The Past, Present and Future ACP-EC Trade Regime and the WTO

Jürgen Huber

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Abstract

The Lomé IV Convention, which expired on 29 February 2000, provided for non-reciprocal trade preferences in favour of ACP states. Such a trade regime is incompatible in principle with WTO rules and it could only be maintained because the WTO granted a waiver from the obligations of Article I GATT. The successor regime, the so-called Partnership Agreement between the Community, its Member States and the ACP States, provides for a preparatory period from 2000 to 2007, during which the non-reciprocal trade preferences in favour of the ACP will be maintained. A new WTO waiver will therefore be necessary until 2007. During the preparatory period, economic partnership agreements (EPA) will be negotiated between the Community and subgroups of ACP states, which will provide for reciprocal liberalization of substantially all trade. They will constitute free trade areas in the sense of Article XXIV GATT and a waiver will no longer be needed. For those ACP states not classified as least developed countries (LDC) and which are not in a position to negotiate an EPA, alternative trade arrrangements will need to be developed. The only viable alternative to an EPA would appear to be the integration of these countries into the Community's Generalized System of Preferences (GSP), which is authorized under WTO rules. For all LDCs, ACP states or otherwise, the Community will grant duty-free imports for essentially all products from 2005 at the latest. This differential treatment of LDCs is covered by the so-called Enabling Clause of the GATT of 1979 and a waiver is not required.

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