Communiqué on the Joint Commission between South Africa and Belgium, Brussels, 10 November 2006

INTRODUCTION

The first meeting of the Joint Commission between the Republic of South Africa and the Kingdom of Belgium was held in Brussels on 10 November 2006, implementing the Joint Declaration signed between the two countries during the official visit of H.E. President Thabo Mbeki to Belgium in November 2004. The meeting had the format of a Plenary Session co-chaired Dr. Ayanda Ntsaluba, Director-General of the Department of Foreign Affairs of South Africa and by Ambassador Jan Grauls, Chairman of the Board of Directors of the Federal Public Service of Foreign Affairs, Foreign Trade and Development Cooperation of Belgium, preceded by work sessions of the four Special Committees on political issues, economic matters, development cooperation and defence. The list of participants is attached in annex.

The relations between Belgium and South Africa are strong and flourishing, as illustrated by above-mentioned visit of President Thabo Mbeki to Belgium and the visit to South Africa of H.R.H. Prince Philip, at the head of an economic delegation, in March 2006.

Both delegations reviewed political, economic and social developments in their respective countries, they paid attention to the challenges ahead and they identified new areas of bilateral cooperation and trilateral commitment in other parts of Africa. Belgium's Federal Government and the Regional Governments, in particular Flanders, gave special attention to South Africa's challenges regarding economic and social development and both sides agreed that capacity building and skills development to develop the Second Economy will remain crucial issues in the immediate future.

SPECIAL POLITICAL COMMITTEE

African Union - NEPAD - African Partnership Forum

Belgium and South Africa both emphasized the crucial role of the African Union (AU) in African development and peacekeeping in particular. Both countries remain committed to the AU's endeavours and reiterated their continued support for capacity building. Belgium availed itself of this opportunity to commend South Africa's and in particular President Mbeki's efforts to bring about peace in Africa.

Both delegations also stressed the importance of the New Partnership for Africa's Development (NEPAD) as Africa's main program for socio-economic development. Belgium commended South Africa for its role as key driver of the NEPAD process. South Africa welcomed Belgium's commitment to NEPAD in particular through its support for the NEPAD secretariat and its commitment to the work of the Africa Partnership Forum (APF) towards improving the implementation and the efficiency of the NEPAD priority programmes. Belgium took note that the Review of South Africa within the African Peer Review Mechanism would be completed by the end of 2006.

Both parties supported the role of the APF as a multilateral forum for enhancing international cooperation towards the achievement the NEPAD objectives. They took note of the results of the APF meeting in Moscow of 26 and 27 October 2006 and welcomed the positive input from the APF support unit and the NEPAD secretariat in monitoring the progress made in priority areas of the Joint Action Plan and in further facilitating the way forward in view of the meetings of the APF next year.

Southern African Development Community (SADC)

South Africa informed Belgium about the Extraordinary SADC Summit on the regional integration agenda, which was held in Midrand on 23 October 2006. Reference was also made to the next EU-SADC double troika meeting at ministerial level, which is due to take place in Lesotho on 17 November 2006. Both delegations expressed the hope that the next Ministerial Conference in the framework of the Berlin Initiative will be held as soon as possible.

EU-Africa dialogue

Belgium and South Africa underlined the importance of the EU Strategy for Africa and welcomed the priority set by the EU and the African countries on the development and enhancement of their relationship with a comprehensive, integrated and long-term framework. They welcomed the EU pledge to concentrate its support to Africa in the areas of peace and security, human rights and governance, development assistance, sustainable economic growth, regional integration and trade.

Both countries fully supported the ministerial EU-Africa troika agreement to transform the Strategy into a joint EU-Africa Strategy and to develop an action plan for its implementation. They reaffirmed their commitment to implement the Strategy.

EU-South Africa Partnership

Belgium acknowledged South Africa's important role in Africa and in the world at large and the need to develop the European Union's relationship with South Africa into a truly strategic partnership. In many ways the Strategic Partnership between Belgium and South Africa is a precursor of the SA-EU Partnership.
Belgium and South Africa gave their full support to the process of developing an EU-South Africa Strategic Partnership that will be complementary to and fully consistent with the EU Strategy for Africa. They agreed that, in this regard, coherence needs to be assured between the Strategic Partnership, TDCA and EPA negotiations with the SADC group, the Country Strategy Paper (CSP) and South Africa's national, regional and African priorities and commitments.

Great Lakes Region

Belgium and South Africa reiterated their common commitment to peace, stability and economic progress in the Great Lakes Region. They emphasized the need to focus further on bilateral actions and trilateral cooperation in that Region, more precisely on support for the new institutions, security sector reform, economic reconstruction and development. Concrete initiatives will be developed for mid-term review.

Both Parties agreed to continue to emphasize the need for good governance and respect of human rights as the foundation for any meaningful development. The Region's peoples are entitled to long term peace and security and, for the whole of Africa, a stable Great Lakes Region is a prerequisite for the continent's progress.

They welcomed the holding of elections in the Democratic Republic of Congo (DRC) and called on the presidential candidates and their supporters to respect the outcome. Both parties agreed to continue their support to the DRC in its call to the international community to provide assistance for its reconstruction and development programme. They are also of the opinion that these efforts should be sustained by the establishment of an coordination and support mechanism in Kinshasa allowing for a sustained policy dialogue between priority partners of the DRC and the new Congolese authorities.

Belgium and South Africa reaffirmed their commitment to the consolidation of peace in Burundi and to work together, with the Burundi authorities, towards strengthening democratic institutions. Belgium commended South Africa for its tireless commitment towards the Burundi peace process. They stressed the immediate need for increased international cooperation and the urgent implementation of financial promises already made towards Burundi's reconstruction efforts.

They emphasized the importance for the Burundi peace process of the Regional Initiative as well as of the future integrated UN Office and they committed their full support to the work of the UN Peace Building Commission.
Both delegations agreed that sound management of natural resources will play a crucial role in any stabilization effort in the Great Lakes Region. They emphasized the urgent need to enhance transparency in the solid minerals sector. They committed themselves to mutual consultations on the subject and to work together with the countries of the Region and with international partners.

Both parties stressed the importance of a continued substantive presence for the next couple of years of the United Nations through its peacekeeping mission MONUC. They agreed to work together in developing a new adequate mandate for MONUC in the post-transition phase.

Both countries finally stressed the importance of regional cooperation in the Great Lakes Region, through SADC, Common Market for Eastern and Southern Africa (COMESA), the East African Community (EAC) and other organizations, but also through the protocols and programs of the International Conference for the Great Lakes Region, in particular those encouraging cross border confidence building and transparency in the natural resources sector.

Sudan

The parties expressed their common concern over the deteriorating situation in the Darfur region of Sudan and exchanged views on the roles of the UN and AU in managing the crises. The parties commended the work done by AMIS in Darfur but emphasized that in order to secure peace keeping in support of the DPA there is a need for a UN operation. The parties expressed their support for the DPA as the basis for a peaceful solution to the Darfur conflict. They called on signatories to the DPA to respect their commitments and those outside to join in the peace process. The parties called for an immediate ceasefire under the existing agreements. The parties recognized that attempts to find a solution to the conflict in Darfur must also involve neighbouring Chad and the Central African Republic.
Both countries stressed the need for further progress in the implementation of the Comprehensive Peace Agreement. They expressed the hope that the continuing crisis in Darfur would not have negative consequences on the full implementation of the CPA, and urged all parties to fully implement all protocols of the CPA.

Ivory Coast

South Africa informed Belgium of its efforts to find a solution to the situation in Ivory Coast as well as the recent discussions and decision by Heads of State of the AU Peace and Security Council on 17 October 2006. The parties expressed their support for UN Security Council Resolution 1721 of 1 November 2006.

United Nations

Belgium and South Africa agreed that effective and rules-based multilateralism with the UN at its core is an indispensable tool to bring about international peace and security, sustainable development and the promotion of human rights. They agreed to consult and to work together on issues of common concern, such as conflict prevention and management, as well as the reform of the UN system, including the strengthening of the Human Rights Council. They re-emphasized the importance of Security Council reform. South Africa also emphasized the need for the UNSC to be enlarged.

Keeping in mind the fact that both countries will be non-permanent members of the Security Council in 2007-2008, Belgium and South Africa agreed to increase consultations on matters which are on the Security Council's agenda, both between their capitals and through their Permanent Missions in New York. The Parties briefed each other on their respective positions on certain issues relating to global peace and security, particularly as regards Africa, with a view to close co-operation.

Peace process in the Middle East

Belgium and South Africa called on the parties in the Arab-Israeli conflict to reengage in a constructive process leading step by step to a peaceful and comprehensive settlement based on relevant UN Security Council resolutions and, in particular, to a negotiated two-state solution to the Israel-Palestinian conflict.
A constructive process would alleviate the economic and humanitarian situation in Gaza and the West Bank. This is also the purpose of bilateral cooperation programs in the Palestinian Territories, implemented by both South Africa and Belgium.

Iraq - Iran

Both countries also exchanged views on the situation in Iraq and on Iran.

SPECIAL ECONOMIC COMMITTEE

Introduction

Both delegations took note of the increase in bilateral trade over the last two years as BLEU-exports (Belgium-Luxembourg Economic Union) to South Africa grew by 25% in 2004 and by 20% in 2005, and South Africa's exports to Belgium grew by 22% in 2005, South Africa maintaining its trade surplus. They acknowledged that the abovementioned economic mission to South Africa led by Prince Philippe in March 2006 with the active participation of more than 120 business people, representing a wide variety of sectors such as logistics, ports, retail, industrial appliances and sports infrastructure, has opened new perspectives for trade and investment. The delegation also made reference to a number of other activities during the last year aimed at stimulating bilateral economic ties, e.g. the seminar organized by the Royal Institute for International Relations on 1 December 2005, with participation of the Belgian Federal Public Service of Foreign Affairs, Foreign Trade and Development Co-operation, the South African Embassy, Regional Export Agencies and Belgian business partners.

ASGISA - JIPSA

The South African delegation gave a briefing on ASGISA (Accelerated and Shared Growth Initiative of South Africa) and JIPSA (Joint Initiative for Priority Skills Acquisition) which aim at achieving sustainable economic growth and redistribution in the South African economy. The core objective of the South African Government is to halve poverty and unemployment by 2014. Besides the moral imperative, achieving these targets will bolster political stability and lay the foundation for sustainable economic growth. Based on a steady improvement in the performance and job creating capacity of the economy over the past decade, South Africa considers these targets to be achievable.

South Africa highlighted its huge public investment programme in infrastructure development (EUR 40 billion) over the next 3 years. This includes projects in electrification, water, rail, ports, airports and petroleum pipeline, and opens up numerous opportunities for collaboration with international partners. In this regard, South Africa invited Belgian economic operators to participate in these projects, as well as to take advantage of the opportunities emerging from the FIFA World Cup in 2010.

The Belgian delegation recalled the different efforts already undertaken in capacity building through its Federal programmes. Belgium emphasized its intention to give particular attention to these South African initiatives in future co-operation programmes. Reference was made to the competences of the Regions and Communities in the area of international relations, which has resulted in various initiatives with South Africa. The Flemish Government has its own co-operation programmes as well as an annual consultation process on development co-operation. South Africa expressed its willingness to strengthen its co-operation with all competent institutional authorities in Belgium.

Belgium's Federal and Regional Governments will encourage businesses to lend support for the JIPSA initiative by offering scholarships. The Flemish Government is already focusing in its programmes on capacity building. Both the Federal and the Flemish Governments will examine increased opportunities in port management through various channels, including new strategies for development co-operation. The Government of the Walloon Region on the other hand focuses mainly on improving qualification in supply chain management. The Economic Committee was requested to follow up on this matter and to consult with the Committee for Development Co-operation.
Belgium informed South Africa of the latter's recent inclusion in the list of partner countries for the fellowship scheme for highly qualified non-EU researchers, implemented by the Federal Science Policy Office, providing them with an opportunity to work during six to twelve months in a Belgian research team.

Bilateral trade and investments

Both delegations updated each other on economic developments and the investment environment in their respective countries.

South Africa reported that since 1994, but particularly since 2004, it has experienced an unprecedented period of sustained economic growth and stability. South Africa indicated that growth averaged about 3% during the first decade of democracy. Since 2004 growth has tended to exceed 4% per year, reaching 4.9% in 2005. The economy is experiencing its highest levels of business and consumer confidence in 16 years and a recent World Bank investment climate survey has rated South Africa's investment environment as highly favourable. South Africa explained the efforts it was making to promote investments and outlined the steps being taken to review the investment incentives currently available in South Africa.

Belgium expressed a number of concerns raised by its companies. South Africa elaborated on the regulatory reforms designed to enhance sustainable growth and development and expressed its willingness to assist Belgian companies to comply with all regulations and its readiness to continue to address any reasonable concerns from investors.
Considering the prominent positions both countries hold, South Africa as a diamond producer, and Belgium (Antwerp) as a world diamond centre, both parties recognized the strategic importance of this industry in their respective economies and the need to further strengthen co-operation in this area. In this regard, the parties agreed to explore positive measures to foster and improve relations in the exchange of technologies, training and the exchange of information on diamond legislation.

Considering the opportunities for further enhancing collaboration and investment in this sector, both parties agreed to convene a workshop on diamond policies and administration which will include business and other roleplayers before the end of the first half of 2007.

South Africa explained that there are investment and co-operation opportunities in a number of key sectors, including in the areas of biofuels, wind energy, solar power, and energy efficiency initiatives The parties agreed that strengthening bilateral energy co­operation would be of benefit for the environment and the economic development of the two countries. The parties expressed their willingness to facilitate business-to-business linkages between their respective companies.

Considering the important role of South Africa as a producer of synthetic fuels and the high concentration of the petrochemical industry in Belgium, both countries undertook to further co-operate in this sector.
A discussion took also place on economic opportunities for both countries related to the organization in South Africa of the World Cup Football in 2010.

Direct air link Brussels – Johannesburg

Both delegations took note of the fact that the regular direct flights between Brussels and Johannesburg formerly serviced by Sabena and Sobelair as well as by South African Airways have been suspended for various reasons. Considering that a direct air link can be a strong catalyst for the development of business, tourism and people-to-people contact, they welcomed ongoing commercial talks and agreed to support any initiative to re-establish a direct air link.

Administrative simplification and e-government

Belgium briefed South Africa on its achievements in the area of administrative simplification and the furthering of e-government and expressed its willingness to support South African efforts in these areas. A programme in this respect will be presented to the South African government within the near future, following mutual consultation amongst experts.

The Belgian delegation provided an overview of the approach and structure which it has put in place to address excessive administrative regulations in order to stimulate entrepreneurship, competitiveness and attractiveness for foreign investments as well as to improve the life of citizens in dealing with administration and to reduce the inefficiencies and cost of the public sector. Belgium was willing to share its experience on several levels: principles in directing administrative reform in favour of its simplification, analysis of existing laws and regulations, prevention of new administrative burden, awareness creation and involvement of citizens and entrepreneurs.
In the area of e-government, the Belgian delegation indicated its willingness to share experience through the possibility of a fact-finding mission of South African experts in accordance with South African priorities and Belgian experience. Such visit could, amongst others, focus on issues related to the technical requirements for the setup of a national e-government, identity management, aspects of e-society, life-cycle of e-ID cards, registration of citizens and project management.

South Africa emphasised that bridging the digital divide is a key priority of ASGISA and highlighted the opportunities in South Africa as well as in the region. They welcomed the possibility of pursuing further cooperation in this area.

Food safety and agricultural exports

Regarding the importance of South African exports of agricultural products to the European single market through Belgian points of entry, Belgium expressed its intention to enhance co-operation in favour of improving food chain safety and bilateral trade. Both countries agreed to establish a consultation and co-operation mechanism with a view to facilitate the dialogue on food/feed safety control. In this regard, South Africa took note of the presentation of the stmcture, experiences and operational procedures of the Belgian Federal Agency for the Safety of the Food Chain. Furthermore, both parties agreed to consider establishing channels of communication so as to promote the development of bilateral trade and to timeously notify each other of the relevant information and co-operate in the best way possible to efficiently search for mutually acceptable solutions to possible trade-related problems.

Customs Co-operation

Both parties confirmed the establishment of a working group on Customs issues of mutual concern, in the framework of the Special Economic Committee of the Joint Commission. Both parties agreed to prepare a common agenda and a working plan on issues to be handled by this working group.

Both parties noted that by deepening the co-operation between the two Customs administrations, legitimate trade between Belgium and South Africa can be facilitated and at the same time illegitimate trade, such as drug trafficking and violation of intellectual property rights can be combated. Both Customs administrations have expressed an intention to implement the World Customs Organisation SAFE framework of standards and they committed themselves to exploring ways of cooperating in its implementation.

Trade relations with the European Union: TDCA and EPA

The Parties expressed their satisfaction at the contribution of the Trade, Development and Co-operation Agreement (TDCA) in strengthening their trade relations, and agreed that the TDCA has proven to be a good basis for co-operation between the EU and South Africa. In line with the provisions of the Agreement, the parties welcomed the ongoing review of the TDCA, which will allow the addressing of possible implications of other arrangements on EU-SA trade relations such as the EU Enlargement, the new SACU Agreement of 2004 as well as the ongoing SADC-EU EPA negotiations. The parties also called for further steps to be taken in the process of trade liberalisation during the review of the trade provisions of the TDCA.

The South African side shared its understanding of the state of play in the SA-EU TDCA Review and the SADC-EU EPA negotiations and expressed the hope that the EU would respond positively to the SADC EPA Framework proposal, which calls for the alignment of the SA-EU TDCA Review and the SADC EPA negotiations to lead towards a single trade regime between Southern Africa and the EU. South Africa further expressed its view that a favourable response would provide the momentum for constructive and timely conclusion of these negotiations, and could also expedite the economic integration of the SADC region. The two sides agreed that the proposed EU-South Africa Strategic Partnership could also contribute to the deepening of the bilateral economic relations and provide further impetus for the development of the SADC region. In this regard, the parties agreed that coherence needs to be assured between the EU-SA Strategic Partnership which could provide support to the alignment of the TDCA, and the SADC-EPA negotiating process and outcome.

Kimberley-process

Both parties underscored the positive results achieved so far through the Kimberley Process Certification System (KPCS) and their commitment to further improve the efficiency and effectiveness of the scheme.

They agreed to intensify the exchanges of information and policy positions on the implementation of the resolutions taken by the KPCS Plenary, in Gabarone, in particular the implementation of the results of the mandatoiy three-year review process. Both Parties welcomed the establishment of the KPCS Working Group of Alluvial Producers (WGAP) and expressed confidence that this development would contribute to the strengthening of internal controls and the important contribution of the diamond sector for the development of these economies. SA and Belgium agreed to work closely together in support of the European Community during its forthcoming tenure as Chair of the KPCS during 2007.

WTO - Doha Development Agenda

Both parties expressed the need to resume negotiations of the Doha Development Agenda (DDA) as soon as possible. They stressed the importance of an ambitious and balanced ' outcome, beneficial for development in all aspects of the negotiation, including agriculture, industrial goods and services as well as operationalisation of commitments made with respect to special and differential treatment as part of the development agenda, as well as aid for trade. Such outcome would require all parties involved in the negotiations to work in a spirit of compromise recognising that the major economies needed to provide leadership in the negotiations. It was agreed that the cost of failure would be far greater than the effort that is required to reach an agreement that is satisfactory for all. Developing countries' trade and development interests would be particularly prejudiced by failure to meet the development objectives of the Round. Both parties were willing to contribute to the successful completion of the DDA.

Belgium, as a member of the European Union, confirmed its commitment to the rules-based multilateral trading system and believes that the EU has made significant and solid contributions to the negotiating process, most notably in its proposal made in October 2005. Belgium acknowledged the importance of meeting the development objectives of the DDA.

SPECIAL COMMITTEE ON DEVELOPMENT COOPERATION

Joint Report of the Development Co-operation Committee

Development co-operation between Belgium and South Africa commenced immediately after the first democratic elections in South Africa in 1994. Since the first Indicative Co­operation Programme was launched in 2001 and focused on programmes in sectors including health, police co-operation, land reform and support to civil society organisations, excluding contributions allocated through multilateral cooperation and the European Commission.
Belgian Development Co-operation with South Africa is implemented via a number of channels, namely direct bilateral cooperation, indirect cooperation through Non-Govemmental Organisations, and co-operation between universities or scientific institutions and the multilateral cooperation.

Both parties reviewed the status of implementation of the first Indicative Co-operation Programme (2001-2006) and expressed satisfaction at the depth of development co­operation based on and aligned to South Africa's strategic development priorities and programmes.

The Parties emphasised the importance of compliance with the Paris Declaration on Aid Effectiveness, Ownership, Alignment and Harmonisation of March 2005. In light of the low disbursement of funds, the parties agreed on the necessity to simplify processes on both sides. They concluded that political commitment should be expressed through the revision of legal and administrative instruments. An open dialogue between the two parties is essential to take this process forward.

Both parties reviewed the jointly developed second Indicative Co-operation Programme (2007-2010) and expressed their satisfaction with the key objectives and the fact that they are aligned to the development objectives of South Africa; specifically poverty reduction and economic growth, targeted at narrowing the inequality gap, promotion of governance and capacity building in line with ASGI-SA and JIPSA. South Africa took this opportunity to highlight its priorities and presented the Programme of Action- Vision 2014.

South Africa noted its appreciation for Belgium's active participation in the ongoing development of a new SA-EU Country Strategy Paper and for the synergies between the second Indicative Co-operation Programme and the response strategy reflected in the SA-EU Country Strategy Paper (2007-2013).

The parties welcomed the development of the new Indicative Co-operation Programme for the period 2007-2010 with an indicative amount of € 24 million spread over 4 years. The overall objective of the new multi-year programme is reducing poverty and inequality by improving effectiveness and quality of service delivery at all levels of government; enhancing skills development in the small business, informal sector and through the participation of civil society; and by clarifying objectives and modalities for further impact oriented trilateral and regional development co-operation.

The parties agreed on the Second Indicative Co-operation Programme for development co-operation between Belgium and South Africa for the period 2007 to 2010. In that respect, agreed minutes of the meeting of the Development Cooperation Committee were signed and attached to this communique.

All the financial contributions will be made in the form of untied grants and will concentrate on the following programmes: namely consolidation of the results of the ongoing interventions in the health sector and in the sector of land reform, skills development and job creation and transfer of know-how and support to the civil society.
Both parties agreed to follow up on the implementation of the second Indicative Co­operation Programme at the annual consultations between both parties, and at the implementation level with the partner committee meetings.

SPECIAL DEFENCE COMMITTEE

In accordance with the Agreement on Military Partnership between South Africa and Belgium, signed on 28th February 2006 and in continuation of the regular ministerial consultations, both bilateral and trilateral cooperation were discussed.

South Africa confirmed the posting of a resident Defence Attaché in Brussels.
Meanwhile, the conclusion of a security agreement between the Defence Departments of our countries enhances the framework within the mutual security arrangements for a transparent cooperation, initially in the field of the exchange of a South African C130 pilot, secondly for the South African participation at the Belgian course concerning Improvised Explosive Device Disposal. It also creates the opportunity for a reach back facility on information exchange concerning Explosive Ordnance Disposal between South Africa and Belgium.

Another student exchange discussed, concerned Officer Courses at the Belgian Royal Military Academy and the Royal Higher Defence College and the participation of the future Belgian Defence Attache at the South African Executive National Security Program.

Besides these bilateral actions, opportunities for trilateral cooperation both in Burundi and in the DRC were explored and resulted in the expression of the strong and common will to cooperate with our Central African partners with whom these options will be discussed as soon as possible.

As a symbol for the close ties uniting both countries, the Belgian Navy Ship GODETIA will visit Cape Town in the framework of a Defence Diplomacy Tour at the beginning of February 2007.

Our mutual understanding, the exchange of information and the widening of our partnership through both bilateral and trilateral actions will benefit international peace, security and stability. It also expresses our common commitment to strengthening the good and friendly relations by means of partnership in the field of Defence.

NEXT MEETING
Both delegations agreed that the second meeting of the Joint Commission will be held in Pretoria before the end of 2007.

A mid-term review may be held at Embassy level, either in Pretoria or in Brussels, in May or June 2007.
For the For the
Republic of South Africa Kingdom of Belgium
Dr Nkosazana Dlamini Zuma KarelDe Gucht
Minister of Foreign Affairs Minister of Foreign Affairs
Armand De Decker
Minister of Development
Co-operation

Issued by Ronnie Mamoepa – 082 9904 853
Department of Foreign Affairs
Private Bag X152
Tshwane
0001
13 November 2006