Lomé Convention

in the law of the European Communities the agreement (now in its fourth version) that is the foundation for the Communities' links with the ACP (African, Caribbean and Pacific countries) and overseas territories. It is a series of bilateral agreements with more than 60 countries. Originally concluded with a view to the post-colonial situation of some of the member states, it is now an instrument of development and aid. The general basis of it is to allow the produce of Convention states to enter the Communities free of the common customs tariff but without reciprocity for the Communities. Member states are, however, allowed most favoured nation status. A system has been developed to assist states that rely on a single product – the Community evens out the good years and the bad years through the STABEX and SYSMIN systems: the downside of this may be that it does not encourage diversification in the beneficiary state.