DP1001 The Europe Agreements and EC-LDC Relations

Author(s): Olivier Cadot , Jaime de Melo

Publication Date: August 1994

Keyword(s): Aid , Integration , North/South Trade Relations

JEL(s): F13 , F14 , F15

Programme Areas: International Trade and Regional Economics

Link to this Page: www.cepr.org/pubs/dps/DP1001.asp

The paper considers the implications of recent changes in the EC relationship with the Central & Eastern European Countries (CEECs) for the EC's traditional links with ACP countries. After reviewing some important aspects of the trade regime implemented by the Lomé Convention, the paper analyzes the Europe Agreements signed in 1991 between the EC and the CEECs, showing that they give only marginal trade preference to the CEECs. The paper also considers FDI and aid flows and argues that there is up to now little evidence of a massive redirection of the flow of funds from the EC to the CEECs and away from the ACPs.