European community and the African, Caribbean and Pacific states (EC-ACP aid and trade issues in the context of the European single market : implications for export promotion strategies)

The Single Market is expected to result in increased non-tariff barriers, uniform technical standards for all products, and other import restrictions. Developing country firms are also concerned about being squeezed out of the EC market by large corporations competing for market shares. This paper focuses on the concerns of the Africa, Caribbean, and Pacific (ACP) states, which, under the Lome Convention, enjoy special trade and aid preferences from the EC. In anticipation of the negative effects on their export trade, these countries have sought changes in the terms of trade, guaranteed price supports for their commodities, and sovereign use of the EC"s development resources. The paper briefly highlights the main features of the Lome III Convention and then discusses the major modifications in the recently concluded Lome IV Convention. The new Convention partially reflects ACP concerns in that it reorients EC development policy to support ACP macroeconomic reforms, structural adjustment, balance of payments, and debt relief. However, while the Convention assures ACP nations commodity access to the European market, it offers only the potential for, not the certitude of, export expansion. Realization of this potential will depend on the ability of ACP countries in the areas of product diversification, quality control, and development of a sophisticated marketing and delivery system that meets stringent consumer expectations.