The EU will work towards a comprehensively revised agreement, based on a common basis at THE ACP level, in conjunction with three bespoke regional partnerships for Africa, the Caribbean and the Pacific. In 1973, negotiations on the renewal of Yaounde II, the Commonwealth of Africa, Caribbean and Pacific (ACP) countries, after some hesitation (after Britain`s accession to the EEC), provided an opportunity for a major reform of the EEC`s policy. The new agreement, signed in Lomé on February 28, 1975, made a number of important changes. The concept of an association agreement was abandoned at the request of the ACP countries, which considered it too linked to the colonial past. The EDF recorded one of its largest increases (from ECU 1 billion to ECU 3.15 billion) and ended the reciprocity of tariffs; Only exports from ACP countries were able to enter the internal market freely, leaving the principle of Eurafrica areas of free trade, adopted in 1957. An export revenue stabilization system (Stabex) has been put in place to ensure regular revenue for ACP countries; sugar produced by ACP countries has benefited from the guarantees of the Common Agricultural Policy (CAP) within a five-year ceiling. The ERC has also begun to develop industrial cooperation. At first glance, the Lomé Convention appears to have fulfilled at least some of the aspirations of the New International Economic Order (NIEO), approved by the United Nations in 1974 and representing the central requirements of the G77, the coalition of third world countries within the United Nations. However, the expectations of the ACP countries were largely disappointed. Under the new agreement, the EU can be more selective and flexible in allocating and using its development resources. Endowments are based on an assessment of a country`s needs and performance and include the ability to regularly adjust financial resources. In practice, this means that more money can be paid to “good interpreters” and that the proportion of “bad interpreters” can be reduced.
The EU funds most of its development programmes for ACP countries through the European Development Fund (EDF). These funds are not part of the EU`s overall budget. They are subject to internal agreement between the Member States meeting in the Council. The Lomé Convention is a trade and assistance agreement between the European Economic Community (EEC) and 71 countries in Africa, the Caribbean and the Pacific (ACP), first signed in Lomé (Togo) in February 1975. The agreement has been renegotiated and renewed three times. Lomé II (January 1981 to February 1985) increased aid and investment spending to 5.5 billion U.S. Lomé III came into force in March 1985 (trade provisions) and May 1986 (aid) and expired in 1990; it increased commitments to 8.5 billion IU. Lomé IV was signed in December 1989. The trade provisions apply for the 10-year- to 1999. Aid and investment commitments amounted to IU 12 billion in the first five years. In total, some 70 ACP countries participate in Lomé IV, compared to 46 signatories to Lomé I. During the first half of the 1980s, the economic crisis, falling commodity prices and rising debt weakened ACP countries.
On the European side, there were also political tensions caused by discussions on the British contribution to the European budget. In this context, Lomé III (1984) marked an important development. A number of new elements have shown how the aid effectiveness test has been put in place to replace NOEI-related ideas. Firstly, the political dialogue initiated at the Commission`s request has forced a preliminary discussion with the recipient countries on the allocation of EU funds. This was accompanied by an extension of the aid provided. While the Commission intended to deepen the dialogue in order to maximise the effectiveness of EU aid, European countries wanted greater control over the use of funds.