Notes following Briefing by Director-General of Foreign Affairs Dr Ayanda Ntsaluba and Counterpart from the European Union Director-General for Development Stefano Manservisi

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 European Union (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.

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 finalization 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 finalizing.

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 characterize 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 SADC and 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, eg. 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 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 AU'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 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 whom 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 year 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 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
Private Bag X152
Pretoria
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29 March 2007