Cotonou Agreement Eib
The most important instrument for these loans is the so-called Investment Facility (IF). It is a fund of 3 billion euros that re-injects the profits of the credit into the facility and reinvests them in new operations. It aims to encourage the private sector to invest in development projects. The management of the Fund was entrusted to the EIB by the European Council under a partnership agreement concluded in 2003, the Cotonou Agreement, between the European Union and the ACP countries (group of African, Caribbean and Pacific states). The European Investment Bank`s (EIB) operations in Africa, the Caribbean and the Pacific (ACP) are taking place under the ACP-EU Partnership Agreement, the Cotonou Partnership Agreement (CPA). The EIB`s work in ACP countries aims to contribute to the objectives of the Cotonou Partnership Agreement and to support projects that bring sustainable social, economic and environmental benefits. Under the CPA, the EIB manages operations under the ACP Investment Facility (IF), which focus on the private sector, as well as loans from its own resources, mainly infrastructure, which are guaranteed by EU Member States. Under the new agreement, the EU can be more selective and flexible in allocating and using its development resources. Endowments are based on an assessment of a country`s needs and performance and include the ability to regularly adjust financial resources. In practice, this means that more money can be paid to “good interpreters” and that the proportion of “bad interpreters” can be reduced. Created in 1958 by the Treaty of Rome, the EIB funds investment projects that meet the political objectives of the European Union (EU). It also participates in the implementation of the EU`s cooperation policy with regard to third countries that have entered into cooperation or association agreements with the EU. The EIB first began financing Africa 40 years ago and expanded into the Caribbean and Pacific 30 years ago.
The implementation of the facility coincides with the 40th anniversary of the EIB`s activity in Africa, which was then extended to the Caribbean and Pacific states as part of a series of agreements – the Yaounde and Lomé conventions – through which the EIB has directed some EUR 9 billion to the GSP. The Cotonou agreement lays the groundwork for the next 20 years of cooperation between ACPS and the EU and places particular emphasis on the distribution of responsibilities and the establishment of a development partnership. “From Paris to 2030” is a high-level event that focuses on the critical decade 2021-2030. Five years after the pioneering Paris climate agreement, the debate will focus on the lack of global leadership in efforts to combat climate change and the actions we need to take now. Perhaps the most radical amendment introduced by the Cotonou Agreement concerns trade cooperation. Since the first Lomé Convention in 1975, the EU has not granted reciprocal trade preferences to ACP countries. However, under the Cotonou Agreement, this system has been replaced by the Economic Partnership Agreements (EPAs), a new regime that came into force in 2008. The new regime provides for reciprocal trade agreements, which means that not only does the EU grant duty-free access to its ACP export markets, but also that ACP countries grant duty-free access to their own markets for EU exports.
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