The Stabex (from French ''Système de Stabilisation des Recettes d'Exportation'') is the acronym for a

European Commission The European Commission (EC) is the primary Executive (government), executive arm of the European Union (EU). It operates as a cabinet government, with a number of European Commissioner, members of the Commission (directorial system, informall ...

compensatory finance scheme to stabilise export earnings of the ACP countries. It was first introduced in the first

Lomé Convention The Lomé Convention is a trade and aid agreement between the European Economic Community, European Economic Community (EEC) and 71 ACP countries, African, Caribbean, and Pacific (ACP) countries, first signed in February 1975 in Lomé, Togo. His ...

(1975) with the purpose of remedying the harmful effects of the instability in export revenue from agricultural products. Stabex (along with similar mechanism for the mineral products– Sysmin that was provided for in the second Lomé Convention (1979)) was abolished by

Cotonou Agreement The Cotonou Agreement (French: ''Accord de Cotonou'') is a treaty between the European Union (EU) and the African, Caribbean and Pacific Group of States ("ACP countries"). It was signed in June 2000 in Cotonou, Benin's largest city, by 78 ACP c ...

in 2000. The agreement has been linked closely to that of the IMF compensatory package. However the debate rages that these aren't as effective as free trade due to the long run instability of the products.

References

ACP–European Union relations {{EU-stub