The establishment of the World Trade Organisation (WTO) in 1995
reflected and reinforced significant shifts in global orthodoxies in
favour of the liberalisation of world trade, and posed problems for
trading arrangements such as the Lomé Conventions between the
European Union (EU) and the 70 African, Caribbean and Pacific
(ACP) states, which had initially been established in the very different
setting of the mid-1970s. Integral to the Lomé Conventions has been
the principle of non-reciprocity, under which the EU offered
preferential conditions for access to its markets by products originating
in the ACP states, without any requirement for reciprocal concessions
(other than most-favoured-nation status) by the ACP. These preferences
are due to expire with the 4th Lomé Convention in February
2000. Because they are non-reciprocal, these preferences cannot qualify
under Article XXIV of the General Agreement on Tariffs and Trade
(GATT) of 1947. Being available only to a particular group of
developing countries, they are discriminatory and cannot be regarded
as being covered by Part IV of the GATT, or the Enabling Clause of
1979, since these measures only sanction special, differential and
preferential treatment for all developing countries. As a result of the
changed climate of opinion in the World Trade Organisation (WTO),
emphasising the obligation of members to bring their trade measures
into conformity with WTO disciplines, the EU sought and obtained a
waiver from Article I (principle of non-discrimination) for the
remaining duration of the Convention, leaving open the arrangements
to be put into effect after 2000.
In the public discussions and consultations on a successor arrangement
to
Lomé, the European Commission has emphasised the
need for such an arrangement to be compatible with WTO
requirements, so as to ensure the legal security of preferences. It is
therefore envisaged that Lomé preferences will be available only
to the
least developed countries (LLDCs), but will be generalised to all
of the
least developed countries, including for example Bangladesh, Bhutan,
Cambodia, Lao D.R., Maldives, Nepal and Yemen, and not just to
members of the ACP Group. The Commission has proposed that the
non-LLDC ACP countries should be offered a series of regional and
sub-regional free trade agreements. Not only would such arrangements
seek to be WTO compatible, but the Commission also sees reciprocal
regional agreements as stepping stones to fully liberalised trade and the
integration of the developing countries into the world economy –
an
important development cooperation objective of the Maastricht
Treaty.
This article examines the Commission's proposals, and analyses
the
likely static and dynamic effects of a free trade agreement on the
African ACP countries. It concludes by questioning whether the
Commission's proposals would assist, rather than hinder, the regional
integration and greater participation of these countries in the world
economy.