Trade Cooperation
Probably the most radical change introduced by the Cotonou Agreement concerns trade cooperation. Since the First Lomé Convention in 1975, the EU has granted non-reciprocal trade preferences to their ACP partners. Under the Cotonou Agreement, however, this system will be replaced by a new scheme which is to take effect in 2008: the Economic Partnership Agreements (EPAs). These new arrangement provide for reciprocal trade agreements, meaning that not only the EU provides duty-free access to its markets for ACP exports, but ACP countries also provide duty-free access to their own markets for EU exports.
True to the Cotonou principle of differentiation, however, not all ACP countries have to open their markets to EU products after 2008. The group of least developed countries is able to either continue cooperation under the arrangements made in Lomé or the "Everything But Arms" regulation.
Non-LDCs, on the other hand, who decide they are not in a position to enter into EPAs can for example be transferred into the EU’s Generalized System of Preferences (GSP), or the Special Incentive arrangement for Sustainable Development and Good Governance (GSP+).
Read more about this topic: Cotonou Agreement
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