The Stabex is the acronym for a European Commission

European Commission

The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....

 compensatory finance scheme to stabilise export earnings of the ACP countries

ACP countries

The African, Caribbean and Pacific Group of States is a group of countries , created by the Georgetown Agreement in 1975. The group's main objectives are sustainable development and poverty reduction within its member states, as well as their greater integration into the world's economy...

. It was first introduced in the first Lomé Convention

Lomé Convention

The Lomé Convention is a trade and aid agreement between the European Community and 71 African, Caribbean, and Pacific countries, first signed in February 1975 in Lomé, Togo.- History :...

 (1975) with the purpose of remedying the harmful effects of the instability of export revenue from agricultural products.

Stabex (along with similar mechanism for the mineral products– Sysmin that was provided for in the second Lomé Convention) was abolished by Cotonou Agreement

Cotonou Agreement

The Cotonou Agreement is a treaty between the European Union and the African, Caribbean and Pacific Group of States . It was signed in June 2000 in Cotonou, the largest city in Benin, by 78 ACP countries and the then fifteen Member States of the European Union...

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.