Lome Convention

By:
Updated: Aug 20, 2021

A convention signed in 1975 at Lome, the capita! of Togo, by the members of the European Economic Community and forty-six developing countries in Africa, the Caribbean and the Pacific (A.C.P. states). It replaced previous association agreements made by the original six members of the E.E.C. with former colonies (Yaounde Convention) and the East African Community (Arusha Agreement). (The East African Community was a common market of Uganda, Kenya and Tanzania.) Under the Lome Convention all A.C.P. industrial exports, and most agricultural exports, to the E.E.C. are free of duty. Financial and technical aid – including an export income stabilization scheme, called Stabex, for agricultural exports – was also agreed upon, and the European Development Fund was set up by the E.E.C. to administer and channel aid funds to the Lome countries. In 1979 a second agreement was signed at Lome between the E.E.C. and the developing countries in Africa, the Caribbean and the Pacific (A.C.P.), of which there are now sixty members. It continues duty-free access to the E.E.C. for most exports of A.C.P. The finance available for Stabex was increased to $700 million, and the conditions of the loans were eased. Lome Il also introduced a scheme for supporting mineral exports. The budget for the Centre for Industrial Development at Brussels, which promotes investment in A.C.P. countries, was increased to $30 million. In general, aid through the European Devel­opment Fund and the EUROPEAN INVESTMENT BANK was increased to $7,000 million for the five-year period to 1985.

Reference: The Penguin Dictionary of Economics, 3rd edt.



Sources & references
Risk disclaimer
James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.