Development and relations with African,Caribbean and Pacific StatesTogether for a better world

The Cotonou Agreement

Brussels 2009

DEV-C1

Development and relations with African,Caribbean and Pacific StatesTogether for a better world

The Cotonou Agreement

• Signed in 2000 for a period of 20 years• designed to establish a comprehensive partnership,

based on three complementary pillars: (i) development cooperation; (ii) economic and trade cooperation, and (iii) the political dimension.

• huge step forward in ACP-EU and North-South relations. It is framing the relations with the biggest development grouping in the world. It is setting an innovative agenda in terms of political dialogue, non-state actors participation, trade and development and performance based management.

Development and relations with African,Caribbean and Pacific StatesTogether for a better world

Historical background

• The notion of "ACP States" goes back to the "ACP Group of States", formally established in 1975 with the Georgetown Agreement (46 ACPs). Today, the ACP Group of States counts 79 countries, 78 of them signatories of the Cotonou-Agreement (with Cuba being the exception).

• The special status of the ACP countries has to be seen in the context of colonisation. Initially, the EC Treaty provided for a special association of the overseas countries and territories which still belonged to some of the MS at that time (mostly to FR), but not for development cooperation.

• More structured approach after decolonisation with the successive Yaoundé Conventions (1963 – 1975: EEC plus 18 African States); and from 1975 until 2000 the Lomé Conventions (Lomé I – Lomé IV bis; 46 states, incl former British colonies).

• Conclusion of the Cotonou Agreement in 2000 (78 ACP States).

Development and relations with African,Caribbean and Pacific StatesTogether for a better world

The Cotonou Agreement objectives and principles

• Objectives: The partnership is centred on the objective of reducing and eventually eradicating poverty consistent with the objectives of sustainable development and the gradual integration of the ACP countries into the world economy (Art. 1 of Cotonou Agreement).

• Fundamental principles: - equality of the partners and ownership of the development strategies;- participation (central governments as the main partners, partnership open to different kinds of other actors)- pivotal role of dialogue and the fulfilment of mutual obligations- differentiation and regionalisation

• The actors of the Partnership - States (authorities and/or organisations of states at local, national and regional level);- Non-state actors (private sector; economic and social partners, including trade union organisations, civil society in all its forms according to national characteristics).

• Institutional set-up: Joint ACP-EC Institutions

Development and relations with African,Caribbean and Pacific StatesTogether for a better world

Cotonou Agreement- Implementation • The European Development Fund (EDF) is the main instrument for

providing Community assistance for development cooperation under the Cotonou Agreement. The EDF is funded by the EU Member State on the basis of specific contribution keys. Each EDF is concluded for a multi-annual period.

• The 10th EDF covers the period from 2008 to 2013 and has been allocated € 22.7 billion; it was established between the EU Member States by Internal Agreement.

• The cooperation with the ACP States funded from the EDF is complemented by development cooperation funded from the EC budget, notably through the Development Cooperation Instrument, the Instrument for Stability, the European Instrument for Democracy and Human Rights and the European Humanitarian Aid Instrument.

Development and relations with African,Caribbean and Pacific StatesTogether for a better world

The 1st revision of the Cotonou Agreement• Calendar

– Negotiations concluded: February 2005– Revision signed: July 2005– Entry into force: July 2008 (27 EU MS + 2/3 ACP)– Today: 5 ACP have not yet deposited ratification instruments

(A&B, Comoros, Nigeria, Sudan + South Africa)• Main changes:

– Political dimension• Article 8 dialogue + article 96 (+ Annex VII) consultation process • Article 11/11a/11b: peace, international justice, terrorism, WMD

– Development cooperation provisions• Eligibility for financing expanded to local authorities, Parliaments, NSA and non-ACP States participating in regional organisations with ACP (Art. 58 + annex IV, art. 4/15)• Increased flexibility to increase allocations in case of special needs (Annex IV, art. 3.5) and to take over role of NAO in crisis situations (Annex IV, art. 4.5)• More strategic role for the NAO (Annex IV, art. 35)• Slight broadening of scope of Investment Facility (Annex II)

Development and relations with African,Caribbean and Pacific StatesTogether for a better world

The 2nd revision of the Cotonou Agreement

• Calendar:

– Commission proposal for a negotiation mandate (adopted in February ’09 by Council);

–Notification by ACP and EC side before 1st of March 2009;

–May 2009: official start of negotiations;

–Conclusion negotiations: < 28.02.2010

– Ratification: +/- 18-24 months after signature

Development and relations with African,Caribbean and Pacific StatesTogether for a better world

The 2nd revision of the Cotonou Agreement• Trends towards regionalisation

– Regional integration and trade cooperation – EPA – regional cooperation with non-ACP

• EU-Africa strategic partnership• Pacific and Caribbean strategies→ principles of reciprocity and proportionality

→ increased differentiation vs ACP unity

• Political dimension– security & development – governance– situations of fragility (art 72-73)– migration

Development and relations with African,Caribbean and Pacific StatesTogether for a better world

The 2nd revision of the Cotonou Agreement• European consensus

– MDGs– cross-cutting issues (human rights, gender, environment, HIV/Aids)

• Aid effectiveness– explicit reference to the 5 pillars: ownership, alignment, donor coordination, management for results, mutual accountability – joint programming and division of labour– update of conditions for granting budget support– untying of aid – participatory approaches, enhanced role Parliaments

• Policy coherence for development– domestic policy coherence ACP (in political dialogue) (art 8.3)– importance of policies other than development (art 12)

Development and relations with African,Caribbean and Pacific StatesTogether for a better world

The 2nd revision of the Cotonou Agreement

• ACP side:– notified three big themes for review:

- political dimension and sectoral policies;- regional integration and trade;- development finance cooperation.

- Concerns about the future of the partnership and the unity of the ACP• budgetisation• regional cooperation with non-ACP

– Concerns about the implementation of the political dialogue