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After Lomé IV:

A Strategy for ACP-EU Relations in the 21st Century

by Christopher Stevens, Matthew McQueen and Jane Kennan

 

EXECUTIVE SUMMARY

The Forces Undermining Lomé
The Terms of a REPA
A Strategy

INTRODUCTION TO THE REPORT

PART 1: COSTS AND BENEFITS OF REPLACING LOMÉ

Introduction

        

Why Lomé is under pressure
The EU’s proposals
The way forward


The Stimulus of WTO Rules

        

The origin of problems with the WTO: bananas
The impact on the Lomé Convention
The options
The evolution of WTO rules


The Stimulus from Liberalisation

        

Lomé’s place in EU trade policy
Key features of the GSP
Extensions to the GSP
Other preference agreements
Multilateral liberalisation


The Stimulus of Common Agricultural Policy Reform

        

How the CAP affects developing countries
The effect of reform

The Stimulus of EU Enlargement

 

PART 2: TERMS OF A REPA

The Economic Effects of an FTA

        

A simple Vinerian model
The effects of upward-sloping curves of EU and RW exports
Dynamic gains
Foreign investment
Contents of the agreement
Hub-and-spoke effects


The Agreement with Morocco

        

Political dialogue
Free movement of goods
Right of establishment and supply of services
Movements of capital
Competition policy, state aid and procurement
Dumping and safeguard clauses
Arbitration
Rules of origin
Financial co-operation
Expected effects of the agreement

The South African FTA

 

PART 3: A PROPOSAL FOR A STRATEGY IN THE WTO CONTEXT

The WTO Waiver

The Feasibility of an Enhanced GSP
The GSP as an option for the ACP states
Improvements to the GSP rules of origin
The ‘cost’ of the ACP transferring to the GSP
The special problems of protocol products
The problems of least developed ACP countries
The problems of non-least developed ACP countries
Making the GSP more differentiated


The Way Ahead

        

ACP regionalism
Special and differential treatment
New trade issues
Preparing for a more liberal world

REFERENCES