a.Trading and trade cooperation arrangements

Practically all products originating in the ACP States (99.5%) have free access to the European Union. Reciprocal arrangements are not compulsory; the ACP countries are merely required to grant the EU most-favoured-nation status. EU also has trade-links with OCDE

b.Stabilization of export earnings (Stabex)

The new Stabex has been allocated ECU 1.8bn. It guarantees the ACP countries a certain level of export earnings by protecting the latter aganist the fluctuations to which they would normally be subjected as a result of the functioning of markets of the vicissitudes of production. Under Lome IV the ACP countries are no longer required to replenish Stabex resources, which will reduce their debt burden. At the mid-term review the list of products covered by the system was expected to 50.

c.System for mineral products(Sysmin)

ECU 575m has been allocated to this sytem. It consists of subsidies to deal with temporary production or exprt problems in the mining sector. Under Lome IV the system covers eight minerals.

d.Technical and financial cooperation

The total budget of the second Financial Protocol to Lome IV is ECU 14.625 bn, an increase of 21.9% in nominal terms. ECU 12.967 bn is made available from the European Development Fund (EDF). This Fund finances economic and social investment projects and programmes in the ACP States, Stabex and Sysmin; in addition, ECU 1 bn is available as risk capital. Finally, ECU 1.658 bn is available in the form of EIB. EBI loans made from its own resources.

e.Industrial cooperation

Designed to develop and diversify industrial production in the ACP States. Various types of action are covered: the development of research and technology, exchanges of information, the carrying out of studies, the establishment of contacts between firms, the encouragment of business start-ups and the promotion of professional associations in the ACP States. These schemes are supervised by a Community on Industrial Cooperation assited by a Centre for Industrial Development (CID).