This paper examines the European Union\'s (EU) relationship with developing countries at the turn of a new century. This relationship is undergoing change from a variety of sources. Central to this is the implementation of the Union\'s newly adopted development policy framework and ongoing internal reforms of the development co-operation operations of the European Commission (EC). This paper examines these changes in terms of how they may impact on the Union\'s much criticised performance in terms of development co-operation. With particular emphasis on EU relations with the African, Caribbean and Pacific (ACP) group of nations, and most specifically on Africa, the authors look at the coherence between the various aspects of the EU\'s external policies, particularly trade, as these impact on the Union\'s overriding development goal of poverty eradication.