IRPS (International Relations Peace and Security) Cluster Media Biefing Notes for IRPS Cluster Media Briefing, 24 May 2004, 11:00 - 12:30, Goodhope Auditorium, Tuynhuys

A. CURRENT ISSUES

1. AFRICA DAY

Tomorrow we will celebrate Africa Day, a significant day for Africa. At the turn of the Millenium, our Heads of State declared this century as the African Century. We can but pride ourselves on the achievements that this continent of ours has achieved:

· The reconstitution of the OAU into the AU
· Adoption of NEPAD as a socio-economic development plan of the AU
· Decrease in the conflict and political stability in the Continent
· Increase in democratisation of the governments
· The growing international goodwill towards the Continent
· The first time ever, for a Soccer World Cup to come to the Continent

These and many more are milestones/achievements that we cannot overlook, as we are also very conscious of the fact that there is still a lot that needs to be achieved in the renewal of our continent.

2. HOSTING THE 2010 WORLD CUP TOURNAMENT

The International Relations, Peace and Security Cluster joins millions of our people in South Africa in particular and Africa in general in welcoming the decision of the world football federation, FIFA to accord South Africa, the honour of hosting the 2010 world Cup tournament on the African continent for the first time in history.

South Africa will endeavour to ensure the 2010 World Cup spectacle does become a pride for all Africans throughout our continent. Accordingly, we congratulate all members of the SA Bid Committee for a job well done!

3. ARRANGEMENTS FOR DEPOSED PRESIDENT ARISTIDE

The Department of Foreign Affairs and sister departments have finalised preparations for the visit to South Africa by Haiti's deposed President Jean Bertrand Aristide in line with Caricom and the AU's requests and as ratified by our cabinet. We will receive him and his family as soon as we get an indication of the date on which he plans to arrive in South Africa and will host him for the duration of his stay.

South Africa's approach to the Haitian question will be guided by the views of CARICOM and the AU.

South Africa will continue to work within the framework set out by Caricom and the AU to assist the people of Haiti to restore peace and democracy as a basis for sustainable development.

4. ALLEGED MERCENARIES IN ZIMBABWE AND EQUATORIAL GUINEA

Last week a delegation from Equatorial Guinea led by its Attorney-General Jose Obono visited South Africa for consultations with various government agencies, family and legal representatives of the eight South Africans held there on allegations of a coup plot.

Efforts are being made to bring the prisoners to court as soon as possible in the presence of international observers with a view to ensuring a fair trial for the prisoners.

For our part several visits by our diplomatic missions in Gabon and Zimbabwe led by our Ambassadors have indeed taken place in conformity with Geneva Convention and requirements of our own law. These consular visits will continue at regular intervals and our officials will assist the detainees and their families to the extent possible.

· DEMANDS FOR EXTRADITION

The government has taken note of media reports including a petition handed over by family members at Union Buildings demanding that the government considers an extradition of the prisoners back to SA. The government believes it is the democratic right of all South Africans to engage in public manifestation with a view to airing their grievances as long as it is within the parameters of the law.

The government will respond officially to the memoranda served on it by family members and legal representatives.

Nonetheless, it is important to appreciate that:

· The South African government has not received any official notification of the intention by Zimbabwe to extradite the 70 South Africans to Equatorial Guinea.
· As you know the government will advance its detailed legal argument in court tomorrow, Tuesday - 25 May 2004 - in response to the court challenge advanced against the state.

Nonetheless, South Africa will not shirk its responsibilities in ensuring the prisoners are afforded their rights in terms of the Geneva Convention and in line with our constitution and that the trial they face will be fair and within the norms of international law.

Government will not entertain speculation regarding the possible out comes of the trials since this may only help to pre-empt the judgements by the respective courts. Only when judgment has been delivered will government engage with the process.

The suggestion by the DA that the government is an accessory on this matter is as ridiculous as it is incredible. Court proceedings will soon unfold and government will engage with this process, if required to do so, at the correct platform.

B. CONTEXTUAL ISSUES

1. CONSOLIDATION OF THE AFRICAN AGENDA

The South African Government firmly believes that the future of our country is inextricably linked to future of the African continent and that of our neighbours in Southern Africa. The national vision of building a united, non-racial, non-sexist and prosperous society are also relevant to our vision for Africa. Coupled with this is the understanding that socio-economic development cannot take place without political peace and stability. South Africa's efforts therefore are directed at creating an environment in which all states on the continent will achieve their full potential. Africa therefore remains the central area of focus in the conduct of our foreign policy.

This comprises two central tasks:

The strengthening of continental and regional structures, in particular the AU and SADC, as well as the implementation of the key socio-economic development programmes namely; NEPAD as well as RISDP. Also important is our contribution to the peace, stability and Security in the Continent.

We are happy to report that good progress is being made in the operationalisation of the following:

· AFRICAN UNION AND ITS ORGANS

AU Commission

SA has engaged in the formulation of the strategic framework of the Commission, which would serve as the basis for the Commission to implement a five-year workplan.

Pan African Parliament (PAP)

The Pan African Parliament was successfully launched on 18 March 2004 in Addis Ababa. Now bold action is required to ensure that South Africa hosts the permanent seat of the PAP.

African Courts

South Africa has ratified the Protocol on the African Court of Human and People's Rights. At present, South Africa is engaged in the process of nominating judges to serve on the Court. Furthermore, parliament will be requested to make a declaration in accordance with Article 34(6) of the Protocol to allow individuals and NGOs to submit cases directly to the Court.

Both the Protocol to the African Charter on Human and Peoples' Rights on the Rights of Women in Africa and the Protocol on the African Court of Justice were signed by South Africa on 16 March 2004.

· Economic, Social and Cultural Council (ECOSOCC)

One of the challenges for the AU is the need to involve civil society in continental processes. In this regard the Constitutive Act makes provision for the establishment of ECOSOCC.

The SA Chapter was launched with nine civil society organisations elected as Secretariat from the following sectors (women, youth, religious groups, organised labour, non-governmental organisations, lawyers, cultural groups and people with disabilities. The Draft Statutes of ECOSOCC were discussed and proposed amendments are to be submitted to the AU Summit in July. Once ratified, each AU member country would need to elect three representatives to the continental body.

· Peace and Security Council (PSC)

The AU Peace and Security Council Protocol entered into force in December 2003 and is comprised of fifteen member states, five of whom, will serve a three-year period and ten who will serve for a two year period each.

The current members are South Africa, Nigeria, Algeria, Ethiopia, and Gabon who will serve three year terms, while Lesotho, Mozambique, Cameroon, Congo, Kenya, Sudan, Libya, Ghana, Senegal and Togo will serve two year terms.

The adoption of its the Rules of Procedure on 16 March 2004, gave further impetus to the above mandate and is a milestone in the evolution of a clear framework to address the continental security and stability situation. It also facilitates the participation of non-state actors and civil society in conflict prevention, management and resolution. As a collective security and early warning arrangement the Peace and Security Council will allow for a timely and effective response to conflict and crisis situations in Africa.

In terms of the statutes/provisions of the PSC, all African countries should establish their own Early Warning Centres and that by 2008, there should be a Continental Early Warning Centre. There is broad agreement that the EWC should be all encompassing to include capacity to predict inter alia, famine, natural disasters, signs of genocide and instability. Whilst South Africa is still developing its own Early Warning Centre, we are also participating in regional and continental planning sessions in this regard.

The formal launch of the PSC at the level of Heads of State and Government has been arranged to coincide with the Africa Day celebrations tomorrow, 25 May 2004 in Addis Ababa.

· Structures to be operationalised

· Panel of the Wise

The Panel of the Wise will be composed of five highly respected African personalities from various segments of society who have made outstanding contributions to the cause of peace, security, and development on the Continent.

They shall be selected by the Chairperson of the Commission after consultation with the Member States concerned, on the basis of regional representation and appointed by the Assembly to serve for a period of three years. In general the Panel has an advisory role.

· African Standby Force

The AU Peace and Security Council Protocol makes provision for the creation of an African Standby Force (ASF). Not all details of the ASF have been finalised yet, but it would entail the creation of 5 standby brigades, one in each region of the AU. The AU Assembly agreed in Sirte that the ASF be operationalised over a period of 10 years.

· Common African Defence and Security Policy

The CADSP was adopted during the 2nd Extra-Ordinary session of the AU Assembly, in Libya, February 2004. It is the intention that this common understanding of Defence and Security will inform all future developments relating to issues like Non-Aggression Pacts, Mutual Defence Pacts etc. The Extra-ordinary Assembly furthermore took a decision instructing the AU Commission to develop a Non-Aggression Pact.

PEACE AND STABILITY IN AFRICA

South Africa continues to be involved in relentless efforts to contribute to peace and stability in the continent. These efforts have been made through various processes including bilateral means, the Africa Union and the United Nations. The countries to which SA has made contributions, and which are also our areas of priority include: -

Democratic Republic of Congo

· The South African government welcomed the announcement on 8 May 2004 that all the components of the Transitional Government had reached agreement on the Provincial Governors and Deputy-Governors. When the appointments were made on 16 May 2004, the posts of Governors were allocated as follows to the different components:

Previous Government - Kinshasa, Bas-Congo and Kasaï Occidental;
RCD-Goma - Oriental and North Kivu;
MLC - Bandundu;
Mai-Mai - Katanga;
RCD-N - Kasaï Oriental;
RCD-K/ML - Maniema;
Unarmed Political Opposition - South Kivu; and
Civil society - Equateur.

It is hoped that this agreement on the appointment of Governors and Deputy Governors will assist the transitional process to gain some momentum again.

· The Road Map, released by President Kabila on 19 April 2004, is a calendar of different steps of the transitional process that should end in the organisation of free and fair elections.
· According to this Road Map, the following dates are set:
Draft Constitution by Senate - October to December 2004;
Registration of voters - November and December 2004;
Referendum on Constitution - February 2005;
Local elections - April 2005;
Legislative elections - June 2005; and
Presidential elections - September 2005
· The South African government is however, concerned at the deteriorating security situation in Eastern DRC.
· The South African government deems it urgent to conclude the finalisation of the Defence and Security Co-operation Agreement with the government of the DRC.

Burundi

· The United Nations Security Council convened on Friday, 21 May 2004 to unanimously adopt resolution 1545 (2004) creating a UN Operation in Burundi (ONUB), to be deployed for a period of six months from 1 June 2004, "with the intention to renew it for further periods."
· Status of African Mission in Burundi to be considered following this decision
· South Africa will host various delegations from Burundi, including President Ndayizeye, during the next week.
· President Mbeki has been invited by President Museveni as the Chairman of the Regional Peace Initiative on Burundi to the Regional Summit on Burundi in Dar-es-Salaam on 5 June 2004

Zimbabwe

· The developing political instability owing to the political and economic situation and the lack of progress with regard to the resolution of the conflict between the MDC and the ruling Zanu-PF has consistently exacerbated the Zimbabwean crisis.
· The South African Council of Churches, Pope John Paul II and other parties including SADC and the AU have made several attempts to revive formal negotiations between ZANU PF and MDC.
· Suffice to say the Zimbabwean situation is still volatile.
· South Africa will continue with efforts to encourage both parties to begin with formal dialogue.

Sudan

· South Africa chaired the AU Post-Conflict Reconstruction Committee for the Sudan on 15 March 2004 in Addis Ababa during the 4th session of the Executive Council during which it was agreed that a team of African experts would be dispatched to the Sudan to assess the requirements for post-conflict reconstruction. This report will be discussed at Ministerial level before being dealt with at the AU Summit in Addis Ababa in July 2004.
· South Africa will also continue to support Inter-governmental Authority on Development's (IGAD) initiatives to bring peace and stability to Sudan.
· In this regard the South African government is pleased that the peace negotiations between the Government and SPLA are progressing.
· However, it is extremely worrying to note the constant deterioration of conditions in the Darfur region with the United Nations describing it as "one of the worst humanitarian crises in the world today." In this regard, South Africa will work with the African Union to assist where necessary.

Angola

Following discussions in March 2004, various agreements, viz: Promotion of Tourism Agreement, Agreement on Energy and Electricity, Agreement on Petroleum, Customs Agreement, Civil Aviation Agreement, Merchant Shipping Agreement, were negotiated and initialled and await signature following legal processes.
· Two agreements signed in January and February 2004 respectively - Agreement on Health which will promote co-operation on health matters, Agreement and Agriculture which will promote co-operation on agricultural matters.
· Elections expected to be held between 2005-2006

We remain seized with developments in:

Comoros

· This is a conflict situation with which South Africa has been fully engaged through the mandate of the OAU/AU.
· South Africa is pleased that elections have taken place in April 2004.
· We are aware however that support is still required by the government and people of Comoros in post conflict reconstruction efforts.

Liberia

· South Africa played a role in the transition process and played a role in the departure of former President Charles Taylor to prepare for the new leadership.
· South Africa forms part of the current observer mission in Liberia

Cote d'voire

Central African Republic (CAR)

2. GLOBAL GOVERNANCE

Our challenge over the next 10 years is to be a positive force in support of the entrenchment of multilateralism; the reshaping of the international trading and financial regimes to support development; and the advocacy for global peace.

More immediately we need to actively engage the work of the panel of the UNSC on reform of the UN; support efforts for the advancement of the Doha Development Agenda; support efforts for a lasting solution to the Middle East and Iraq conflicts and advocate for principled positions on the issues of WMD, disarmament and the combating of terrorism guided by the fundamental underpinnings of the Non Proliferation Treaty (NPT) and the need to respect international law.

· UN Reform
· Need to reinforce rules based multilateral approaches
· Need to actively engage in the recently established UN Panel to recommend practical measures for ensuring collective action on future threats to international peace and security.

· Weapons of Mass Destruction (WMD)
· RSA legislation is in place to control the proliferation of weapons of mass destruction.
· We will continue to defend the right on non-nuclear weapon states to use nuclear technology for peaceful purposes as provided in the NPT.
· SA will continue to participate in the NPT.
· Continue constructive engagement with major powers around their concerns regarding the proliferation of WMD as we have done regarding Iran
· Draw attention to the danger of Israeli capabilities regarding WMD and its impact on regional and global security
· Take account of Libyan decision to abandon its WMD capabilities and work to enhance the African and Middle East Zones of free WMD
· Consider the implications of the recent UNSC decision on WMD, directed against non-state actors and need to present regular reports to the UN reports (similar to those on Terrorism)

Iraq

· The South African government has always called for greater intervention by the United Nations in Iraq
· Territorial integrity and sovereignty must be restored to the people of Iraq as soon as possible. In this regard, we await the 30 June 2004 handover and the elections to be held in January 2005.
· The South African government reiterates its condemnation of abuse of Iraqi prisoners by members of the coalition forces. We await the report of the UN Human Rights Commission on the humanitarian situation in Iraq.

The Middle East Peace Process

· The South African government reiterates that a negotiated, political solution must be sought to the conflict in the Middle East.
· The recent escalation of violence by the Israeli Defence Forces illustrates a growing volatility in the situation that is not in the interests of either the peoples of Israel or Palestine.
· The South African government reiterate its call on the UN, the Quartet and members of the international community to play a greater role in encouraging a negotiated, political solution to the crisis in the interests of the peoples of both Israel and Palestine as spelt out in the Roadmap ie. the realisation of the 2-state solution by 2005
· The South African government is also supportive of parallel civil society initiatives like the Geneva process.
· The South African government will host the annual United Nations African Meeting in Support of the Inalienable Rights of the Palestinian People and the United Nations Forum of Civil Society in Support of the Middle East Peace in June 2004 during which discussions by all stakeholders - government, civil society, non-governmental organisations - will attempt to give impetus to current initiatives to bring peace to the region. A total of 200 participants are expected to attend the Conference - 160 UN members, and a wide selection of NGO's represented in South Africa, Palestine and Israel.
· The theme of the Conference is "Achieving the inalienable rights of the Palestinian people - the key to peace in the Middle East," while the Civil Society Forum is entitled, "United Nations Forum of Civil Society in Support of Middle East Peace."

NEW PARTNERSHIP FOR AFRICA'S DEVELOPMENT (NEPAD)

The NEPAD process has moved from the conceptualization and strategic planning phases into the implementation phase. Much work is being done within government around NEPAD by the respective Departments and public enterprises, as well as by the private sector and civil society. Currently, these efforts are not being optimally coordinated at a central level, monitored, measured and/or reinforced, resulting in a possible duplication of work, dilution of efforts and frustration on the part of many stakeholders, particularly the private sector, who are seeking entry points into the NEPAD process. This problem is even more acute at the regional and continental level. As Government, we are urgently working at strengthening the co-ordination of South Africa's involvement in the implementation of NEPAD for maximum benefit of all stakeholders, including government, Parliament, the public enterprises, the private sector, civil society.

Finally, considering South Africa's position of relative strength on the continent and in international affairs, we have a responsibility to play a leadership role in Africa's socio-economic development agenda in terms of developing policy, correctly channelling resources, supporting implementation and directing the NEPAD process, as well as to play a role in the international arena in negotiating a new partnership paradigm and ending Africa's marginalisation in the global community

· Sustainable Development and Poverty Alleviation through NEPAD

· Facilitate the implementation of NEPAD Sectoral programmes.

· Various South Africa Departments are closely involved in the implementation of the five NEPAD priority areas for socio- economic development. The five priority areas are namely:- Infrastructure; Agriculture; Environment and Tourism; ICT; Health and Human Resources; and Science & Technology.

· Strengthen SA's leadership in various NEPAD sectors

South Africa has provided leadership through the President, as a member of the HSGIC, the Minister of Foreign Affairs, in regional, continental and international forums, and Professor Nkuhlu, as Chair of the NEPAD Steering Committee and Head of the Secretariat. South African Ministers and Directors-General play leading roles especially in the agriculture, environment, health, education, ICT, capacity building, science and technology, peace and security, water, energy, transport and tourism sectors

· Harness and build the capacity and political support for the implementation of NEPAD Programmes
South Africa continues to interact with key continental and international partners and stakeholders to generate/access support (financial technical and institutional) for the implementation of NEPAD. NEPAD is a key agenda item for every incoming and outgoing visit, as well as for all meetings of SADC, the AU and international initiatives.

Concrete support has been received from Developed countries as well as other developing countries, namely:-

· United Nations - NEPAD UN systems' framework for engagement with Africa, replacing all other frameworks
· G8/Africa Plan - has been elevated into the Africa Partnership Forum
· European Union support has been through inter alia, Capacity Building Initiatives; Financial support in Africa peace-keeping agenda; Financial support in African Stockpiles Development
· The TICAD programme - dedicated to support the implementation of NEPAD
· The China-Africa Co-operation Forum - being synchronised with NEPAD.
· The India- Africa Fund is to be to be linked NEPAD implementation
· AASROC will culminate into the establishment of the Asia-Africa Forum for co-operation between Regional Economic Communities in Asia and Africa

· African Peer Review Mechanism (APRM)

The inaugural meeting of the APRM Forum of participating States was held in February 2004 in Kigali. The APRM documents and institutions are now in place and the Secretariat is based in Midrand. Seventeen countries have signed up to the APRM to date. It has been decided that South Africa will be peer reviewed in the first quarter of 2005. Preparations for the review are underway and the Presidency has been identified as the co-ordination point in this regard.

Summit meeting of Steering Committee of NEPAD

· Strengthening of SADC

South Africa has been engaged in the finalisation of the restructuring of SADC. The restructuring of SADC has resulted in the centralisation of Sector Co-ordinating Unit activities under the principle of clustering, the creation of new Departments/Units in the SADC Secretariat, the creation of a monitoring mechanism through the Integrated Committee of Ministers, the creation of SADC National Committees in Member States and the development of the Regional Indicative Strategic Development Plan (RISDP) that will focus on the activities of SADC over a 15-year period based on goals to be achieved in the development of the region.

There is also need for the acceleration of the implementation of the new organisational structure and to strengthen the SADC Secretariat which is now composed of the following units:

· Strategic Planning, Gender and Policy Harmonisation which is compromised of the following directorates:
· Trade, Industry, Finance and Investment
· Food, Agriculture and Natural Resources
· Infrastructure and Services
· Social and Human Development and Special Programmes.
· This Department will also deal with cross-cutting issues such as Gender and Development, Science and Technology and Statistics.
· Political, Defence and Diplomatic Affairs
· Administration
· Finance
· Information and Communication Technology
· Public Relations and Information
· Internal Audit

Also important is the strengthening of its capacity and governance. A well capacitated and fully functioning SADC is very critical as all Regional Economic Communities are being rationalised to be implementing agencies of NEPAD programmes.

A Memorandum of Understanding between the AU Commission and the Africa's Regional Economic Communities needs to be finalised so as to ensure a co-ordinated interface in addressing key AU themes and activities (political, developmental, peace and security, etc)

· Strengthen role of SA as chair of SADC Organ on Politics, Defence and Security
South Africa as chair of the SADC Organ on Politics, Defence and Security from August 2004. This presents an ideal opportunity for SA to contribute meaningfully in strengthening the SADC as a whole. The Departments of Foreign Affairs and Defence are currently working on a strategy to support SA as Chair of the Organ. A critical task facing our Chairmanship is to ensure the implementation of the Strategic Indicative Plan of the Organ by all SADC members.

· The strengthening of bilateral relations and the execution of the Cabinet decision of 2002 to ensure representation in each African country over the next five years.

Since 1994, SA representation in Africa has increased markedly. Currently, we have 32 resident Missions, 15 of which were opened in the past five years. We need to realise the Cabinet Lekgotla decision of 2002, which recommends SA representation in all African countries in five years.

We also need to strengthen overall trade with Africa giving attention to the strengthening of infrastructure. In this regard, we need to strengthen both land and sea transport connections with the continent.

SOUTH-SOUTH CO-OPERATION

· IBSA

The establishment of the India, Brazil, South Africa Dialogue Forum present another opportunity for strengthening the voice of the South in global Affairs. It also presents opportunities for intensifying co-operation amongst these three important south economies.

IBSA Ministers of Defence met on the 1st February 2004 in Pretoria under the chairmanship of the South African Minister of Defence.

The IBSA Dialogue Forum held its first trilateral Ministerial Commission on 4-5 March 2004. The outcomes of the conference were two significant documents- The New Delhi Agenda for Cooperation, and the New Delhi Plan of Action. These two documents set the tone for intensification of the Dialogue amongst the three countries, as well as cooperation at sectoral level. It is expected that the trilateral cooperation is going to expand to other areas of mutual interest. South Africa needs to formulate a strategy on the engagement of other stakeholders like business sector and civil society in this Forum. Such issues should receive immediate attention as South Africa prepares to host the next Trilateral Ministerial Commission during the first quarter of 2005.

The IBSA Fund for poverty and hunger alleviation has also been set into motion as the New Delhi Ministerial Meeting endorsed its Terms of Reference. This Fund is aimed at assisting other developing countries in the implementation of best practice projects from IBSA countries.

It is expected that the IBSA Heads of State and Government would meet on the margins of the United Nations General Assembly in September 2004. This meeting would provide the three countries to reflect on the progress made in the Dialogue Forum.

· AASROC

South Africa hosted a Ministerial Working Group Meting in March 2004, in preparation for the second AASROC conference, which will be held in South Africa from 19-20 August 2004, to be co-hosted by Indonesia and South Africa. This second AASROC meeting will be preceded by the NAM Ministerial Meeting from 17-19 August which would be preparing for the next NAM Summit to be held in Cuba, 2006

We have agreed that economic issues; trade; investment: and human resource developments are the areas of primary focus for AASROC. These areas of co-operation must be developed within the context of the environment of globalisation and intra-regional co-operation, through the New Strategic Partnership between Africa & Asia.

ECONOMIC DIPLOMACY

· World Trade Organisation

Multilateral trade negotiations in the World Trade Organisation (WTO) have encountered a series of difficulties culminating in a failure to reach concrete outcomes at the 5th Ministerial Conference in Cancun in September 2003. Despite this failure, significant advances were made in negotiations, particularly in agriculture, due in large measure, to the emergence of the G20, a new alliance of developing countries.

Since Cancun, several developments have taken place including important initiatives by the US and the EU to put the negotiations back on track. Although significant breakthroughs are not expected and it is unlikely that WTO members will meet the original deadline for negotiations (December 2004), some important progress can be made over the course of the first half of 2004, ensuring that this year is not lost entirely to the dictates of the US election and impending changes in the European Commission.

We should nevertheless continue to explore EU and US flexibilities and limitations, and determine how to advance the process. Over the next months, there will be a range of meetings at political and technical levels that offer the opportunity to intensify the engagement. Our overall objectives would be to put the negotiations back on track, make progress over the first half of 2004, and ensure that we retain the ambitions of the Doha Development Agenda.

Bilateral Trade Relations

FREE TRADE AGREEMENTS

South Africa, through the Southern African Customs Union is engaged on several Free Trade Agreement Negotiations. The ones that are currently being negotiated include: - SACU/US; SACU/EFTA; SACU-EU TDCA; SACU/MERCOSUR; SACU/INDIA; SACU CHINA

SA-EU TDCA

An additional protocol to the SA/EU Trade, Development and Cooperation Agreement (TDCA) has been agreed upon. It is to extend all aspects of the agreement to the 10 new member states that joined the EU on 01/05/04. It makes provision for, inter alia:- the extension of market access under the free trade area and the EU's generalised system of preferences to the 10 new member states. This will vastly improve South Africa's market access into those countries. Further consultations will be held before the end of July 2004.

The SA-EU TDCA will be subject to review in November 2004. The five-year review of the TDCA presents an opportunity to sharpen SA's engagement with the EU. South Africa is also currently analysing the implications (opportunities and challenges) of the recent EU expansion. The President will address the EU Parliament in November 2004 and this presents an opportunity for intensification of our partnership.

· Global Finance

The government seeks to remove impediments to the sustained economic growth of and poverty reduction in developing countries, African economies and South Africa, that exist in the international financial architecture, in the development policies of the Bretton Woods Institutions (BWIs), and in the development aid policies and practices of bilateral donors. These policy goals incorporate a number of activities that directly and indirectly affect growth, employment and redistribution in the South African economy.

South Africa's ongoing engagement with the World Bank and IMF is aimed at influencing the substance and direction of economic and financial policies implemented by those institutions as they relate to South Africa, other African economies and the developing world more broadly. We are also forming alliances and strengthening the voice of the few developing countries that are represented in these institutions. Also key is the monitoring of the implementation of the Monterrey Consensus. South Africa played a very key role in this Conference with our Finance Minister appointed as the Envoy of the UN Secretary General to mobilise international support for that historic Conference.

Implementation of the Outcomes of Major International Conferences
We are actively engaged in the follow up to the implementation of major International Summits/Conferences, which do have a bearing on the socio-economic development of many developing countries. As custodian of the World Summit Against Racism as well as the World Summit on Sustainable Development, South Africa continues to facilitate and closely monitor the implementation of the outcome of these Summits/Conferences.

Another Conference outcome that needs close monitoring and international support is the progress in the implementation of the Millenium Development Goals. The extent to which these major conference have impacted on developing countries, I believe, should be demonstrated by the improvement, in amongst others, the achievement of the Millennium Development Goals.

Recent Reports have shown improvement in certain regions and on certain goals. In Africa, it is apparent that more concerted effort is needed for any significant improvement to be registered.