Cotonou Agreement

[2] The Cotonou Agreement is aimed at the reduction and eventual eradication of poverty while contributing to sustainable development and to the gradual integration of ACP countries into the world economy.

It is designed to last for a period of 20 years and is based on four main principles: The Cotonou Agreement wishes to give a stronger political foundation to ACP-EU development cooperation.

Therefore, political dialogue is one of the key aspects of the arrangements and addresses new issues which have previously been outside the scope of development cooperation, such as peace and security, arms trade and migration.

Although ACP governments continue to be responsible for determining their own development strategy, non-state actors and local authorities are now involved being consulted with regard to its formulation.

A new comprehensive programme has been introduced in Cotonou in order to support the private sectors of the ACP countries with new tools such as access to funding via the European Investment Bank (EIB).

Non-LDCs, on the other hand, who decide they are not in a position to enter into EPAs can for example be transferred into the EU's Generalized System of Preferences (GSP), or the Special Incentive Arrangement for Sustainable Development and Good Governance (GSP+).

Aid allocations are based on an assessment of a country's needs and performance and include the possibility to regularly adjust financial resources accordingly.

[3][4] Through the flexibility provided by the Cotonou Agreement, the 10th EDF enables the EU to funnel more aid money (called "incentive amounts") to countries that improve their governance, especially financial, tax and legal systems.

Since the International Criminal Court is based on the principle of complementarity, the 2005 revised Cotonou Agreement innovates with obligations to ensure prosecution of the most serious crimes at the national level and through global cooperation.

[8] It has been argued that although the main pillar of the Cotonou Agreement is poverty reduction, aid allocated to Africa under the 9th European Development Fund has had a limited impact on the majority of the poor.