Ntsaluba
29 March 2007
Welcome and introductory remarks
This has been a consultation; as you know there is a partnership or
arrangement of co-operation between South Africa and the European Union (EU).
We are trying to build on our shared values and mutual interests. We use the
Trade and Development Co-operation Agreement (TDCA) between South Africa and
the European Union as a framework for the co-operation between ourselves and
the European Union. This is an agreement that was signed in 1999 after a long
period (about five years) of negotiations. After this the TDCA was
provisionally applied from January 2000. It entered fully into force on 1 May
2004 after it was ratified by all signatory members of the EU which was
completed in April 2004.
This agreement essentially builds the SA-EU partnership on five pillars:
political dialogue, trade, development co-operation, economic co-operation and
co-operation in other areas. South Africa values the broad scope of
co-operation with what essentially is our most important trading partner, the
European Union. As many of you know, the EU accounts for almost 40% of South
Africa's imports and exports. In 2006 alone the EU's foreign direct investment
into South Africa amounted to �4,6 billion.
We built into the TDCA, at the time of its conception, a compulsory mid-term
review after five years of operationalisation of this agreement. Despite
initial delays, we have, in the last few months informally exchanged views and
we are pleased to today officially launch the TDCA review process. We have
already made substantial progress in negotiations regarding texts and trust
that the TDCA will soon reflect the depth of relations that has led us to begin
discussing the establishment of a strategic partnership between the EU and
South Africa.
We have both identified the potential for broadening our co-operation
through this process of the review of the TDCA and we have therefore seized
this opportunity to discuss with our European friends issues of global concern,
inter alia, the Millennium Development Goals (MDGs).
We will after this session, discuss issues involving the African agenda,
non-proliferation and development co-operation. We are preparing for a meeting
of the Ministerial Troika of the European Union with South Africa to be held in
May 2007. We value this visit by the Director-General that we believe is very
timely with the imminent finalisation of the country strategic paper for
development co-operation which will guide the period 2007-2013 between South
Africa and the EU.
We also note that in terms of the Development Co-operation Framework we have
the EU allocating approximately �980 million over the period 2007-2013 to
finance the development programme we are in the process of finalising. Today's
meeting was very important since we launched the negotiations around the review
of the TDCA. We also discussed the issue around the strategic partnership. We
would generally characterise these discussions as very successful which attest
to the maturing relationship between South Africa and the EU.
Comments by Director-General for Development Stefan Manservisi
Introductory remarks
As Director-General Ntsaluba said, we today launched the negotiations around
the renewal of the TDCA. This is organised around different chapters: political
dialogue, development, economic, trade and other sector co-operation. Our
political co-operation is very fruitful and we work in order to strengthen and
further develop our relations in this regard. Discussions around the strategic
partnership are based on what we have been doing thus far.
Regarding development aspects we are active in South Africa and we will
continue to be active. South Africa will become, with the new financial
assistance we are providing to South Africa for the next period, one of the
five top assistance recipients from the EU. This is a guarantee for a
partnership. I would like to underline that in South Africa, the aid
effectiveness agenda, the Paris Declaration is surely one of the most effective
examples because of the country strategic paper to which I have made reference
is shared by all the EU member states and the Commissioner for Development.
In terms of trade, the trade relationship is conducted within the context of
Southern African Development Community (SADC) and Environmental Protection
Agency (EPA) where we agreed to negotiate with South Africa. I think this is an
important negotiation also for the development of the region. It therefore
transcends the bilateral relationship. I would like to include, at the end of
the current implementation of the agreement, 95% of South African goods will
enter the Union duty free and that around 80% of the EU's goods will be exempt
from duties when entering South Africa. We are already well advanced and I am
confident that our relations can be strengthened and further opportunities
created for the region.
Questions and answers
Question: Director-General, there is an impression that within the EPA,
South Africa is reluctant to agree to some of the requests by the European
Union. What is South Africa's position on this?
Answer: There are some areas of difference between both sides. We are
however at the point where we do not want to characterise any of the areas as
unbreachable. I think you would necessarily expect that within the context of
these discussions, e.g. around the issue of apples, we also have to
concurrently consider the Doha negotiation positions in which we are also
currently involved. There is also the reality of South Africa's position within
the region considering the differences and structure of our economy relative to
others. There are complex issues which are obviously the source of some areas
we still need to negotiate on. However, none of the areas are unbreachable.
Question: Director-General, can you kindly clarify what the newly aid
package of �980 million for 2007-2013 will be used for?
Answer: (Director-General Dr Ayanda Ntsaluba) First of all, we have run a
development co-operation agreement with the EU from 1994 although the
conventional relationship is predated by support given to a number of
non-governmental organisations (NGOs) and formations in South Africa by the
EU.
Since 1994 there has been focus on different parts that have been jointly
pre-determined by South Africa and the EU � health, education, local
governance. There is also, as part of these resources, an understanding that
some programmes will have a regional character. There has also been an
understanding that there are some areas where we would want to contribute to
multilateral initiatives after consultation with the EU. This is how we were
able to contribute to the African Union's Peace Facility.
The discussion on the country strategic paper is an attempt to understand
what new areas need to be supported in order to sustain the positive
developments in South Africa. This is the process that is now underway. This
will be aligned to some of the pressing challenges currently facing South
Africa. You would therefore necessarily expect us to be looking at areas of
skills, support for small, medium and micro enterprise (SMME) development, in
addition to strengthening the capacity of institutions in South Africa.
(Director-General Manservisi) The EU works by jointly assessing the needs of
the country to which it is contributing development assistance and then
determining projects to support as identified by the partner. This is a key
feature of our partnership with countries. This is also especially true of
South Africa. Our development co-operation must be used to sustain the efforts
of the South African government to address socio-economic challenges. This is
the basis of true, pragmatic partnership.
Question: Director-General Manservisi, did Zimbabwe feature in your
discussions at all? Are you concerned about the effects of this situation on
the region? Would you like members of the region, particularly South Africa, to
have stronger positions on the matter?
Answer: We will only be looking at this matter after this session. I would
say you are aware of the position of the European Union and the instruments we
have put in place. We are still the biggest "actor" in order to sustain the
population of Zimbabwe.
The European Union, as we have said many times, is obviously concerned about
the current situation in Zimbabwe. We are looking with great attention to what
the region is doing. I think that is the correct way to look for an outcome to
the situation in Zimbabwe. We consider that a local, regional solution and
regional engagement is the most beneficial way of dealing with the situation.
This is our position in general and is also our position in this instance.
Question: Director-General, can you share with us the issues that required
revisiting in terms of the TDCA?
Answer: First of all when the TDCA was finally agreed to in 1999 there was a
general understanding that we would have provisional application and this
largely related to the aid chapter. It was understood that a number of chapters
of the TDCA required, if it was to come into effect, different processes of
ratification by member states of the EU. As you would expect, this process
would require some time. This process was however finally completed.
In every situation in which an agreement is negotiated, it is wise to put in
place a provision for both parties to provisionally review that agreement so
that as you move forward you do so sensitive to the areas of concern of both
parties. It is not a review because there is suddenly a crisis. It is review
because we have now had five years of experience and now that we are beginning
to institute new areas we can review how this could best be done.
In terms of the timeframes, we committed in terms of the Joint Co-operation
Council between South Africa and the EU in November 2006 to enter November 2007
with this review being completed. This review is therefore driven by these
timeframes.
Question: To both DGs, is the failure to hold the EU-Africa Summit an
impediment to the full expression of relations? The EU is confident that this
Summit will take place in December 2007 � from where does the EU get this
confidence? How do you see both sides getting around the matter of
Zimbabwe?
Answer: (Director-General Dr Ayanda Ntsaluba). This is a very difficult
question.
I think what is driving us all � South Africa, Africa and the European Union
� is to acknowledge that we have all suffered an inconvenience by not having
this meeting. It is in our common interests to have such a meeting.
There are many initiatives that require co-operation between the EU and
Africa � and these are not receiving full attention on account of the failure
to have this meeting at the highest level. Two examples would be the EU's
Africa policy which was unveiled some time back and hailed by South Africa.
There are ongoing discussions with the African Union (AU) and this matter must
receive ratification at the highest level.
You also know there are issues around migration and all other development
issues. There is anxiety on both sides regarding the failure to meet. I think
we are both working on the premise that it should be possible to meet.
(Director-General Manservisi) I support what Director-General Ntsaluba has
said. As the EU Commission, we have nothing in the pocket. We have been working
with determination to relaunch the dialogue with Africa and to create the
conditions for this Summit to be held.
I just recalled that the European Council concluded in December 2006 that it
would like to have this Summit in Lisbon in the second half of 2007. Heads of
State and Government of the European Union do not take such decisions lightly.
This means there is a determination and general interest to have this Summit.
Africa is the only continent with whom we do not have a political dialogue at
this highest level.
We have been working with the African Union and other partners to prepare
for, not only the Summit, but the joint strategy for co-operation between the
EU and Africa to be adopted at that Summit. The Troika meeting in May will
adopt a framework for the Summit later this year.
In politics there are solutions to these sorts of problems and I am
confident that this Summit will take place with full representation from
Africa. There is still time to find solutions to such problems.
Issued by: Department of Foreign Affairs
29 March 2007
