Mr President, last Saturday, I was privileged to be at the opening ceremony of the Rugby World Cup in Cardiff, the capital city of Wales where I come from and Wales actually won! All around that rugby ground there are adverts for South African fruit companies and for South African airlines. We were entertained by singers from South Africa and I thought then how far we have come from those dark days of Apartheid when so many of us, including myself and perhaps one or two of the Commissioners, called for sanctions and boycotts against Apartheid in South Africa. Now, the institutional racism and legalised bigotry and prejudice has been swept away and recognition of that momentous achievement now determines the European Union’s relationship with South Africa. But, I think we all have to acknowledge, Mr President, that we have had five years of protracted and tortuous negotiations on everything from apples, pears and asparagus to cut flowers, fish, wine, port and sherry, but eventually now we see an agreement and hopefully, a signing on Monday in South Africa. I would like confirmation from the Commission that will in fact be the case. The European Parliament and Joint Assembly have played a positive role and have offered encouragement and critical analysis and it is very appropriate that this Parliament is the first parliament to give assent to the agreement. Some Members States of the Union soon forgot the commitments made to Nelson Mandela in Berlin in 1994. It was difficult at times to understand why the response by some Member States was lacking in generosity and understanding. South Africa’s GDP is half that of Belgium and only 0.6% of the world GDP. And yet the negotiations repeatedly stalled because Member States of the European Union allowed sectoral interest to override any need to support South Africa. At the time of the United Kingdom’s Presidency, Philip Stevens, who writes a column in the Financial Times, observed that the European side has been consistently devious, destructive and above all, shamefully protectionist. From the outset, it has sought to hold South Africa hostage to its own subsidised farmers. Let me now summarise the essentials: The asymmetric nature of the trade agreement is crucial and involves the systematic elimination or reduction of tariff barriers and other duties. Europe will open up its markets to 95% of South Africa’s exports over ten years. South Africa will open its markets to 86% of European Union exports over twelve years. This agreement is unique in that it includes the agricultural sector which, of course, is of immense importance to the South African economy. It also acknowledges the potential damage which subsidised agricultural products can do to South African markets, and actually allows South Africa to impose a special safeguard clause in the event of any threats to their own domestic agricultural industry. However, I see running through the agreements the protectionism which unfortunately still characterises the common agricultural policy of the Union. It is also my view that this agreement should not be seen as a model, particularly for ACP countries currently involved in the new post-Lomé Agreements, and I would like confirmation that is not the Commission position. But there are clear lessons to be learnt about the sheer complexities involved in such a project, especially when the mighty EU is your counterpart in very difficult and contentious discussions. This Agreement now needs to be translated into practical benefits. Finally, let me turn to the regional implications. This, I feel, will be the aspect of the agreements which will cause most concern. There will be a reduction, naturally, of customs revenues which Botswana, Lesotho, Namibia and Swaziland have become dependent on. These duties are sometimes as high as 90% in the case of Lesotho and this, of course, will affect these countries’ ability to spend on essential health and education and other social needs. There will be adjustment costs. It is still very unclear, Commissioner, how these costs will be met and certainly the Conference in Lesotho which the Commission has promised seems to be somewhat unclear also. I have had representation from the BLNS countries asking exactly what the position is on that Conference. My own interest in South Africa dates back thirty years. It continues because the issues at stake are no less important now than they ever were. President Mbeki knows that the patience of the people of South Africa is not infinite and he also knows that black impoverished South Africa is desperate to see change. When President Mbeki was inaugurated, he said ‘our nights cannot be nights of nightmares while millions of people live in degrading poverty. No night can be restful when millions have no jobs and are forced to beg and rob to ensure that they and their own do not perish from hunger. Our country, South Africa, is beginning a long journey’. This Parliament should give its assent to this agreement in order that the European Union can play its part in that momentous journey. (Applause) IN THE CHAIR: MR PACHECO PEREIRAVice-President

Political group: PSE