for goods or services, to-
pographies of integrated circuits as well as the legal protection of data bases and 
the protection against unfair competition as referred to in Article 10a of the Paris 
Convention for the Protection of Industrial Property and protection of undisclosed 
conﬁdential information on know-how.

6.  The  Parties  further  agree  to  strengthen  their  cooperation  in  this  ﬁeld.  Upon 
request,  on  mutually  agreed  terms  and  conditions,  and  through  national  and 
regional development strategies as deﬁned in Title I and in conformity with 
Article 35, cooperation shall, inter alia, extend to the following areas: the prepa-
ration of laws and regulations for the protection and enforcement of intellectual 
property rights, the prevention of the abuse of such rights by right holders and the 
infringement of such rights by competitors, the establishment and reinforcement 
of domestic and regional oﬃces and other agencies including support for regional 
intellectual  property  organisations  involved  in  enforcement  and  protection,  in-
cluding the training of personnel.

ARTICLE 47 
Standardisation and Certiﬁcation

1. The Parties agree to cooperate more closely in the ﬁeld of standardisation, cer-
tiﬁcation and quality assurance to remove unnecessary technical barriers and to 
reduce diﬀerences between them in those areas, so as to facilitate trade.

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THE COTONOU AGREEMENT

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

2.  Cooperation  in  standardisation  and  certiﬁcation,  through  national  and  re-
gional  development  strategies  as  deﬁned  in  Title  I  and  in  conformity  with 
Article 35, shall aim at promoting compatible systems between the Parties and 
in particular include:

—  measures, in accordance with the TBT Agreement, to promote greater use of 
international  technical  regulations,  standards  and  conformity  assessment 
procedures, including sector speciﬁc measures, in accordance with the level 
of economic development of ACP countries,

— 

— 

cooperation in the area of quality management and assurance in selected 
sectors of importance to the ACP States,

support for capacity building initiatives in the ACP countries in the ﬁelds of 
conformity assessment, metrology and standardisation,

—  developing  functioning  links  between  ACP  and  European  standardisation, 

conformity assessment and certiﬁcation institutions.

3. The Parties undertake to consider, in due course, negotiating mutual recogni-
tion agreements in sectors of mutual economic interest.

ARTICLE 48 
Sanitary and Phytosanitary Measures

1. The Parties recognise the right of each Party to adopt or to enforce sanitary 
and phytosanitary measures necessary to protect human, animal or plant life or 
health, subject to the requirement that these measures do not constitute a means 
of  arbitrary  discrimination  or  a  disguised  restriction  to  trade,  generally.  To  this 
end,  they  reaﬃrm  their  commitments  under  the  Agreement  on  the  Application 
of Sanitary and Phytosanitary Measures, annexed to the WTO Agreement (SPS 
Agreement), taking account of their respective level of development.

2.  They  further  undertake  to  reinforce  coordination,  consultation  and  informa-
tion as regards notiﬁcation and application of proposed sanitary and phytosani-
tary measures, in accordance with the SPS Agreement whenever these measures 
might aﬀect the interests of either Party. They also agree on prior consultation 

THE COTONOU AGREEMENT

69

and coordination within the CODEX ALIMENTARIUS, the International Oﬃce of Epi-
zootics and the International Plant Protection Convention, with a view to further-
ing their common interests.

3. The Parties agree to strengthen their cooperation, through national and re-
gional  development  strategies  as  deﬁned  in  Title  I  and  in  conformity  with 
Article 35, 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 inter-
national trade in such a way as to ensure sustainable and sound management of 
the environment, in accordance with the international conventions and undertak-
ings  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 environmental measures, 
including in relation to the provisions of Article 32a.

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

3.  The  Parties  agree  that  environmental  measures  should  not  be  used  for 
protectionist purposes.

ARTICLE 50 
Trade and Labour Standards

1. The Parties reaﬃrm their commitment to the internationally recognised core la-
bour standards, as deﬁned by the relevant International Labour Organisation (ILO) 
Conventions, and in particular the freedom of association and the right to collec-
tive bargaining, the abolition of forced labour, the elimination of worst forms of 
child labour and non-discrimination in respect to employment.

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THE COTONOU AGREEMENT

2. They agree to enhance cooperation in this area, in particular in the following 
ﬁelds:

—  exchange of information on the respective legislation and work regulation;

— 

the formulation of national labour legislation and strengthening of existing 
legislation;

—  educational and awareness raising programmes;

—  enforcement of adherence to national legislation and work regulation;

3. The Parties agree that labour standards should not be used for protection-
ist purposes.

ARTICLE 51 
Consumer Policy and Protection of Consumer Health

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

2.  Cooperation  shall,  in  particular,  aim,  through  national  and  regional  devel-
opment strategies as deﬁned in Title I and in conformity with Article 35, at 
improving the institutional and technical capacity in this area, establishing rapid 
alert systems of mutual information on dangerous products, exchanging informa-
tion and experiences on the establishment and operation of post market surveil-
lance  of  products  and  product  safety,  improving  information  provided  to  con-
sumers on prices, characteristics of products and services oﬀered, encouraging 
the  development  of  independent  consumer  associations  and  contacts  between 
consumer interest representatives, improving compatibility of consumer policies 
and systems, notifying enforcement of the legislation and promoting cooperation 
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.

THE COTONOU AGREEMENT

71

ARTICLE 52 
Tax Carve-out Clause

1. Without prejudice to the provisions of Article 31 of Annex IV, the Most Favoured 
Nation treatment granted in accordance with the provisions of this Agreement, 
or any arrangement adopted under this Agreement, does not apply to tax advan-
tages which the Parties are providing or may provide in the future on the basis 
of agreements to avoid double taxation or other tax arrangements, or domestic 
ﬁscal legislation.

2. Nothing in this Agreement, or in any arrangements adopted under this Agree-
ment, 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 pro-
visions  of  agreements  to  avoid  double  taxation  or  other  tax  arrangements,  or 
domestic ﬁscal legislation.

3. Nothing in this Agreement, or in any arrangements adopted under this Agree-
ment, shall be construed to prevent the Parties from distinguishing, in the applica-
tion of the relevant provisions of their ﬁscal legislation, between taxpayers who 
are not in the same situation, in particular with regard to their place of residence, 
or with regard to the place where their capital is invested.

CHAPTER 6 
COOPERATION IN OTHER AREAS

ARTICLE 53 
Fishery Agreements

1. The Parties declare their willingness to negotiate ﬁshery agreements aimed at 
guaranteeing sustainable and mutually satisfactory conditions for ﬁshing activi-
ties 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 Com-
munity discriminate against ACP States.

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THE COTONOU AGREEMENT

ARTICLE 54 
Food security

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

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

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

4. The speciﬁc agreements referred to in paragraph 3 shall not place in jeopardy 
production and trade ﬂows in ACP regions.

THE COTONOU AGREEMENT

73

PART 4 
DEVELOPMENT FINANCE COOPERATION

TITLE I 
GENERAL PROVISIONS

CHAPTER 1 
OBJECTIVES, PRINCIPLES, GUIDELINES AND ELIGIBILITY

ARTICLE 55 
Objectives

The objectives of development ﬁnance cooperation shall be, through the provision 
of adequate ﬁnancial resources and appropriate technical assistance, to support 
and promote the eﬀorts of ACP States to achieve the objectives set out in this 
Agreement on the basis of mutual interest and in a spirit of interdependence.

ARTICLE 56 
Principles

1. Development ﬁnance cooperation shall be implemented on the basis of and be 
consistent with the development objectives, strategies and priorities established 
by  the  ACP  States,  at  national,  regional  and  intra-ACP  levels.  Their  respective 
geographical, social and cultural characteristics, as well as their speciﬁc potential, 
shall be taken into account. Guided by the internationally agreed aid eﬀective-
ness agenda, cooperation shall be based on ownership, alignment, donor co-
ordination and harmonisation, managing for development results and mutual 
accountability. In particular, cooperation shall:

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

(b) 

reﬂect a partnership based on mutual rights and obligations;

(c)  emphasise the importance of predictability and security in resource ﬂows, 

granted on highly concessional terms and on a continuous basis;

(d)  be  ﬂexible  and  appropriate  to  the  situation  in  each  ACP  State  as  well  as 

adapted to the speciﬁc nature of the project or programme concerned; and

(e)  ensure eﬃciency, coordination and consistency.

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THE COTONOU AGREEMENT

2. Cooperation shall ensure special treatment for LDC ACP countries and duly take 
into account the vulnerability of landlocked and island ACP countries. In addition, 
the speciﬁc needs of post-conﬂict countries shall also be addressed.

ARTICLE 57 
Guidelines

1. Operations ﬁnanced within the framework of this Agreement shall be imple-
mented by the ACP States and the Community in close cooperation, the concept 
of equality between the partners being recognised.

2. The ACP States shall be responsible for:

(a)  deﬁning  the  objectives  and  priorities  on  which  the  indicative  programmes 

are based;

(b) 

choosing projects and programmes;

(c)  preparing and presenting the dossiers of projects and programmes;

(d)  preparing, negotiating and concluding contracts;

(e) 

implementing and managing projects and programmes; and

(f)  maintaining projects and programmes.

3. Without prejudice to the provisions above, eligible non-state actors may also 
be responsible for proposing and implementing programmes and projects in areas 
concerning them.

4. The ACP States and the Community shall be jointly responsible for:

(a)  establishing, within the joint institutions, the guidelines for development ﬁ-

nance cooperation;

(b)  adopting the indicative programmes;

(c)  appraising projects and programmes;

THE COTONOU AGREEMENT

75

(d)  ensuring equality of conditions for participation in invitations to tender and 

contracts;

(e)  monitoring  and  evaluating  the  eﬀects  and  results  of  projects  and  pro-

grammes; and

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

programmes.

5. The Community shall be responsible for taking ﬁnancing decisions on projects 
and programmes.

6. Unless otherwise provided for in this Agreement, all decisions requiring the ap-
proval of either Party shall be approved, or be deemed approved, within 60 days 
of notiﬁcation by the other Party.

ARTICLE 58 
Eligibility for ﬁnancing

1. The following entities or bodies shall be eligible for ﬁnancial support provided 
under the Agreement:

(a)  ACP States;

(b) 

regional or inter-state bodies to which one or more ACP States belong, in-
cluding  the  African  Union  or  other  bodies  with  non-ACP  State  members, 
which are authorised by those ACP States; and

(c) 

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

2. Subject to the agreement of the ACP State or ACP States concerned, the follow-
ing shall also be eligible for ﬁnancial support:

(a)  national and/or regional public or semi-public agencies and departments of 
ACP States, including Parliaments, and, in particular, their ﬁnancial institu-
tions and development banks;

(b) 

companies, ﬁrms and other private organisations and private operators of 
ACP States;

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THE COTONOU AGREEMENT

(c)  enterprises  of  a  Community  Member  State  to  enable  them,  in  addition  to 
their own contribution, to undertake productive projects in the territory of an 
ACP State;

(d)  ACP or Community ﬁnancial intermediaries providing, promoting and ﬁnanc-

ing private or public investments in ACP States;

(e) 

local decentralised authorities from ACP States and the Community; and

(f)  developing countries that are not part of the ACP Group where they partici-
pate in a joint initiative or regional organisation with ACP States in conform-
ity with Article 6 of Annex IV to this Agreement.

3. Non-state actors from ACP States and the Community which have a local char-
acter shall be eligible for ﬁnancial support provided under this Agreement, accord-
ing to the modalities agreed in the national and regional indicative programmes.

CHAPTER 2 
SCOPE AND NATURE OF FINANCING

ARTICLE 59

Within  the  framework  of  the  priorities  established  by  the  ACP  State  or  States 
concerned at both national and regional levels, support may be given to projects, 
programmes and other forms of operations contributing to the objectives set out 
in this Agreement.

ARTICLE 60 
Scope of Financing

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

(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 short-term eﬀects of exogenous shocks, including 
instability in export earnings on socioeconomic reforms and policies;

THE COTONOU AGREEMENT

77

(d)  sectoral policies and reforms;

(e) 

institutional development and capacity building;

(f) 

technical cooperation programmes; and

(g)  humanitarian  and  emergency  assistance  including  assistance  to  refugees 
and displaced persons, interventions linking short-term relief and reha-
bilitation with long-term development in crisis or post-crisis situations, 
and disaster preparedness.

ARTICLE 61 
Nature of Financing

1. The nature of ﬁnancing shall, inter alia, include:

(a)  projects and programmes;

(b) 

credit lines, guarantee schemes and equity participation;

(c)  budgetary support, either directly, for the ACP States whose currencies are 
convertible  and  freely  transferable,  or  indirectly,  from  counterparts  funds 
generated by the various Community instruments;

(d) 

the  human  and  material  resources  necessary  for  eﬀective  administration 
and supervision of projects and programmes;

(e) 

sectoral and general import support programmes which may take the form 
of:

(i) 

sectoral import programmes through direct procurement including ﬁ-
nancing  of  inputs  in  the  productive  system  and  supplies  to  improve 
social services;

(ii) 

sectoral import programmes in the form of foreign exchange released 
in instalments for ﬁnancing sectoral imports; and

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

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THE COTONOU AGREEMENT

2. Direct budgetary assistance in support of macroeconomic or sectoral reforms 
shall be granted where:

(a)  well-deﬁned poverty-focused national or sector development strategies 

are in place or under implementation;

(b)  well-deﬁned  stability-oriented  macroeconomic  policy  established  by  the 
country itself and positively assessed by its main donors, including where 
relevant the international ﬁnancial institutions, is in place or under im-
plementation; and

(c)  public  ﬁnancial  management  is  suﬃciently  transparent,  accountable 

and eﬀective.

The Community shall align on  the  systems and procedures speciﬁc to each 
ACP country, monitor its budget support with the partner country and support 
eﬀorts  of  partner  countries  to  strengthen  domestic  accountability,  parlia-
mentary oversight, audit capacities and public access to information.

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

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

5. In the framework of the Agreement, the funds earmarked under the multi-
annual  ﬁnancial  framework  of  cooperation  under  this  Agreement,  own  re-
sources of the European Investment Bank (hereina(cid:3)er referred to as the Bank) 
and where appropriate other resources drawn from the European Community’s 
budget, shall be used to ﬁnance projects, programmes and other forms of opera-
tions contributing to the achievement of the objectives of this Agreement.

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

THE COTONOU AGREEMENT

79

TITLE II 
FINANCIAL COOPERATION

CHAPTER 1 
FINANCIAL RESOURCES

ARTICLE 62 
Overall amount

1. For the purposes set out in this Agreement, the overall amount of the Commu-
nity’s ﬁnancial assistance and the detailed terms and conditions of ﬁnancing are 
provided for in the Annexes to this Agreement.

2. Should an ACP State fail to ratify this Agreement or denounce it, the Parties 
shall adjust the amounts of the resources provided for in the Financial Protocol 
set out in Annex I. Adjustment of the ﬁnancial resources shall also apply upon:

(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 ﬁ-
nancial 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, factors guaranteeing their servicing.

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THE COTONOU AGREEMENT

ARTICLE 64 
On lending operations

1. Financial assistance may be made available to or through the ACP States con-
cerned 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 trans-
action 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, a(cid:3)er taking into 
account administrative costs, exchange and ﬁnancial risks and the cost of 
technical assistance given to the ﬁnal recipient.

2. Where the ﬁnancing is undertaken through an on-lending body based and/or 
operating in the ACP States, it shall be the responsibility of that body to select 
and appraise 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.

ARTICLE 65 
Co-ﬁnancing

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

2. Special consideration shall be given to the possibility of co-ﬁnancing in cases 
where Community participation will encourage the participation of other sources 
of ﬁnance and where such ﬁnancing may lead to an advantageous ﬁnancial pack-
age for the ACP State concerned.

THE COTONOU AGREEMENT

81

3. Co-ﬁnancing may be in the form of joint or parallel ﬁnancing. Preference shall 
be given in each case to the solution, which is more suitable from the point of 
view of cost eﬀectiveness. In addition, measures shall be taken to coordinate and 
harmonise operations of the Community and those of other co-ﬁnancing bodies in 
order to minimise the number of procedures to be undertaken by the ACP States 
and to render those procedures more ﬂexible.

4. The process of consultation and coordination with other donors and co-ﬁnan-
ciers should be strengthened and developed, where possible, through the estab-
lishment  of  co-ﬁnancing  framework  agreements  and  co-ﬁnancing  policies  and 
procedures should be reviewed to ensure eﬀectiveness and the best terms and 
conditions possible.

CHAPTER 2 
DEBT AND STRUCTURAL ADJUSTMENT SUPPORT 

ARTICLE 66 
Support for debt relief

1. In order to attenuate the debt burden of the ACP States and their balance-of-
payment  problems,  the  Parties  agree  to  use  the  resources  provided  for  under 
the multi-annual ﬁnancial framework of cooperation under this Agreement to 
contribute to debt relief initiatives approved at international level for the beneﬁt 
of ACP countries. The Community furthermore commits itself to examine how in 
the longer term other Community resources can be mobilised in support of inter-
nationally agreed debt relief initiatives.

2. At the request of an ACP State, the Community may grant:

(a)  assistance  in  studying  and  ﬁnding  practical  solutions  to  indebtedness  in-
cluding domestic debt, debt-servicing diﬃculties and balance of payments 
problems;

(b) 

training in debt management and international ﬁnancial negotiations as well 
as support for training workshops, courses and seminars in these ﬁelds; and

(c)  assistance  to  develop  ﬂexible  techniques  and  instruments  of  debt 

management.

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THE COTONOU AGREEMENT

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

4. Given the seriousness of the international debt problem and its impact on eco-
nomic 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 multi-annual ﬁnancial framework of cooperation under this Agreement 
shall  provide  support  for  macroeconomic  and  sectoral  reforms  implemented  by 
the  ACP  States.  In  this  framework,  the  Parties  shall  ensure  that  adjustment  is 
economically viable and socially and politically bearable. Support shall be given in 
the context of a joint assessment between the Community and the ACP State con-
cerned on the reform measures being undertaken or contemplated either at mac-
roeconomic or sectoral level, and permit an overall evaluation of the reform eﬀorts. 
To the extent possible the joint assessment shall be aligned on country speciﬁc 
arrangements  and  the  support  monitored  on  the  basis  of  results  achieved. 
Quick disbursement shall be an important feature of support programmes.

2. The ACP States and the Community recognise the necessity to encourage re-
form programmes at regional level ensuring that, in the preparation and execu-
tion  of  national  programmes,  due  consideration  is  given  to  regional  activities 
which have an inﬂuence on national development. To this end, support for struc-
tural adjustment shall also seek to:

(a) 

incorporate,  from  the  beginning  of  the  diagnosis,  measures  to  encourage 
regional integration and take account of the consequences of trans border 
adjustment;

(b)  support the harmonisation and coordination of macroeconomic and sectoral 
policies, including ﬁscal and customs areas, so as to fulﬁl the dual aim of 
regional integration and of structural reform at national level; and

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83

(c) 

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

3. ACP States undertaking or contemplating reform at the macroeconomic or sec-
toral  level  shall  be  eligible  for  structural  adjustment  assistance,  giving  consid-
eration to the regional context, their eﬀectiveness and the likely impact on the 
economic,  social  and  political  dimension  of  development  and  on  economic  and 
social hardships being experienced.

4. The ACP States undertaking reform programmes that are acknowledged and 
supported at least by the principal multilateral donors, or that are agreed with 
such donors but not necessarily ﬁnancially supported by them, shall be treated as 
having automatically satisﬁed the requirements for adjustment assistance.

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

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

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

CHAPTER 3 
SUPPORT IN CASE OF EXOGENOUS SHOCKS

ARTICLE 68

1.  The  Parties  recognise  that  macroeconomic  instability  resulting  from  exog-
enous shocks may adversely aﬀect the development of the ACP States and jeop-
ardise the attainment of their development requirements. A system of additional 

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THE COTONOU AGREEMENT

support in order to mitigate the short-term adverse eﬀects resulting from exog-
enous shocks, including the eﬀects on export earnings, is therefore set up with-
in the multi-annual ﬁnancial framework of cooperation under this Agreement.

2. The purpose of this support is to safeguard socioeconomic reforms and policies 
that could be aﬀected negatively as a result of a drop in revenue and to remedy 
the short-term adverse eﬀects of such shocks.

3. The extreme dependence of the ACP States’ economies on exports, in particular 
from the agricultural and mining sectors, shall be taken into account in the allocation 
of resources. In this context, the least developed, landlocked and island, post-conﬂict 
and post-natural disaster ACP States shall receive more favourable treatment.

4. The additional resources shall be provided in accordance with the speciﬁc mo-
dalities 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  short-term  ef-
fects of exogenous shocks.

CHAPTER 4 
SUPPORT FOR SECTORAL POLICIES 

ARTICLE 69

1. Cooperation shall support, through the various instruments and modalities pro-
vided for in the Agreement:

(a)  social and economic sectoral policies and reforms;

(b)  measures to enhance productive sector activity and export competitiveness;

(c)  measures to expand social sector services; and

(d) 

thematic and cross cutting issues.

2. This support shall be provided as appropriate through:

(a)  sectoral programmes;

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85

(b)  budgetary support;

(c) 

investments;

(d) 

rehabilitation;

(e) 

training;

(f) 

technical assistance; and

(g) 

institutional support.

CHAPTER 5 
MICROPROJECTS AND DECENTRALISED COOPERATION

ARTICLE 70

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

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

(b)  decentralised cooperation, in particular where such operations combine ef-
forts and resources of decentralised agents from the ACP States and their 
counterparts from the Community. This form of cooperation shall enable the 
mobilisation of capabilities, innovative operating methods and resources of 
decentralised agents for the development of the ACP State.

ARTICLE 71

1.  Microprojects  and  decentralised  cooperation  operations  may  be  supported 
from  the  ﬁnancial  resources  of  the  Agreement.  Projects  or  programmes  under 

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THE COTONOU AGREEMENT

this form of cooperation may or may not be linked to programmes in the sectors 
of concentration of the indicative programmes, but may be a way of achieving the 
speciﬁc objectives of the indicative programme or the results of initiatives by local 
communities or decentralised agents.

2.  Contributions  for  the  ﬁnancing  of  micro-projects  and  decentralised  coopera-
tion 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);

(b)  by the agents of decentralised cooperation, provided that the ﬁnancial, tech-
nical, material and other resources brought in by such agents shall not nor-
mally be less than 25 % of the estimated cost of the project/programme; 
and

(c)  exceptionally by the ACP State concerned, either in the form of a ﬁnancial 
contribution or through the use of public equipment or the supply of services.

3.  The  procedures  applicable  to  projects  and  programmes  ﬁnanced  within  the 
framework of microprojects or decentralised cooperation shall be those laid down 
in the Agreement, in particular those referred to in multi-annual programmes.

CHAPTER 6 
HUMANITARIAN, EMERGENCY AND POST-EMERGENCY ASSISTANCE 

ARTICLE 72 
General principle

1. Humanitarian, emergency and post-emergency assistance shall be provided 
in situations of crisis. Humanitarian and emergency assistance shall aim to 
save and preserve life and to prevent and relieve human suﬀering wherever 
the  needs  arise.  Post-emergency  assistance  shall  aim  at  rehabilitation  and 
linking the short-term relief with longer term development programmes.

2. Situations of crisis, including long-term structural instability or fragility are 
situations posing a threat to law and order or to the security and safety of 
individuals, threatening to escalate into armed conﬂict or to destabilise the 

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87

country. Situations of crisis may also result from natural disasters, man-made 
crises  such  as  wars  and  other  conﬂicts  or  extraordinary  circumstances  having 
comparable eﬀects related, inter alia, to climate change, environmental degra-
dation, access to energy and natural resources, or extreme poverty.

3. The humanitarian, emergency and post-emergency assistance shall be main-
tained for as long as necessary to deal with the needs resulting from these situ-
ations for the victims, thereby linking relief, rehabilitation and development.

4.  The  humanitarian  assistance  shall  be  granted  exclusively  according  to  the 
needs and interests of the victims of the crisis situation and in line with the prin-
ciples of international humanitarian law and with respect to humanity, neutral-
ity, impartiality and independence. In particular, there shall be no discrimination 
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 guaran-
teed as well as the security of humanitarian personnel and equipment.

5.  The  humanitarian,  emergency  and  post-emergency  assistance  shall  be 
ﬁnanced  under  the  multi-annual  ﬁnancial  framework  of  cooperation  under 
this Agreement, where such assistance cannot be ﬁnanced from the Union’s 
Budget.  Humanitarian,  emergency  and  post-emergency  assistance  shall  be 
implemented in complementarity and coordination with the Member States’ 
eﬀorts and in accordance with best practice in aid eﬀectiveness.

ARTICLE 72A 
Objective

1. Humanitarian and emergency assistance shall aim to:

(a)  safeguard human lives in crises and immediate post-crisis situations;

(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 victims 
to  beneﬁt  from  a  minimum  of  socioeconomic  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 countries and regions concerned;

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THE COTONOU AGREEMENT

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

(e)  assist the ACP State or region in setting up short-term disaster prevention 
and preparedness mechanisms, including for prediction and early warning, 
with a view to reducing the consequences of disasters.

2. Assistance may be granted to ACP States or regions taking in refugees or 
returnees to meet acute needs not covered by emergency assistance.

3. Post-emergency action shall aim at physical and social rehabilitation conse-
quent to the results of the crisis concerned and may be undertaken to link the 
short-term  relief  and  rehabilitation  with  the  relevant  longer  term  develop-
ment programmes funded from the national, regional indicative programmes 
or the intra-ACP programme. Such actions must be necessary for the transition 
from the emergency phase to the development phase, promoting the socioeco-
nomic reintegration of the parts of the population aﬀected, removing as far as 
possible the causes of the crisis and strengthening institutions and the ownership 
by local and national actors of their role in formulating a sustainable development 
policy for the ACP country concerned.

4.  Where  appropriate,  short-term  disaster  prevention  and  preparedness 
mechanisms as referred to in paragraph 1(e) will be coordinated with other 
disaster prevention and preparedness mechanisms in place.

The  development  and  strengthening  of  national,  regional  and  all-ACP  dis-
aster  risk  reduction  and  management  mechanisms  shall  assist  ACP  States 
to build their resilience to the impact of disasters. All related activities may 
be pursued in cooperation with regional and international organisations and 
programmes that have a proven track record in disaster risk reduction.

ARTICLE 73 
Implementation

1. Assistance operations shall be undertaken either at the request of the ACP 
country  or  region  aﬀected  by  the  crisis  situation,  or  at  the  initiative  of  the 

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89

Commission, or on the advice of international organisations or local or interna-
tional non-state organisations.

2. The Community shall take adequate steps to facilitate speedy action, which is 
required to meet the immediate needs for which the assistance is needed. The 
assistance shall be administered and implemented under procedures permitting 
operations that are rapid, ﬂexible and eﬀective.

3. Underlining the developmental nature of the assistance granted in accord-
ance with this Chapter, assistance may be used exceptionally together with 
the indicative programme at the request of the state or region concerned.

CHAPTER 7 
INVESTMENT AND PRIVATE SECTOR DEVELOPMENT SUPPORT

ARTICLE 74

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

ARTICLE 75 
Investment promotion

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

(a) 

implement measures to encourage participation in their development eﬀorts 
by private investors who comply with the objectives and priorities of ACP–EC 
development cooperation and with the appropriate laws and regulations of 
their respective states;

(b) 

take measures and actions which help to create and maintain a predictable 
and secure investment climate as well as enter into negotiations on agree-
ments which will improve such climate;

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THE COTONOU AGREEMENT

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

(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 em-
phasis on private ﬁnancing, for infrastructure investments and revenue gen-
erating infrastructure critical for the private sector;

(g)  support capacity building for domestic investment promotion agencies and 
institutions involved in promoting and facilitating foreign investment;

(h)  disseminate information on investment opportunities and business operat-

ing conditions in the ACP States; and

(i) 

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

(i) 

to facilitate dialogue within the ACP/EU private sector and between the 
ACP/EU private sector and the bodies established under the Agreement;

(ii) 

to analyse and periodically provide the relevant bodies with informa-
tion  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 pro-
duction or types of products at regional or sub-regional level.

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91

ARTICLE 76 
Investment ﬁnance and support

1. Cooperation shall provide long-term ﬁnancial resources, including risk capital, to 
assist in promoting growth in the private sector and help to mobilise domestic and 
foreign capital for this purpose. To this end, cooperation shall provide, in particular:

(a)  grants for ﬁnancial and technical assistance to support policy reforms, hu-
man 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  intermediaries,  investment  facilitation 
and promotion and competitiveness enhancement activities;

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

(c) 

(d) 

risk capital for equity or quasi-equity investments, guarantees in support of 
domestic and foreign private investment and loans or lines of credit on the 
conditions laid down in Annex II ‘Terms and Conditions of Financing’ to this 
Agreement; and

loans  from  the  Bank’s  own  resources  and  the  Investment  Facility,  the 
terms  and  conditions  of  which  are  set  out  in  Annex  II  to  this  Agree-
ment. Such loans may also be used to ﬁnance public investment in basic 
infrastructure.

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

ARTICLE 77 
Investment guarantees

1. Investment guarantees are an increasingly important tool for development ﬁ-
nance  as  they  contribute  to  reducing  project  risks  and  inducing  private  capital 
ﬂows.  Cooperation  shall  therefore  ensure  the  increasing  availability  and  use  of 
risk  insurance  as  a  risk  mitigating  mechanism  in  order  to  boost  investor  conﬁ-
dence in the ACP States.

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THE COTONOU AGREEMENT

2. Cooperation shall oﬀer guarantees and assist with guarantees funds covering 
risks for qualiﬁed investment. Speciﬁcally, cooperation shall provide support to:

(a) 

reinsurance schemes to cover foreign direct investment by eligible investors; 
against  legal  uncertainties  and  the  major  risks  of  expropriation,  currency 
transfer restriction, war and civil disturbance, and breach of contract. Inves-
tors 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 avail-
able; and

(c)  national  and  regional  guarantee  funds,  involving,  in  particular,  domestic 
ﬁnancial  institutions  or  investors  for  encouraging  the  development  of  the 
ﬁnancial sector.

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

4.  Cooperation  shall  provide  such  support  on  the  basis  of  complementary  and 
added value with respect to private and/or public initiatives and, whenever feasi-
ble, in partnership with private and other public organisations. The ACP and the EC 
will within the framework of the ACP–EC Development Finance Cooperation Com-
mittee undertake a joint study on the proposal to set up an ACP–EC Guarantee 
Agency to provide and manage investment guarantee programmes.

ARTICLE 78 
Investment protection

1. The ACP States and the Community and its Member States, within the scope 
of their respective competencies, 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 pro-
tection agreements which could also provide the basis for insurance and guaran-
tee schemes.

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93

2. In order to encourage European investment in development projects of special 
importance to, and promoted by the ACP States, the Community and the Mem-
ber States, on the one hand and the ACP States on the other, may also conclude 
agreements relating to speciﬁc projects of mutual interest where the Community 
and European enterprises contribute towards their ﬁnancing.

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

TITLE III 
TECHNICAL COOPERATION 

ARTICLE 79

1.  Technical  cooperation  shall  assist  the  ACP  States  in  the  development  of  na-
tional  and  regional  manpower  resources,  the  sustained  development  of  the  in-
stitutions critical for development success, including inter alia strengthening ACP 
consulting ﬁrms and organisations, as well as exchange arrangements involving 
consultants from both ACP and EU ﬁrms.

2. Furthermore, technical cooperation, shall be cost-eﬀective and relevant to the 
need  for  which  it  is  intended,  and  shall  also  favour  the  transfer  of  know-how 
and increase national and regional capabilities. Technical cooperation shall con-
tribute to the achievement of project and programme goals, including eﬀorts to 
strengthen management capacity of the National and Regional Authorising Oﬃc-
ers. Technical assistance shall:

(a)  be demand driven and thus made available only at the request of the ACP 

State or States concerned, and adapted to recipient needs;

(b) 

complement and support ACP eﬀorts to identify their own requirements;

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

(d)  encourage the participation of ACP experts, consultancy ﬁrms and educa-
tional  and  research  institutions  in  contracts  ﬁnanced  from  the  Fund  and 

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THE COTONOU AGREEMENT

identify  ways  of  employing  qualiﬁed  national  and  regional  personnel  on 
Fund projects;

(e)  encourage the secondment of ACP national cadres as consultants to an in-
stitution  in  their  own  country,  or  a  neighbouring  country,  or  to  a  regional 
organisation;

(f)  aim at developing knowledge of national and regional manpower constraints 
and potential and establish a register of ACP experts, consultants and con-
sultancy  ﬁrms  suitable  for  employment  on  projects  and  programmes  ﬁ-
nanced from the Fund;

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

(h)  develop action programmes for long term institution building and staﬀ de-
velopment as an integral part of project and programme planning, account 
being taken of the necessary ﬁnancial requirements;

(i) 

(j) 

support arrangements to enhance the capacity of the ACP States to build up 
their own expertise; and

give special attention to the development of the ACP States’ capacities in pro-
ject planning, implementation and evaluation, as well budget management.

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

4. Technical cooperation may be either of a speciﬁc or a general nature. The ACP–
EC  Development  Finance  Cooperation  Committee  shall  establish  the  guidelines 
for the implementation of technical cooperation.

ARTICLE 80

With a view to reversing the brain drain from the ACP States, the Community shall 
assist ACP States which so request to facilitate the return of qualiﬁed ACP nation-
als resident in developed countries through appropriate re-installation incentives.

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95

TITLE IV 
PROCEDURES AND MANAGEMENT SYSTEMS

ARTICLE 81 
Procedures

Management procedures shall be transparent, easy to apply and shall enable the 
decentralisation of tasks and responsibilities to the ﬁeld. The implementation of 
ACP–EU development cooperation shall be open to non-State actors in areas that 
concern them. The detailed procedural provisions for programming, preparation, 
implementation and the management of ﬁnancial and technical cooperation 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 rec-
ommendation from the ACP–EC Development Finance Cooperation Committee.

ARTICLE 82 
Executing agents

For the implementation of ﬁnancial and technical cooperation under this Agree-
ment, executing agents are designated. Detailed provisions for the responsibili-
ties  of  the  executing  agents  are  laid  down  in  Annex  IV  on  Implementation  and 
Management Procedures.

ARTICLE 83 
ACP–EC Development Finance Cooperation Committee

1. The Council of Ministers shall at least once a year examine whether the objec-
tives of development ﬁnance cooperation 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  Cooperation  Commit-
tee, hereina(cid:3)er referred to as ‘the ACP–EC Committee’, shall be set up within the 
Council of Ministers.

2. The ACP–EC Committee shall, inter alia:

(a)  ensure the overall achievement of the objectives and principles of develop-
ment ﬁnance cooperation and establish general guidelines for their eﬀective 
and timely implementation;

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THE COTONOU AGREEMENT

(b)  examine the problems arising from the implementation of development co-

operation activities and propose appropriate measures;

(c) 

review the annexes to the Agreement to ensure their continued relevance 
and recommend any appropriate amendments to the Council of Ministers for 
approval; and

(d)  examine the operations deployed within the framework of the Agreement to 
attain the objectives of promoting private sector development and invest-
ment and the operations of the Investment Facility.

3. The ACP–EC Committee, which shall meet every quarter, shall be composed, on 
a basis of parity, of representatives of the ACP States and of the Community, or 
their authorised representatives. It shall meet at ministerial level whenever one of 
the parties so requests and at least once a year.

4. The Council of Ministers shall lay down the ACP–EC Committee’s rules of proce-
dure, in particular the conditions for representation and the number of members 
of the Committee, the detailed arrangements for their deliberations and the con-
ditions for holding the chair.

5. The ACP–EC Committee may convene meetings of experts to study the cause of 
any diﬃculties and bottlenecks, which may impede the eﬃcient implementation 
of development cooperation. These experts shall make recommendations to the 
Committee on possible ways of removing such diﬃculties and bottlenecks.

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97

PART 5 
GENERAL PROVISIONS FOR THE LEAST DEVELOPED, 
LANDLOCKED AND ISLAND ACP STATES (cid:2)LDLICS(cid:3)

CHAPTER 1 
GENERAL PROVISIONS

ARTICLE 84

1.  To  enable  LDLICs  to  take  full  advantage  of  the  opportunities  oﬀered  by  the 
Agreement so as to step up their respective rates of development, cooperation 
shall ensure special treatment for the least developed ACP countries and take due 
account of the vulnerability of landlocked and island ACP countries. It shall also 
take into consideration the needs of countries in post conﬂict situations.

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

(a) 

the strengthening of regional cooperation;

(b) 

transport and communications’ infrastructure;

(c) 

the eﬃcient exploitation of marine resources and the marketing of products 
so produced and, in the case of landlocked countries, inland ﬁsheries;

(d)  structural adjustment where account shall be taken of the level of develop-
ment  of  these  countries  and  equally,  at  the  implementation  stage,  of  the 
social dimension of adjustment; and

(e) 

the  implementation  of  food  strategies  and  integrated  development 
programmes.

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THE COTONOU AGREEMENT

CHAPTER 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:

(a)  a third state in a comparable situation accedes to this Agreement; and

(b) 

the economic situation of an ACP State changes considerably and durably to 
the extent that it needs to be included in the least developed category or its 
inclusion in that category is no longer justiﬁed.

ARTICLE 86

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

CHAPTER 3 
LANDLOCKED ACP STATES

ARTICLE 87

1.  Speciﬁc  provisions  and  measures  shall  be  established  to  support  landlocked 
ACP  States  in  their  eﬀorts  to  overcome  the  geographical  diﬃculties  and  other 
obstacles  hampering  their  development  so  as  to  enable  them  to  step  up  their 
respective rates of development.

2. The list of landlocked ACP States 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.

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99

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.

CHAPTER 4 
ISLAND ACP STATES

ARTICLE 89

1. Speciﬁc actions shall be pursued to support island ACP States in their eﬀorts 
to halt and reverse their increasing vulnerability caused by new and severe eco-
nomic, social and ecological challenges. These actions shall seek to advance the 
implementation of the small island developing states’ priorities for sustainable 
development, while promoting a harmonised approach to their economic growth 
and human 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

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

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THE COTONOU AGREEMENT

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 
Scope of territorial application

Subject to the special provisions regarding the relations between the ACP States 
and the French overseas departments provided for therein, this Agreement shall 
apply, on the one hand, to the territories in which the Treaty establishing the Eu-
ropean Community is applied and under the conditions laid down in that Treaty 
and, on the other hand, to the territories of the ACP States.

ARTICLE 93 
Ratiﬁcation and entry into force

1. This Agreement shall be ratiﬁed or approved by the signatory Parties in accord-
ance with their respective constitutional rules and procedures.

2. The instruments of ratiﬁcation or approval of this Agreement shall be deposited 
in the case of the ACP States, with the General Secretariat of the Council of the 
European Union and in the case of the Community and the Member States, with 
the General Secretariat of the ACP States. The Secretariats shall promptly notify 
the signatory states and the Community.

3. This Agreement shall enter into force on the ﬁrst day of the second month fol-
lowing the date of deposit of the 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 para-
graphs 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, with-
out prejudice to the provisions of paragraph 6.

THE COTONOU AGREEMENT

101

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 a(cid:3)er 
the date of its entry into force.

5.  The  rules  of  procedure  of  the  joint  institutions  set  up  under  this  Agreement 
shall lay down the conditions under which the representatives of signatory states 
referred to in paragraph 4 may attend those institutions as observers.

6. The Council of Ministers may decide to accord special support to ACP States par-
ty to previous ACP–EC Conventions which, in the absence of normally established 
government institutions, have not been able to sign or ratify this Agreement. This 
support may concern institution building and economic and social development 
activities, taking particular account of the needs of the most vulnerable sections 
of the population. 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 cooperation.

By way of derogation from paragraph 4, the countries concerned which are signa-
tories to the Agreement may complete the ratiﬁcation procedures within twelve 
months of the restoration of government institutions.

The  countries  concerned  which  have  neither  signed  nor  ratiﬁed  the  Agreement 
may accede to it by means of the accession procedure provided for in Article 94.

ARTICLE 94 
Accession

1.  Any  request  for  accession  to  this  Agreement  made  by  an  independent  state 
whose  structural  characteristics  and  economic  and  social  situation  are  compa-
rable to those of the ACP States shall be presented to the Council of Ministers.

If the request is approved by the Council of Ministers, the state concerned shall 
accede to this Agreement by depositing an act of accession with the General Sec-
retariat 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 ob-
ligations  as  the  ACP  States.  Its  accession  may  not  infringe  on  the  beneﬁts  en-
joyed  by  the  ACP  States  signatory  to  this  Agreement  under  the  provisions  on 

102

THE COTONOU AGREEMENT

development  cooperation  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 Com-
munity 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.

Any new Member State of the European Union shall become a Party to this Agree-
ment from the date of its accession by means of a clause to that eﬀect in the 
act of accession. If the act of accession to the Union does not provide for such 
automatic accession of the Member State to this Agreement, the Member State 
concerned shall accede by depositing an act of accession with the General Sec-
retariat 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 
Duration of the agreement and revision clause

1. This Agreement is hereby concluded for a period of twenty years, commencing 
on 1 March 2000.

2. Financial protocols are deﬁned for each ﬁve-year period.

3. The Community and the Member States, on the one hand, and the ACP States, 
on  the  other,  shall  notify  the  other  Party  not  later  than  12  months  before  the 
expiry  of  each  ﬁve-year  period  of  any  review  of  the  provisions  they  desire  to 
make with a view to a possible amendment of the Agreement. Notwithstanding 
this time limit, if one Party requests the review of any provisions of the Agree-
ment, the other Party shall have a period of two months in which to request the 

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103

extension of the review to other provisions related to those which were the sub-
ject of the initial request.

Ten months before the expiry of this ﬁve-year period, the Parties shall enter into 
negotiations with a view to examining any possible amendments to the provisions 
that were the subject of the notiﬁcation.

Article 93 shall also apply to the amendments made.

The Council of Ministers shall adopt any transitional measures that may be re-
quired 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 Par-
ties shall enter into negotiations in order to examine what provisions shall subse-
quently govern their relations.

The Council of Ministers shall adopt any transitional measures that may be re-
quired until the new Agreement comes into force.

ARTICLE 96 
Essential elements: consultation procedure and appropriate measures as 
regards human rights, democratic principles and the rule of law

1. Within the meaning of this Article, the term ‘Party’ refers to the Community and 
the Member States of the European Union, of the one part, and each ACP State, 
of the other part.

1.(a) Both Parties agree to exhaust all possible options for dialogue under Article 8, 
except in cases of special urgency, prior to commencement of the consultations 
referred to in paragraph 2(a) of this Article.

2.(a)   If, despite the political dialogue on the essential elements as provided for un-
der Article 8 and paragraph 1a of this Article, a Party considers that the other 
Party fails to fulﬁl an obligation stemming from respect for human rights, 
democratic principles and the rule of law referred to in Article 9(2), 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 the situation with a view to seeking a solution acceptable to the Parties. To 
this end, it shall invite the other Party to hold consultations that focus on the 

104

THE COTONOU AGREEMENT

measures taken or to be taken by the Party concerned to remedy the situa-
tion in accordance with Annex VII.

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 30 days a(cid:3)er the invitation and 
shall continue for a period established by mutual agreement, depending on 
the nature and gravity of the violation. In no case shall the dialogue under 
the consultations procedure last longer than 120 days.

If the consultations do not lead to a solution acceptable to both Parties, if 
consultation is refused or in cases of special urgency, appropriate measures 
may be taken. These measures shall be revoked as soon as the reasons for 
taking them no longer prevail.

(b)  The term ‘cases of special urgency’ shall refer to exceptional cases of par-
ticularly serious and ﬂagrant violation of one of the essential elements re-
ferred 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 ‘appropriate measures’ referred to in this Article are measures taken in 
accordance with international law, and proportional to the violation. In the 
selection  of  these  measures,  priority  must  be  given  to  those  which  least 
disrupt the application of this agreement.

It is understood that suspension would be a measure of last resort.

If measures are taken in cases of special urgency, they shall be immediately 
notiﬁed to the other Party and the Council of Ministers. At the request of the 
Party concerned, consultations may then be called in order to examine the 
situation thoroughly and, if possible, ﬁnd solutions. These consultations shall 
be conducted according to the arrangements set out in the second and third 
subparagraphs of paragraph (a).

THE COTONOU AGREEMENT

105

ARTICLE 97 
Consultation procedure and appropriate measures as regards corruption

1. The Parties consider that when the Community is a signiﬁcant partner in terms 
of ﬁnancial support to economic and sectoral policies and programmes, serious 
cases of corruption should give rise to consultations between the Parties.

2. In such cases either Party may invite the other to enter into consultations. Such 
consultations shall begin no later than 30 days a(cid:3)er the invitation and dialogue 
under the consultation procedure shall last no longer than 120 days.

3. If the consultations do not lead to a solution acceptable to both Parties or if 
consultation  is  refused,  the  Parties  shall  take  the  appropriate  measures.  In  all 
cases, it is above all incumbent on the Party where the serious cases of corruption 
have occurred to take the measures necessary to remedy the situation immedi-
ately. The measures taken by either Party must be proportional to the seriousness 
of  the  situation.  In  the  selection  of  these  measures,  priority  must  be  given  to 
those which least disrupt the application of this agreement. It is understood that 
suspension would be a measure of last resort.

4. Within the meaning of this Article, the term ‘Party’ refers to the Community and 
the Member States of the European Union, of the one part, and each ACP State, 
of the other part.

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 thirty days of the request for arbitra-
tion. In the event of failure to do so, either Party may ask the Secretary Gen-
eral of the Permanent Court of Arbitration to appoint the second arbitrator.

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THE COTONOU AGREEMENT

(b)  The two arbitrators shall in turn appoint a third arbitrator within thirty days. 
In the event of failure to do so, either Party may ask the Secretary General 
of the Permanent Court of Arbitration to appoint the third arbitrator.

(c)  Unless the arbitrators decide otherwise, the procedure applied shall be that 
laid down in the optional arbitration regulation of the Permanent Court of 
Arbitration for International Organisations and States. The arbitrators’ deci-
sions shall be taken by majority vote within three months.

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

carry out the decision of the arbitrators.

(e)  For the application of this procedure, the Community and the Member States 

shall be deemed to be one Party to the dispute.

ARTICLE 99 
Denunciation clause

This Agreement may be denounced by the Community and its Member States in 
respect of each ACP State and by each ACP State in respect of the Community and 
its Member States, upon six months’ notice.

ARTICLE 100 
Status of the texts

The Protocols and Annexes attached to this Agreement shall form an integral part 
thereof. Annexes Ia, Ib, 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 Cooperation Committee.

This Agreement, drawn up in two copies in the Bulgarian, Czech, Danish, Dutch, 
English,  Estonian,  Finnish,  French,  German,  Greek,  Hungarian,  Italian,  Latvian, 
Lithuanian,  Maltese,  Polish,  Portuguese,  Romanian,  Slovak,  Slovenian,  Spanish 
and Swedish languages, all texts being equally authentic, shall be deposited in 
the archives of the General Secretariat of the Council of the European Union and 
the Secretariat of the ACP States, which shall both transmit a certiﬁed copy to the 
government of each of the signatory states.

ANNEXES TO THE AGREEMENT

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109

ANNEX I 
FINANCIAL PROTOCOL 

1. For the purposes set out in this Agreement and for a period of ﬁve years com-
mencing 1 March 2000, the overall amount of the Community’s ﬁnancial assis-
tance to the ACP States shall be EUR 15 200 million.

2.  The  Community’s  ﬁnancial  assistance  shall  comprise  an  amount  up  to 
EUR 13 500 million from the 9th European Development Fund (EDF).

3.  The  9th  EDF  shall  be  allocated  between  the  instruments  of  cooperation  as 
follows:

(a)  EUR 10 000 million in the form of grants shall be reserved for an envelope 
for  support  for  long-term  development.  This  envelope  shall  be  used  to  ﬁ-
nance national indicative programmes in accordance with Articles 1 to 5 of 
Annex IV ‘Implementation and management procedures’ to this Agreement. 
From the envelope for support for long-term development:

(i) 

EUR 90 million shall be reserved for the ﬁnancing of the budget of the 
Centre for the Development of Enterprise (CDE);

(ii)  EUR 70 million shall be reserved for the ﬁnancing of the budget of the 

Centre for the Development of Agriculture (CTA); and

(iii)  an amount not exceeding EUR 4 million shall be reserved for the pur-
poses referred to in Article 17 of this Agreement (Joint Parliamentary 
Assembly).

(b)  EUR 1 300 million in the form of grants shall be reserved for the ﬁnancing of 
support for regional cooperation and integration of the ACP States in accord-
ance  with  Articles  6  to  14  of  Annex  IV  ‘Implementation  and  management 
procedures’ to this Agreement.

(c)  EUR 2 200 million shall be allocated to ﬁnance the Investment Facility ac-
cording to the terms and conditions set out in Annex II ‘Terms and conditions 
of  ﬁnancing’  to  this  Agreement  without  prejudice  to  the  ﬁnancing  of  the 
interest  rate  subsidies  provided  for  in  Articles  2  and  4  of  Annex  II  to  this 
Agreement funded from the resources mentioned in paragraph 3(a) of this 
Annex.

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THE COTONOU AGREEMENT

4. An amount of up to EUR 1 700 million shall be provided from the European 
Investment  Bank  in  the  form  of  loans  made  from  its  own  resources.  These  re-
sources shall be granted for the purposes set out in Annex II ‘Terms and condi-
tions of ﬁnancing’ to this Agreement in accordance with the conditions provided 
for  by  its  statutes  and  the  relevant  provisions  of  the  terms  and  conditions  for 
investment ﬁnancing as laid down in the aforementioned Annex. The Bank may, 
from the resources it manages, contribute to the ﬁnancing of regional projects 
and programmes.

5.  Any  balances  remaining  from  previous  EDFs  on  the  date  of  entry  into  force 
of this Financial Protocol, as well as any amounts that shall be decommitted at 
a later date from ongoing projects under these Funds, shall be transferred to the 
9th  EDF  and  shall  be  used  in  accordance  with  the  conditions  laid  down  in  this 
Agreement.  Any  resources  thus  transferred  to  the  9th  EDF  that  previously  had 
been allocated to the indicative programme of an ACP State or region shall remain 
allocated to that state or region. The overall amount of this Financial Protocol, 
supplemented by the transferred balances from previous EDFs, will cover the pe-
riod of 2000–07.

6. The Bank shall administer the loans made from its own resources, as well as 
the operations ﬁnanced under the Investment Facility. All other ﬁnancial resources 
of this Agreement shall be administered by the Commission.

7. Before the expiry of this Financial Protocol, the Parties shall assess the degree 
of  realisation  of  commitments  and  disbursements.  This  assessment  shall  con-
stitute  the  basis  for  re-evaluating  the  overall  amount  of  resources  as  well  for 
evaluating the need for new resources to support ﬁnancial cooperation under this 
Agreement.

8. In the event of the funds provided for in any of the instruments of the Agree-
ment being exhausted before the expiry of this Financial Protocol, the joint ACP–
EC Council of Ministers shall take the appropriate measures.

9. By derogation from Article 58 of this Agreement, an amount of EUR 90 million 
shall be transferred to the intra ACP envelope under the 9th EDF. This amount may 
be allocated to ﬁnance devolution for the period 2006–07, and shall be managed 
directly by the Commission.

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111

ANNEX IA 
MULTI(cid:4)ANNUAL FINANCIAL FRAMEWORK OF 
COOPERATION UNDER THIS AGREEMENT 

1.  For  the  purposes  set  out  in  this  Agreement  and  for  a  period  beginning  on 
1  March  2005,  a  multi-annual  ﬁnancial  framework  of  cooperation  shall  cover 
commitments beginning on 1 January 2008 for a period of ﬁve or six years.

2.  For  this  new  period,  the  European  Union  shall  maintain  its  aid  eﬀort  to  ACP 
States at least at the same level as that of the 9th EDF, not including balances; to 
this shall be added, based on Community estimates, the eﬀects of inﬂation, growth 
within the European Union and enlargement to 10 new Member States in 2004.

3. Any required amendments to the multi-annual ﬁnancial framework or relative 
parts of the Agreement shall be decided by the Council of Ministers by derogation 
from Article 95 of this Agreement.

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THE COTONOU AGREEMENT

ANNEX IB 
MULTI(cid:4)ANNUAL FINANCIAL FRAMEWORK FOR THE 
PERIOD 2008 TO 2013 (cid:2)1(cid:3)

1. For the purposes set out in this Agreement and for a period starting on 1 Janu-
ary  2008,  the  overall  amount  of  the  ﬁnancial  assistance  for  the  ACP  Group  of 
States within this multiannual ﬁnancial framework shall be EUR 23 966 million, 
as speciﬁed in points 2 and 3.

2. The sum of EUR 21 966 million under the 10th European Development Fund 
(EDF),  shall  be  made  available  on  entry  into  force  of  the  multiannual  ﬁnancial 
framework. It shall be allocated between the instruments of cooperation as follows:

(a)  EUR 17 766 million to ﬁnance national and regional indicative programmes. 

This allocation will be used to ﬁnance:

(i) 

(ii) 

the national indicative programmes of the ACP Group of States in ac-
cordance with Articles 1 to 5 of Annex IV to this Agreement concerning 
implementation and management procedures;

the regional indicative programmes of support for regional and inter-
regional cooperation and integration of ACP Group of States in accord-
ance with Articles 6 to 11, 13(1) and 14 of Annex IV to this Agreement 
concerning implementation and management procedures;

(b)  EUR 2 700 million to ﬁnance intra-ACP and interregional cooperation with 
many or all of the ACP Group of States, in accordance with Articles 12, 13(2) 
and 14 of Annex IV to this Agreement concerning implementation and man-
agement procedures. This envelope shall include structural support to the 
joint  institutions:  the  CDE  and  the  CTA  referred  to  and  supervised  in  ac-
cordance with the rules and procedures set out in Annex III to this Agree-
ment, and the Joint Parliamentary Assembly referred to in Article 17 of this 
Agreement. This envelope shall also cover assistance for the operating ex-
penditures of the ACP Secretariat referred to in points 1 and 2 of Protocol 1 
attached to this Agreement;

(1) 

OJ L 247, 9.9.2006, p. 22.

THE COTONOU AGREEMENT

113

(c)  EUR 1 500 million to ﬁnance the Investment Facility in accordance with the 
terms and conditions set out in Annex II (Terms and conditions of ﬁnancing) 
to this Agreement, comprising an additional contribution of EUR 1100 mil-
lion  to  the  resources  of  the  Investment  Facility,  managed  as  a  revolving 
fund, and EUR 400 million under the form of grants for the ﬁnancing of the 
interest rate subsidies provided for in Articles 2 and 4 of that Annex over the 
period of the 10th EDF.

3.  The  operations  ﬁnanced  under  the  Investment  Facility,  including  the  corre-
sponding interest rate subsidies, shall be managed by the European Investment 
Bank (EIB). An amount of up to EUR 2 000 million in addition to the 10th EDF shall 
be  made  available  by  the  EIB  in  the  form  of  loans  from  own  resources.  These 
resources shall be granted for the purposes set out in Annex II to this Agreement, 
in  accordance  with  the  conditions  laid  down  in  the  statutes  of  the  EIB  and  the 
relevant provisions of the terms and conditions for investment ﬁnancing in that 
Annex.  All  other  ﬁnancial  resources  under  this  multiannual  ﬁnancial  framework 
shall be administered by the Commission.

4. A(cid:3)er 31 December 2007 or a(cid:3)er the date of entry into force of this multiannual 
ﬁnancial framework, whichever is the later, balances from the Ninth EDF or from 
previous EDFs and funds decommitted from projects under these EDFs shall no 
longer be committed, unless the Council of the European Union decides otherwise 
by unanimity, with the exception of the balances and funds decommitted a(cid:3)er 
the date of entry into force resulting from the system guaranteeing the stabilisa-
tion  of  export  earnings  from  primary  agricultural  products  (STABEX)  under  the 
EDFs prior to the Ninth EDF, and the remaining balances and reimbursements of 
the amounts allocated for the ﬁnancing of the Investment Facility, excluding the 
related  interest  rate  subsidies.  The  funds  possibly  committed  a(cid:3)er  31  Decem-
ber 2007 until the entry into force of this Agreement, as referred to above, will 
be used exclusively to ensure the working ability of the EU administration and to 
cover the ongoing costs to sustain running projects until the 10th EDF comes into 
force.

5. The overall amount of this multiannual ﬁnancial framework shall cover the pe-
riod from 1 January 2008 to 31 December 2013. The funds of the 10th EDF, apart 
from amounts allocated to the Investment Facility, excluding the related interest 
rate subsidies, shall no longer be committed beyond 31 December 2013, unless 
the Council of the European Union decides otherwise by unanimity, on a proposal 
from the Commission.

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THE COTONOU AGREEMENT

6.  The  Committee  of  Ambassadors,  acting  on  behalf  of  the  ACP–EC  Council  of 
Ministers, may, within the overall amount of the multiannual ﬁnancial framework, 
take  appropriate  measures  in  order  to  meet  programming  requirements  under 
one of the allocations provided for in point 2, including the reassignment of funds 
between these allocations.

7. The Parties will conduct a performance review, assessing the degree of realisa-
tion of commitments and disbursements, as well as the results and impact of the 
aid provided. This review will be undertaken on the basis of a proposal prepared 
by the Commission in 2010. It shall contribute to a decision on the amount of the 
ﬁnancial cooperation a(cid:3)er 2013.

8.  Any  Member  State  may  provide  the  Commission  or  the  EIB  with  voluntary 
contributions  to  support  the  objectives  of  the  ACP–EC  Partnership  Agreement. 
Member States may also co-ﬁnance projects or programmes, for example in the 
framework of speciﬁc initiatives to be managed by the Commission or the EIB. ACP 
ownership at the national level of such initiatives must be guaranteed.

THE COTONOU AGREEMENT

115

ANNEX IC 
MULTI(cid:4)ANNUAL FINANCIAL FRAMEWORK FOR THE 
PERIOD 2014 TO 2020 (cid:4)2(cid:5)

1. For the purposes set out in this Agreement and for a period starting on 1 Jan-
uary  2014,  the  overall  amount  of  ﬁnancial  assistance  available  to  the  ACP 
States within this multiannual ﬁnancial framework shall be EUR 31 589 mil-
lion, as speciﬁed in points 2 and 3.

2. The sum of EUR 29 089 million under the 11th European Development Fund 
(EDF), shall be made available from the date of entry into force of the multi-
annual  ﬁnancial  framework.  It  shall  be  allocated  between  the  cooperation 
instruments as follows:

(a)  EUR  24  365  million  to  ﬁnance  national  and  regional  indicative  pro-

grammes. This allocation will be used to ﬁnance:

(i) 

(ii) 

the national indicative programmes of individual ACP States in ac-
cordance with Articles 1 to 5 of Annex IV to this Agreement con-
cerning implementation and management procedures;

the regional indicative programmes of support for regional and in-
terregional  cooperation  and  regional  integration  of  ACP  States  in 
accordance  with  Articles  6  to  11  of  Annex  IV  to  this  Agreement 
concerning implementation and management procedures;

(b)  EUR 3 590 million to ﬁnance intra-ACP and interregional cooperation with 
many  or  all  of  the  ACP  States  in  accordance  with  Articles  12  to  14  of 
Annex IV to this Agreement concerning implementation and management 
procedures.  This  envelope  shall  include  support  to  joint  institutions  and 
bodies created under this Agreement. It shall also cover assistance with the 
operating expenditure of the ACP Secretariat referred to in points 1 and 2 
of Protocol No 1 on the operating expenditure of the joint institutions;

(c)  EUR 1 134 million to ﬁnance the Investment Facility in accordance with 
the  terms  and  conditions  set  out  in  Annex  II  (Terms  and  conditions  of 

(2) 

OJ L 173, 26.6.2013, p. 67.

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THE COTONOU AGREEMENT

ﬁnancing)  to  this  Agreement,  comprising  an  additional  contribution  to 
EUR 500 million to the resources of the Investment Facility, managed as 
a revolving fund, and EUR 634 million under the form of grants for the 
ﬁnancing of the interest rate subsidies and project-related technical as-
sistance provided for in Articles 1, 2 and 4 of that Annex over the period 
of the 11th EDF.

3. The operations ﬁnanced under the Investment Facility, including the cor-
responding interest rate subsidies, shall be managed by the European Invest-
ment  Bank  (EIB).  An  amount  of  up  to  EUR  2  500  million  in  addition  to  the 
funds available from the 11th EDF shall be made available by the EIB in the 
form of loans from own resources. These resources shall be granted for the 
purposes set out in Annex II to this Agreement, in accordance with the condi-
tions laid down in the statutes of the EIB and the relevant provisions of the 
terms and conditions for investment ﬁnancing in that Annex. All other ﬁnan-
cial resources under this multiannual ﬁnancial framework shall be adminis-
tered by the Commission.

4. A(cid:6)er 31 December 2013 or a(cid:6)er the date of entry into force of this multi-
annual ﬁnancial framework, whichever is the later, balances from the 10th 
EDF or from previous EDFs and funds decommitted from projects under these 
EDFs shall no longer be committed, unless the Council of the European Union 
decides otherwise by unanimity, with the exception of the remaining balances 
and reimbursements of the amounts allocated for the ﬁnancing of the Invest-
ment Facility, excluding the related interest rate subsidies, and the remaining 
balances  of  the  primary  agricultural  export  receipt  stabilisation  guarantee 
system (STABEX) under the EDFs prior to the 9th EDF.

5.  The  overall  amount  of  this  multiannual  ﬁnancial  framework  shall  cover 
the period from 1 January 2014 to 31 December 2020. The funds of the 11th 
EDF,  and,  in  the  case  of  the  Investment  Facility,  the  funds  stemming  from 
reﬂows, shall no longer be committed beyond 31 December 2020, unless the 
Council of the European Union decides otherwise by unanimity, on a proposal 
from the Commission. However, the funds subscribed by Member States under 
the 9th, 10th and 11th EDF to ﬁnance the Investment Facilities shall remain 
available a(cid:6)er 31 December 2020 for disbursement.

6. The Committee of Ambassadors, acting on behalf of the ACP–EU Council of 
Ministers, may, within the overall amount of the multiannual ﬁnancial frame-
work, take appropriate measures in order to meet programming requirements 

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117

under one of the allocations provided for in point 2, including the reassign-
ment of funds between these allocations.

7. At the request of either Side, the Parties may decide to conduct a perfor-
mance review, at a mutually agreeable time, assessing the degree of realisa-
tion of commitments and disbursements, as well as the results and impact of 
the aid provided. This review would be undertaken on the basis of a proposal 
prepared by the Commission. It could contribute to the negotiations provided 
for in Article 95(4) of this Agreement.

8. Any Member State may provide the Commission or the EIB with voluntary 
contributions  to  support  the  objectives  of  the  ACP–EU  Partnership  Agree-
ment. Member States may also co-ﬁnance projects or programmes, for exam-
ple in the framework of speciﬁc initiatives to be managed by the Commission 
or  the  EIB.  ACP  ownership  of  such  initiatives  at  the  national  level  must  be 
guaranteed.

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ANNEX II 
TERMS AND CONDITIONS OF FINANCING 

CHAPTER 1 
INVESTMENT FINANCING

ARTICLE 1

1. The terms and conditions of ﬁnancing in relation to the operations of the Invest-
ment Facility (Facility), the loans from own resources of the European Investment 
Bank (Bank) and special operations shall be as laid down in this Chapter. These 
resources may be channelled to eligible enterprises, either directly or indirectly, 
through eligible investment funds and/or ﬁnancial intermediaries.

2. Funds for interest rate subsidies, as provided for under this Annex, will be 
made  available  from  the  interest  subsidy  allocation  speciﬁed  in  Annex  Ib, 
paragraph 2(c), to this Agreement.

3. Interest subsidies may be capitalised or may be used in the form of grants. 
The amount of the interest rate subsidy, calculated in terms of its value at 
the times of disbursement of the loan, shall be charged against the interest 
subsidy allocation speciﬁed in Annex Ib, paragraph 2(c), and paid directly to 
the Bank. Up to 15 % of this allocation for interest rate subsidies may also 
be used to support project related technical assistance in ACP countries (3).

4.  These  terms  and  conditions  are  without  prejudice  to  terms  and  condi-
tions that may be imposed upon ACP countries subject to restrictive borrow-
ing  conditions  under  the  Heavily  Indebted  Poor  Countries  (‘HIPC’)  or  other 
internationally  agreed  debt  sustainability  frameworks.  Accordingly,  where 
such frameworks require a reduction in the interest rate of a loan by more 
than 3 %, as permitted under Articles 2 and 4 of this Chapter, the Bank shall 
seek  to  reduce  the  average  cost  of  funds  through  appropriate  co-ﬁnancing 
with other donors. Should this not be deemed possible, the interest rate of 
the Bank loan may be reduced by such amount as required to comply with 

(3) 

Decision No 1/2012 of the ACP EU Council of Ministers if 15 June 2012 regarding the revision of 
terms and conditions of investment ﬁnancing (Chapter 1 of Annex II to the ACP EU Partnership 
Agreement).

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119

the level arising from the HIPC initiative or any internationally agreed debt 
sustainability framework.

ARTICLE 2 
Resources of the Investment Facility

1. The resources of the Facility may be used, inter alia, to:

(a)  provide risk capital in the form of:

(i) 

equity participation in ACP enterprises, including ﬁnancial institutions;

(ii)  quasi-capital assistance to ACP enterprises, including ﬁnancial institu-

tions; and

(iii)  guarantees and other credit enhancements which may be used to cover 
political and other investment-related risks, both for foreign and local 
investors or lenders.

(b)  provide ordinary loans.

2. Equity participation shall normally be for non-controlling minority holdings and 
shall be remunerated on the basis of the performance of the project concerned.

3.  Quasi-capital  assistance  may  consist  of  shareholders’  advances,  convertible 
bonds, conditional, subordinated and participating loans or any other similar form 
of assistance. Such assistance may consist in particular of:

(a)  conditional loans, the servicing and/or the duration of which shall be linked 
to the fulﬁlment of certain conditions with regard to the performance of the 
project; in the speciﬁc case of conditional loans for pre-investment studies 
or other project-related technical assistance, servicing may be waived if the 
investment is not carried out;

(b)  participating loans, the servicing and/or the duration of which shall be linked 

to the ﬁnancial return of the project; and

(c) 

subordinated loans, which shall be repaid only a(cid:3)er other claims have been 
settled.

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4. The remuneration of each operation shall be speciﬁed when the loan is made. 
However:

(a) 

in the case of conditional or participating loans, the remuneration shall nor-
mally comprise a ﬁxed interest rate of not more than 3  % and  a variable 
component related to the performance of the project; and

(b) 

in the case of subordinated loans, the interest rate shall be market related.

5. Guarantees shall be priced so as to reﬂect the risks insured and the particular 
characteristics of the operation.

6. The interest rate of ordinary loans shall comprise a reference rate applied by 
the Bank for comparable loans with the same terms and conditions as to grace 
and repayment periods and a mark up determined by the Bank.

7. Ordinary loans in countries not subject to restrictive borrowing conditions 
under the HIPC or other internationally agreed debt sustainability frameworks 
may be extended on concessional terms and conditions in the following cases:

(a) 

(b) 

for infrastructure projects, that are a prerequisite for private sector devel-
opment in the Least Developed Countries, in post-conﬂict countries and in 
post-natural disaster countries. In such cases, the interest rate of the loan 
will be reduced by up to 3 %;

for projects which involve restructuring operations in the framework of pri-
vatisation or for projects with substantial and clearly demonstrable social or 
environmental beneﬁts. In such cases, loans may be extended with an inter-
est rate subsidy, the amount and form of which will be decided with respect 
to  the  particular  characteristics  of  the  project.  However,  the  interest  rate 
subsidy shall not be higher than 3 %.

The ﬁnal rate of loans falling under (a) or (b) shall, in any case, never be less than 
50 % of the reference rate.

8. The funds to be provided for these concessional purposes will be made availa-
ble from the interest subsidy allocation referred to in Annex Ib, paragraph 2(c), 
to this Agreement.

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121

9. Interest subsidies may be capitalised or used in the form of grants. Up to 15 % 
of the budget for interest rate subsidies may be used to support project-related 
technical assistance in ACP countries.

ARTICLE 3 
Operations of the Investment Facility 

1. The Investment Facility shall operate in all economic sectors and support in-
vestments of private and commercially run public sector entities, including rev-
enue generating economic and technological infrastructure critical for the private 
sector. The Facility shall:

(a)  be  managed  as  a  revolving  fund  and  aim  at  being  ﬁnancially  sustainable. 
Its  operations  shall  be  on  market-related  terms  and  conditions  and  shall 
avoid creating distortions on local markets and displacing private sources of 
ﬁnances; and

(b)  support the ACP ﬁnancial sector and have a catalytic eﬀect by encouraging 
the mobilisation of long-term local resources and attracting foreign private 
investors and lenders to projects in the ACP States;

(c)  bear part of the risk of the projects it funds, its ﬁnancial sustainability being 
ensured through the portfolio as a whole and not from individual interven-
tions; and

(d)  seek  to  channel  funds  through  ACP  national  and  regional  institutions  and 
programmes that promote the development of small-and medium-sized en-
terprises (SMEs).

1a.  The  Bank  shall  be  remunerated  for  the  cost  incurred  in  managing  the  In-
vestment Facility. For the ﬁrst two years a(cid:3)er the entry into force of the second 
ﬁnancial protocol, this remuneration shall be up to an amount of 2 % p.a. of the 
total initial endowment of the Investment Facility. Therea(cid:3)er, the remuneration of 
the Bank shall include a ﬁxed component of 0.5 % p.a. of the initial endowment 
and a variable component of an amount of up to 1.5 % p.a. of the portfolio of the 
Investment Facility that is invested in projects in ACP countries. The remuneration 
shall be ﬁnanced out of the Investment Facility.

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THE COTONOU AGREEMENT

2. On expiry of the Financial Protocol, and in the absence of a speciﬁc decision 
by the Council of Ministers, the cumulative net reﬂows to the Investment Facility 
shall be carried over to the next Protocol.

ARTICLE 4 
Bank own resource loans

1. The Bank shall:

(a)  contribute, through the resources it manages, to the economic and industrial 
development of the ACP States on a national and regional basis; and to this 
end, ﬁnance as a priority productive projects and programmes or other in-
vestments aimed at promoting the private sector in all economic sectors;

(b)  establish  close  cooperation  links  with  national  and  regional  development 
banks and with banking and ﬁnancial institutions of the ACP States and of 
the EU; and

(c) 

in consultation with the ACP State concerned, adapt the arrangements and 
procedures for implementing development ﬁnance cooperation, as set out in 
this Agreement, if necessary, to take account of the nature of the projects 
and programmes and to act in accordance with the objectives of this Agree-
ment, within the framework of the procedures laid down by its statute.

2.  Loans  from  the  Bank’s  own  resources  shall  be  granted  under  the  following 
terms and conditions:

(a) 

the reference rate of interest shall be the rate applied by the Bank for a loan 
with the same conditions as to currency and the repayment period on the 
day of signature of the contract or on the date of disbursement;

(b)  however, for countries which are not subject to restrictive borrowing con-
ditions under the HIPC or other internationally agreed debt sustainability 
frameworks:

(i) 

in principle, public sector projects shall be eligible for an interest rate 
subsidy of up to 3 %;

THE COTONOU AGREEMENT

123

(ii)  private  sector  projects  falling  into  the  categories  speciﬁed  in  Arti-
cle  2(7)(b)  shall  be  eligible  for  interest  rate  subsidies  on  the  terms 
speciﬁed in that provision.

The ﬁnal interest rate shall, in any such case, never be less than 50 % of the 
reference rate.

(c) 

the  repayment  period  of  loans  made  by  the  Bank  from  its  own  resources 
shall be determined on the basis of the economic and ﬁnancial characteris-
tics of the project. These loans shall normally comprise a grace period ﬁxed 
by reference to the construction period of the project.

3. For investments ﬁnanced by the Bank from its own resources in public sector 
companies, speciﬁc project-related guarantees or undertakings may be required 
from the ACP State concerned.

ARTICLE 5 
Conditions for foreign exchange rate risk

In order to minimise the eﬀects of exchange rate ﬂuctuations, the problems of 
exchange rate risk shall be dealt with in the following way:

(a) 

(b) 

in  the  case  of  equity  participation  designed  to  strengthen  an  enterprise’s 
own funds, the exchange rate risk shall, as a general rule, be borne by the 
Investment Facility;

in the case of ordinary loans and risk capital ﬁnancing for small- and me-
dium-sized  enterprises  (SMEs),  the  exchange  rate  risk  shall,  as  a  general 
rule, be shared by the Community, on the one hand, and by the other Parties 
involved, on the other. On average, the foreign exchange rate risk should be 
shared equally and;

(c)  where  feasible  and  appropriate,  particularly  in  countries  characterised  by 
macroeconomic and ﬁnancial stability, the Facility will endeavour to extend 
loans in local ACP currencies, thus de facto taking the foreign exchange risk.

 
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THE COTONOU AGREEMENT

ARTICLE 6 
Conditions for foreign exchange transfer

The ACP States concerned shall, in respect of operations under the Agreement, 
and in respect of which they have given their written approval within the frame-
work of this Agreement:

(a)  grant exemption from all national or local duties, ﬁscal charges on interest, 
commission  and  amortisation  of  loans  due  in  accordance  with  the  law  or 
laws of the ACP State or States concerned;

(b)  place  at  the  disposal  of  the  beneﬁciaries  the  currency  necessary  for  the 
payment of interest, commission and the amortisation of loans due in terms 
of ﬁnancing contracts granted for the implementation of projects and pro-
grammes on their territories; and

(c)  make available to the Bank the foreign currency necessary for the transfer 
of all sums received by it in national currency at the exchange rate applica-
ble between the Euro or other currencies of transfer and the national cur-
rency at the date of the transfer. These include all forms of remuneration, 
such as, inter alia, interest, dividends, commissions and fees, as well as the 
amortisation of loans and the proceeds from the sale of shares due in terms 
of ﬁnancing contracts granted for the implementation of projects and pro-
grammes on their territories.

ARTICLE 6A 
Annual reporting on the Investment Facility

Representatives of the EU Member States responsible for the Investment Facility, 
Representatives of the ACP States, as well as the European Investment Bank, the 
European Commission, the EU Council Secretariat and the ACP Secretariat shall 
meet annually to discuss the operations, performance and policy questions con-
cerning the Investment Facility.

ARTICLE 6B 
Review of performance of the Investment Facility

The overall performance of the Investment Facility shall be subject to a joint re-
view at the mid-term and end-term of a ﬁnancial protocol. Such an exercise may 
include a recommendation on how to improve the implementation of the Facility.

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125

CHAPTER 2 
SPECIAL OPERATIONS

ARTICLE 7

1. Cooperation shall support from the grant allocation:

(a) 

low-income housing to promote long-term development of the housing sec-
tor, including secondary mortgage facilities;

(b)  micro-ﬁnance to promote SMEs and micro-enterprises; and

(c) 

capacity building to strengthen and facilitate the eﬀective participation of 
the private sector in social and economic development.

2. The ACP–EC Council of Ministers shall, a(cid:3)er the signature of this Agreement 
and on a proposal by the ACP–EC Development Finance Cooperation Committee, 
decide on the modalities and the amount of resources allocated from the long-
term development envelope to attain these objectives.

CHAPTER 3 
FINANCING FOR SHORT-TERM FLUCTUATIONS IN EXPORT EARNINGS 
(FLEX)

ARTICLE 8

1. The Parties recognise that losses of export earnings as a result of short-term 
ﬂuctuations may jeopardise the development ﬁnancing requirements and the im-
plementation of macroeconomic and sectoral policies. The degree of dependence 
of an ACP State’s economy on the export of goods, and in particular from agri-
cultural and mining products shall, therefore, be a criterion for determining the 
allocation of long-term development.

2. In order to mitigate the adverse eﬀects of instability of export earnings and 
safeguard the development programme jeopardised by the drop in revenue, ad-
ditional ﬁnancial support may be mobilised from the programmable resources for 
the country’s long-term development on the basis of Articles 9 and 10.

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ARTICLE 9 
Eligibility criteria (4)

1. Eligibility for additional resources shall be established by:

—  a 10 % (2 % in the case of least-developed, landlocked, island, post-conﬂict 
and post-natural disaster states) loss of export earnings from goods com-
pared with the arithmetic mean of the earnings in the four years preced-
ing the application year, excluding the most extreme value, or

—  a 10 % (2 % in the case of least-developed, landlocked, island, post-conﬂict 
and post-natural disaster states) loss of export earnings from the total of 
agricultural or mineral products compared with the arithmetic mean of the 
earnings in the four years preceding the application year, excluding the 
most extreme value for countries where the agricultural or mineral export 
earnings represent more than 40 % of total export earnings from goods, or

—  a  10  %  (2  %  in  the  case  of  least-developed,  landlocked,  island,  post-
conﬂict and post-natural disaster states) loss of export earnings from 
the total of agricultural or mineral products compared with the arithme-
tic mean of the earnings in the four years preceding the application year, 
excluding the most extreme value for countries where the agricultural 
or mineral export earnings represent between 20 % and 40 % of total 
export earnings from goods, provided that total earnings do not increase 
more than proportionally with respect to the impact of the loss of export 
earnings from agricultural or mineral products as a proportion of total 
exports.

2. The loss of export earnings deﬁned in paragraph 1 must be 0.5 % of gross 
domestic product (GDP) or more for there to be entitlement to additional sup-
port.  Entitlement  to  additional  support  shall  be  limited  to  three  successive 
years.

3. The additional resources shall be reﬂected in the public accounts of the country 
concerned. They shall be utilised in accordance with programming rules and meth-
ods including the speciﬁc provisions in Annex IV ‘Implementation and management 

(4) 

Decision No 1/2008 of the ACP EU Council of Ministers of 13 June 2008 regarding the revision of 
the terms and conditions of ﬁnancing for short-term ﬂuctuations in export earnings.

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127

procedures’, on the basis of agreements drawn up in advance between the Com-
munity  and  the  ACP  State  concerned  in  the  year  following  the  application.  By 
agreement  of  both  Parties  the  resources  may  be  used  to  ﬁnance  programmes 
included in national budget. However a part of the additional resources may be 
set aside for speciﬁc sectors, in particular to develop market-based insurance 
schemes oﬀering protection against the risk of ﬂuctuations in export earnings.

ARTICLE 9A

1. The amount of additional ﬁnancial support shall be equal to the loss of ex-
port earnings multiplied by the arithmetic mean of the ‘government revenue/
gross domestic product’ ratio of the four years preceding the application year, 
excluding the most extreme value and capping that ratio at 25 %.

2. The Commission shall analyse the data provided by the ACP States for the 
purpose of establishing eligibility and additional ﬁnancial support as deﬁned 
in Article 9 in the local currency corrected for inﬂation. The Commission will 
then convert the potential amount of additional ﬁnancial support into euro in 
accordance with its procedures.

3. Each year, within the total ﬁnancial allocation for national indicative pro-
grammes, the Commission shall establish an envelope covering all ACP coun-
tries to provide support in the event of short-term ﬂuctuations in export earn-
ings. If the amount of ﬁnancial support calculated on the basis of the criteria 
deﬁned in Article 9 exceeds the amount of that envelope, each ACP State’s 
share will be established in proportion to the potential amount of its addi-
tional ﬁnancial support expressed in euro.

ARTICLE 10 
Advances

The system for allocating additional resources shall provide for advances to cover 
any delays in obtaining consolidated trade statistics and to ensure that the re-
sources in question can be included in the budget of the second year following 
the application year at the latest. Advances shall be reserved for states where 
Flex  ﬁnancial  support  can  be  implemented  by  means  of  general  budgetary 
support. They shall be mobilised on the basis of provisional export statistics 
drawn up by the government and submitted to the Commission. The maximum 
advance shall be 100 % of the amount of additional ﬁnancial support for the 
application year. The amounts thus mobilised shall be adjusted in the light of 

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THE COTONOU AGREEMENT

the  ﬁnal  consolidated  export  statistics.  Those  statistics  shall  be  submitted 
no later than 31 December of the second year following the application year.

ARTICLE 11

The provisions in this Chapter shall be subject to review at the latest a(cid:3)er two 
years of operation and subsequently at the request of either Party.

CHAPTER 4 
OTHER PROVISIONS

ARTICLE 12 
Current payments and capital movements

1. Without prejudice to paragraph 3 herea(cid:3)er, the Parties undertake to impose no 
restrictions on any payments, in freely convertible currency, on the current account 
of balance of payments between residents of the Community and of the ACP States.

2.  With  regard  to  transactions  on  the  capital  account  of  balance  of  payments, 
the Parties undertake to impose no restrictions on the free movement of capital 
relating to direct investments made in companies formed in accordance with the 
law  of  the  host  country  and  investments  made  in  accordance  with  this  Agree-
ment, and the liquidation or repatriation of these investments and of any proﬁt 
stemming therefrom.

3. Where one or more ACP State or one or more Member State of the Community 
is  in  serious  balance  of  payments  diﬃculties,  or  under  threat  thereof,  the  ACP 
State, the Member State or the Community may, in accordance with the conditions 
established under the GATT, GATS and Article VIII and XIV of the Articles of Agree-
ment of the International Monetary Fund, adopt restrictions on current transac-
tions which shall be of limited duration and may not go beyond what is necessary 
to remedy the balance of payments situation. The Party taking the measures shall 
inform the other Parties forthwith and shall submit to them as soon as possible 
a timetable for the elimination of the measures concerned.

ARTICLE 13 
Qualiﬁcation and treatment of business entities

As regards arrangements that may be applied in matters of establishment and 
provision of services, the ACP States, on the one hand, and the Member States, 

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129

on the other, shall treat nationals and companies or ﬁrms of the ACP States and 
nationals and companies or ﬁrms of the Member States respectively on a non-
discriminatory basis. However, if, for a given activity, an ACP State or a Member 
State is unable to provide such treatment, the ACP State or the Member State, as 
the case may be, shall not be bound to accord such treatment for that activity to 
the nationals and companies or ﬁrms of the state concerned.

ARTICLE 14 
Deﬁnition of ‘companies and ﬁrms’

1. For the purpose of this Agreement, ‘companies or ﬁrms of a Member State or 
an  ACP  State’  mean  companies  or  ﬁrms  constituted  under  civil  or  commercial 
law, including corporations, whether public or otherwise, cooperative societies and 
other legal persons and partnerships governed by public or private law, save for 
those which are non-proﬁt-making, formed in accordance with the law of a Mem-
ber State or an ACP State and whose statutory oﬃce, central administration or 
principal place of business is a Member State or an ACP State.

2. However, a company or ﬁrm having only its statutory oﬃce in a Member State or 
an ACP State must be engaged in an activity which has an eﬀective and continu-
ous link with the economy of that Member State or ACP State.

CHAPTER 5 
INVESTMENT PROTECTION AGREEMENTS 

ARTICLE 15

1. When implementing the provisions of Article 78 of this Agreement, the Parties 
shall take into account the following principles:

(a)  a  contracting  state  may  request  where  appropriate,  the  negotiation  of  an 
investment promotion and protection agreement with another contracting 
state;

(b) 

the  states  party  to  such  agreements  shall  practise  no  discrimination  be-
tween contracting states party to this Agreement or against each other in 
relation  to  third  countries  when  opening  negotiations  for  concluding,  ap-
plying  and  interpreting  bilateral  or  multilateral  investment  promotion  and 
protection agreements;

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THE COTONOU AGREEMENT

(c) 

(d) 

(e) 

the contracting states shall have the right to request a modiﬁcation or ad-
aptation of the non-discriminatory treatment referred to above when inter-
national obligations or changed circumstances so necessitate;

the application of the principles referred to above does not purport to and 
cannot in practice infringe the sovereignty of any Contracting Party to the 
Agreement; and

the relation between the date of entry into force of any agreement negotiat-
ed, provisions for the settlement of disputes and the date of the investments 
concerned will be set out in the said agreement, account being taken of the 
provisions set out above. The Contracting Parties conﬁrm that retroactivity 
shall  not  apply  as  a  general  principle  unless  contracting  states  stipulate 
otherwise.

2. With a view to facilitating the negotiation of bilateral agreements on invest-
ment promotion and protection, the Contracting Parties agree to study the main 
clauses of a model protection agreement. The study, drawing on the provisions of 
the existing bilateral agreements between the states’ parties, will give particular 
attention to the following issues:

(a) 

legal guarantees to ensure fair and equitable treatment and protection of 
foreign investors;

(b) 

the most-favoured-investor clause;

(c)  protection in the event of expropriation and nationalisation;

(d) 

the transfer of capital and proﬁts, and

(e) 

international arbitration in the event of disputes between investor and host 
state.

3.  The  Parties  agree  to  study  the  capacity  of  the  guarantee  systems  to  give 
a positive answer to the speciﬁc needs of small and medium sized enterprises of 
insuring their investments in ACP States. The studies referred to above shall be 
started as soon as possible a(cid:3)er the signing of the Agreement. The result of these 
studies shall be submitted, upon completion to the ACP–EC Development Finance 
Cooperation Committee for consideration and appropriate action.

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131

ANNEX III 
INSTITUTIONAL SUPPORT, CDE AND CTA 

ARTICLE 1

Cooperation shall support the institutional mechanisms that provide assistance 
for businesses and enterprises and promote agriculture and rural development. In 
this context, cooperation shall help to:

(a)  strengthen and enhance the role of the Centre for the Development of En-
terprise (CDE) so as to provide the private sector with the necessary support 
in the promotion of private sector development activities in ACP countries 
and regions; and

(b)  strengthen and reinforce the role of the Technical Centre for Agricultural 
and Rural Cooperation (CTA) in ACP institutional capacity development, par-
ticularly information management, in order to improve access to technolo-
gies for increasing agricultural productivity, commercialisation, food security 
and rural development.

ARTICLE 2 
CDE

1. The CDE shall promote a business environment which is conducive to private 
sector development and support the implementation of private-sector develop-
ment strategies in the ACP countries by providing non-ﬁnancial services including 
consultancy  services,  to  ACP  companies  and  businesses  and  support  to  joint 
initiatives set up by economic operators of the Community and of the ACP States. 
In this regard, due account shall be taken of the needs arising from the imple-
mentation of the Economic Partnership Agreements.

2. The CDE shall aim to assist private ACP enterprises to become more competi-
tive in all sectors of the economy. It shall in particular:

(a) 

facilitate and promote business cooperation and partnerships between ACP 
and EU enterprises;

(b)  assist with the development of business support services through support 
for  capacity  building  in  private  sector  owned  organisations  or  support  for 

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THE COTONOU AGREEMENT

providers of technical, professional, management, commercial and training 
support services;

(c)  provide assistance for investment promotion activities, such as investment 
promotion  organisations,  organisation  of  investment  conferences,  train-
ing programmes, strategy workshops and follow-up investment promotion 
missions;

(d)  support initiatives that contribute to fostering innovation and transfer of 
technologies and know-how and best practices on all aspects of business 
management;

(e) 

inform the ACP private sector about the provisions of the Agreement; and

(f)  provide information to European companies and private sector organisations 

on business opportunities and modalities in ACP countries.

3. The CDE shall also contribute to the improvement of business environment 
at national and regional levels so as to support enterprises to take advantage 
of the progress in regional integration processes and trade opening. This shall 
include:

(a)  assisting  enterprises  in  meeting  existing  and  new  quality  and  other 
standards introduced by progress in regional integration and the imple-
mentation of the Economic Partnership Agreements;

(b)  diﬀusing information within the local ACP private sector about the prod-

uct quality and standards required in external markets;

(c)  promoting regional and national business environment reforms, includ-
ing by facilitating the dialogue between private sector and public institu-
tions; and

(d)  enhancing the role and function of national and/or regional service-pro-

viding intermediaries.

4. The activities of the CDE shall be based on the concept of coordination, com-
plementarity and added value in respect of any private sector development initia-
tives taken by public or private entities. In particular, its activities shall be con-
sistent with the national and regional development strategies as deﬁned in 

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133

Part 3 of this Agreement. The CDE shall exercise selectivity and ensure ﬁnancial 
sustainability in undertaking its tasks. It shall ensure an appropriate division of 
tasks between its Headquarters and regional oﬃces.

5. Periodic evaluations of the activities undertaken by the CDE shall be car-
ried out.

6. The Committee of Ambassadors shall be the supervisory authority of the Cen-
tre. It shall, a(cid:3)er the signature of this Agreement:

(a) 

lay down the statutes of the Centre;

(b)  appoint the members of the Executive Board;

(c)  appoint the management of the Centre on a proposal from the Executive 

Board; and

(d)  monitor the overall strategy of the Centre and supervise the work of the 

Executive Board.

7. The Executive Board shall, according to the statutes of the Centre:

(a) 

lay down the ﬁnancial and staﬀ regulations and the rules of operation;

(b)  supervise its work;

(c)  adopt the programme and the budget of the Centre;

(d)  submit periodic reporting and evaluations to the Supervisory Authority; 

and

(e)  perform any other tasks allocated to it by the statutes of the Centre.

8. The budget of the Centre shall be ﬁnanced in accordance with the rules laid 
down in this Agreement in respect of development ﬁnance cooperation.

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ARTICLE 3 
CTA

1. The mission of the CTA shall be to strengthen policy and institutional capacity 
development and information and communication management capacities of ACP 
agricultural  and  rural  development  organisations.  It  shall  assist  such  organisa-
tions in formulating and implementing policies and programmes to reduce pov-
erty, promote sustainable food security, preserve the natural resource base, and 
thus contribute to building self-reliance in ACP rural and agricultural development.

2. The CTA shall:

(a)  develop and provide information services and ensure better access to research, 
training and innovations in the spheres of agricultural and rural development 
and extension, in order to promote agriculture and rural development; and

(b)  develop and reinforce ACP capacities in order to:

(i) 

improve  the  formulation  and  management  of  agricultural  and  rural 
development policies and strategies at national and regional levels in-
cluding improved capacity for data collection, policy research, analysis 
and formulation;

(ii) 

improve the information and communication management, in particu-
lar within the National Agricultural Strategy;

(iii)  promote  eﬀective  intra-institutional  Information  and  Communication 
Management  (ICM)  for  performance  monitoring,  as  well  as  consortia 
with regional and international partners;

(iv)  promote decentralised ICM at local and national levels;

(v) 

strengthen initiatives via regional cooperation; and

(vi)  develop approaches for assessing the impact of policy on agricultural 

and rural development.

3. The Centre shall support regional initiatives and networks and shall progressive-
ly share capacity development programmes with appropriate ACP organisations. 

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135

To this end, the Centre shall support decentralised regional information networks. 
Such networks shall be built up gradually and eﬃciently.

4. Periodic evaluations of the activities undertaken by the CTA shall be car-
ried out.

5. The Committee of Ambassadors shall be the supervisory authority of the Cen-
tre. It shall, a(cid:3)er the signature of this Agreement:

(a) 

lay down the statutes of the Centre;

(b)  appoint the members of the Executive Board;

(c)  appoint the management of the Centre on a proposal from the Executive 

Board; and

(d)  monitor  the  overall  strategy  of  the  Centre  and  supervise  the  work  of  the 

Executive Board.

6. The Executive Board shall, according to the statutes of the Centre:

(a) 

lay down the ﬁnancial and staﬀ regulations and the rules of operation;

(b)  supervise its work;

(c)  adopt the programme and the budget of the Centre;

(d)  submit periodic reporting and evaluations to the Supervisory Authority; 

and

(e)  perform any other tasks allocated to it by the statutes of the Centre.

7. The budget of the Centre shall be ﬁnanced in accordance with the rules laid 
down in this Agreement in respect of development ﬁnance cooperation.

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THE COTONOU AGREEMENT

ANNEX IV 
IMPLEMENTATION AND MANAGEMENT PROCEDURES

CHAPTER 1 
PROGRAMMING (NATIONAL)

ARTICLE 1

Operations ﬁnanced by grants within the framework of this Agreement shall be 
programmed at the beginning of the period covered by the multi-annual ﬁnan-
cial framework of cooperation.

Programming will be based on the principles of ownership, alignment, donor 
coordination and harmonisation, managing for development results and mu-
tual accountability.

Programming for this purpose shall mean:

(a) 

the preparation and development of country, regional or intra-ACP strat-
egy papers (SP) based on their own medium-term development objectives 
and strategies, and taking into account the principles of joint program-
ming  and  division  of  labour  among  donors,  which  shall,  to  the  extent 
possible, be a partner country or region-led process;

(b)  a clear indication from the Community of the indicative programmable ﬁ-
nancial  allocation  from  which  the  country,  region  or  intra-ACP  coopera-
tion may beneﬁt during the period covered by the multi-annual ﬁnancial 
framework of cooperation under this Agreement as well as any other rel-
evant information, including a possible reserve for unforeseen needs;

(c) 

the preparation and adoption of an indicative programme for implementing 
the SP, taking into account commitments of other donors, and in particu-
lar of the EU Member States; and

(d)  a review process covering the SP, the indicative programme and the volume 

of resources allocated to it.

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137

ARTICLE 2 
Country Strategy Paper

The country strategy paper (CSP) shall be prepared by the ACP State concerned 
and the EU. It shall draw from prior consultation with a wide range of actors 
including non-state actors, local authorities and, where relevant, ACP Parlia-
ments, and shall draw on lessons learned and best practices. Each CSP shall be 
adapted  to  the  needs  and  respond  to  the  speciﬁc  circumstances  of  each  ACP 
State.  The  CSP  shall  be  an  instrument  to  prioritise  activities  and  to  build  local 
ownership  of  cooperation  programmes.  Any  divergences  between  the  country’s 
own analysis and that of the Community shall be noted. The CSP shall include the 
following standard elements:

(a)  an  analysis  of  the  political,  economic,  social,  and  environmental  country 
context,  constraints,  capacities  and  prospects  including  an  assessment  of 
basic needs, such as income per capita, population size and social indicators, 
and vulnerability;

(b)  a  detailed  outline  of  the  country’s  medium-term  development  strategy, 

clearly deﬁned priorities and expected ﬁnancing requirements;

(c)  an outline of relevant plans and actions of other donors present in the coun-
try, in particular including those of the EU Member States in their capacity 
as bilateral donors;

(d) 

response strategies, detailing the speciﬁc contribution the EU can provide. 
These shall, to the extent possible, enable complementarity with operations 
ﬁnanced by the ACP State itself and by other donors present in the country; 
and

(e)  an indication of the most appropriate support and implementation mecha-

nisms to be applied in implementing the above strategies.

ARTICLE 3 
Resource allocation

1.  The  indicative  resource  allocation  among  ACP  countries  shall  be  based  on 
standard,  objective  and  transparent  needs  and  performance  criteria.  In  this 
context:

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THE COTONOU AGREEMENT

(a)  needs  shall  be  assessed  on  the  basis  of  criteria  pertaining  to  per  capita 
income, population size, social indicators and level of indebtedness and vul-
nerability to exogenous shocks. Special treatment shall be accorded to the 
least developed ACP States, and the vulnerability of island and landlocked 
states shall duly be taken into account. In addition, account shall be taken of 
the particular diﬃculties of countries dealing with the a(cid:3)ermath of conﬂict 
or natural disaster; and

(b)  performance  shall  be  assessed  on  the  basis  of  criteria  pertaining  to 
governance,  progress  in  implementing  institutional  reforms,  country  per-
formance in the use of resources, eﬀective implementation of current op-
erations, poverty alleviation or reduction, progress towards achieving the 
Millennium  Development  Goals,  sustainable  development  measures  and 
macroeconomic and sectoral policy performance.

2. The allocated resources shall comprise:

(a)  a programmable allocation to cover macroeconomic support, sectoral poli-
cies, programmes and projects in support of the focal or non-focal areas of 
Community  assistance.  The  programmable  allocation  shall  facilitate  the 
long-term  programming  of  Community  aid  for  the  country  concerned.  To-
gether with other possible Community resources, these allocations shall be 
the basis for the preparation of the indicative programme for the country 
concerned; and

(b)  an  allocation  to  cover  unforeseen  needs  such  as  those  deﬁned  in  Arti-
cles 66 and 68 and Articles 72, 72a and 73 of this Agreement, accessible 
under the conditions set out in those Articles, where such support cannot 
be ﬁnanced from the Union’s budget.

3. Provision will be made on the basis of the reserve for unforeseen needs for 
those countries which, due to exceptional circumstances, cannot access normal 
programmable resources.

4. Without prejudice to Article 5(7) of this Annex concerning reviews, the Com-
munity may, in order to take account of new needs or exceptional performance, 
increase a country’s programmable allocation or its allocation for unforeseen 
needs:

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139

(a)  new needs may result from exceptional circumstances such as crisis and 
post-crisis situations or from unforeseen needs as referred to in para-
graph 2(b);

(b)  exceptional  performance  is  a  situation  in  which,  outside  the  mid-term 
and end-of-term reviews, a country’s programmable allocation is total-
ly  committed  and  additional  funding  from  the  national  indicative  pro-
gramme  can  be  absorbed  against  a  background  of  eﬀective  poverty-
reduction policies and sound ﬁnancial management.

ARTICLE 4 
Preparation and adoption of the indicative programme

1. Upon receipt of the information referred to above, each ACP State shall draw up 
and submit to the Community a dra(cid:3) indicative programme on the basis of and 
consistent with its development objectives and priorities as expressed in the CSP. 
The dra(cid:3) indicative programme shall contain:

(a)  general budget support and/or a limited number of focal sectors or areas 

on which support should be concentrated;

(b) 

the most appropriate measures and operations for attaining the objectives 
and targets in the focal sector(s) or area(s);

(c) 

(d) 

the resources possibly reserved for a limited number of programmes and 
projects outside the focal sector(s) or area(s) and/or the broad outlines of 
such activities, as well as an indication of the resources to be deployed for 
each of these elements;

the  types  of  non-state  actors  eligible  for  funding,  in  accordance  with  the 
criteria  laid  down  by  the  Council  of  Ministers,  the  resources  allocated  for 
non-state actors and the type of activities to be supported, which must be 
not-for-proﬁt;

(e)  proposals for a possible participation in regional programmes and projects; 

and

(f)  a possible reserve for insurance against possible claims and to cover cost 

increases and contingencies.

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THE COTONOU AGREEMENT

2.  The  dra(cid:3)  indicative  programme  shall,  as  appropriate,  contain  the  resources 
reserved to reinforce human, material and institutional ACP capacity for preparing 
and implementing national indicative programmes and possible participations 
in programmes and projects funded from the regional indicative programmes 
and for improving the management of the ACP States’ public investment projects 
cycle.

3. The dra(cid:3) indicative programme shall be the subject of an exchange of views 
between the ACP State concerned and the Community. The indicative programme 
shall be adopted by common agreement between the Commission on behalf of 
the Community and the ACP State concerned. It shall, when adopted, be binding 
on both the Community and that state. This indicative programme shall be an-
nexed to the CSP and shall in addition contain:

(a)  an indication of speciﬁc and clearly identiﬁed operations, especially those 

that can be committed before the next review;

(b)  an indicative timetable for implementation and review of the indicative pro-
gramme, including commitments and disbursements of resources; and

(c) 

results-oriented criteria for the reviews.

4. The Community and the ACP State concerned shall take all necessary measures 
to ensure that the programming process is completed within the shortest possible 
time and, save in exceptional circumstances, within twelve months of the adop-
tion of the multi-annual ﬁnancial framework of cooperation. In this context, 
the preparation of the CSP and the indicative programme must be part of a con-
tinuous process leading to the adoption of a single document.

5.  When  an  ACP  State  faces  a  crisis  situation  as  the  result  of  a  war  or  other 
conﬂict,  or  exceptional  circumstances  with  a  comparable  eﬀect,  preventing  the 
National Authorising Oﬃcer from carrying out his duty, the Commission may it-
self manage the resources allocated to the State in question in accordance with 
Article 3 and use it for special support. Special support may concern peace build-
ing policies, conﬂict management and resolution, post-conﬂict support, including 
institution-building, economic and social development activities, taking particular 
account of the needs of the most vulnerable sections of the population. The Com-
mission and the ACP State concerned shall revert to normal implementation and 
normal management procedures as soon as the authorities responsible for man-
aging cooperation are able to do so once more.

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141

ARTICLE 5 
Review process

1. Financial cooperation between the ACP State and the Community shall be suf-
ﬁciently  ﬂexible  to  ensure  that  operations  are  kept  constantly  in  line  with  the 
objectives of this Agreement and to take account of any changes occurring in the 
economic situation, priorities and objectives of the ACP State concerned. In this 
context, the National Authorising Oﬃcer and the Commission shall:

(a)  annually undertake an operational review of the indicative programme; and

(b)  undertake a mid-term and end-of-term review of the CSS and the indicative 

programme in the light of current needs and performance.

2. In exceptional circumstances as referred to in Article 3(4), in order to take 
into account new needs or exceptional performance, an ad hoc review can be 
carried out on the demand of either Party.

3. The National Authorising Oﬃcer and the Commission shall:

(a) 

take all necessary measures to ensure adherence to the provisions of the in-
dicative programme, including ensuring that the timetable of commitments 
and disbursements agreed at the time of programming is adhered to; and

(b)  determine  any  causes  of  delay  in  implementation  and  propose  suitable 

measures to remedy the situation.

4.  The  annual  operational,  mid-term  and  end-of-term  reviews  of  the  indica-
tive programme shall consist of a joint assessment of the implementation of the 
programme and take into account the results of relevant activities of monitoring 
and evaluation. These reviews shall be conducted locally and shall be ﬁnalised 
between  the  National  Authorising  Oﬃcer  and  the  Commission,  in  consultation 
with the appropriate stakeholders, including non-state actors, local authori-
ties  and,  where  relevant,  ACP  parliaments.  They  shall  in  particular  cover  an 
assessment of:

(a) 

the results achieved in the focal sector(s) measured against the identiﬁed 
targets and impact indicators and sectoral policy commitments;

(b)  programmes and projects outside the focal sector(s);

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THE COTONOU AGREEMENT

(c) 

the use of resources set aside for non-state actors;

(d) 

the eﬀectiveness in implementation of current operations and the extent to 
which the timetable for commitments and payments have been respected; 
and

(e)  an extension of the programming perspective for the following years.

5. The Commission shall submit once a year a synthesis report on the conclusion 
of the annual operational review to the ACP–EU Development Finance Coopera-
tion Committee. The Committee shall examine the report in accordance with its 
responsibilities and powers under the Agreement.

6. In the light of the annual operational reviews, the National Authorising Oﬃcer 
and the Commission may at the mid-term and end-of-term reviews, review and 
adapt the CSP:

(a)  where operational reviews indicate speciﬁc problems; and/or

(b) 

in the light of changed circumstances of an ACP State.

A  change  in  the  CSP  may  also  be  decided  as  a  result  of  the  ad  hoc  review 
process foreseen under paragraph 2.

The end-of-term review may also include adaptation for the new multi-annual 
ﬁnancial  framework  of  cooperation  in  terms  of  both  resource  allocation  and 
preparation for the next programme.

7. Following the completion of the mid-term and end-of-term reviews, the Com-
mission  may,  on  behalf  of  the  Community,  increase  or  decrease  the  resource 
allocation of a country in the light of current needs and performance of the ACP 
State concerned.

Following an ad hoc review as foreseen under paragraph 2, the Commission 
may, on behalf of the Community, also increase the resource allocation in the 
light of new needs or exceptional performance of the ACP State concerned, as 
deﬁned in Article 3(4).

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143

CHAPTER 2 
PROGRAMMING AND PREPARATION (REGIONAL)

ARTICLE 6 
Scope

1. Regional cooperation shall cover operations beneﬁting and involving:

(a) 

two or more or all ACP States as well as any non-ACP developing countries 
participating in these operations, and/or

(b)  a  regional  body  of  which  at  least  two  ACP  States  are  members,  including 

those with members which are non-ACP countries.

2. Regional cooperation can also involve Overseas Countries and Territories and 
outermost regions. The funding to enable participation of these territories shall be 
additional to funds allocated to the ACP States under the Agreement.

3. Requests for ﬁnancing of regional programmes shall be submitted by:

(a)  a duly mandated regional body or organisation; or

(b)  a duly mandated sub-regional body, organisation or an ACP State in the 
region concerned at the programming stage, provided that the operation 
has been identiﬁed in the regional indicative programme (RIP).

4. The participation of non-ACP developing countries to regional programmes 
shall be envisaged only to the extent that:

(a) 

the  centre  of  gravity  of  the  projects  and  programmes  funded  under 
the  multi-annual  ﬁnancial  framework  of  cooperation  remains  in  an 
ACP country;

(b)  equivalent provisions exist in the framework of the Community’s ﬁnan-

cial instruments; and

(c) 

the principle of proportionality is respected.

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THE COTONOU AGREEMENT

ARTICLE 7 
Regional programmes

The ACP States concerned shall decide on the deﬁnition of geographical regions. 
To  the  maximum  extent  possible,  regional  integration  programmes  should  cor-
respond  to  programmes  of  existing  regional  organisations.  In  principle,  in  case 
the membership of several relevant regional organisations overlaps, the regional 
integration programme should correspond to the combined membership of these 
organisations.

ARTICLE 8 
Regional programming

1.  Programming  shall  take  place  at  the  level  of  each  region.  The  programming 
shall be a result of an exchange of views between the Commission and the duly 
mandated regional organisation(s) concerned, and in the absence of such a man-
date, the National Authorising Oﬃcers of the countries in that region. Where ap-
propriate, programming may include a consultation with non-state actors repre-
sented at regional level and, where relevant, regional parliaments.

2. The regional strategy paper (RSP) shall be prepared by the Commission and 
the duly mandated regional organisation(s) in collaboration with the ACP States in 
the region concerned, on the basis of the principle of subsidiarity and comple-
mentarity, taking into account the programming of the CSP.

3. The RSP will be an instrument to prioritise activities and to build local own-
ership of supported programmes. The RSP shall include the following standard 
elements:

(a)  an analysis of the political, economic and social and environmental context 

of the region;

(b)  an assessment of the process and prospects of regional economic integra-

tion and integration into the world economy;

(c)  an outline of the regional strategies and priorities pursued and the expected 

ﬁnancing requirements;

(d)  an  outline  of  relevant  activities  of  other  external  partners  in  regional 

cooperation;

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145

(e)  an outline of the speciﬁc EU contribution towards achievement of the goals 
for  regional  integration,  complementary  insofar  as  possible  to  operations 
ﬁnanced by the ACP States themselves and by other external partners, par-
ticularly the EU Member States; and

(f)  an  indication  of  the  most  appropriate  support  and  implementation 

mechanisms to be applied in implementing the above strategies.

ARTICLE 9 
Resource allocation

1.  The  indicative  resource  allocation  among  ACP  regions  shall  be  based  on 
standard, objective and transparent estimates of needs and the progress and 
prospects in the process of regional cooperation and integration.

2. The allocated resources shall comprise:

(a)  a programmable allocation to cover support to regional integration, sec-
tor  policies,  programmes  and  projects  in  support  of  the  focal  or  non-
focal areas of Community assistance; and

(b)  an  allocation  for  each  ACP  region  to  cover  unforeseen  needs  such  as 
those deﬁned in Articles 72, 72a and 73 of this Agreement where, given 
the cross-border nature and/or scope of the unforeseen need, such sup-
port can more eﬀectively be provided at regional level. These funds shall 
be accessible under the conditions set out in Articles 72, 72a and 73 of 
this Agreement, where such support cannot be ﬁnanced from the Union’s 
budget. Complementarity between interventions provided for under this 
allocation and possible interventions at country level shall be ensured.

3. The programmable allocation shall facilitate the long-term programming 
of Community aid for the region concerned. In order to achieve an adequate 
scale and to increase eﬃciency, regional and national funds may be mixed for 
ﬁnancing regional operations with a distinct national component.

A regional allocation for unforeseen needs may be mobilised to the beneﬁt 
of the region concerned and of ACP countries outside the region where the 
nature of the unforeseen need requires their involvement and the centre of 
gravity of the projects and programmes envisaged remains on the region.

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THE COTONOU AGREEMENT

4. Without prejudice to Article 11 concerning reviews, the Community may, in or-
der to take account of new needs or exceptional performance, increase a region’s 
programmable allocation or its allocation for unforeseen needs:

(a)  new needs are needs resulting from exceptional circumstances such as 
crisis and post-crisis situations or from unforeseen needs as referred to 
in paragraph 2(b);

(b)  exceptional  performance  is  a  situation  in  which,  outside  the  mid-term 
and end-of-term reviews, a region’s allocation is totally committed and 
additional funding from the regional indicative programme can be ab-
sorbed against a background of eﬀective regional integration and sound 
ﬁnancial management.

ARTICLE 10 
Regional indicative programme

1.  On  the  basis  of  the  resource  allocation  indicated  above,  the  duly  mandated 
regional organisation(s), and in the absence of such a mandate, the National Au-
thorising  Oﬃcers  of  the  countries  in  the  region,  shall  draw  up  a  dra(cid:3)  Regional 
Indicative Programme. In particular, the dra(cid:3) programme shall specify:

(a) 

the focal sectors and themes of Community aid;

(b) 

the most appropriate measures and operations to achieve the objectives set 
for those sectors and themes; and

(c) 

the programmes and projects enabling those objectives to be attained, in-
sofar as they have been clearly identiﬁed as well as an indication of the re-
sources to be deployed for each of these elements and a timetable for their 
implementation

2. The Regional Indicative Programmes shall be adopted by common agreement 
between the Community and the duly mandated regional organisation(s) or, in 
the absence of such a mandate, the ACP States concerned.

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147

ARTICLE 11 
Review process

1. Financial cooperation between each ACP region and the Community shall be 
suﬃciently ﬂexible to ensure that operations are kept constantly in line with the 
objectives of this Agreement and to take account of any changes occurring in the 
economic situation, priorities and objectives of the region concerned. A mid-term 
and  end-of-term  review  of  the  regional  indicative  programmes  shall  be  under-
taken to adapt the indicative programme to evolving circumstances and to ensure 
that they are correctly implemented. Following the completion of mid-term and 
end-of-term  reviews,  the  Community  may  revise  the  resource  allocation  in  the 
light of current needs and performance.

2. In exceptional circumstances as referred to in Article 9(4), in order to take 
into account new needs or exceptional performance, the review can be carried 
out on the demand of either Party. As a result of an ad hoc review, a change 
in the RSP may be decided by both Parties and/or the resource allocation in-
creased by the Commission on behalf of the Community.

The end-of-term review may also include adaptation for the new multi-an-
nual ﬁnancial framework of cooperation in terms of both resource allocation 
and preparation for the next regional indicative programme.

ARTICLE 12 
Intra-ACP cooperation

1. Intra-ACP cooperation shall, as an instrument of development, contribute 
to the objective of the ACP-EC Partnership. The Intra-ACP cooperation is a su-
pra-regional cooperation. It aims to address the shared challenges facing ACP 
States through operations that transcend the concept of geographic location 
and beneﬁt many or all ACP States.

2. In keeping with the principles of subsidiarity and complementarity, an in-
tra-ACP intervention is envisaged when national and/or regional action proves 
impossible or less eﬀective, so as to provide added value in comparison to the 
operations carried out with other cooperation instruments.

3. When the ACP Group decides to contribute to international or inter-regional 
initiatives from the intra-ACP fund, appropriate visibility shall be ensured.

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THE COTONOU AGREEMENT

ARTICLE 12A 
Intra-ACP strategy paper

1. The programming of the Intra-ACP cooperation shall be the result of an ex-
change of views between the Commission and the ACP Committee of Ambas-
sadors, and shall be jointly prepared by the Commission services and the ACP 
Secretariat, following consultations with relevant actors and stakeholders.

2. The Intra-ACP strategy paper deﬁnes the priority actions of the Intra-ACP 
cooperation  and  actions  necessary  to  build  ownership  of  supported  pro-
grammes. It shall include the following standard elements:

(a)  an analysis of the political, economic, social and environmental context 

of the ACP Group of States;

(b)  an assessment of Intra-ACP cooperation as to its contribution to achiev-

ing the objectives of this Agreement and lessons learnt;

(c)  an outline of the Intra-ACP strategy and objectives pursued and the ex-

pected ﬁnancing requirements;

(d)  an outline of relevant activities of other external partners in the coop-

eration; and

(e)  an indication of the EU contribution towards achievement of the objec-
tives  of  the  Intra-ACP  cooperation  and  its  complementarity  to  opera-
tions ﬁnanced at the national and regional levels and by other external 
partners, particularly the EU Member States.

ARTICLE 12B 
Requests for ﬁnancing

Requests for ﬁnancing of intra-ACP programmes shall be submitted:

(a)  directly by the ACP Council of Ministers or the ACP Committee of Ambas-

sadors; or

(b) 

indirectly by:

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149

(i)  at least three duly mandated regional bodies or organisations be-
longing to diﬀerent geographic regions, or at least two ACP States 
from each of the three regions;

(ii) 

international organisations, such as the African Union, carrying out 
operations that contribute to the objectives of regional cooperation 
and integration, subject to prior approval by the ACP Committee of 
Ambassadors; or

(iii)  the  Caribbean  or  Paciﬁc  regions,  in  view  of  their  particular  geo-
graphic  situation,  subject  to  prior  approval  by  the  ACP  Council  of 
Ministers or the ACP Committee of Ambassadors.

ARTICLE 12C 
Resource allocation

The indicative resource allocation shall be based on the estimates of needs 
and  the  progress  and  prospects  in  the  process  of  Intra-ACP  cooperation.  It 
shall comprise a reserve of non-programmed funds.

ARTICLE 13 
Intra-ACP indicative programme

1.  The  Intra-ACP  indicative  programme  comprises  the  following  main 
standard elements:

(a)  focal sectors and themes of Community aid;

(b) 

the most appropriate measures and actions for achieving the objectives 
set for the focal sectors and themes; and

(c) 

the programmes and projects necessary to achieve the objectives identi-
ﬁed, insofar as they have been clearly identiﬁed, as well as an indication 
of the resources to be allocated to each of them and an implementation 
timetable.

2.  The  Commission  and  the  ACP  Secretariat  shall  identify  and  appraise  the 
corresponding  actions.  On  this  basis,  the  intra-ACP  indicative  programme 
shall be jointly prepared by the services of the Commission and the ACP Sec-
retariat  and  presented  to  the  ACP–EC  Committee  of  Ambassadors.  It  shall 

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THE COTONOU AGREEMENT

be adopted by the Commission, on behalf of the Community and by the ACP 
Committee of Ambassadors.

3. Without prejudice to point (iii) of Article 12b(b), the ACP Committee of Am-
bassadors shall present each year a consolidated list of requests for ﬁnancing 
of the priority actions foreseen in the Intra-ACP indicative programme. The 
Commission  shall  identify  and  prepare  the  corresponding  actions  with  the 
ACP Secretariat as well as an annual action programme. To the extent pos-
sible and in consideration of the allocated resources, requests for ﬁnancing of 
actions not foreseen in the Intra-ACP indicative programme shall be included 
in  the  annual  action  programme.  In  exceptional  cases,  these  requests  are 
adopted through a special ﬁnancing decision of the Commission.

ARTICLE 14 
Review process

1. Intra-ACP cooperation should be suﬃciently ﬂexible and reactive to ensure 
that its actions remain consistent with the objectives of this Agreement and 
to  take  account  of  any  changes  in  the  priorities  and  objectives  of  the  ACP 
Group of States.

2. The ACP Committee of Ambassadors and the Commission shall undertake 
a  mid-term  and  end-of-term  review  of  the  intra-ACP  cooperation  strategy 
and indicative programme to adapt it to current circumstances and ensure its 
correct implementation. If circumstances so require, ad hoc reviews may also 
be conducted to take account of new needs which may arise from exception-
al or unforeseen circumstances, such as those arising from new challenges 
which are common to ACP countries.

3. The ACP Committee of Ambassadors and the Commission may, at the mid-
term and end-of-term reviews, or a(cid:6)er an ad hoc review, review and adapt 
the Intra-ACP cooperation strategy paper.

4.  Following  the  mid-term  and  end-of-term  review  exercises,  or  ad  hoc  re-
views, the ACP Committee of Ambassadors and the Commission may adjust 
the allocations within the intra-ACP indicative programme and mobilise the 
non-programmed Intra-ACP reserve.

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151

CHAPTER 3 
APPRAISAL AND FINANCING

ARTICLE 15 
Identiﬁcation, preparation and appraisal of programmes and projects

1. Programmes and projects that have been presented by the ACP State concerned 
or the relevant organisation or body at regional or intra-ACP level shall be sub-
ject to joint appraisal. The ACP–EC Development Finance Cooperation Committee 
shall develop the general guidelines and criteria for appraisal of programmes and 
projects.  These  programmes  and  projects  are  generally  multi-annual  and  may 
incorporate a whole range of actions of a limited size in a particular area.

2.  Programme  and  project  dossiers  prepared  and  submitted  for  ﬁnancing  must 
contain all information necessary for the appraisal of the programmes and pro-
jects or, where programmes and projects have not been completely deﬁned, pro-
vide the broad outlines necessary for their appraisal.

3. Programme and project appraisal shall take due account of national human re-
source constraints and ensure a strategy favourable to the promotion of such re-
sources. It shall also take into account the speciﬁc characteristics and constraints 
of each ACP State or region.

4. Programmes and projects to be implemented by non-state actors which are 
eligible in accordance with this Agreement may be appraised by the Commission 
alone and give rise to the establishment, between the Commission and non-state 
actors, of grant contracts as deﬁned in Article 19a. This appraisal shall comply 
with Article 4(1)(d) regarding the types of actors, their eligibility and the type of 
activity to be supported. The Commission, through the Head of Delegation, shall 
inform the relevant Authorising Oﬃcer of such allocated grants.

ARTICLE 16 
Financing proposal and decision

1. The conclusions of the appraisal shall be summarised in a ﬁnancing proposal, 
the ﬁnal version of which shall be drawn up by the Commission in close collabo-
ration  with  the  ACP  State  concerned  or  the  relevant  organisation  or  body  at 
regional or intra-ACP level.

2. [deleted]

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THE COTONOU AGREEMENT

3. [deleted]

4.  The  Commission,  acting  on  behalf  of  the  Community,  shall  communicate  its 
ﬁnancing decision to the ACP State concerned or the relevant organisation or 
body at regional or intra-ACP level within 90 days from the date on which the 
ﬁnal version of the ﬁnancial proposal is drawn up.

5. Where the ﬁnancing proposal is not adopted by the Commission on behalf of 
the Community, the ACP State concerned or the relevant organisation or body 
at regional or intra-ACP level shall be informed immediately of the reasons for 
that decision. In such a case, the representatives of the ACP State concerned or 
the relevant organisation or body at regional or intra-ACP level may, within 60 
days therea(cid:3)er, request either:

(a) 

that the matter be referred to the ACP–EC Development Finance Cooperation 
Committee set up under this Agreement; or

(b) 

that they be given a hearing by the Community’s representatives.

6. Following such a hearing, a deﬁnitive decision to adopt or reject the ﬁnancing 
proposal shall be taken by the Commission on behalf of the Community. Before 
any decision is taken, the ACP State concerned or the relevant organisation or 
body at regional or intra-ACP level may forward to the Commission any facts 
which may appear necessary to supplement the information available to it.

ARTICLE 17 
Financing agreement

1. As a rule, programmes and projects ﬁnanced by the multi-annual ﬁnancial 
framework of cooperation are subject to a ﬁnancing agreement drawn up by the 
Commission and the ACP State or the relevant organisation or body at regional 
or intra-ACP level.

2. The ﬁnancing agreement shall be drawn up within 60 days following the com-
munication  of  the  ﬁnancing  decision  taken  by  the  Commission.  The  ﬁnancing 
agreement shall:

(a)  specify,  in  particular,  the  details  of  the  Community’s  ﬁnancial  contribu-
tion,  the  ﬁnancing  arrangements  and  terms  and  the  general  and  speciﬁc 

THE COTONOU AGREEMENT

153

provisions  relating  to  the  programme  or  project  concerned,  including  ex-
pected outcomes and results; and

(b)  make adequate provision for appropriations to cover cost increases, contin-

gencies, audits and evaluations.

3. Any unexpended balance le(cid:3) upon closure of the accounts of programmes and 
projects  within  the  timeframe  for  commitments  of  the  multi-annual  ﬁnan-
cial framework of cooperation from which the programmes and projects have 
been funded shall accrue to the ACP State or the relevant organisation or body 
at regional or intra-ACP level.

ARTICLE 18 
Overrun

1. Once it appears that there is a risk  of cost over-runs over and  above  the ﬁ-
nancing available under the ﬁnancing agreement, the relevant Authorising Oﬃcer 
shall notify the Commission and request its prior approval on the measures which 
the relevant Authorising Oﬃcer intends to take in order to cover such cost over-
runs, either by reducing the scale of the programme or project or by calling on 
national or other non-Community resources.

2. If it is not possible to reduce the scale of the programme or project or to cover 
the over-runs with other resources, the Commission, acting on behalf of the Com-
munity,  may,  on  the  basis  of  a  reasoned  request  from  the  relevant  Authoris-
ing Oﬃcer, take an additional ﬁnancing decision on resources from the indicative 
programme.

ARTICLE 19 
Retroactive ﬁnancing

1. In order to ensure early project start-up, avoid gaps between sequential pro-
jects and prevent delays, the ACP States or the relevant organisation or body at 
regional or intra-ACP level may, on completion of project appraisal and before 
the ﬁnancing decision is taken, pre-ﬁnance activities linked to the start-up of pro-
grammes, preliminary and seasonal work, orders for equipment with long delivery 
lead times as well as some ongoing operations. Such expenditure shall satisfy the 
procedures provided for in this Agreement.

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THE COTONOU AGREEMENT

2. Any expenditure referred to in paragraph 1 shall be mentioned in the ﬁnanc-
ing proposal and shall be without prejudice to the ﬁnancing decision taken by the 
Commission on behalf of the Community.

3. Expenditure made by the ACP State or the relevant organisation or body at 
regional or intra-ACP level under this Article shall be retroactively ﬁnanced un-
der the programme or project, once the ﬁnancing agreement is signed.

CHAPTER 4 
IMPLEMENTATION

ARTICLE 19A 
Implementation measures

1. Implementation of programmes and projects ﬁnanced from the multi-annual 
ﬁnancial framework of cooperation under this Agreement shall consist chieﬂy 
of the following:

(a)  awarding of procurement contracts;

(b)  awarding of grants;

(c)  performance by direct labour;

(d)  direct  payments  as  budgetary  support,  support  for  sectoral  programmes, 
debt  relief  and  support  to  mitigate  the  adverse  eﬀects  resulting  from 
short-term exogenous shocks including ﬂuctuations of exports earnings.

2. In the context of this Annex, procurement contracts are contracts for pecuni-
ary interest concluded in writing in order to obtain, against payment of a price, 
the supply of movable assets, the execution of works or the provision of services.

3. In the context of this Annex, grants are direct ﬁnancial contributions awarded 
by way of a donation in order to ﬁnance:

(a)  either an action designed to help achieve an objective of this Agreement or 

of a programme or project adopted in accordance with this Agreement, or

(b) 

the functioning of a body which pursues such an objective.

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155

Grants shall be covered by a written contract.

ARTICLE 19B 
Tender procedure with suspension clause

In order to ensure early project start-up, the ACP States or the relevant organisa-
tion or body at regional or intra-ACP level may, in all duly substantiated cases 
and in agreement with the Commission, issue invitations to tender for all types 
of  contracts  with  a  suspension  clause,  once  project  appraisal  is  completed  but 
before the ﬁnancing decision is taken. Such a provision must be mentioned in the 
ﬁnancing proposal.

ARTICLE 19C 
Awarding contracts, awarding grants and performing contracts

1. Except as provided for in Article 26, contracts and grants shall be attrib-
uted and implemented according to Community rules and, except in the spe-
ciﬁc cases provided for by these rules, according to the standard procedures 
and  documentation  set  and  published  by  the  Commission  for  the  purposes 
of implementing cooperation actions with third countries and in force at the 
time the procedure in question is launched.

2.  In  decentralised  management,  where  a  joint  assessment  shows  that  the 
procedures for awarding contracts and grants in the ACP State or the recipi-
ent region or the procedures approved by the fund providers are in accord-
ance with the principles of transparency, proportionality, equal treatment and 
non-discrimination  and  preclude  any  kind  of  conﬂict  of  interest,  the  Com-
mission shall use these procedures, in accordance with the Paris Declaration 
and without prejudice to Article 26, in full respect of the rules governing the 
exercise of its powers in this ﬁeld.

3. The ACP State or the relevant organisation or body at regional or intra-ACP 
level  shall  undertake  to  check  regularly  that  the  operations  ﬁnanced  from 
the  multi-annual  ﬁnancial  framework  of  cooperation  under  this  Agreement 
have  been  properly  implemented,  to  take  appropriate  measures  to  prevent 
irregularities  and  fraud,  and,  if  necessary,  to  take  legal  action  to  recover 
unduly paid funds.

4.  In  decentralised  management,  contracts  are  negotiated,  established, 
signed and performed by the ACP States or the relevant organisation or body 

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THE COTONOU AGREEMENT

at  regional  or  intra-ACP  level.  These  states  or  the  relevant  organisation  or 
body at regional or intra-ACP level may, however, call upon the Commission to 
negotiate, establish, sign and perform contracts on their behalf.

5. Pursuant to the commitment referred to in Article 50 of this Agreement, 
contracts and grants ﬁnanced from resources from the multi-annual ﬁnancial 
framework of cooperation with the ACP shall be performed in accordance with 
internationally recognised basic standards in the ﬁeld of labour law.

6. An expert group of representatives of the Secretariat of the ACP Group of 
States and the Commission shall be set up to identify, at the request of one or 
other of the parties, any appropriate alterations and to suggest amendments 
and improvements to the rules and procedures referred to in paragraphs 1 
and 2.

This expert group shall also submit a periodic report to the ACP–EC Develop-
ment  Finance  Cooperation  Committee  to  assist  it  in  its  task  of  examining 
the  problems  surrounding  the  implementation  of  development  cooperation 
activities and proposing appropriate measures.

ARTICLE 20 
Eligibility

Save where a derogation is granted in accordance with Article 22, and without 
prejudice to Article 26:

1. Participation in procedures for the awarding of procurement contracts or grants 
ﬁnanced from the multi-annual ﬁnancial framework of cooperation under this 
Agreement shall be open to:

(a)  all natural persons who are nationals of, or legal persons who are estab-
lished  in,  an  ACP  State,  a  Member  State  of  the  European  Community,  an 
oﬃcial candidate country of the European Community or a Member State 
of the European Economic Area;

(b)  all natural persons who are nationals of, or legal persons who are estab-

lished in, a Least Developed Country as deﬁned by the United Nations.

1a. Participation in procedures for the awarding of procurement contracts or 
grants  ﬁnanced  from  the  multi-annual  ﬁnancial  framework  of  cooperation 

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157

under this Agreement shall be open to all natural persons who are nationals 
of, or legal persons established in, any country other than those referred to 
in paragraph 1, where reciprocal access to external assistance has been es-
tablished. Reciprocal access in the Least Developed Countries as deﬁned by 
the United Nations shall be automatically granted to the OECD/DAC members.

Reciprocal  access  shall  be  established  by  means  of  a  speciﬁc  Commission 
decision  concerning  a  given  country  or  a  given  regional  group  of  countries. 
The decision shall be adopted by the Commission in agreement with the ACP 
States and shall be in force for a minimum period of one year.

2. Services under a contract ﬁnanced from the multi-annual ﬁnancial frame-
work of cooperation under this Agreement may be provided by experts of any 
nationality,  without  prejudice  to  the  qualitative  and  ﬁnancial  requirements 
set out in the Community’s procurement rules.

3. Supplies and materials purchased under a contract ﬁnanced from the multi-
annual ﬁnancial framework of cooperation under this Agreement must origi-
nate in a state that is eligible under paragraphs 1 or 1a. In this context, the deﬁ-
nition of the concept of ‘originating products’ shall be assessed by reference to 
the relevant international agreements, and supplies originating in the Community 
shall include supplies originating in the Overseas Countries and Territories.

4. Participation in procedures for the awarding of procurement contracts or grants 
ﬁnanced from the multi-annual ﬁnancial framework of cooperation under this 
Agreement shall be open to international organisations.

5. Whenever the multi-annual ﬁnancial framework of cooperation under this 
Agreement ﬁnances an operation implemented through an international organi-
sation, participation in procedures for the awarding of procurement contracts or 
grants shall be open to all natural and legal persons who are eligible under para-
graphs 1 or 1a, and to all natural and legal persons who are eligible according to 
the rules of the organisation, care being taken to ensure equal treatment of all 
donors. The same rules apply for supplies and materials.

6. Whenever the multi-annual ﬁnancial framework of cooperation under this 
Agreement  ﬁnances  an  operation  implemented  as  part  of  a  regional  initiative, 
participation in procedures for the awarding of procurement contracts or grants 
shall be open to all natural and legal persons who are eligible under paragraphs 1 

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THE COTONOU AGREEMENT

or 1a, and to all natural and legal persons from a country participating in the 
relevant initiative. The same rules apply for supplies and materials.

7. Whenever the multi-annual ﬁnancial framework of cooperation under this 
Agreement ﬁnances an operation co-ﬁnanced with a third state, participation in 
procedures for the awarding of procurement contracts or grants shall be open to 
all natural and legal persons eligible under paragraphs 1 or 1a, and to all persons 
eligible under the rules of the above mentioned third state. The same rules apply 
for supplies and materials.

ARTICLE 21 
Participation on equal terms

[Deleted]

ARTICLE 22 
Derogations

1. In exceptional duly substantiated circumstances, natural or legal persons from 
third countries not eligible under Article 20 may be authorised to participate in 
procedures for the awarding of procurement contracts or grants ﬁnanced by the 
Community from the multi-annual ﬁnancial framework of cooperation under 
this Agreement at the justiﬁed request of the ACP State or the relevant organi-
sation  or  body  at  regional  or  intra-ACP  level. The ACP State or  the  relevant 
organisation or body at regional or intra-ACP level shall, on each occasion, pro-
vide the Commission with the information needed to decide on such derogation, 
with particular attention being given to:

(a) 

the geographical location of the ACP State or region concerned;

(b) 

the  competitiveness  of  contractors,  suppliers  and  consultants  from  the 
Member States and the ACP States;

(c) 

the  need  to  avoid  excessive  increases  in  the  cost  of  performance  of  the 
contract;

(d) 

transport diﬃculties or delays due to delivery times or other similar problems;

(e) 

technology that is the most appropriate and best suited to local conditions;

THE COTONOU AGREEMENT

159

(f) 

cases of extreme urgency;

(g) 

the availability of products and services in the relevant markets.

2. In the case of projects ﬁnanced from the Investment Facility, the procurement 
rules of the Bank shall apply.

ARTICLE 23 
Competition

[Deleted]

ARTICLE 24 
Implementation by direct labour

1. In the case of direct labour operations, programmes and projects shall be im-
plemented  through  public  or  semi-public  agencies  or  departments  of  the  ACP 
State  or  States  concerned  or  by  the  legal  person  responsible  for  executing  the 
operation.

2.  The  Community  shall  contribute  to  the  costs  of  the  department  involved  by 
providing the equipment and/or materials that it lacks and/or resources to allow 
it to acquire additional staﬀ required in the form of experts from within the ACP 
States concerned or other ACP States. The Community’s participation shall cover 
only costs incurred by supplementary measures and temporary expenditure relat-
ing to execution that are strictly conﬁned to the requirements of the programmes 
and projects in question.

3.  Programme  estimates  implementing  direct-labour  operations  must  comply 
with the Community rules, procedures and standard documents laid down by the 
Commission, as applicable at the time of approval of the programme estimates.

ARTICLE 25 
Emergency assistance contracts

[Deleted]

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THE COTONOU AGREEMENT

ARTICLE 26 
Preferences

1. Measures shall be taken to encourage the widest participation of the natural 
and  legal  persons  of  ACP  States  in  the  performance  of  contracts  ﬁnanced  by 
the  multi-annual  ﬁnancial  framework  of  cooperation  under  this  Agreement 
in order to permit the optimisation of the physical and human resources of those 
States. To this end:

(a) 

(b) 

for works contracts of a value of less than EUR 5 000 000, tenderers of the 
ACP States, provided that at least one quarter of the capital stock and man-
agement  staﬀ  originates  from  one  or  more  ACP  States,  shall  be  accorded 
a 10 % price preference where tenders of an equivalent economic, technical 
and administrative quality are compared;

for supply contracts, irrespective of the value of the supplies, tenderers of 
the ACP States who oﬀer supplies of at least 50 % in contract value of ACP 
origin, shall be accorded a 15 % price preference where tenders of equiva-
lent economic, technical and administrative quality are compared;

(c) 

in respect of service contracts, where tenders of equivalent economic and 
technical quality are compared, preference shall be given to:

(i) 

experts, institutions or consultancy companies or ﬁrms from ACP States 
with the required competence;

(ii)  oﬀers  submitted  by  ACP  ﬁrms,  either  individually  or  in  a  consortium 

with European partners; and

(iii)  oﬀers  presented  by  European  tenderers  with  ACP  sub-contractors  or 

experts;

(d)  where subcontracting is envisaged, preference shall be given by the success-
ful tenderer to natural persons, companies and ﬁrms of ACP States capable 
of performing the contract required on similar terms; and

(e) 

the  ACP  State  may,  in  the  invitation  to  tender,  propose  to  the  prospective 
tenderers the assistance of other ACP States’ companies or ﬁrms or national 
experts or consultants selected by mutual agreement. This cooperation may 

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161

take the form either of a joint venture, or of a subcontract or of on-the-job 
training of trainees.

2. Where two tenders are acknowledged to be equivalent on the basis of the cri-
teria stated above, preference shall be given:

(a) 

to the tenderer of an ACP State; or

(b) 

if no such tender is forthcoming, to the tenderer who:

(i) 

allows for the best possible use of the physical and human resources 
of the ACP States;

(ii)  oﬀers  the  greatest  subcontracting  possibilities  for  ACP  companies, 

ﬁrms or natural persons; or

(iii) 

is  a  consortium  of  natural  persons,  companies  and  ﬁrms  from  ACP 
States and the Community.

ARTICLE 27 
Award of contracts

[Deleted]

ARTICLE 28 
General regulations for contracts

[Deleted]

ARTICLE 29 
General conditions for contracts

[Deleted]

ARTICLE 30 
Settlement of disputes

Any dispute arising between the authorities of an ACP State or the relevant or-
ganisation or body at regional or intra-ACP level and a contractor, supplier or 

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THE COTONOU AGREEMENT

provider of services during the performance of a contract ﬁnanced by the multi-
annual ﬁnancial framework of cooperation under this Agreement shall:

(a) 

in the case of a national contract, be settled in accordance with the national 
legislation of the ACP State concerned; and

(b) 

in the case of a transnational contract be settled either:

(i) 

if the Parties to the contract so agree, in accordance with the national 
legislation of the ACP State concerned or its established international 
practices; or

(ii)  by  arbitration  in  accordance  with  the  procedural  rules  which  will  be 
adopted by decision of the Council of Ministers at the ﬁrst meeting fol-
lowing the signing of this Agreement, upon the recommendation of the 
ACP–EC Development Finance Cooperation Committee.

ARTICLE 31 
Tax and customs arrangements

1. The ACP States shall apply to contracts ﬁnanced by the Community tax and 
customs  arrangements  no  less  favourable  than  those  applied  by  them  to  the 
most favoured states or international development organisations with which they 
have relations. For the purpose of determining the most-favoured-nation (MFN) 
treatment, account shall not be taken of arrangements applied by the ACP State 
concerned to other ACP States, or to other developing countries.

2. Subject to the above provisions the following shall apply to contracts ﬁnanced 
by the Community:

(a) 

the contract shall not be subject in the beneﬁciary ACP State to stamp or 
registration  duties  or  to  ﬁscal  charges  having  equivalent  eﬀect,  whether 
such  charges  already  exist  or  are  to  be  instituted  in  the  future;  however, 
such contracts shall be registered in accordance with the laws in force in the 
ACP State and a fee corresponding to the service rendered may be charged 
for it;

(b)  proﬁts  and/or  income  arising  from  the  performance  of  contracts  shall  be 
taxable according to the internal ﬁscal arrangements of the ACP State con-
cerned,  provided  that  the  natural  or  legal  persons  who  realise  such  proﬁt 

THE COTONOU AGREEMENT

163

and/or income have a permanent place of business in that state, or that the 
performance of the contract takes longer than six months;

(c)  enterprises which must import professional equipment in order to carry out 
works contracts shall, if they so request, beneﬁt from the system of tempo-
rary admission as laid down by the national legislation of the beneﬁciary ACP 
State in respect of the said equipment;

(d)  professional  equipment  necessary  for  carrying  out  tasks  deﬁned  in  a  ser-
vice contract shall be temporarily admitted into the beneﬁciary ACP State or 
States in accordance with its national legislation free of ﬁscal, import and 
customs duties and of other charges having equivalent eﬀect where these 
duties and charges do not constitute remuneration for services rendered;

(e) 

imports under supply contracts shall be admitted into the beneﬁciary ACP 
State without customs duties, import duties, taxes or ﬁscal charges having 
equivalent eﬀect. The contract for supplies originating in the ACP State con-
cerned shall be concluded on the basis of the ex-works price of the supplies 
to which may be added such internal ﬁscal charges as may be applicable to 
those supplies in the ACP State;

(f) 

fuels, lubricants and hydrocarbon binders and, in general, all materials used 
in the performance of works contracts shall be deemed to have been pur-
chased  on  the  local  market  and  shall  be  subject  to  ﬁscal  rules  applicable 
under the national legislation in force in the beneﬁciary ACP State; and

(g)  personal and household eﬀects imported for use by natural persons, other 
than those recruited locally, engaged in carrying out tasks deﬁned in a ser-
vice contract and members of their families, shall be exempt from customs 
or  import  duties,  taxes  and  other  ﬁscal  charges  having  equivalent  eﬀect, 
within  the  limit  of  the  national  legislation  in  force  in  the  beneﬁciary  ACP 
State.

3. Any matter not covered by the above provisions on tax and customs arrange-
ments shall remain subject to the national legislation of the ACP State concerned.

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THE COTONOU AGREEMENT

CHAPTER 5 
MONITORING AND EVALUATION

ARTICLE 32 
Objectives

The  objective  of  monitoring  and  evaluation  shall  consist  in  the  regular  assess-
ment  of  development  operations  (preparation,  implementation  and  subsequent 
operation)  with  a  view  to  improving  the  development  eﬀectiveness  of  ongoing 
and future operations.

ARTICLE 33 
Modalities

1. Without prejudice to evaluations carried out by the ACP State or the relevant 
organisation  or  body  at  regional  or  intra-ACP  level  or  the  Commission,  this 
work  will  be  done  jointly  by  the  ACP  State(s)  or  the  relevant  organisation  or 
body at regional or intra-ACP level and the Community. The ACP–EC Develop-
ment Finance Cooperation Committee shall ensure the joint character of the joint 
monitoring and evaluation operations. In order to assist the ACP–EC Development 
Finance Cooperation Committee, the Commission and the ACP General Secretariat 
shall prepare and implement the joint monitoring and evaluations and report to 
the Committee. The Committee shall, at its ﬁrst meeting a(cid:3)er the signature of the 
Agreement, ﬁx the operational modalities aimed at ensuring the joint character of 
the operations and shall, on a yearly basis, approve the work programme.

2. Monitoring and evaluation activities shall notably:

(a)  provide  regular  and  independent  assessments  of  the  operations  and  ac-
tivities funded from the multi-annual ﬁnancial framework of cooperation 
under this agreement by comparing results with objectives; and thereby

(b)  enable the ACP States or the relevant organisation or body at regional or 
intra-ACP level and the Commission and the joint institutions, to feed the 
lessons of experience back into the design and execution of future policies 
and operations.

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165

CHAPTER 6 
FUND-RESOURCE MANAGEMENT AND EXECUTING AGENTS 

ARTICLE 34 
The Commission

1. The Commission shall undertake the ﬁnancial execution of operations carried 
out with resources from the multi-annual ﬁnancial framework of cooperation 
under this Agreement, with the exception of the Investment Facility and interest-
rate subsidies, using the following main methods of management:

(a)  centralised management;

(b)  decentralised management.

2.  As  a  general  rule,  the  ﬁnancial  execution  of  the  resources  from  the  multi-
annual ﬁnancial framework of cooperation under this Agreement by the Com-
mission shall be decentralised.

In this instance, the execution duties shall be carried out by the ACP States in ac-
cordance with Article 35.

3. In order to carry out the ﬁnancial execution of the resources from the multi-
annual  ﬁnancial  framework  of  cooperation  under  this  Agreement, the Com-
mission  shall  delegate  its  executive  powers  within  its  own  departments.  The 
Commission shall inform the ACP States and the ACP–EC Development Finance 
Cooperation Committee of this delegation of tasks.

ARTICLE 35 
National Authorising Oﬃcer

1. The Government of each ACP State shall appoint a National Authorising Oﬃcer 
to  represent  it  in  all  operations  ﬁnanced  from  the  resources  from  the  multi-
annual ﬁnancial framework of cooperation under this Agreement managed by 
the Commission and the Bank. The National Authorising Oﬃcer shall appoint one 
or more deputy National Authorising Oﬃcers to replace him when he is unable to 
carry out his duties and shall inform the Commission of this appointment. Wher-
ever the conditions regarding institutional capacity and sound ﬁnancial manage-
ment are met, the National Authorising Oﬃcer may delegate his functions for im-
plementation of the programmes and projects concerned to the body responsible 

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THE COTONOU AGREEMENT

within the national administration. The National Authorising Oﬃcer shall inform 
the Commission of any such delegation.

In the case of regional programmes and projects, the relevant organisation or 
body shall designate a Regional Authorising Oﬃcer whose duties correspond, 
mutatis mutandis, to those of the National Authorising Oﬃcer.

In  the  case  of  Intra-ACP  programmes  and  projects,  the  ACP  Committee  of 
Ambassadors shall designate an Intra-ACP Authorising Oﬃcer, whose duties 
correspond, mutatis mutandis, to those of the National Authorising Oﬃcer. In 
the event that the ACP Secretariat is not the Authorising Oﬃcer, the Commit-
tee of Ambassadors shall be informed in conformity with the ﬁnancing agree-
ment of the implementation of programmes and projects.

When the Commission becomes aware of problems in carrying out procedures re-
lating to management of resources from the multi-annual ﬁnancial framework 
of cooperation under this Agreement, it shall, in conjunction with the relevant 
Authorising Oﬃcer, make all contacts necessary to remedy the situation and take 
any appropriate steps.

The relevant Authorising Oﬃcer shall assume ﬁnancial responsibility only for the 
executive tasks entrusted to him.

Where  resources  from  the  multi-annual  ﬁnancial  framework  of  cooperation 
under this Agreement are managed in a decentralised way and subject to any 
additional powers that might be granted by the Commission, the relevant Author-
ising Oﬃcer shall:

(a)  be  responsible  for  the  coordination,  programming,  regular  monitoring  and 
annual, mid-term and end-of-term reviews of implementation of coopera-
tion, and for coordination with donors;

(b) 

in close cooperation with the Commission, be responsible for the prepara-
tion, submission and appraisal of programmes and projects;

(c)  prepare tender dossiers and, where appropriate, the documents for calls for 

proposals;

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167

(d)  submit tender dossiers and, where appropriate, documents for calls for pro-
posals, to the Commission for approval before launching invitations to ten-
der and, where appropriate, calls for proposals;

(e) 

in close cooperation with the Commission, launch invitations to tender and, 
where appropriate, calls for proposals;

(f) 

(g) 

receive tenders and, if applicable, proposals, and transmit copies of tenders 
to the Commission; preside over the opening of tenders and decide on the 
results of their examination within the period of validity of the tenders, tak-
ing account of the time required for approval of contracts;

invite the Commission to the opening of tenders and, if applicable, propos-
als and notify the Commission of the results of the examination of tenders 
and proposals for approval of the proposals for the award of contracts and 
grants;

(h)  submit contracts and programme estimates and any addenda thereto to the 

Commission for approval;

(i) 

sign the contracts and addenda thereto approved by the Commission;

(j) 

clear and authorise expenditure within the limits of the funds assigned to 
him; and

(k)  during the execution operations, make any adaptation arrangements neces-
sary  to  ensure  the  proper  execution  of  approved  programmes  or  projects 
from the economic and technical viewpoint.

2. The relevant Authorising Oﬃcer shall, during the execution of operations and 
subject to the requirement to inform the Commission, decide on:

(a) 

technical adjustments and alterations to programmes and projects in mat-
ters of detail so long as they do not aﬀect the technical solution adopted and 
remain within the limits of the reserve for adjustments provided for in the 
ﬁnancing agreement;

(b) 

changes of site for multiple-unit programmes or projects where justiﬁed on 
technical, economic or social grounds;

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THE COTONOU AGREEMENT

(c) 

imposition or remission of penalties for delay;

(d)  acts discharging guarantors;

(e)  purchase of goods, irrespective of their origin, on the local market;

(f)  use of construction equipment and machinery not originating in the Member 
States or ACP States provided there is no production of comparable equip-
ment and machinery in the Member States or ACP States;

(g)  subcontracting;

(h)  ﬁnal acceptance, provided that the Commission is present at provisional ac-
ceptance,  endorses  the  corresponding  minutes  and,  where  appropriate,  is 
present at the ﬁnal acceptance, in particular where the extent of the reser-
vations recorded at the provisional acceptance necessitates major additional 
work; and

(i) 

hiring of consultants and other technical assistance experts.

ARTICLE 36 
Head of Delegation

1.  The  Commission  shall  be  represented  in  each  ACP  State  or  in  each  regional 
grouping  which  expressly  so  requests,  by  a  delegation  under  the  authority  of 
a Head of Delegation, with the approval of the ACP State or States concerned. 
Appropriate measures shall be taken in any case in which a Head of Delegation is 
appointed to a group of ACP States. The Head of Delegation shall represent the 
Commission in all spheres of its competence and in all its activities.

2. The Head of Delegation shall be the main contact for ACP States and bodies or 
organisations eligible for ﬁnancial support under the Agreement. He shall cooper-
ate and work in close cooperation with the National Authorising Oﬃcer.

3. The Head of Delegation shall have the necessary instructions and delegated 
powers to facilitate and expedite all operations under the Agreement.

4. On a regular basis, the Head of Delegation shall inform the national authori-
ties of Community activities which may directly concern cooperation between the 
Community and the ACP States.

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169

ARTICLE 37 
Payments

1. For the purpose of eﬀecting payments in the national currencies of the ACP 
States, accounts denominated in the currencies of the Members States or in euro 
may  be  opened  in  the  ACP  States  by  and  in  the  name  of  the  Commission  with 
a  national  public  or  semi-public  ﬁnancial  institution  chosen  by  agreement  be-
tween the ACP State and the Commission. This institution shall exercise the func-
tions of National Paying Agent.

2. The National Paying Agent shall receive no remuneration for its services and 
no interest shall be payable by it on deposited funds. The local accounts shall be 
replenished by the Commission in the currency of one of the Member States or 
in  euro,  based  on  estimates  of  future  cash  requirements,  which  shall  be  made 
suﬃciently in advance to avoid the need for pre-ﬁnancing by ACP States or the 
relevant  organisation  or  body  at  regional  or  intra-ACP  level  and  to  prevent 
delayed disbursements.

3. [deleted]

4. Payments shall be made by the Commission in accordance with the rules laid 
down  by  the  Community  and  the  Commission,  where  appropriate  a(cid:3)er  the  ex-
penditure has been cleared and authorised by the relevant Authorising Oﬃcer.

5. [deleted]

6. The procedures for clearance, authorisation and payment of expenditure must 
be  completed  within  a  period  of  90  days  from  the  date  on  which  the  payment 
becomes due. The relevant Authorising Oﬃcer shall process and deliver the pay-
ment authorisation to the Head of Delegation not later than 45 days before the 
due date.

7. Claims for delayed payments shall be borne by the ACP State concerned or the 
relevant organisation or body at regional or intra-ACP level and by the Com-
mission from its own resources, for that part of the delay for which each Party is 
responsible in accordance with the above procedures.

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THE COTONOU AGREEMENT

ANNEX V 
TRADE REGIME APPLICABLE DURING THE 
PREPARATORY PERIOD REFERRED TO IN 
ARTICLE 37(cid:2)1(cid:3)

[Deleted]

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171

ANNEX VI 
LIST OF THE LEAST DEVELOPED, LANDLOCKED  
AND ISLAND ACP STATES (cid:2)LDLICS(cid:3) 

The lists comprise ACP least-developed, landlocked and Island States

ARTICLE 1 
Least-developed ACP States

Under  this  Agreement,  the  following  countries  shall  be  considered  least-devel-
oped ACP States:

Angola
Benin
Burkina Faso
Burundi
Central African Republic
Chad
Comoro Islands
Democratic Republic of Congo
Djibouti
Eritrea
Ethiopia
Gambia
Guinea
Guinea (Bissau)
Guinea (Equatorial)
Haïti
Kiribati
Lesotho
Liberia
Madagascar 

Malawi
Mali
Mauritania
Mozambique
Niger
Republic of Cape Verde
Rwanda
Samoa
Sâo Tomé and Príncipe
Sierra Leone
Solomon Islands
Somalia
Sudan
Tanzania
Timor-Leste
Togo
Tuvalu
Uganda
Vanuatu
Zambia

ARTICLE 2 
Landlocked ACP States

Speciﬁc  measures  and  provisions  have  been  made  to  support  landlocked  ACP 
States  in  their  eﬀorts  to  overcome  the  geographical  diﬃculties  and  the  other 
obstacles hampering their development so as to enable them to speed up their 
respective rates of growth.

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THE COTONOU AGREEMENT

The landlocked ACP States are:

Botswana
Burkina Faso
Burundi
Central African Republic
Chad
Ethiopia
Lesotho
Malawi

ARTICLE 3

Mali
Niger
Rwanda
Swaziland
Uganda
Zambia
Zimbabwe

ARTICLE 4 
Island ACP States

Speciﬁc measures and provisions have been made to support island ACP States in 
their eﬀorts to overcome the natural and geographical diﬃculties and the other 
obstacles hampering their development so as to enable them to speed up their 
respective rates of growth.

ARTICLE 5

List of island ACP States:

Antigua and Barbuda
Bahamas
Barbados
Cape Verde
Comoros
Cook Islands
Dominica
Dominican Republic
Fiji
Grenada
Haiti
Jamaica
Kiribati
Madagascar
Marshall Islands
Mauritius
Micronesia

Nauru
Niue
Palau
Papua New Guinea
Saint Kitts and Nevis
Saint Lucia
Saint Vincent and the Grenadines
Samoa
São Tomé and Príncipe
Seychelles
Solomon Islands
Timor-Leste
Tonga
Trinidad and Tobago
Tuvalu
Vanuatu

THE COTONOU AGREEMENT

173

ANNEX VII 
POLITICAL DIALOGUE AS REGARDS HUMAN RIGHTS, 
DEMOCRATIC PRINCIPLES AND THE RULE OF LAW

ARTICLE 1 
Objectives

1. The consultations envisaged in Article 96(2)(a) will take place, except in cases 
of special urgency, a(cid:3)er exhaustive political dialogue as envisaged in Article 8 and 
Article 9(4) of the Agreement.

2. Both Parties should conduct such political dialogue in the spirit of the Agree-
ment  and  bearing  in  mind  the  Guidelines  for  ACP–EC  Political  Dialogue  estab-
lished by the Council of Ministers.

3. Political Dialogue is a process which should foster the strengthening of ACP–EC 
relations and contribute towards achieving the objectives of the Partnership.

ARTICLE 2 
Intensiﬁed Political Dialogue preceding consultations  
under Article 96 of the Agreement

1.  Political  dialogue  concerning  respect  for  human  rights,  democratic  principles 
and the rule of law shall be conducted pursuant to Article 8 and Article 9(4) of 
the  Agreement  and  within  the  parameters  of  internationally  recognised  stand-
ards and norms. In the framework of this dialogue the Parties may agree on joint 
agendas and priorities.

2. The Parties may jointly develop and agree speciﬁc benchmarks or targets with 
regard to human rights, democratic principles and the rule of law within the pa-
rameters of internationally agreed standards and norms, taking into account spe-
cial circumstances of the ACP State concerned. Benchmarks are mechanisms for 
reaching targets through the setting of intermediate objectives and timeframes 
for compliance.

3. The political dialogue set out in paragraphs 1 and 2 shall be systematic and for-
mal and shall exhaust all possible options prior to consultations under Article 96 
of the Agreement.

174

THE COTONOU AGREEMENT

4. Except for cases of special urgency as deﬁned in Article 96(2)(b) of the Agree-
ment, consultations under Article 96 may also go ahead without preceding inten-
siﬁed political dialogue, when there is persistent lack of compliance with commit-
ments taken by one of the Parties during an earlier dialogue, or by a failure to 
engage in dialogue in good faith.

5. Political dialogue under Article 8 of the Agreement shall also be utilised be-
tween the Parties to assist countries subject to appropriate measures under Arti-
cle 96 of the Agreement, to normalise the relationship.

ARTICLE 3 
Additional rules on consultation under Article 96 of the Agreement

1. The Parties shall strive to promote equality in the level of representation during 
consultations under Article 96 of the Agreement.

2. The Parties are committed to transparent interaction before, during and a(cid:3)er 
the  formal  consultations,  bearing  in  mind  the  speciﬁc  benchmarks  and  targets 
referred to in Article 2(2) of this Annex.

3.  The  Parties  shall  use  the  30-day  notiﬁcation  period  as  provided  for  in  Arti-
cle 96(2) of the Agreement for eﬀective preparation by the Parties, as well as for 
deeper  consultations  within  the  ACP  Group  and  among  the  Community  and  its 
Member States. During the consultation process, the Parties should agree ﬂexible 
timeframes,  whilst  acknowledging  that  cases  of  special  urgency,  as  deﬁned  in 
Article 96(2)(b) of the Agreement and Article 2(4) of this Annex, may require an 
immediate reaction.

4. The Parties acknowledge the role of the ACP Group in political dialogue based 
on modalities to be determined by the ACP Group and communicated to the Euro-
pean Community and its Member States. The ACP Secretariat and the European 
Commission  shall  exchange  all  required  information  on  the  process  of  po-
litical dialogue carried out before, during and a(cid:6)er consultations undertaken 
under Articles 96 and 97 of this Agreement.

5. The Parties acknowledge the need for structured and continuous consultations 
under Article 96 of the Agreement. The Council of Ministers may develop further 
modalities to this end.

PROTOCOLS
PROTOCOLS

THE COTONOU AGREEMENT

177

PROTOCOL 1 
ON THE OPERATING EXPENDITURE 
OF THE JOINT INSTITUTIONS

1. The Member States and the Community, on the one hand, and the ACP States, 
on  the  other,  shall  be  responsible  for  such  expenditure  as  they  shall  incur  by 
reason of their participation in the meetings of the Council of Ministers and its 
dependent bodies, both with regard to staﬀ, travel and subsistence expenditure 
and to postal and telecommunications expenses.

Expenditure  in  connection  with  interpreting  at  meetings,  translation  and  repro-
duction  of  documents,  and  the  practical  arrangements  for  meetings  (such  as 
premises,  equipment  and  messengers)  of  the  joint  institutions  of  the  present 
Agreement shall be borne by the Community or by one of the ACP States, accord-
ing to whether the meetings take place in the territory of a Member State or in 
that of an ACP State.

2. The arbitrators appointed in accordance with Article 98 of the Agreement shall 
be entitled to a refund of their travel and subsistence expenditure. The latter shall 
be determined by the Council of Ministers.

One half of travel and subsistence expenditure incurred by the arbitrators shall be 
borne by the Community and the other half by the ACP States. Expenditure relat-
ing to any registry set up by the arbitrators, to preparatory inquiries into disputes, 
and to the organisation of hearings (such as premises, personnel and interpreting) 
shall be borne by the Community. Expenditure relating to special inquiries shall 
be settled together with the other costs and the Parties shall deposit advances as 
determined by an order of the arbitrators.

3. The ACP States shall set up a Fund, which will be managed by their General 
Secretariat, for the purpose of contributing to the ﬁnancing of the expenses in-
curred by ACP participants at meetings of the Joint Parliamentary Assembly and 
the Council of Ministers.

The  ACP  States  shall  contribute  to  this  Fund.  With  the  aim  of  encouraging  the 
active participation of all ACP States in the dialogue conducted within the ACPEC 
institutions, the Community shall make a contribution to this Fund as provided for 
in the Financial Protocol (EUR 4 million according to the First Financial Protocol).

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THE COTONOU AGREEMENT

To be eligible for the Fund expenses must comply with the following conditions as 
well as those laid down in paragraph 1:

—  They must be incurred by parliamentarians or, in their absence, other such 
ACP representatives travelling from the country they represent in order to 
take part in sessions of the Joint Parliamentary Assembly, meetings of work-
ing parties or missions under their aegis, or as a result of the participation 
of these same representatives and representatives of ACP civil society and 
economic  and  social  operators  in  consultation  meetings  held  under  Arti-
cles 15 and 17 of the Agreement.

—  Decisions on the nature, organisation, frequency and location of meetings, 
missions and working groups must be taken in accordance with the rules of 
procedure of the Council of Ministers and the Joint Parliamentary Assembly.

4. Consultation meetings and meetings of ACP–EC economic and social operators 
shall be organised by the Economic and Social Committee of the European Union. 
In this speciﬁc instance, the Community’s contribution to cover the participation 
of ACP economic and social operators shall be paid directly to the Economic and 
Social Committee.

The ACP Secretariat, the Council of Ministers and the Joint Parliamentary Assem-
bly may, in agreement with the Commission, delegate the organisation of consul-
tation meetings of ACP civil society to representative organisations approved by 
the Parties.

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179

PROTOCOL 2 
ON PRIVILEGES AND IMMUNITIES

THE PARTIES,

DESIRING, by the conclusion of a Protocol on privileges and immunities, to facili-
tate the smooth functioning of the Agreement, the preparation of its work and 
implementation of the measures adopted for its application;

WHEREAS it is therefore necessary to specify the privileges and immunities which 
may be claimed by persons participating in work relating to the application of the 
Agreement and to the arrangements applicable to oﬃcial communications connect-
ed with such work, without prejudice to the provisions of the Protocol on the privileg-
es and immunities of the European Communities, signed in Brussels on 8 April 1965;

WHEREAS it is also necessary to lay down the treatment to be accorded to the 
property, funds and assets of the Council of ACP Ministers, and its staﬀ;

WHEREAS the Georgetown Agreement of 6 June 1975 constituted the ACP Group 
of States and instituted a Council of ACP Ministers, and a Committee of Ambas-
sadors; whereas the organs of the ACP Group of States are to be serviced by the 
Secretariat of the ACP States;

HAVE  AGREED  upon  the  following  provisions,  which  shall  be  annexed  to  the 
Agreement

CHAPTER 1 
PERSONS TAKING PART IN THE WORK OF THE AGREEMENT

ARTICLE 1

The representatives of the Governments of the Member States and of the ACP 
States and the Representatives of the Institutions of the European Communities, 
and also their advisers and experts and the members of the staﬀ of the Secre-
tariat of the ACP States taking part, in the territory of the Member States or of 
the ACP States, in the work either of the institutions of the Agreement or of the 
coordinating bodies, or in work connected with the application of the Agreement, 
shall enjoy the customary privileges, immunities and facilities while carrying out 
their duties and while travelling to or from the place at which they are required to 
carry out such duties.

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THE COTONOU AGREEMENT

The preceding paragraph shall also apply to members of the Joint Parliamentary 
Assembly of the Agreement, to the arbitrators who may be appointed under the 
Agreement,  to  members  of  the  consultative  bodies  of  the  economic  and  social 
sectors which may be set up, to the oﬃcials and employees of these institutions, 
and also to the members of the agencies of the European Investment Bank and 
its staﬀ, and to the staﬀ of the Centre for the Development of Enterprise and the 
Centre for the Development of Agriculture.

CHAPTER 2 
PROPERTY, FUNDS AND ASSETS OF THE COUNCIL OF ACP MINISTERS

ARTICLE 2

The premises and buildings occupied by the Council of ACP Ministers for oﬃcial 
purposes shall be inviolable. They shall be exempt from search, requisition, con-
ﬁscation or expropriation.

Except  when  required  for  the  purposes  of  investigating  an  accident  caused  by 
a motor vehicle belonging to the said Council or being used on its account, or in 
the event of an infringement of road traﬃc regulations or of an accident caused 
by such a vehicle, the property and assets of the Council of ACP Ministers shall not 
be the subject of any administrative or legal measures of constraints without the 
authorisation of the Council of Ministers set up under the Agreement.

ARTICLE 3

The archives of the Council of ACP Ministers shall be inviolable.

ARTICLE 4

The Council of ACP Ministers, its assets, income and other property shall be ex-
empt from all direct taxes.

The host State shall, wherever possible, take the appropriate measures to remit or 
refund the amount of indirect taxes or sales taxes included in the price of movable 
or immovable property, where the Council of ACP Ministers makes, strictly for its 
oﬃcial use, substantial purchases, the price of which includes taxes of this kind.

No exemption shall be granted in respect of taxes, charges, duties or fees which 
represent charges for services rendered.

THE COTONOU AGREEMENT

181

ARTICLE 5

The  Council  of  ACP  Ministers  shall  be  exempt  from  all  customs  duties,  prohibi-
tions and restrictions on imports in respect of articles intended for its oﬃcial use; 
articles  so  imported  may  not  be  sold  or  otherwise  disposed  of,  whether  or  not 
in return for payment, in the territory of the country into which they have been 
imported, except under conditions approved by the Government or that country.

CHAPTER 3 
OFFICIAL COMMUNICATIONS

ARTICLE 6

For  their  oﬃcial  communications  and  the  transmission  of  all  their  documents, 
the European Community, the institutions of the Agreement and the coordinating 
bodies shall enjoy in the territory of the States party to the Agreement the treat-
ment accorded to international organisations.

Oﬃcial correspondence and other oﬃcial communications of the European Com-
munity, the joint institutions of the Agreement and the coordinating bodies shall 
not be subject to censorship.

CHAPTER 4 
STAFF OF THE SECRETARIAT OF THE ACP STATES

ARTICLE 7

1. The Secretary or Secretaries and Deputy Secretary or Deputy Secretaries of the 
Council of ACP Ministers and the other permanent members of the staﬀ of senior 
rank as designated by the ACP States, of the Council of ACP Ministers shall enjoy, 
in  the  state  in  which  the  Council  of  ACP  Ministers  is  established,  under  the  re-
sponsibility of the Chairman-in-Oﬃce of the Committee of ACP Ambassadors, the 
advantages accorded to the diplomatic staﬀ of diplomatic missions. Their spouses 
and their children under age living in their household shall be entitled, under the 
same conditions, to the advantages accorded to the spouses and children under 
age of such diplomatic staﬀ.

2. Permanent ACP staﬀ members not referred to in paragraph 1 shall be exempt-
ed by their host country from any taxes on salaries, emoluments or allowances 

182

THE COTONOU AGREEMENT

paid  to  them  by  the  ACP  States  from  the  day  on  which  such  income  becomes 
subject to tax levied for the beneﬁt of the ACP States.

The above provision shall not apply either to pensions paid the ACP Secretariat 
to its former staﬀ members or their dependants, or to salaries, emoluments or 
allowances paid to its local staﬀ.

ARTICLE 8

The state in which the Council of ACP Ministers is established shall grant immu-
nity from legal proceedings to permanent members of the staﬀ of the Secretariat 
of the ACP States, apart from those referred to in paragraph 1 of Article 7, only 
in respect of acts done by them in the performance of their oﬃcial duties. Such 
immunity shall not, however, apply to infringements of road traﬃc regulations by 
a permanent member of the staﬀ of the Secretariat of the ACP States or to dam-
age caused by a motor vehicle belonging to, or driven by, him or her.

ARTICLE 9

The names, positions and addresses of the Chairman-in-Oﬃce of the Committee 
of ACP Ambassadors, the Secretary or Secretaries and Deputy Secretary or Dep-
uty Secretaries of the Council of ACP Ministers and of the permanent members of 
the staﬀ of the Secretariat of the ACP States shall be communicated periodically 
by the President of the Council of ACP Ministers to the Government of the state in 
whose territory the Council of ACP Ministers is established.

CHAPTER 5 
COMMISSION DELEGATIONS IN THE ACP STATES

ARTICLE 10

1. The Commission Head of Delegation and staﬀ appointed to the Delegation, the 
Delegations, to the exception of locally recruited staﬀ, shall be exempted from 
any direct taxes in the ACP State where they are in post.

2. Article 31(2)(g) of Annex IV, chapter 4 shall also apply to the staﬀ referred to 
in paragraph 1.

THE COTONOU AGREEMENT

183

CHAPTER 6 
GENERAL PROVISIONS

ARTICLE 11

The privileges, immunities and facilities provided for in this Protocol shall be ac-
corded to those concerned solely in the interests of the proper execution of their 
oﬃcial duties.

Each institution or body referred to in this Protocol shall be required to waive im-
munity wherever its consider that the waiver of such immunity is not contrary to 
its own interests.

ARTICLE 12

Article 98 of the Agreement shall apply to disputes relating to this Protocol.

The Council of ACP Ministers and the European Investment Bank may be party to 
proceedings during an arbitration procedure.

184

THE COTONOU AGREEMENT

PROTOCOL 3 
ON SOUTH AFRICA

ARTICLE 1 
Qualiﬁed Status

1. The participation of South Africa in this Agreement is subject to the qualiﬁca-
tions set out in this Protocol.

2.  The  provisions  of  the  bilateral  Agreement  on  Trade,  Development  and  Coop-
eration between the European Community, its Member States and South Africa 
as amended by the Agreement signed on 11 September 2009, hereina(cid:3)er re-
ferred as the ‘TDCA’, shall take precedence over the provisions of this Agreement.

ARTICLE 2 
General Provisions, Political Dialogue and Joint Institutions

1. The general, institutional and ﬁnal provisions of this Agreement shall apply to 
South Africa.

2. South Africa shall be fully associated in the overall political dialogue and par-
ticipate in the joint institutions and bodies set out under this Agreement. However, 
in respect of decisions to be taken in relation to provisions that do not apply to 
South Africa under this Protocol, South Africa shall not take part in the decision-
making process.

ARTICLE 3 
Cooperation Strategies

The provisions on cooperation strategies of this Agreement shall apply to coop-
eration between the Community and South Africa.

ARTICLE 4 
Financial Resources

1. The provisions of this Agreement on development ﬁnance cooperation shall not 
apply to South Africa.

2. However, in derogation from this principle, South Africa shall have the right to 
participate in ACP–EC development ﬁnance cooperation listed in Article 8 of this 

THE COTONOU AGREEMENT

185

Protocol, on the basis of the principles of reciprocity and proportionality, un-
derstanding that South Africa’s participation will be ﬁnanced from the resources 
provided  for  under  Title  VII  of  the  TDCA.  Where  resources  from  the  TDCA  are 
deployed  for  participation  in  operations  in  the  framework  of  ACP–EC  ﬁnancial 
cooperation, South Africa will enjoy the right to participate fully in the decision-
making procedures governing implementation of such aid.

3. South African natural or legal persons shall be eligible for award of contracts 
ﬁnanced from the ﬁnancial resources provided for under this Agreement. In this 
respect, South African natural or legal persons shall, however, not enjoy the pref-
erences accorded to natural and legal persons from ACP States.

4. For the purpose of the investment ﬁnancing provided for in Annex II, Chap-
ter  1,  to  this  Agreement,  investment  funds  and  ﬁnancial  and  non-ﬁnancial 
intermediaries established in South Africa can be eligible.

ARTICLE 5 
Trade Cooperation

1. The provisions of this Agreement on economic and trade cooperation shall not 
apply to South Africa.

2. Nonetheless, South Africa shall be associated as an observer in the dialogue 
between the Parties pursuant to Articles 34 to 40 of this Agreement.

3. This Protocol shall not prevent South Africa from negotiating and signing 
one  of  the  Economic  Partnership  Agreements  (EPA)  provided  for  in  Part  3, 
Title II of this Agreement if the other parties to that EPA so agree.

ARTICLE 6 
Applicability of Protocols and Declarations

The protocols and declarations annexed to this Agreement that relate to parts of 
the Agreement that are not applicable to South Africa, shall not apply to South 
Africa. All other declarations and protocols shall apply.

ARTICLE 7 
Revision Clause

This Protocol may be revised by decision of the Council of Ministers.

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ARTICLE 8 
Applicability

Without  prejudice  to  the  previous  Articles,  the  table  hereunder  sets  out  those 
Articles of the Agreement and its Annexes which shall apply to South Africa and 
those which shall not apply.

Applicable

Remarks

Not applicable

Preamble

Part I, Title I, Chapter 1: 
‘Objectives, principles and 
actors’ (Articles 1 to 7)

Part I, Title II, ‘The political 
dimension’; Articles 8 to 13

Part 2, ‘Institutional 
provisions’; Articles 14 to 17

Part 3, Title I, ‘Development 
strategies’.

Article 75(i) (Investment 
promotion, support for 
the ACP–EU private sector 
dialogue on regional level), 
Article 78 (Investment 
protection)

In accordance with Article 1 
of this protocol, South Africa 
shall not have voting rights 
in any of the joint institutions 
or bodies in areas of the 
Agreement which are not 
applicable to South Africa.

In accordance with Article 5 
above, South Africa shall be 
associated as an observer 
in the dialogue between 
the Parties pursuant to 
Articles 34 to 40.

In accordance with Article 4 
above, South Africa shall have 
the right to participate in 
certain areas of development 
ﬁnance cooperation on the 
understanding that such 
participation will be fully 
ﬁnanced from the resources 
provided for under Title VII 
of the TDCA. In accordance 
with Article 2 above, South 
Africa may participate in the 
ACP–EC Development Finance 
Cooperation Committee 
provided for in Article 83, 
without enjoying voting rights 
in relation to provisions that 
do not apply to South Africa.

Part 3, Title II, Economic and 
Trade Cooperation.

Part 4, Development Finance 
Cooperation

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187

Applicable

Remarks

Not applicable

Part 5, General Provisions 
for the Least Developed, 
Landlocked and Island ACP 
States, Articles 84 to 90

Part 6, Final Provisions, 
Articles 91 to 100

Annex II, Terms and 
conditions of Financing, 
Chapter 5 (link to Article 78/
investment protection)

Annex III, Institutional 
Support (CDE and CTA)

Annex IV, Implementation 
and Management 
Procedures: Articles 6 to 
14 (Regional cooperation) 
Articles 20 to 32 
(Competition and preference)

Annex I (Financial Protocol)

Annex II, Terms and 
conditions of Financing, 
Chapters 1, 2, 3 and 4

Annex IV, Articles 1 to 5 
(national programming); 15 
to 19 (provisions relating 
to the project cycle), 
27 (preference to ACP 
contractors) and 34 to 38 
(Executing agents)

In accordance with Article 4 
above, South Africa 
shall have the right to 
participate in certain 
areas of development 
ﬁnance cooperation on the 
understanding that South 
Africa’s participation will 
be fully ﬁnanced from the 
resources provided for under 
Title VII of the TDCA.

In accordance with Article 4 
above, South Africa 
shall have the right to 
participate in certain 
areas of development 
ﬁnance cooperation on the 
understanding that South 
Africa’s participation will 
be fully ﬁnanced from the 
resources provided for under 
Title VII of the TDCA.

In accordance with Article 4 
above, where resources from 
the TDCA are deployed for 
participation activities in 
the framework of ACP–EC 
ﬁnancial cooperation, South 
Africa will enjoy the right 
to fully participate in the 
decision-making procedures 
governing implementation 
of such aid. South African 
natural and legal persons 
will moreover be eligible for 
participation in tenders for 
contracts ﬁnanced from the 
ﬁnancial resources of the 
Agreement. In this context, 
South African tenderers will 
not enjoy the preferences 
provided for tenderers from 
the ACP States.

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THE COTONOU AGREEMENT

Applicable

Remarks

Not applicable

Annex V/trade regime during 
the preparatory period 
prescribed in Article 37(1).

Annex VI; List of Least 
Developed, island and 
landlocked ACP States.

FINAL ACT

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191

FINAL ACT

The Plenipotentiaries of:

HIS MAJESTY THE KING OF THE BELGIANS,
THE PRESIDENT OF THE REPUBLIC OF BULGARIA,
THE PRESIDENT OF THE CZECH REPUBLIC,
HER MAJESTY THE QUEEN OF DENMARK,
THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY,
THE PRESIDENT OF THE REPUBLIC OF ESTONIA,
THE PRESIDENT OF IRELAND,
THE PRESIDENT OF THE HELLENIC REPUBLIC,
HIS MAJESTY THE KING OF SPAIN,
THE PRESIDENT OF THE FRENCH REPUBLIC,
THE PRESIDENT OF THE ITALIAN REPUBLIC,
THE PRESIDENT OF THE REPUBLIC OF CYPRUS,
THE PRESIDENT OF THE REPUBLIC OF LATVIA,
THE PRESIDENT OF THE REPUBLIC OF LITHUANIA,
HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG,
THE PRESIDENT OF THE REPUBLIC OF HUNGARY,
THE PRESIDENT OF MALTA,
HER MAJESTY THE QUEEN OF THE NETHERLANDS,
THE FEDERAL PRESIDENT OF THE REPUBLIC OF AUSTRIA,
THE PRESIDENT OF THE REPUBLIC OF POLAND,
THE PRESIDENT OF THE PORTUGUESE REPUBLIC,
THE PRESIDENT OF ROMANIA,
THE PRESIDENT OF THE REPUBLIC OF SLOVENIA,
THE PRESIDENT OF THE SLOVAK REPUBLIC,
THE PRESIDENT OF THE REPUBLIC OF FINLAND,
THE GOVERNMENT OF THE KINGDOM OF SWEDEN,
HER  MAJESTY  THE  QUEEN  OF  THE  UNITED  KINGDOM  OF  GREAT  BRITAIN  AND 
NORTHERN IRELAND,
Contracting Parties to the Treaty on European Union and the Treaty on the Func-
tioning of the European Union, hereina(cid:3)er referred to as ‘the Member States’,
and of THE EUROPEAN UNION, hereina(cid:3)er referred to as ‘the Union’ or ‘the EU’,
of the one part, and
the Plenipotentiaries of:
THE PRESIDENT OF THE REPUBLIC OF ANGOLA,
HER MAJESTY THE QUEEN OF ANTIGUA AND BARBUDA,
THE HEAD OF STATE OF THE COMMONWEALTH OF THE BAHAMAS,

192

THE COTONOU AGREEMENT

THE HEAD OF STATE OF BARBADOS,
HER MAJESTY THE QUEEN OF BELIZE,
THE PRESIDENT OF THE REPUBLIC OF BENIN,
THE PRESIDENT OF THE REPUBLIC OF BOTSWANA,
THE PRESIDENT OF BURKINA FASO,
THE PRESIDENT OF THE REPUBLIC OF BURUNDI,
THE PRESIDENT OF THE REPUBLIC OF CAMEROON,
THE PRESIDENT OF THE REPUBLIC OF CAPE VERDE,
THE PRESIDENT OF THE CENTRAL AFRICAN REPUBLIC,
THE PRESIDENT OF THE UNION OF THE COMOROS,
THE PRESIDENT OF THE DEMOCRATIC REPUBLIC OF CONGO,
THE PRESIDENT OF THE REPUBLIC OF CONGO,
THE GOVERNMENT OF THE COOK ISLANDS,
THE PRESIDENT OF THE REPUBLIC OF CÔTE D’IVOIRE,
THE PRESIDENT OF THE REPUBLIC OF DJIBOUTI,
THE GOVERNMENT OF THE COMMONWEALTH OF DOMINICA,
THE PRESIDENT OF THE DOMINICAN REPUBLIC,
THE PRESIDENT OF THE STATE OF ERITREA,
THE PRESIDENT OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA,
THE PRESIDENT OF THE REPUBLIC OF THE FIJI ISLANDS,
THE PRESIDENT OF THE GABONESE REPUBLIC,
THE PRESIDENT AND HEAD OF STATE OF THE REPUBLIC OF THE GAMBIA,
THE PRESIDENT OF THE REPUBLIC OF GHANA,
HER MAJESTY THE QUEEN OF GRENADA,
THE PRESIDENT OF THE REPUBLIC OF GUINEA,
THE PRESIDENT OF THE REPUBLIC OF GUINEA-BISSAU,
THE PRESIDENT OF THE CO-OPERATIVE REPUBLIC OF GUYANA,
THE PRESIDENT OF THE REPUBLIC OF HAITI,
THE HEAD OF STATE OF JAMAICA,
THE PRESIDENT OF THE REPUBLIC OF KENYA,
THE PRESIDENT OF THE REPUBLIC OF KIRIBATI,
HIS MAJESTY THE KING OF THE KINGDOM OF LESOTHO,
THE PRESIDENT OF THE REPUBLIC OF LIBERIA,
THE PRESIDENT OF THE REPUBLIC OF MADAGASCAR,
THE PRESIDENT OF THE REPUBLIC OF MALAWI,
THE PRESIDENT OF THE REPUBLIC OF MALI,
THE GOVERNMENT OF THE REPUBLIC OF THE MARSHALL ISLANDS,
THE PRESIDENT OF THE ISLAMIC REPUBLIC OF MAURITANIA,
THE PRESIDENT OF THE REPUBLIC OF MAURITIUS,
THE GOVERNMENT OF THE FEDERATED STATES OF MICRONESIA,

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193

THE PRESIDENT OF THE REPUBLIC OF MOZAMBIQUE,
THE PRESIDENT OF THE REPUBLIC OF NAMIBIA,
THE GOVERNMENT OF THE REPUBLIC OF NAURU,
THE PRESIDENT OF THE REPUBLIC OF NIGER,
THE PRESIDENT OF THE FEDERAL REPUBLIC OF NIGERIA,
THE GOVERNMENT OF NIUE,
THE GOVERNMENT OF THE REPUBLIC OF PALAU,
HER MAJESTY THE QUEEN OF THE INDEPENDENT STATE OF PAPUA NEW GUINEA,
THE PRESIDENT OF THE REPUBLIC OF RWANDA,
HER MAJESTY THE QUEEN OF SAINT KITTS AND NEVIS,
HER MAJESTY THE QUEEN OF SAINT LUCIA,
HER MAJESTY THE QUEEN OF SAINT VINCENT AND THE GRENADINES,
THE HEAD OF STATE OF THE INDEPENDENT STATE OF SAMOA,
THE PRESIDENT OF THE DEMOCRATIC REPUBLIC OF SÃO TOMÉ AND PRÍNCIPE,
THE PRESIDENT OF THE REPUBLIC OF SENEGAL,
THE PRESIDENT OF THE REPUBLIC OF SEYCHELLES,
THE PRESIDENT OF THE REPUBLIC OF SIERRA LEONE,
HER MAJESTY THE QUEEN OF SOLOMON ISLANDS,
THE PRESIDENT OF THE REPUBLIC OF SOUTH AFRICA,
THE PRESIDENT OF THE REPUBLIC OF SURINAME,
HIS MAJESTY THE KING OF THE KINGDOM OF SWAZILAND,
THE PRESIDENT OF THE UNITED REPUBLIC OF TANZANIA,
THE PRESIDENT OF THE REPUBLIC OF CHAD,
THE PRESIDENT OF THE DEMOCRATIC REPUBLIC OF TIMOR-LESTE,
THE PRESIDENT OF THE TOGOLESE REPUBLIC,
HIS MAJESTY THE KING OF TONGA,
THE PRESIDENT OF THE REPUBLIC OF TRINIDAD AND TOBAGO,
HER MAJESTY THE QUEEN OF TUVALU,
THE PRESIDENT OF THE REPUBLIC OF UGANDA,
THE GOVERNMENT OF THE REPUBLIC OF VANUATU,
THE PRESIDENT OF THE REPUBLIC OF ZAMBIA,
THE GOVERNMENT OF THE REPUBLIC OF ZIMBABWE,
which States are hereina(cid:3)er referred to as ‘ACP States’,
of the other part,

meeting in Ouagadougou on the twenty-second day of June in the year two thou-
sand and ten for the signature of the Agreement amending for the second time the 
Partnership Agreement between the members of the African, Caribbean and Paciﬁc 
Group  of  states,  of  the  one  part,  and  the  European  community  and  its  Member 

194

THE COTONOU AGREEMENT

States, of the other part, signed in Cotonou on 23 June 2000, as ﬁrst amended in 
Luxembourg on 25 June 2005,

have at the time of signature of this Agreement adopted the following declara-
tions attached to this Final Act:

Declaration  I:  Joint  Declaration  on  Support  for  Market  Access  in  the  ACP–EC 
Partnership; 

Declaration II: Joint Declaration on Migration and Development (Article 13);

Declaration  III:  European  Union  Declaration  on  Institutional  Changes  Resulting 
From the Entry into Force of the Treaty of Lisbon;

and have, furthermore, agreed that the following existing declarations, as a con-
sequence of the deletion of Annex V, have become obsolete:

Declaration XXII: Joint Declaration concerning agricultural products referred to in 
Article 1(2)(a) of Annex V;

Declaration XXIII: Joint Declaration on Market Access in the ACP–EC Partnership;

Declaration XXIV: Joint Declaration on rice;

Declaration XXV: Joint Declaration on rum;

Declaration XXVI: Joint Declaration on beef and veal;

Declaration XXVII: Joint Declaration on the arrangements governing access to the 
markets of the French overseas departments for products originating in the ACP 
States referred to in Article 1(2) of Annex V;

Declaration XXIX: Joint Declaration on products covered by the common agricul-
tural policy;

Declaration XXX: ACP Declaration on Article 1 of Annex V;

Declaration XXXI: Community Declaration on Article 5(2)(a) of Annex V;

Declaration XXXII: Joint Declaration on non-discrimination;

THE COTONOU AGREEMENT

195

Declaration XXXIII: Community Declaration on Article 8(3) of Annex V;

Declaration XXXIV: Joint Declaration on Article 12 of Annex V;

Declaration XXXV: Joint Declaration relating to Protocol 1 of Annex V;

Declaration XXXVI: Joint Declaration relating to Protocol 1 of Annex V;

Declaration  XXXVII:  Joint  Declaration  relating  to  Protocol  1  of  Annex  V  on  the 
origin of ﬁshery products;

Declaration XXXVIII: Community Declaration relating to Protocol 1 of Annex V on 
the extent of territorial waters;

Declaration XXXIX: ACP Declaration relating to Protocol 1 of Annex V on the origin 
of ﬁshery products;

Declaration XL: Joint Declaration on the application of the value tolerance rule in 
the tuna sector;

Declaration XLI: Joint Declaration on Article 6(11) of Protocol 1 of Annex V;

Declaration XLII: Joint Declaration on rules of origin: cumulation with South Africa; 

Declaration XLIII: Joint Declaration on Annex 2 to Protocol 1 of Annex V.

IN WITNESS WHEREOF, the undersigned Plenipotentiaries have hereunto set their 
hands.

DECLARATIONS

THE COTONOU AGREEMENT

199

DECLARATIONS

Cotonou, 23 June 2000 (OJ L 317, 15.12.2000)

DECLARATION I 
Joint Declaration on the actors of the partnership (Article 6)

The Parties agree  that the deﬁnition of  civil society may diﬀer signiﬁcantly  ac-
cording to the socioeconomic and cultural conditions of each ACP country. How-
ever, they believe that this deﬁnition may include inter alia the following organi-
sations:  human  rights  groups  and  agencies,  grassroots  organisations,  women’s 
associations, youth organisations, child-protection organisations, environmental 
movements, farmers’ organisations, consumers’ associations, religious organisa-
tions, development support structures (non-governmental organisations (NGOs)), 
teaching and research establishments), cultural associations and the media.

DECLARATION II 
Declaration of the Commission and the Council of the European Union on 
the clause concerning the return and readmission of illegal immigrants 
(Article 13(5))

Article  13(5)  shall  be  without  prejudice  to  the  internal  division  of  powers  be-
tween the Community and its Member States for the conclusion of readmission 
agreements.

DECLARATION III 
Joint Declaration on participation in the Joint Parliamentary Assembly 
(Article 17(1))

The Parties reaﬃrm the role of the Joint Parliamentary Assembly in promoting 
and defending democratic processes through dialogue between members of par-
liament, and agree that the participation of representatives who are not mem-
bers of a parliament, as set out in Article 17, shall be allowed only in exceptional 
circumstances.  Such  participation  shall  be  subject  to  the  approval  of  the  Joint 
Parliamentary Assembly before each session.

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THE COTONOU AGREEMENT

DECLARATION IV 
Community Declaration on 
the ﬁnancing of the ACP Secretariat

The Community shall contribute to the cost of running the ACP Secretariat from 
intra ACP cooperation resources.

DECLARATION V 
Community Declaration on the ﬁnancing of the joint institutions

The Community, being aware that expenditure in connection with interpreting at 
meetings  and  the  translation  of  documents  is  expenditure  incurred  essentially 
for its own requirements, is prepared to continue past practice and meet this ex-
penditure both for meetings of the institutions of the Agreement which take place 
in the territory of a Member State and those which take place in the territory of 
an ACP State.

DECLARATION VI 
Community Declaration relating to the Protocol on privileges and immunities

The Protocol on privileges and immunities is a multilateral act from the point of 
view of international law. However, any speciﬁc problems that may arise in the 
host state regarding the application of this Protocol should be settled by bilateral 
agreement with that state.

The  Community  has  noted  the  ACP  States’  requests  that  certain  provisions  of 
Protocol 2 be modiﬁed, notably as regards the status of the staﬀ of the ACP Sec-
retariat, the Centre for the Development of Enterprise (CDE) and the Centre for 
the Development of Agriculture (CTA).

The Community is willing to seek jointly appropriate solutions in respect of the 
ACP States’ requests with a view to establishing a separate legal instrument as 
referred to above.

In this context, the host country will, without derogating from the present beneﬁts 
enjoyed by the ACP Secretariat, the CDE, the CTA and their staﬀ:

(1) Show understanding as regards the interpretation of the expression ‘staﬀ of 
senior rank’, such an interpretation to be arrived at by mutual agreement;

THE COTONOU AGREEMENT

201

(2) Recognise the powers delegated by the President of the Council of ACP Min-
isters  to  the  Chairman  of  the  ACP  EC  Committee  of  Ambassadors,  in  order  to 
simplify implementation of Article 9 of the Protocol;

(3) Agree to grant certain facilities to the staﬀ of the ACP Secretariat, the CDE and 
the CTA to facilitate initial installation in the host country;

(4) Examine in an appropriate way tax related questions concerning the ACP Sec-
retariat, the CDE and the CTA and their staﬀ.

DECLARATION VII 
Declaration by the Member States relating to the Protocol  
on privileges and immunities

The Member States shall strive, in the context of their respective regulations, to 
facilitate throughout their respective territories, the movement in pursuit of their 
oﬃcial  duties  of  ACP  diplomats  accredited  to  the  Community,  members  of  the 
ACP Secretariat referred to in Article 7 of Protocol 2, whose names and positions 
shall be communicated in accordance with Article 9 of that Protocol, and the ACP 
executives of the CDE and the CTA.

DECLARATION VIII 
Joint Declaration relating to the Protocol on privileges and immunities

Within the context of their respective regulations, the ACP States shall grant Com-
mission delegations privileges and immunities similar to those granted to diplo-
matic missions so that they are able to carry out the functions incumbent on them 
under the Agreement in a satisfactory and eﬀective manner.

DECLARATION IX 
Joint Declaration on Article 49(2) on trade and environment

Keenly aware of the speciﬁc risks attaching to radioactive waste, the Parties will 
refrain from any practice of discharging such waste which would encroach upon the 
sovereignty of states or threaten the environment or public health in other coun-
tries. They attach the greatest importance to developing international cooperation 
to protect the environment and public health against such risks. They accordingly 
aﬃrm their determination to play an active part in the work being done in the IAEA 
to produce an internationally approved code of good practice. 

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THE COTONOU AGREEMENT

Council Directive 92/3/Euratom of 3 February 1992 on the supervision and control 
of shipments of radioactive waste between Member States and into and out of the 
Community deﬁnes the term ‘radioactive waste’ as any material, which contains or 
is contaminated by radio nuclides and for which no use is foreseen. The Directive 
is applicable to shipments of radioactive waste between Member States and into 
and out of the Community whenever the quantities and concentration exceed the 
levels laid down in Article 3(2)(a) and (b) of the Council Directive 96/29/Euratom 
of 13 May 1996. The deﬁned levels ensure basic safety standards for the protec-
tion of health of workers and the general public against the dangers arising from 
ionising radiation. 

Shipments of radioactive waste are subject to a system of prior authorisation as 
deﬁned in Directive 92/3/Euratom of 3 February 1992 on the supervision and con-
trol of shipments of radioactive waste between Member States and into and out 
of  the  Community.  Article  11(1)b  of  the  Directive  stipulates  that  the  competent 
authorities of Member States shall not authorise shipments of radioactive waste 
to a state party to the Fourth ACP–EC Convention which is not a member of the 
Community, taking account, however, of Article 14. The Community ensures that Ar-
ticle 11 of Directive 92/3/Euratom will be revised to cover all Parties of this Agree-
ment which are not members of the Community. Until then, the Community will act, 
as if the abovementioned parties would already be covered. 

The Parties shall make every eﬀort to sign and ratify as quickly as possible the Ba-
sle Convention on the Control of Transboundary Movements of Hazardous Wastes 
and their Disposal, as well as the 1995 amendment to the Convention, as laid down 
in Decision III/1.

DECLARATION X 
ACP Declaration on trade and environment

The ACP States are seriously concerned about environmental problems in general 
and  the  transboundary  movement  of  hazardous,  nuclear  and  other  radioactive 
wastes in particular.

In interpreting and implementing the provisions of Article 32(1)(d) of the Agreement, 
the ACP States have expressed their determination to be guided by the principles and 
the provisions of the OAU Resolution on the Control of Transboundary Movements of 
Hazardous Wastes and their Disposal in Africa as contained in AHG 182 (XXV).

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203

DECLARATION XI 
Joint Declaration on the ACP cultural heritage

1.  The  Parties  express  their  common  will  to  promote  the  preservation  and  en-
hancement of the cultural heritage of each ACP country, at the international, bi-
lateral and private level and in the context of this Agreement.

2. The Parties acknowledge the need to facilitate the access of ACP historians and 
researchers to archives with a view to promoting the development of exchange of 
information on the cultural heritage of ACP States.

3. They acknowledge the usefulness of providing assistance for the appropriate 
activities conducted especially in the area of training, for the preservation, protec-
tion and exhibition of cultural properties, monuments and objects, including the 
promulgation and implementation of appropriate legislation.

4. They underpin the importance of undertaking common cultural activities, fa-
cilitating the mobility of ACP and European artists, as well as the exchanges of 
cultural objects which are symbolic of their cultures and civilisations with a view 
to  enhancing  mutual  understanding  and  solidarity  between  their  respective 
populations.

DECLARATION XII 
Declaration by the ACP States on return or restitution of cultural property

The ACP States urge the Community and its Member States, insofar as they ac-
knowledge the legitimate right of the ACP States to cultural identity, to promote 
the return or restitution of cultural property taken from ACP States and now to be 
found in Member States.

DECLARATION XIII 
Joint Declaration on copyright

The  Parties  acknowledge  that  promotion  of  copyright  protection  is  an  integral 
part of cultural cooperation, the aim of which is to enhance all forms of human 
expression. Furthermore, such protection is a prerequisite for nurturing and devel-
oping production, dissemination and publishing activities.

Consequently, the two Parties shall, in the context of ACP EC cultural cooperation, 
seek to promote and foster respect for copyright and related rights.

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THE COTONOU AGREEMENT

In  this  context,  and  in  accordance  with  the  rules  and  procedures  laid  down  by 
the Agreement, the Community may oﬀer ﬁnancial and technical support for dis-
seminating copyright information, training economic operators in the protection 
of such rights and dra(cid:3)ing national legislation for their better protection.

DECLARATION XIV 
Joint Declaration on regional cooperation and  
the outermost regions (Article 28)

The reference to the outermost regions concerns the Spanish autonomous com-
munity  of  the  Canary  Islands,  the  four  French  overseas  departments,  namely 
Guadeloupe, Guyana, Martinique and Réunion, and the Portuguese autonomous 
regions of the Azores and Madeira.

DECLARATION XV 
Joint Declaration on accession

Any accession of a third state to this Agreement shall be made in compliance with 
the provisions of Article 1 and the objectives of Article 2 laid down by the ACP Group 
in the Georgetown Agreement as amended in November 1992.

DECLARATION XVI 
Joint Declaration on accession of the overseas countries and  
territories referred to in Part Four of the EC Treaty

The Community and the ACP States are prepared to allow the overseas countries 
and territories referred to in Part Four of the Treaty which have become independent 
to accede to this Agreement, if they wish to continue their relations with the Com-
munity in this form.

DECLARATION XVII 
Joint Declaration on Article 66 (debt relief) of the Agreement

The Parties agree on the following principles:

(a) 

In the longer term, the Parties will seek an improvement of the Heavily Indebt-
ed Poor Countries initiative and promote a deepening, broadening and speed-
ing up debt relief to ACP Countries;

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205

(b)  The Parties will also seek the mobilisation and establishment of support mech-
anisms for debt reduction in favour of ACP countries who are not yet eligible for 
the HIPC initiative.

DECLARATION XVIII 
EU Declaration on the Financial Protocol

Within the overall amount of EUR 13 500 million of the 9th EDF, EUR 12 500 mil-
lion shall be made available immediately upon the entry into force of the Financial 
Protocol.  The  remaining  EUR  1  000  million  shall  be  released  on  the  basis  of  the 
performance review referred to in paragraph 7 of the Financial Protocol that shall 
be undertaken in 2004.

In evaluating the need for new resources, full account shall be taken of this perfor-
mance review as well as of a date beyond which the funds of the 9th EDF will not 
be committed.

DECLARATION XIX 
Declaration by the Council and the Commission on the Programming Process

The Community and its Member States reaﬃrm their attachment to the agree-
ment on a reform of the programming process for implementation of assistance 
ﬁnanced from the 9th EDF.

In this context, the Community and its Member States regard a properly imple-
mented review mechanism as the most important tool for successful program-
ming. The review process that has been agreed for governing the implementation 
of the 9th EDF will ensure continuity in the programming process while allowing 
for regular adjustments of the Country Support Strategy to reﬂect developments 
in needs and performance of the ACP State concerned.

In order to reap the full beneﬁts of the reform and ensure the eﬃciency of the 
programming process, the Community and its Member States reaﬃrm the politi-
cal commitment to the following principles:

The reviews must as far as possible be carried out in the ACP State concerned. 
Localising the reviews shall not imply that the Member States or the Commission 
Headquarters shall be prevented from following and being involved in the pro-
gramming process as appropriate.

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THE COTONOU AGREEMENT

The time frames that have been set for completion of the reviews shall be respected.

The reviews must not be an isolated event in the programming process. The reviews 
shall be regarded as management tools, which synthesise the results of the regular 
(monthly) dialogue between the National Authorising Oﬃcer and the Commission’s 
Head of Delegation.

The reviews must not increase the administrative burden of either of the Parties 
concerned. The procedures and reporting requirements surrounding the program-
ming process must therefore be managed in a disciplined manner. To this end, the 
respective roles of the Member States and the Commission in the decision making 
process will be reviewed and adapted.

DECLARATION XX 
Joint Declaration on the Impact of Export Revenue Fluctuations on Vulnerable 
Small, Island and Landlocked ACP States

The Parties note the concern of ACP States that the modalities of the mechanism 
for  additional  support  to  countries  suﬀering  from  ﬂuctuation  of  export  revenues 
may not provide suﬃcient support to vulnerable small, island and landlocked states 
subject to volatile export revenues.

From  the  second  year  of  operation  of  the  mechanism,  and  on  request  of  one  or 
more ACP States who have met with diﬃculties, the Parties agree to re-examine the 
modalities of the mechanism on the basis of a proposal from the Commission, with 
a view, where necessary, to remedy the eﬀects of such ﬂuctuations.

DECLARATION XXI 
Community Declaration on Article 3 of Annex IV

The notiﬁcation of the indicative amount referred to in Article 3 of Annex IV, will not 
apply to the ACP States with whom the Community has suspended its cooperation.

DECLARATION XXII

[Obsolete]

DECLARATION XXIII

[Obsolete]

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207

DECLARATION XXIV

[Obsolete]

DECLARATION XXV

[Obsolete]

DECLARATION XXVI

[Obsolete]

DECLARATION XXVII

[Obsolete]

DECLARATION XXVIII 
Joint Declaration on cooperation between ACP States and the neighbouring 
overseas countries and territories and French overseas departments

The  Parties  shall  encourage  greater  regional  cooperation  in  the  Caribbean,  the 
Paciﬁc and the Indian Ocean involving ACP States and the neighbouring overseas 
countries and territories and French overseas departments.

The Parties call upon interested Parties to consult each other on the procedure 
for promoting such cooperation and, in this context, to take measures, in line with 
their respective policies and their speciﬁc situation in the region, which will permit 
initiatives in the economic ﬁeld, including the development of trade, as well as in 
the social and cultural ﬁelds.

Where there are trade agreements involving French overseas departments, such 
agreements may provide for speciﬁc measures in favour of products from those 
departments.

Issues relating to cooperation in these diﬀerent areas shall be brought to the at-
tention of the Council of Ministers, so that it can be duly informed of the progress 
achieved.

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THE COTONOU AGREEMENT

DECLARATION XXIX

[Obsolete]

DECLARATION XXX

[Obsolete]

DECLARATION XXXI

[Obsolete]

DECLARATION XXXII

[Obsolete]

DECLARATION XXXIII

[Obsolete]

DECLARATION XXXIV

[Obsolete]

DECLARATION XXXV

[Obsolete]

DECLARATION XXXVI

[Obsolete]

DECLARATION XXXVII

[Obsolete]

DECLARATION XXXVIII

[Obsolete]

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209

DECLARATION XXXIX

[Obsolete]

DECLARATION XL

[Obsolete]

DECLARATION XLI

[Obsolete]

DECLARATION XLII

[Obsolete]

DECLARATION XLIII

[Obsolete]

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Luxembourg, 25 June 2005 (OJ L 287, 28.10.2005)

DECLARATION I 
Joint declaration on 
article 8 of the Cotonou Agreement

In relation to dialogue at national and regional levels, for the purposes of Article 8 
of the Cotonou Agreement, the ‘ACP Group’ shall be taken to mean the Troika of 
the ACP Committee of Ambassadors (CoA) and the Chairperson of the ACP Sub-
committee  on  Political,  Social,  Humanitarian  and  Cultural  Aﬀairs  (PSHCA);  the 
Joint Parliamentary Assembly (JPA) shall be interpreted as the Co-Presidents of 
the JPA, or their designated nominees.

DECLARATION II 
Joint declaration on 
article 68 of the Cotonou Agreement

The  ACP–EC  Council  of  Ministers  will  examine,  in  application  of  the  provisions 
contained in Article 100 of the Cotonou Agreement, the proposals of the ACP side 
concerning Annex II thereof on short-term ﬂuctuations in export earnings (FLEX).

DECLARATION III 
Joint declaration on annex Ia

Should the Agreement amending the Cotonou Agreement not have entered into 
force by 1 January 2008, cooperation shall be ﬁnanced from the balances of the 
9th EDF and from the previous EDFs.

DECLARATION IV 
Joint declaration on article 3(4) of annex IV

For  the  purposes  of  Article  3(4)  of  Annex  IV,  ‘special  needs’  are  needs  result-
ing from exceptional or unforeseen circumstances, such as post-crisis situations; 
‘exceptional performance’ means a situation in which, outside the mid-term and 
end-of-term  reviews,  a  country’s  allocation  is  totally  committed  and  additional 
funding from the national indicative programme can be absorbed against a back-
ground of eﬀective poverty-reduction policies and sound ﬁnancial management.

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211

DECLARATION V 
Joint declaration on article 9(2) of annex IV

For the purposes of Article 9(2) of Annex IV, ‘new needs’ are needs resulting from 
exceptional  or  unforeseen  circumstances,  such  as  post-crisis  situations;  ‘excep-
tional performance’ means a situation in which, outside the mid-term and end-
of-term reviews, a region’s allocation is totally committed and additional funding 
from the regional indicative programme can be absorbed against a background of 
eﬀective regional integration policies and sound ﬁnancial management.

DECLARATION VI 
Joint declaration on article 12(2) of annex IV

For the purposes of Article 12(2) of Annex IV, ‘new needs’ are needs which may 
arise from exceptional or unforeseen circumstances, such as those arising from 
new commitments to international initiatives or to address challenges which are 
common to ACP countries.

DECLARATION VII 
Joint declaration on article 13 of annex IV

In view of the particular geographic situation of the Caribbean and Paciﬁc regions, 
the ACP Council of Ministers or the ACP Committee of Ambassadors may, notwith-
standing Article 13(2)(a) of Annex IV, present a speciﬁc funding request for one or 
the other of these regions.

DECLARATION VIII 
Joint declaration on article 19A of annex IV

In accordance with Article 100 of the Cotonou Agreement, the Council of Ministers 
will examine the provisions of Annex IV concerning the awarding and performance 
of contracts with a view to adopting them before the Agreement amending the 
Cotonou Agreement enters into force.

DECLARATION IX 
Joint declaration on article 24(3) of annex IV

The ACP States will be consulted, a priori, on any amendments to the Community 
rules referred to in Article 24(3) of Annex IV.

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THE COTONOU AGREEMENT

DECLARATION X 
Joint declaration on article 2 of annex VII

The internationally recognised standards and norms are those of the instruments 
referred to in the Preamble of the Cotonou Agreement.

DECLARATION XI 
Community declaration on articles 4 and 58(2) of the Cotonou Agreement

For the purpose of Articles 4 and 58(2), it is understood that the term ‘local de-
centralised authorities’ covers all levels of decentralisation including ‘collectivités 
locales’.

DECLARATION XII 
Community declaration on article 11A of the Cotonou Agreement

Financial and technical assistance in the area of cooperation in the ﬁght against 
terrorism will be ﬁnanced by resources other than those intended for the ﬁnancing 
of ACP–EC development cooperation.

DECLARATION XIII 
Community declaration on article 11B(2) of the Cotonou Agreement

It is understood that the measures set out in Article 11B(2) of the Cotonou Agree-
ment  will  be  undertaken  within  an  adapted  timeframe  that  takes  into  account 
each country speciﬁc constraints.

DECLARATION XIV 
Community declaration on articles 28, 29, 30 and 58 of the Cotonou 
Agreement and on article 6 of Annex IV

The implementation of the provisions regarding regional cooperation where non-
ACP  countries  are  involved  will  be  subject  to  the  implementation  of  equivalent 
provisions in the framework of the Community’s ﬁnancial instruments on coop-
eration with other countries and regions of the world. The Community will inform 
the ACP Group upon the entry into force of these equivalent provisions.

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213

DECLARATION XV 
European Union declaration on annex Ia

1.  The  European  Union  undertakes  to  propose  at  the  earliest  opportunity,  if  at 
all possible by September 2005, an exact amount for the multiannual ﬁnancial 
framework for cooperation under the Agreement amending the Cotonou Agree-
ment and its period of application.

2. The minimum aid eﬀort referred to in paragraph 2 of Annex Ia is guaranteed, 
without prejudice to the eligibility of the ACP countries for additional resources 
under other ﬁnancial instruments which already exist or, potentially, may be cre-
ated  in  support  of  actions  in  areas  such  as  emergency  humanitarian  aid,  food 
security,  poverty-related  diseases,  support  for  the  implementation  of  the  Eco-
nomic Partnership Agreements, support for the measures envisaged following the 
reform of the sugar market, and relating to peace and stability.

3. The deadline for the commitment of funds of the 9th EDF, ﬁxed at 31 Decem-
ber 2007, could be reviewed if necessary.

DECLARATION XVI 
Community declaration on articles 4(3), 5(7), 16(5) and (6) and 17(2) of 
annex IV

These provisions are without prejudice to the role of the  Member States in the 
decision making process.

DECLARATION XVII 
Community declaration on article 4(5) of annex IV

Article  4(5)  of  Annex  IV  and  the  return  to  the  standard  management  arrange-
ments will be implemented by means of a Council decision based on a Commis-
sion proposal. This decision will be duly notiﬁed to the ACP Group.

DECLARATION XVIII 
Community declaration on article 20 of annex IV

The provisions of Article 20 of Annex IV will be implemented in accordance with 
the principle of reciprocity with other donors.

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THE COTONOU AGREEMENT

DECLARATION XIX 
Community declaration on articles 34, 35 and 36 of annex IV

The detailed respective responsibilities of management and executing agents of 
Fund resources are included in a manual on procedures upon which ACP States 
will be consulted in accordance with Article 12 of the Cotonou Agreement. The 
manual  will  be  made  available  to  ACP  States  from  the  entry  into  force  of  the 
Agreement amending the Cotonou Agreement. Any amendments to the manual 
will be subject to the same procedure.

DECLARATION XX 
Community declaration on article 3 of annex VII

As regards the modalities foreseen in Article 3 of Annex VII, the position to be 
taken by the Council of the European Union within the Council of Ministers will be 
based on a proposal by the Commission.

THE COTONOU AGREEMENT

215

Declarations concerning the multi-annual ﬁnancial 
framework for the period 2008 to 2013 agreed at the 
31st session of the ACP–EC Council of Ministers Port 
Moresby, Papua New Guinea, 1 and 2 June 2006

1. EPAs: EU Declaration

The Economic Partnership Agreements, as development instruments, aim to foster 
smooth and gradual integration of the ACP States into the world economy, especial-
ly by making full use of the potential of regional integration and South–South trade.

The Commission reconﬁrms the importance of further steps towards coherent re-
gional integration and sectoral policy reforms, and that the gradually arising needs 
from the implementation of EPAs will be taken into account in the programming dia-
logue with the ACP on the end of term review of the 9th EDF and on the resources of 
the 10th EDF, covering the time period a(cid:3)er the entry into force on 1 January 2008.

Moreover, the European Union recalls its commitments to substantially increase 
Aid for Trade by 2010 in addition to the EDF resources.

2. Decommitted funds: Community Declaration

Based  on  the  performance  review  in  2010  and  a  proposal  by  the  Commission, 
the Council of the European Union will consider a decision by unanimity on the 
transfer of any funds decommitted from ACP projects funded out of the 9th and 
previous EDFs into the reserves of the 10th EDF. Given the important develop-
ment objectives pursued by EPAs, the Council of the European Union will, in its 
consideration,  also  pay  attention  to  giving  further  support  to  structural  adjust-
ment costs and other development needs in the implementation of EPAs.

3. Interest subsidies: Community Declaration

Acknowledging the high adaptation costs to which the sugar protocol countries 
are confronted as a result of the EC sugar reforms, the EIB shall endeavour to 
direct part of the resources of the Investment Facility and of its own resources 
towards investments in the sugar sector of the ACP sugar protocol countries. An 
amount of up to EUR 100 million shall be mobilised where applicable and on the 
basis of the eligibility criteria set out in Annex II to the Cotonou Agreement from 
the envelope for grants for the ﬁnancing of the interest rate subsidies foreseen in 
paragraph 2(c) of Annex I(b) to the Cotonou Agreement.

216

THE COTONOU AGREEMENT

Ouagadougou, 22 June 2010  
(OJ L 287, 4.11.2010)

DECLARATION I 
Joint declaration on support for market access in the ACP–EC partnership

The  Parties  recognise  the  signiﬁcant  value  of  preferential  market  access 
conditions to ACP economies, speciﬁcally for the commodity and other agro-
industry sectors which are of critical importance to the economic and social 
development of the ACP States and constitute a major contribution to em-
ployment, export earnings and Government revenue.

The Parties acknowledge that some sectors have been undergoing, with EU 
support, a process of transformation aimed at allowing ACP exporters con-
cerned to compete in the EU and the international markets, including through 
the development of branded and other value added products.

They also recognise that additional support could be necessary where greater 
liberalisation of trade may lead to deeper alteration of market access conditions 
for ACP producers. To that end, they agree to examine all necessary measures 
in order to maintain the competitive position of the ACP States in the EU mar-
ket. Such examination may include rules of origin, sanitary and phytosanitary 
measures and implementation of speciﬁc measures addressing supply side con-
straints in the ACP States. The objective will be to enable ACP States to exploit 
their existing and potential comparative advantage in the EU market.

When assistance programmes are developed and resources provided, the Par-
ties agree to conduct periodic evaluations to assess progress and the results 
attained and decide on appropriate additional measures to be implemented.

The  Joint  Ministerial  Trade  Committee  shall  monitor  the  implementation  of 
this Declaration and make appropriate reports and recommendations to the 
Council of Ministers.

DECLARATION II 
Joint declaration on migration and development (Article 13)

The Parties agree to strengthen and deepen their dialogue and cooperation in 
the area of migration, building on the following three pillars of a comprehen-
sive and balanced approach to migration:

THE COTONOU AGREEMENT

217

1.  Migration  and  Development,  including  issues  relating  to  diasporas,  brain 
drain and remittances;

2. Legal migration including admission, mobility and movement of skills and 
services; and

3. Illegal migration, including smuggling and traﬃcking of human beings and 
border management, as well as readmission.

Without prejudice to the current Article 13, the Parties undertake to work out 
the details of this enhanced cooperation in the area of migration.

They  further  agree  to  work  towards  the  timely  completion  of  this  dialogue 
and to report about the progress made to the next ACP–EC Council.

DECLARATION III 
European Union declaration on institutional changes resulting  
from the entry into force of the Treaty of Lisbon

As  a  consequence  of  the  entry  into  force  of  the  Treaty  of  Lisbon  on  1  De-
cember 2009, the European Union has replaced and succeeded the European 
Community and from that date exercises all rights and assumes all obliga-
tions  of  the  European  Community.  Therefore,  references  to  ‘the  European 
Community’ in the text of the Agreement are, where appropriate, to be read 
as ‘the European Union’.

The European Union will propose to the ACP States an Exchange of Letters 
with the aim of bringing the Agreement into conformity with the institutional 
changes  in  the  European  Union  resulting  from  the  entry  into  force  of  the 
Treaty of Lisbon.

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