Cotonou Agreement

1. Objectives:

The main principles of the agreement, those were signed on 23rd July 2000 in Cotonou, the largest city in Benin for 20 years timeline, were differentiation and regionalisation of African States, the Caribbean and the Pacific (ACP), participation (central governments as the main partners, partnership open to different kinds of other actors), dialogue and the fulfilment of mutual obligations and equality of the partners and ownership of the development strategies.

This agreement between European Union and the ACP countries is to accelerate and promote economic, social and cultural development of the ACP countries, contributing the peace and security and promote a politically stable and democratic environment. This agreement follows Yaoundé Convention (1964) and 4 Conventions of Lomé.

2. 5 Pillars of Cotonou Agreement:

1. A Political Dimension:

Global engagements of the ACP States: political dialogue, consolidation of peace, prevention and resolution of conflicts, respect of human rights, Rule of law, transparent and accountable governance of public affairs.

2. The promotion of participatory approaches:

The non-governmental actors (private sector, economic and social partners) can directly benefit from funding and grant agreements established between the European Commission and the organization.

3. Development strategy and focus on poverty reduction: Three priority areas

a. Economic Development:

Investment and development of private sector (for example enforcement of export activities)
Macro-economic and structural reforms and policies (for example liberation of commercial regime);
Sectorial policies (for example, development of industrial sectors, trade, tourism and traditional knowledge).

b. The Social and Human Development (Education, Health, Nutrition, Rights, Children, Student Exchange, Cultural Development,…)

c. Integration and Regional Cooperation

Interregional and Intra-ACP cooperation projects
Advancement and development of internal and intra- ACP trade with the third countries also in favour of least developed countries (LDCs) of the ACP States.
Cooperation in areas such as fisheries and food security.

4. Establishing a new framework for trade and economic cooperation:

Respect of the rules of the World Trade Organization (WTO)
Enable the ACP States to participate fully in international trade (New commercial Agreements).
Protection of intellectual property rights, trade and standards of work, etc.
duty-free access for essentially all of their products on the market of the EC (must already be effective in 2005)

5. Reform of Financial Cooperation:

unique programming per country or region accompanied by regular reviews (industrially or budgetary aid programs)
indicative allocations and non- acquired rights;
global approach: participation of non-governmental actors;
Dialogue at local level, timing and coordination in advance.
rationalization of European Development Funds (FED) under 2 forms:
Non refundable Aids;
Venture capital and private sector loans (governed by the European Investment Bank (BE). The bank may invest in loans, equity and quasi-equity. It can also grant guarantees in support of domestic and foreign private investment