Lomé Convention (Hansard, 4 December 1984)

§ Mr. Raison

As anticipated in the reply given by my hon. Friend the Member for Mid-Sussex (Mr. Renton) on 22 November (Col. 235) negotiations were concluded at a meeting between EC and ACP Co-Presidents on 22 November. The way was thus clear for signature of the new Convention in Lomé on 8 December.

The main features of Lomé III are as follows:

(a) The basic trade arrangements will remain substantially unchanged. ACP countries will continue to be allowed unlimited duty free access — subject to a safeguard clause — for all industrial products and the large majority of their agricultural exports to the EC. The Community has also agreed to reply within 6 months to any ACP request for improved access for agricultural products, with particular reference to concessions granted to developing third countries.
(b) The rules of origin will be somewhat relaxed and simplified, making it a little easier for ACP countries to develop industries for the processing of materials originating in third countries.
(c) The special arrangements for ACP exports of beef, bananas, and rum have been consolidated or improved. The Sugar Protocol, which is of indefinite duration and was thus not up for renegotiation, will be incorporated unchanged in the new Convention.
(d) There will be an increased amount of Community aid under Lomé III. It will come to 7,400 mecu (about £4,405 million) as against 4,627 mecu under Lomé 11. There wall also be European Investment Bank lending of up to 1,100 mecu (£655 million) bringing the total finance available to the ACP under the Convention to 8,500 mecu (£5,060 million). Additionally, the Overseas Countries and Territories of Member States will receive 100 mecu (about £60 million), bringing the total figure for the Sixth European Development Fund to 7,500 mecu (£4,465 million). The United Kingdom share of this will be a maximum of 1,243 mecu (£740 million).
(e) The new Convention will provide for enhanced dialogue between the Community and each ACP state to ensure that Community aid is put to the best possible use in the context of the recipient countries' own policies. There is also provision for better coordination between Community aid and the bilateral aid of individual Member States.
(f) A number of changes to the Stabex scheme were agreed, including the extension of the scheme to dried bananas, mangoes and Karite oil. It was also agreed that, in future, ACP states will give full and satisfactory information on the use of transfers. If they fail to do so future transfers may be withheld.
(g) The Sysmin scheme, which is designed to help ACP mineral producers whose production and income suffers as a result of factors beyond their control, is to be amended in such a way as to enable more AC]' states to benefit.
(h) It has been agreed that, in the next Convention, there is to be a clear priority given, where appropriate. to agriculture in ACP states, notably to food production.
(i) A new chapter has been agreed for Lomé III which stresses the priority to be given within national and/or regional indicative programmes, to measures to combat drought and desertification.
(j) The chapter on Industrial Cooperation has been carried over largely unchanged, although there will be some tightening up of the management structure.
(k) There will be a new chapter on Socio-Cultural Cooperation, to stress the cultural dimension of development.
(l) The Investment Chapter in Lomé III will be much more substantial than that in the two predecessor Conventions. This should make it easier to conclude effective bilateral investment promotion and protection agreements.
(m) The Preamble to the next Convention will contain a reaffirmation of the Contracting Parties' adherence to the principles of the UN Charter and their faith in fundamental human rights. There will also be a separate Joint Declaration reiterating the deep attachment of the Contracting Parties to human dignity and their reaffirmation of their commitment to work for the elimination of all forms of discrimination.

As soon as the final text of the new Convention becomes available I shall arrange for copies to be placed in the Library. The certified text will in due course be presented 139W to Parliament in the normal way, as a Command paper, together with all the related documents, and the necessary steps will then be taken with a view to ratification.