Briefing to the Select Committee on Trade & International Relations

regarding the Amending Agreement to the

SA-EU Trade, Development and Cooperation Agreement

(TDCA)

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).

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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.

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Background on TDCA (cont.)

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.

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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 Africa’s 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.

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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.

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Changes to the TDCA

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.

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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.

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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.

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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.

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Changes to the TDCA

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 MDG’s;

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

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Revised Article 83 (Science and Technology)

Has been substantially broadened

Allows for greater S&T 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.

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Changes to the TDCA

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.

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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.

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Changes to the TDCA

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.

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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.

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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.

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Changes to the TDCA

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.

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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.

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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.

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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;

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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 Africa’s 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.

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Thank you