EU Commission helps ACP countries tackle dependence on agricultural commodities

FR - DE - NL

The European Commission has approved a four-year, €45 million programme to help African, Caribbean and Pacific (ACP) countries which rely heavily on exports of cotton, cocoa, sugar, coffee, bananas and other commodities. The programme will help these countries withstand changes in world prices and become more competitive by producing commodities more efficiently and diversifying their economies.

Commenting, Commissioner for Development and Humanitarian Aid Louis Michel said: "In recent years, many ACP countries have faced sharp declines and volatility in international commodity prices. Income, investment and competitiveness have fallen, while countries have struggled to diversify. This latest programme follows the EU's commitment in 2004 to help ACP economies face these challenges. It is part of a wider policy addressing in a comprehensive way development challenges in these countries".

Internationally traded agricultural products such as cotton, sugar and cocoa provide jobs and incomes for millions in developing countries, as well as revenue for governments. Currently 54 commodity dependent developing countries (CDDCs) generate over 20% of their total export earnings from three or less agricultural commodities.

Between 1970 and 2000, prices for developing countries' main agricultural exports, such as sugar, cotton, cocoa and coffee, fell by 30 to 60 percent in real terms. This has required producing countries to make their commodities more competitive, but they have limited resources with which to do so.

In 2004, the EU already announced an action plan to face these challenges, and a new partnership specifically to support cotton production in Africa, as a concrete expression of that commitment. It enables ACP producers and the EU to coordinate more closely and exchange information about output, markets, prices, technology and trade rules.

The Commission has consulted extensively with everyone involved in producing, selling and buying commodities - producers' associations, NGOs and trade ministries in ACP states, as well as EU buyers and governments.

| Top |

• Main results of ACP-EC Joint Council of Ministers: trade and financial issues  (25/5/2007)
• EU and ACP countries meet to push forward Economic Partnership Agreements  (1/3/2007)
• CAP Reform: EU Commission welcomes Council agreement on reform of banana regime (19/12/2006)
• Press Note: Development and Trade GAERC  (20/10/2006)
• Water Facility: EU Commission to fund projects worth €230m to bring safe drinking water to 10m people in ACP countries (19/1/2006)