Cotonou, Benin - The European Union and its African, Caribbean and Pacific (ACP) partners signed a new trade deal on Friday to replace the 25-year-old Lome Convention that enshrined privileged access to EU markets for most of Europe`s former colonies. The EU will pay e13,5 billion (R86,86 billion) over the next five years as part of the 20-year deal.
Europeans have been funnelling billions of dollars in aid to ACP countries for farming, the environment, fisheries, industry, mining, services, commodities, trade and other sectors.
The new deal transforms the Lome Convention into a system of trade and co-operation pacts with individual nations to comply with World Trade Organisation (WTO) rules.
It also sets more stringent guidelines on human rights and democratic values for countries receiving EU aid and includes a greater commitment to fighting fraud.
The Cotonou Agreement, which is open to periodic review, provides for a progressive and reciprocal removal of trade barriers in a way that takes account of the fears of ACP nations that global liberalisation will destroy their fragile and often commodity-based economies.
Portugal, the current EU president, said the two sides had agreed a process to strengthen the role of ACP members in international trade in a way that was compatible with the demands of the WTO, whose rules do not allow for tariff preferences.
``We have agreed a preparatory period until 2008, during which the current non-reciprocal regime will be maintained and have asked for a waiver of WTO rules during this period,`` Luis Amado, its co-operation minister, told the signing ceremony.
``The respect for human rights, democratic principles and the rule of law are the main ingredients of the agreement,`` Amado said. ``Good management in public affairs is recognised by all parties to the agreement as a fundamental element of our co-operation. We have agreed that particularly serious cases of corruption, active or passive, constitute a violation of this fundamental element.``