How and why have the EU’s external policies
changed toward developing countries ?

von: Julia Heise

Content

List of abbreviations 3

1. Evolution of EU-development policy  4-5

2. From Yaoundé I to Lomé III 5-7

3. Lomé IV 8-9

4. Fundamental changes 9-10

5. The Cotonou-agreement 10-12

6. Conclusion 13-14

Bibliography 15-17
 

List of abbreviations

AASM = Association of African States and Madagascar
ACP = African, Caribbean, Pacific (countries)
ASEAN = Association of South-East Asian Nations
CAP = Common Agricultural Policy
EBA = ‘Everything but arms’
EC = European Community (European Communities)
ECHO = European Community Humanitarian Office
EDF = European Development Fund
EPA = Economic Partnership Agreement
EU = European Union
GATT = General Agreement on Tariffs and Trade
GSP = Generalized System of Preferences
MENA = Middle Eastern and North African countries
STABEX = System for the Stabilization of Export Earnings
TEU = Treaty on European Union (Maastricht Treaty)
UK = United Kingdom
WTO = World Trade Organization

Relations with developing countries are a long-established part of the European Union’s external affairs and the “(…) EU’s contributions to international development are not only unsurpassed but have become the standard against which the rest of the world measures itself and is judged.” (Babarinde, 1998: 128).1 For most of the past 40 years the ACP-countries have been at the heart of EU-development affairs. Yet, several factors, mainly caused by the end of the Cold War, contributed to the transformation of the Union’s development policy in general. The following paper analyses how and why the EU’s external policies have changed towards developing countries, thereby focusing on the ACP-EU relationship. Section one discusses the evolution of the Union’s development policy. The Yaoundé- and Lomé-agreements are examined in the subsequent sections. Section four then analyses the developments that led to the most fundamental transformation of the Union’s development policy- the Cotonou Agreement, which will be subject to the last section. The paper concludes by evaluating the transformation of EU-development policy in general.

1. Evolution of EU-development policy

EU-development policy falls under the Community(EC)-pillar, managed by the European Commission, but constitutes an area of shared competence.2 The evolution of an explicit Community-development policy was due to three factors:3 First, with the introduction of the CAP in 1967 the EC became involved in food aid, which culminated in the EC’s global food aid policy in 1986. Second, a side-effect of the strong economic EC-presence was that the Community increasingly engaged in development-promotion. 4 Third, Community involvement in development affairs originated from the need to accommodate the remaining colonial interests of the member states. On the insistence of France the Treaty of Rome provided for solidarity with former member states’ colonies.5 From these provisions the principles of association evolved, which form the basis of Community development-cooperation. 6 Thus, the association agreements with the ACP-countries7 were originally at the centre of ECdevelopment cooperation. 8

2. From Yaoundé I to Lomé III

The first formal treaty of association between the EC and the AASM-countries, the Yaoundé Convention, entered into force in 1964.9 It provided for closer cooperation and preferential trading arrangements that invo lved a privileged AASM-access to EC- markets.10 Furthermore it acknowledged a legally independent status of the associates. At the end of the 1960s the AASM-countries had become increasingly influential. 11 This was reflected in the second Yaoundé-agreement of 1969, which set crucial precedents. While the former agreement had been imposed on the associated countries, Yaoundé II was subject to ratification by all participating states. Moreover, it established joint institutions such as the Association Council and the parliamentary assembly, which were important fora for the articulation of AASM- demands.12

Also, the Generalized System of Preferences (GSP), launched within the GATT in 1971, has to be mentioned here. It accorded to the developing countries preferential access to EC-markets for industrial products and some processed foods.13 The Yaoundé-agreements symbolized the first vital step towards a comprehensive ECdevelopment policy.

Yet, three main factors contributed to the creation of a new development-cooperation framework- the Lomé Convention. First, the ‘francophone’ selectivity of the Yaoundéagreements was criticised by other member states. Second, the increasingly empowered associates called for a ‘New International Economic Order’.14 And third, the UK accession in 1973 necessitated the broadening of EC-development cooperation as to include former Commonwealth-colonies.15

[...]

1 The Union’s significance as an international actor regarding development policy is for example underlined by agreements with the World Bank or the United Nations Development Programme to produce common development strategies. (Bretherton and Vogler, 1999: 109). In the late 1990s the EC and its Member States accounted for 60 percent of the world aid. Also see European Union (2000) and Grilli (1993).

2 The TEU of 1993 established this provision. The member states’ focus is still mainly on their bilateral development programmes. Also see de Chávarri Ureta (2001: 52-63) and Hewitt/Whiteman (2004: 133-148).

3 See Bretherton and Vogler, 1999: 110.

4 The Union engaged in development promotion through economic diversification and trade incentives that encouraged industrialization in developing countries. (Ibid).

5 (Ibid: 112). Articles 131-

6 provided for “association of non-European countries and territories with which Member States have special relations”. (Ibid) Thus the Treaty of Rome introduced the idea of development through cooperation but this cannot be regarded as provision for exclusive Community-competence in the area of development policy and has to be seen in the colonial context. (Hilpold, 2002:54-55). On France’s role in EU-development affairs see Claeys, 2004: 113-132). 6 Bretherton and Vogler, 1999: 112.

7 At the beginning, the ACP-countries (AASM -countries) mainly included former French colonies. See Smith, 2003.

8 Yet, the EU increasingly concluded agreements with other countries such as MENA (association agreements with Greece and Turkey in early 1960s), Latin America (ALA; reciprocal trading arrangements) and Asian countries (i.e. broader cooperation agreements with Vietnam and Nepal in 1996). Yet, these agreements are not as institutionalised as the ACP-agreements. Bretherton/Vogler (1999: 130-132). Generally, main elements of the EU’s development policy include trade cooperation (to stimulate economic growth and development), financial and economic assistance (The EDF was specifically established for this purpose and derives from national funds rather than from the Community budget. Economic assistance is supposed to remedy short-term imbalances and infrastructure problems in the developing countries.), technical cooperation (the sharing of know-how to increase production-efficiency), debt relief and institutions for dialogue. (Babarinde ,1998: 135)

9 Yaoundé I linked the then six EC-member states and 18 associated African States, including Madagascar (mainly former French colonies) and was of five years duration. It generally maintained the core aspects of the previous agreements.

10 In the 1960s approximately 80% of the associated countries’ trade involved EC-member states and 98% of the aid to the AASM-countries was EC-related. (Bretherton and Vogler, 1999: 113).

11 This was supported by anti-imperialist sentiments during the late 1960s and early 1970s.

12 Ibid: 114. The parliamentary assembly was composed of AASM -representatives and members of the European Parliament.

13 Babarinde, 1998: 137. The GSP was to foster the economic development and industrialization of developing countries.

14 Hilpold, 2002: 56.

15 The UK was particularly keen to put its special trading preferences for bananas and sugar under the EC-umbrella.