Briefing to the Select Committee on Trade

1

• Briefing to the Select Committee on Trade
  International Relations regarding the Amending
  Agreement to the SA-EU Trade, Development and
  Cooperation Agreement
• (TDCA)

2
Background on the TDCA

• The TDCA was the first bilateral framework
  agreement entered into by both SA and the EU.
• The TDCA was signed in 1999.
• It was partially implemented in January 2000
  awaiting ratification.
• The TDCA was fully implemented in May 2004
  following final ratification.
• It includes chapters on Political Dialogue,
  Trade, Economic Cooperation, Development
  Cooperation and Cooperation in other areas.
• Trade liberalisation is asymmetrical in nature
  SA to eliminate tariffs on 86 of EU imports to
  SA over 12 year period, whilst EU to eliminate
  tariffs on 95 of South African exports over 10
  year period.
• The 2004 mid-term review of TDCA led to
  realisation that TDCA needed an update.
• Formal TDCA revision negotiations was launched on
  27 March 2007 (DIRCO-led).

3
Background on TDCA (cont.)

• Negotiations included all relevant SA Departments
  and were conducted by three thematic negotiation
  groups, namely
• Political Dialogue Negotiating Group DIRCO-led
• Economic and Other Areas of Cooperation Working
  Group DIRCO-led
• Development Cooperation Negotiating Group
  National Treasury-led.
• 35 new and revised articles initialled by chief
  negotiators on 10 October 2007.
• Process of revision of trade chapters is being
  conducted separately under SADC EPA negotiations
  process.
• Amending Agreement was signed by Minister
  Nkoana-Mashabane during 2nd SA-EU Summit on 11
  September 2009.

4
The Revised TDCA in Context

• The Mid-Term review was mandated in terms of
  Article 103 of the TDCA.
• The TDCA has proven to be very beneficial to SA
  in terms of trade, having helped to facilitate a
  234 trade increase between 2000-2004, and a 170
  trade increase from 2004-2007 in SA-EU trade.
• TDCA regulates SA-EU Development Assistance.
• The EU is SA largest ODA partner, having
  committed to 950m for 2007-2013 EU budget cycle.
• The European Investment Bank has budgeted 900m
  loans for infrastructure projects over the same
  period. This envelope is almost fully committed
  and expected to be increased.
• The TDCA allows for broad-ranging cooperation
  over many fields and provides legal foundation
  for the regulation of relations.
• The Revised TDCA further broadens and entrenches
  this cooperation.
• The Revised TDCA articles do not impose any
  mandatory financial commitments for either side.

5
Changes to the TDCA

• Revised Preamble
• A new recital has been added recognising that the
  multilateral disarmament and non-proliferation
  treaty system in all its components is of vital
  importance
• That progress should be made in the
  implementation of all the obligations deriving
  from it
• South Africas inclusion of a reference to
  disarmament in this paragraph is an important
  point-of-principle victory, as it is the first
  time that the EU has been forced into, not only
  focussing on including the non-proliferation
  aspect as an essential element in a framework
  agreement, but also adding the disarmament issue.

6
Changes to the TDCA

• Revised Article 2 (Essential elements)
• The Article has been reworded to include the
  following essential elements of the Agreement
• the respect for democratic principles and
  fundamental human rights as laid down in the
  Universal Declaration of Human Rights
• cooperation on issues of disarmament and the
  non-proliferation of weapons of mass destruction.
• As essential elements, this means that any
  violation of these principles could result in the
  termination of the Agreement.

7
Changes to the TDCA

• Revised Article 55 (Information Society and
  ICTs)
• The article has been reworded to provide for
  broader cooperation. The Parties agree to
  cooperate in the development of the Information
  Society, and in harnessing ICTs as enabling tools
  of socio-economic development in the information
  age. Cooperation shall include dialogues,
  information exchange and possible technical
  assistance on different aspects of building the
  information society.

8
Changes to the TDCA

• Revised Article 57 (Energy)
• This article has been amended to place more focus
  on energy security, the promotion of cleaner
  energy technologies, as well as regulatory
  cooperation.
• Revised Article 58 (Mining and Minerals)
• This article has been amended to allow to support
  policies and programmes that promote the local
  beneficiation of minerals and that create
  opportunities for collaboration in the
  development of the mineral beneficiation sector.

9
Changes to the TDCA

• Revised Article 59 (Transport)
• The existing article on Transport as been split
  into two General and Maritime.
• The general section has been revised and now also
  allows for
• cooperation on issues of rail transport
• exchanging of information and improving
  cooperation on the respective transport safety
  and security policies and practices
• harmonising transport policies and regulatory
  frameworks through enhanced policy dialogue and
  exchanges of regulatory and operational know-how
  with competent authorities
• as well as developing partnerships in the field
  of global satellite navigation systems, including
  research and technology development, and their
  application for sustainable development.

10
Changes to the TDCA

• New Article 59A (Maritime transport)
• This allows for broad cooperation and dialogue on
  maritime transport and includes issues such as
  formulation of legislation relating to maritime
  transport and market administration strive for
  efficient transport service for international sea
  trade enforce internationally binding shipping
  safety standards prevent marine pollution
  exchange of personnel, scientific information and
  technology to enhance maritime security.
• Revised Article 60 (Tourism)
• It has been broadened to include the development
  of local communities and promoting cooperation at
  regional and continental levels.

11
Changes to the TDCA

• Revised Title V (Development Cooperation)
• The various articles in Title V have largely been
  amended to reflect updated internal South Africa
  and EU procedures
• New Article 65A
• Here in the Parties
• Elaborate on their joint commitment to meeting
  the MDGs
• Redouble their efforts to meet their Monterrey
  Financing for Development Commitments
• Commit to achieve the outcomes of the
  Johannesburg Plan of Implementation
• Express their support for the African Union and
  its socio economic programme

12
Changes to the TDCA

• Revised Article 83 (Science and Technology)
• Has been substantially broadened
• Allows for greater ST partnership and
  cooperation under the EU's Framework Programmes
  and to strengthening Africa's science and
  technology capacities. SA is already the 4th
  largest non-EU participant in the Euro55 billion
  Framework Research Programme after the US, Russia
  and Japan. SA also has a separate Science and
  Technology Agreement with the EU since 1997.
• Revised Article 84 (Environment)
• Has been broadened and now also allows for
  cooperation on improving air quality.

13
Changes to the TDCA

• Revised Article 85 (Culture)
• It has been amended and now allows for the
  establishment of a policy dialogue in the field
  of culture.
• It also commits both Parties to cooperate in the
  framework of the relevant international fora
  (e.g. UNESCO) in order to enhance the protection
  and promotion of cultural diversity and to foster
  intercultural dialogue at international level.

14
Changes to the TDCA

• Revised Article 86 (Social Issues)
• This article has been amended and now allows for
  a broader dialogue in the area of employment and
  social policy, which will include questions
  relating to the social problems of post-apartheid
  society, poverty alleviation, decent work for
  all, social protection, unemployment, gender
  equality, violence against women, children's
  rights, persons with disabilities, older persons,
  youth, labour relations, public health, safety at
  work and population.

15
Changes to the TDCA

• Revised Article 90 (Fight against drugs and
  money laundering)
• This article has substantially altered
• It has been re-titled to Cooperation on Illicit
  Drugs allowing for cooperation to ensure a
  balanced and integrated approach towards
  addressing the drugs problem and reducing the
  supply of, trafficking in and the demand for
  illicit drugs.

16
Changes to the TDCA

• New Article 91A (Weapons of Mass Destruction and
  their means of delivery)
• Is an essential element committing the Parties to
  cooperate and to contribute to strengthening the
  multilateral disarmament and non-proliferation
  system.
• The Parties agree to counter the proliferation of
  all weapons of mass destruction and their means
  of delivery through full compliance with and
  national implementation of their respective
  existing obligations and commitments under the
  relevant treaties and agreements and other
  relevant international obligations.
• In this regard they undertake to take steps to
  sign, ratify or accede to relevant international
  disarmament and non-proliferation instruments, as
  appropriate.
• They agree to fully implement and comply with all
  international legally binding instruments, as
  well as establish and/or maintain an effective
  system of national export controls.

17
Changes to the TDCA

• New Article 91B (Combating terrorism)
• Consists mainly of a declaratory section dealing
  with commitments to combating terrorism and the
  approaches thereto
• The Parties agree to cooperate in the prevention
  and suppression of acts of terrorism in
  accordance with the Charter of the United Nations
  and international law, relevant conventions and
  instruments and within their respective
  legislation and regulations
• In this regard they will, inter alia, exchange
  information on terrorist groups and their support
  networks
• The parties will exchange views on means and
  methods used to counter terrorism, including in
  technical fields and training, and by exchange of
  experiences in respect of terrorism prevention.

18
Changes to the TDCA

• New Article 91C (Money laundering and
  terrorism financing)
• Commits the Parties to making every effort and
  cooperating in order to prevent the use of their
  financial systems for laundering of proceeds
  from criminal activities in general and from
  offences related to illicit drugs and
  psychotropic substances in particular
• This may also include administrative and
  technical assistance with the purpose of
  developing the implementation of regulations and
  efficient functioning of the suitable standards.
• New Article 91 D (Combating Organised Crime)
• The Parties agree to cooperate in combating
  organised and financial crime, including
  corruption.

19
Changes to the TDCA

• New Article 91E (Small Arms and Light
  Weapons)
• The Parties agree to pursue and further develop
  close cooperation to prevent, combat and
  eradicate the illicit trade in small arms and
  light weapons in all its aspects as set out in
  the UN Programme of Action (UNPoA) to address
  the issue of the excessive accumulation of small
  arms and light weapons.
• New Article 91F (Mercenaries)
• The Parties undertake to establish a regular
  political dialogue to cooperate in the
  prevention of mercenary activities in accordance
  with their obligations under international
  conventions and their respective legislation and
  regulations implementing such obligations.

20
Changes to the TDCA

• New Article 91G (International Criminal Court)
• The Parties reaffirm their support for the
  International Criminal Court and its work
• The Parties further agree to cooperate to
  promote the universality and integrity of the
  Rome Statute and related instruments and agree to
  strengthen their cooperation with the ICC and
  its work.

21
Changes to the TDCA

• New Article 91H (Cooperation on Migration)
• This article allows for very broad and in-
  depth SA- EU migration dialogue.
• In strengthening cooperation the dialogue shall
  cover a comprehensive agenda that includes, inter
  alia
• fair treatment of foreign nationals residing
  legally on their territories
• visa issues of mutual interest including
  simplifying entry procedures nationals of both
  parties
• travel document security and identity issues
• In the framework of cooperation to prevent and
  reduce illegal immigration, the Parties agree to
  readmit their illegal migrants

22
Failure to Ratify by South Africa

• SA EU entered into a Strategic Partnership on
  14 May 2007.
• SA is one of only nine such strategic partners
  for the EU- others are Brazil, Canada, China,
  India, Japan, Russia, Ukraine and the USA.
• The SA-EU Strategic Partnership Joint Action
  Plan, is a political plan of action that
  compliments the TDCA.
• Non- ratification by SA of the TDCA Revision
  Agreement would send a negative signal to a key
  strategic partner.
• The Revised TDCA for the first time commits the
  EU to recognise that the multilateral disarmament
  and non-proliferation treaty system in all its
  components is of vital importance, and that
  progress should be made in the implementation of
  all the obligations deriving from it.
• South Africas insistence on a reference to
  disarmament in this paragraph is an important
  point-of-principle victory, as it is the first
  time that the EU has been forced into not only
  focussing on including the non-proliferation
  aspect as an essential element in a framework
  agreement, but also the disarmament issue.
• Following ratification, this could be used as a
  precedent going forward when dealing with the EU
  on the linkages between non-proliferation and
  disarmament.

23
Thank you