Glossary: Lomé Convention
DEFINITION:
An agreement between the European Community (EC) and the African, Caribbean, and Pacific (ACP) states whose provisions call for the EC to extend economic assistance to ACP countries. Much of the aid is for project development or rehabilitation, but a large portion is set aside for the Stabilization of Export Earnings (STABEX) system, designed to help developing countries withstand fluctuations in the prices of their agricultural exports.