WORLD TRADE
ORGANIZATIONWT/REG113/1
7 December 2000
(00-5324)
Committee on Regional Trade Agreements Original:  English
TRADE, DEVELOPMENT AND CO-OPERATION AGREEMENT
BETWEEN THE EUROPEAN COMMUNITY AND SOUTH AFRICA
The following text reproduces the Trade, De velopment and Co-operation Agreement between
the European Community and the Republic of South Africa.1
_______________
AGREEMENT ON TRADE, DEVELOPMENT AND COOPERATION BETWEEN THE
EUROPEAN COMMUNITY AND ITS MEMBER STATES, OF THE ONE PART, AND
THE REPUBLIC OF SOUTH AFRICA, OF THE OTHER PART
The Kingdom of Belgium, the Kingdom of Denm ark, the Federal Republic of Germany, the
Hellenic Republic, the Kingdom of Spain, the French Republic, Ireland, the Italian Republic, the
Grand Duchy of Luxembourg, the Kingdom of the Netherlands, the Republic of Austria, the
Portuguese Republic, the Republic of Finland, th e Kingdom of Sweden, the United Kingdom of Great
Britain and Northern Ireland,
Contracting Parties to the Treaty establishing the European Community,
hereinafter referred to as the "Member States", andthe European Community , hereinafter referred to as the "Community",
of the one part, and
the Republic of South Africa , hereinafter referred to as "South Africa",
of the other part,hereinafter referred to as the "Parties",Considering  the importance of the existing links of friendship and cooperation between the
Community, Member States and South Africa and the common values that the Parties share;
Considering  that the Community, Member States and South Africa wish to further strengthen
these links and to establish close and lasting relations based on reciprocity, partnership and
co-development;
                                                     
1 These Annexes have been submitted to the Secretariat for consultation by interested Members
(Office 3006).  They are also available at the Europa web site,http://europa.eu.int/comm/development/south_africa/annex.pdf (for the annexes), …/protocol.pdf (for theProtocols) and …/agreement.pdf (for the text of the agreement).WT/REG113/1
Page 2
Recognising  the historical achievements of the South African people in abolishing the
apartheid system and building a new political order based on the rule of law, human rights and
democracy;
Recognising  the Community's and Member States' political and financial support to this
process of political change and transition in South Africa;
Recalling  the firm commitment of the Parties to the principles of the United Nations Charter
and to democratic principles and fundamental human rights as laid down in the Universal Declaration
on Human Rights;
Bearing in mind  the Cooperation Agreement between South Africa and the European
Community which was signed on 10 October 1994;
Recalling  the wish of the Parties to establish the closest possible relationship between
South Africa and the countries of the ACP-EC Lomé Convention as reflected in the signing, on 24
April 1997, of the Protocol governing the accession of South Africa to the fourth ACP-ECConvention of Lomé, as amended by the Agreement signed in Mauritius on 4 November 1995;
Taking account  of the Parties' rights and obligations in terms of their membership of the
World Trade Organisation (WTO), the need to contri bute to the implementation of the results of the
Uruguay Round, and the efforts already made by both parties in this respect;
Recalling  the importance attached by the Parties to the principles and rules which govern
international trade and to the need to apply them in a transparent and non-discriminatory manner;
Confirming  the Community's and Member States' support and encouragement for the process
of trade liberalisation and economic restructuring currently under way in South Africa;
Recognising  the efforts by the South African Government to ensure economic and social
development for the people of South Africa;
Emphasising the importance both the European Union and South Africa place on the
successful implementation of the South African reconstruction and development programme;
Confirming  the commitment of the Parties to promote regional cooperation and economic
integration between the countries of southern Africa, and to encourage the liberalisation of trade
between those countries;
Bearing in mind  the Parties' commitment to ensure that their mutual arrangements do not
impede the process of restructuring the Southe rn African Customs Union (SACU), which links
South Africa to four ACP States;
Underlining the importance which the Parties attach to the values and principles set out in the
Final Declarations of the International Conference on Population and Development held in Cairo
in 1994, of the World Summit for Social Development held in Copenhagen in March 1995 and of the
Fourth World Conference on Women held in Beijing in 1995;
Reaffirming  the commitment of the Parties to economic and social development and the
respect for the fundamental rights of workers, notably by promoting the relevant International Labour
Organisation (ILO) Conventions covering such topi cs as the freedom of association, the right to
collective bargaining and non-discrimination; the abolition of forced labour and child labour;WT/REG113/1
Page 3
Recalling  the importance of opening a regular political dialogue in bilateral and multilateral
contexts on issues of common interest,
Have agreed as follows :
TITLE I
General Objectives, Principles and Political Dialogue
Article 1
Objectives
1. The objectives of this Agreement are:
(a) to provide an appropriate framework for di alogue between the parties, promoting the
development of close relations in all areas covered by this Agreement;
(b) to support the efforts made by South Africa to consolidate the economic and social
foundations of its transition process;
(c) to promote regional cooperation and economic integration in the southern African
region to contribute to its harmonious and sustainable economic and social
development;
(d) to promote the expansion and reciprocal liberalisation of mutual trade in goods,
services and capital;
(e) to encourage the smooth and gradual integration of South Africa into the world
economy;
(f) to promote cooperation between the Comm unity and South Africa within the bounds
of their respective powers, in their mutual interest.
Article 2
Essential Element
Respect for democratic principles and fundamental human rights as laid down in the
Universal Declaration on Human Rights, as well as for the principles of the rule of law underpins the
internal and international policies of the Community and of South Africa and constitutes an essential
element of this Agreement.
The Parties also reaffirm their attachment to the principles of good governance.
Article 3
Non-Execution
1. If either Party considers that the other has failed to fulfil an obligation under this Agreement,
it may take appropriate measures.WT/REG113/1
Page 4
2. Before doing so it shall supply the other Party, within 30 days, with all relevant information
required for a thorough examination of the situati on, with a view to seeking a solution acceptable to
the Parties.
3. In circumstances of particular urgency, appropriate measures may be taken without prior
consultations.  These measures shall be immediately notified to the other Party and shall be a subject
of consultations, if the other Party so requests.  These consultations shall be convened within 30 days
from the notification of the measures. If no satisfactory solution is found, the Party concerned may
avail itself of the procedure relating to the settlement of disputes.
4. The Parties agree, for the purpose of the correct interpretation and practical application of this
Agreement, that the term "circumstances of particular urgency" in paragraph 3 means a case of thematerial breach of the Agreement by one of the Parties.  A material breach of the Agreement consists
in:
(i) repudiation of the Agreement not sanctioned by the general rules of international law,
or
(ii) violation of the essential element of the Agreement, as described in Article 2.
5. The Parties agree that the appropriate measures referred to in paragraph 1 of this Article are
those taken in accordance with international law and in the selection of these measures, priority must
be given to those which least disturb the functioning of this Agreement.
Article 4
Political Dialogue
1. A regular political dialogue shall be established between the Parties.  It shall accompany and
help consolidate their cooperation as well as contribute to the establishment of lasting links of
solidarity and new forms of cooperation.
2. The political dialogue and cooperation are in particular intended to:
(a) promote greater mutual understanding between the Parties and a greater convergence
of views;
(b) enable each party to consider the position and interests of the other;(c) encourage the support for democracy, the rule of law and the respect of human rights;(d) promote social justice and help create the necessary conditions to eliminate poverty
and all forms of discrimination.
3. The political dialogue shall cover all issues of common interest to the Parties.4. The political dialogue shall take place whenever necessary, notably:
(a) at ministerial level;
(b) at the level of senior officials representing South Africa, on the one hand, and the
Presidency of the Council of the European Union and the Commission of the
European Communities, on the other;WT/REG113/1
Page 5
(c) taking full advantage of all diplomatic channels, including regular briefings,
consultations on the occasion of international meetings and contacts between
diplomatic representatives in third countries;
(d) where appropriate, by any other means or at any other levels to be agreed between the
Parties which would make a useful contribution to consolidating the dialogue and
increasing its effectiveness.
5. In addition to the bilateral political dialogue provided for in the previous paragraphs, the
Parties shall take full advantage of, and contribute actively to, the regional political dialogue between
the European Union and the countries of Southern Africa, with a view in particular to promoting
lasting peace and stability in the region.
The Parties shall also participate in the political dialogue in the larger ACP/EU framework, as
foreseen and laid down in relevant ACP/EC Treaties.
TITLE II
Trade
SECTION A
General
Article 5
Free-Trade Area
1. The Community and South Africa agree to establish a Free Trade Area (FTA) in accordance
with the provisions of this Agreement and in conformity with those of the WTO.
2. The FTA will be established over a transitional period lasting, on the South African side, a
maximum of 12 years and, on the Community side, a maximum of 10 years starting from the entry
into force of the Agreement.
3. The FTA covers the free movement of goods in all sectors.  This Agreement will also cover
the liberalisation of trade in services and the free movement of capital.
Article 6
Classification of Goods
On the Community side, the combined nomenclature of goods shall apply to the classification
of goods imported from South Africa.  On the Sout h African side, the harmonised system shall apply
to the classification of goods imported from the Community.
Article 7
Basic Duty
1.  For each product, the basic duty to which the successive reductions set out in the Agreement
are to be applied shall be that effectively applied on the day of entry into force of the Agreement.WT/REG113/1
Page 6
2. The Community and South Africa shall communicate to each other their respective basic
duties, in accordance with the standstill and roll back commitment agreed between the Parties, and the
agreed derogations to these principles, as set out in Annex I.
3. In cases where the process of tariff dismantlement does not start at the entry into force of the
Agreement (notably the products listed in Annex II, lists 3, 4 and 5;  Annex III, lists 2, 3, 4 and 6;
Annex IV, lists 3, 4, 7 and 8;  Annex V;  Annex VI, lists 2, 3 and 5;  Annex VII) the duty to which
successive reductions set out in the Agreement are to be applied shall be either the basic duty referred
to in paragraph 1 of this Article, or the duty applied on an erga omnes basis on the starting day of the
relevant tariff dismantlement schedule, whichever is the lower.
Article 8
Customs Duties of a Fiscal Nature
The provisions concerning the abolition of customs duties on imports shall also apply to
customs duties of a fiscal nature, with the exception of non-discriminatory excise duties levied on
both imported and locally-produced goods which are in accordance with the provisions of Article 21.
Article 9
Charges Having an Equivalent Effect to Customs Duties
The Community and South Africa shall abolish in  their respective imports any charge having
an effect equivalent to customs duties on imports on entry into force of the Agreement.
SECTION B
Industrial Products
Article 10
Definition
The provisions of this section apply to products originating in the Community and
South Africa with the exception of the products covered by the definition of agricultural products
under this Agreement.
Article 11
Tariff Elimination by the Community
1. Customs duties applicable on import into the Community of industrial products originating in
South Africa other than those listed in Annex II shall be abolished on the entry into force of this
Agreement.
2. Customs duties applicable on import into the Community of products originating in
South Africa listed in Annex II, list 1 shall be progressively abolished in accordance with the
following schedule:
- on the date of entry into force of this Agreement each duty shall be reduced to
75 per cent of the basic duty;WT/REG113/1
Page 7
- one year after the date of entry into force of this Agreement each duty shall be
reduced to 50 per cent of the basic duty;
- two years after the date of entry into force of this Agreement each duty shall be
reduced to 25 per cent of the basic duty;
- three years after the date of entry into force of this Agreement the remaining duties
shall be abolished.
3. Customs duties applicable on import into the Community of products originating in
South Africa listed in Annex II, list 2 shall be progressively abolished in accordance with thefollowing schedule:
- on the date of entry into force of this Agreement each duty shall be reduced to
86 per cent of the basic duty;
- one year after the date of entry into force of this Agreement each duty shall be
reduced to 72 per cent of the basic duty;
- two years after the date of entry into force of this Agreement each duty shall be
reduced to 57 per cent of the basic duty;
- three years after the date of entry into force of this Agreement each duty shall be
reduced to 43 per cent of the basic duty;
- four years after the date of entry into force of this Agreement each duty shall be
reduced to 28 per cent of the basic duty;
- five years after the date of entry into force of this Agreement each duty shall be
reduced to 14 per cent of the basic duty;
- six years after the date of entry into force of this Agreement the remaining duties
shall be abolished.
4. Customs duties applicable on import into the Community of products originating in
South Africa listed in Annex II, list 3 shall be progressively abolished in accordance with the
following schedule:
- three years after the date of entry into force of this Agreement each duty shall be
reduced to 75 per cent of the basic duty;
- four years after the date of entry into force of this Agreement each duty shall be
reduced to 50 per cent of the basic duty;
- five years after the date of entry into force of this Agreement each duty shall be
reduced to 25 per cent of the basic duty;
- six years after the date of entry into force of this Agreement the remaining duties
shall be abolished.
For a number of products indicated in this list, tariff elimination will start four years after the
date of entry into force of this Agreement.  Tariff elimination of these products will take place in three
equal annual reductions, to be concluded six years after the date of entry into force of the Agreement.WT/REG113/1
Page 8
For a certain number of steel products indicated in this list, tariff reduction will be realised on
a MFN basis, to arrive at a zero duty in the year 2004.
5. Customs duties applicable on import into the Community of products originating in
South Africa listed in Annex II, list 4 shall be abolished within a maximum of 10 years after the date
of entry into force of the Agreement.
For motor-car components indicated in this list, the applied tariff will be reduced by
50 per cent as from the entry into force of the Agreement.
The precise Community basic duties and tariff elimination schedule for the products on this
list will be established in the second six months of the year 2000, after both parties have examined the
prospects for a further liberalisation of South African imports of automotive products from the
Community mentioned in Annex III, lists 5 and 6, in the light of, inter alia, the outcome of the
South African motor industry development programme review.
6. Customs duties applicable on import into the Community of products originating in
South Africa listed in Annex II, list 5 shall be reviewed in the fifth year of this Agreement in view of
a possible elimination of tariffs.
Article 12
Tariff Elimination by South Africa
1. Customs duties applicable on import into South Africa of industrial products originating in
the Community other than those listed in Annex III shall be abolished upon the entry into force of thisAgreement.
2. Customs duties applicable on import into South Africa of products originating in the
Community listed in Annex III, list 1 shall be progressively abolished in accordance with the
following schedule:
- on the date of entry into force of this Agreement each duty shall be reduced to
75 per cent of the basic duty;
- one year after the date of entry into force of this Agreement each duty shall be
reduced to 50 per cent of the basic duty;
- two years after the date of entry into force of this Agreement each duty shall be
reduced to 25 per cent of the basic duty;
- three years after the date of entry into force of this Agreement the remaining duties
shall be abolished.
3. Customs duties applicable on import into South Africa of products originating in the
Community listed in Annex III, list 2 shall be progressively abolished in accordance with the
following schedule:
- three years after the date of entry into force of this Agreement each duty shall be
reduced to 67 per cent of the basic duty;
- four years after the date of entry into force of this Agreement each duty shall be
reduced to 33 per cent of the basic duty;WT/REG113/1
Page 9
- five years after the date of entry into force of this Agreement the remaining duties
shall be abolished.
4. Customs duties applicable on import into South Africa of products originating in the
Community listed in Annex III, list 3 shall be progressively abolished in accordance with the
following schedule:
- three years after the date of entry into force of this Agreement each duty shall be
reduced to 90 per cent of the basic duty;
- four years after the date of entry into force of this Agreement each duty shall be
reduced to 80 per cent of the basic duty;
- five years after the date of entry into force of this Agreement each duty shall be
reduced to 70 per cent of the basic duty;
- six years after the date of entry into force of this Agreement each duty shall be
reduced to 60 per cent of the basic duty;
- seven years after the date of entry into force of this Agreement each duty shall be
reduced to 50 per cent of the basic duty;
- eight years after the date of entry into force of this Agreement each duty shall be
reduced to 40 per cent of the basic duty;
- nine years after the date of entry into force of this Agreement each duty shall be
reduced to 30 per cent of the basic duty;
- ten years after the date of entry into force of this Agreement each duty shall be
reduced to 20 per cent of the basic duty;
- 11 years after the date of entry into force of this Agreement each duty shall be
reduced to 10 per cent of the basic duty;
- 12 years after the date of entry into force of this Agreement the remaining duties
shall be abolished.
5. Customs duties applicable on import into South Africa of products originating in the
Community listed in Annex III, list 4 shall be progressively abolished in accordance with the
following schedule:
- five years after the date of entry into force of this Agreement each duty shall be
reduced to 88 per cent of the basic duty;
- six years after the date of entry into force of this Agreement each duty shall be
reduced to 75 per cent of the basic duty;
- seven years after the date of entry into force of this Agreement each duty shall be
reduced to 63 per cent of the basic duty;
- eight years after the date of entry into force of this Agreement each duty shall be
reduced to 50 per cent of the basic duty;WT/REG113/1
Page 10
- nine years after the date of entry into force of this Agreement each duty shall be
reduced to 38 per cent of the basic duty;
- ten years after the date of entry into force of this Agreement each duty shall be
reduced to 25 per cent of the basic duty;
- 11 years after the date of entry into force of this Agreement each duty shall be
reduced to 13 per cent of the basic duty;
- 12 years after the date of entry into force of this Agreement the remaining duties shall
be abolished.
6. Customs duties applicable on import into South Africa of products originating in the
Community listed in Annex III, list 5 shall be progressively reduced according to the schedule
included in that Annex.
7. Customs duties applicable on import into South Africa of products originating in the
Community listed in Annex III, list 6 shall be periodically reviewed in the course of the operation of
the Agreement in view of the further liberalisation of trade.
South Africa will inform the Community about the outcome of the South African motor
industry development programme review.  It will present proposals for a further liberalisation ofSouth African imports of automotive products from  the Community mentioned in Annex III, lists 5
and 6.  The Parties will jointly examine these proposals in the second six months of the year 2000.
SECTION C
Agricultural Products
Article 13
Definition
The provisions of this section apply to products originating in the Community and
South Africa covered by the WTO definition of agricultural products as well as fish and fisheries
products (Chapter 3, 1604, 1605 and products 0511 91 10, 0511 91 90, 190220 10 and 2301 20 00).
Article 14
Tariff Elimination by the Community
1. Customs duties applicable on import into the Community of agricultural products originating
in South Africa other than those listed in Annex IV shall be abolished on the entry into force of thisAgreement.
2. Customs duties applicable on import into the Community of products originating in
South Africa listed in Annex IV, list 1 shall be progressively abolished in accordance with the
following schedule:
- on the date of entry into force of this Agreement each duty shall be reduced to
75 per cent of the basic duty;WT/REG113/1
Page 11
- one year after the date of entry into force of this Agreement each duty shall be
reduced to 50 per cent of the basic duty;
- two years after the date of entry into force of this Agreement each duty shall be
reduced to 25 per cent of the basic duty;
- three years after the date of entry into force of this Agreement the remaining duties
shall be abolished.
3. Customs duties applicable on import into the Community of products originating in
South Africa listed in Annex IV, list 2 shall be progressively abolished in accordance with the
following schedule:
- on the date of entry into force of this Agreement each duty shall be reduced to
91 per cent of the basic duty;
- one year after the date of entry into force of this Agreement each duty shall be
reduced to 82 per cent of the basic duty;
- two years after the date of entry into force of this Agreement each duty shall be
reduced to 73 per cent of the basic duty;
- three years after the date of entry into force of this Agreement each duty shall be
reduced to 64 per cent of the basic duty;
- four years after the date of entry into force of this Agreement each duty shall be
reduced to 55 per cent of the basic duty;
- five years after the date of entry into force of this Agreement each duty shall be
reduced to 45 per cent of the basic duty;
- six years after the date of entry into force of this Agreement each duty shall be
reduced to 36 per cent of the basic duty;
- seven years after the date of entry into force of this Agreement each duty shall be
reduced to 27 per cent of the basic duty;
- eight years after the date of entry into force of this Agreement each duty shall be
reduced to 18 per cent of the basic duty;
- nine years after the date of entry into force of this Agreement each duty shall be
reduced to 9 per cent of the basic duty;
- ten years after the date of entry into fo rce of this Agreement the remaining duties
shall be abolished.
4. Customs duties applicable on import into the Community of products originating in
South Africa listed in Annex IV, list 3 shall be progressively abolished in accordance with the
following schedule:
- three years after the date of entry into force of this Agreement each duty shall be
reduced to 87 per cent of the basic duty;WT/REG113/1
Page 12
- four years after the date of entry into force of this Agreement each duty shall be
reduced to 75 per cent of the basic duty;
- five years after the date of entry into force of this Agreement each duty shall be
reduced to 62 per cent of the basic duty;
- six years after the date of entry into force of this Agreement each duty shall be
reduced to 50 per cent of the basic duty;
- seven years after the date of entry into force of this Agreement each duty shall be
reduced to 37 per cent of the basic duty;
- eight years after the date of entry into force of this Agreement each duty shall be
reduced to 25 per cent of the basic duty;
- nine years after the date of entry into force of this Agreement each duty shall be
reduced to 12 per cent of the basic duty;
- ten years after the date of entry into fo rce of this Agreement the remaining duties
shall be abolished.
For certain products referred to in this Annex a du ty free quota shall apply, in accordance with the
conditions there mentioned, as from entry into force of the Agreement until the end of the tariff phase
down for these products.
5. Customs duties applicable on import into the Community of products originating in
South Africa listed in Annex IV, list 4 shall be progressively abolished in accordance with thefollowing schedule:
- five years after the date of entry into force of this Agreement each duty and charge
shall be reduced to 83 per cent of the basic duty;
- six years after the date of entry into force of this Agreement each duty and charge
shall be reduced to 67 per cent of the basic duty;
- seven years after the date of entry into force of this Agreement each duty and charge
shall be reduced to 50 per cent of the basic duty;
- eight years after the date of entry into force of this Agreement each duty and charge
shall be reduced to 33 per cent of the basic duty;
- nine years after the date of entry into force of this Agreement each duty and charge
shall be reduced to 17 per cent of the basic duty;
- ten years after the date of entry into fo rce of this Agreement the remaining duties
shall be abolished.
For certain products referred to in this Annex a duty free quota shall apply, in accordance with the
conditions there mentioned, as from entry into force of the Agreement until the end of the tariff phase-down for these products.
6. Customs duties applicable to processed agricultural products imported into the Community
and originating in South Africa are listed in Annex IV, list 5 and shall be applied in accordance with
the conditions mentioned therein.WT/REG113/1
Page 13
The Cooperation Council may decide on:
(a) the extension of the list of processed agricultural products under Annex IV, list 5, and
(b) the reduction of the duties applying to processed agricultural products.  This
reduction of duties may take place when in trade between the Community and
South Africa the duties applying to basic products are reduced or, in response to
reductions resulting from the mutual concessions relating to processed agricultural
products.
7. Reduced customs duties applicable to certain agricultural products imported into the
Community and originating in South Africa are listed  in Annex IV, list 6, and shall be applied as from
entry into force of this Agreement and in accordan ce with the conditions mentioned in this Annex.
8. Customs duties applicable on import into the European Community of products originating in
the Republic of South Africa listed in Annex IV, list 7 shall be reviewed periodically in the course ofthe operation of the Agreement on the basis of future developments in the common agricultural
policy.
9. Tariff concessions on products listed in Annex IV, list 8 are not applicable as these products
are covered by protected EU denominations.
10. Tariff concessions applicable on import into the Community of products originating in
South Africa listed in Annex V shall be applied in accordance with the conditions mentioned therein.
Article 15
Tariff Elimination by South Africa
1. Customs duties applicable on import into South Africa of agricultural products originating in
the Community other than those listed in Annex VI shall be abolished on the entry into force of this
Agreement.
2. Customs duties applicable on import into South Africa of products originating in the
Community listed in Annex VI, list 1 shall be progressively abolished in accordance with the
following schedule:
- on the date of entry into force of this Agreement each duty shall be reduced to
75 per cent of the basic duty;
- one year after the date of entry into force of this Agreement each duty shall be
reduced to 50 per cent of the basic duty;
- two years after the date of entry into force of this Agreement each duty shall be
reduced to 25 per cent of the basic duty;
- three years after the date of entry into force of this Agreement the remaining duties
shall be abolished.
3. Customs duties applicable on import into South Africa of products originating in the
Community listed in Annex VI, list 2 shall be progressively abolished in accordance with the
following schedule:WT/REG113/1
Page 14
- three years after the date of entry into force of this Agreement each duty shall be
reduced to 67 per cent of the basic duty;
- four years after the date of entry into force of this Agreement each duty shall be
reduced to 33 per cent of the basic duty;
- five years after the date of entry into force of this Agreement the remaining duties
shall be abolished.
4. Customs duties applicable on import into South Africa of products originating in the
Community listed in Annex VI, list 3 shall be progressively abolished in accordance with the
following schedule:
- five years after the date of entry into force of this Agreement each duty shall be
reduced to 88 per cent of the basic duty;
- six years after the date of entry into force of this Agreement each duty shall be
reduced to 75 per cent of the basic duty;
- seven years after the date of entry into force of this Agreement each duty shall be
reduced to 63 per cent of the basic duty;
- eight years after the date of entry into force of this Agreement each duty shall be
reduced to 50 per cent of the basic duty;
- nine years after the date of entry into force of this Agreement each duty shall be
reduced to 38 per cent of the basic duty;
- ten years after the date of entry into force of this Agreement each duty shall be
reduced to 25 per cent of the basic duty;
- 11 years after the date of entry into force of this Agreement each duty shall be
reduced to 13 per cent of the basic duty;
- 12 years after the date of entry into force of this Agreement the remaining duties shall
be abolished.
For certain products indicated in this Annex a duty free quota shall apply, in accordance with the
conditions there mentioned, as from entry into force of the Agreement until the end of the tariff phasedown for these products.
5. Customs duties applicable on import into South Africa of products originating in the
Community listed in Annex VI, list 4 shall be reviewed periodically in the course of the operation of
the Agreement.
6. Customs duties applicable on import into South Africa of fisheries products originating in the
Community listed in Annex VII shall be progressivel y abolished in parallel with the elimination of
customs duties of the corresponding tariff positions by the Community.WT/REG113/1
Page 15
Article 16
Agricultural Safeguard
Notwithstanding other provisions of this Agreement and in particular Article 24, if, given the
particular sensitivity of the agricultural markets, imports of products originating in one Party cause or
threaten to cause a serious disturbance to the markets in the other Party, the Cooperation Council shall
immediately consider the matter to find an appropriate solution.  Pending a decision by the
Cooperation Council, and where exceptional circ umstances require immediate action, the affected
Party may take provisional measures necessary to limit or redress the disturbance.  In taking such
provisional measures, the affected Party shall take into account the interests of both Parties.
Article 17
Accelerated Tariff Elimination by South Africa
1. If requested by South Africa, the Community shall consider proposals relating to an
accelerated timetable for tariff elimination for imports of agricultural products into South Africa,
coupled with the elimination of all export refunds for exports to South Africa of the same products
originating in the European Community.
2. If the Community replies positively to this re quest, the new timetables for tariff elimination
and elimination of export refunds shall simultaneously apply as of a date to be agreed by the
two Parties.
3. In case of a negative response from the Community, the provisions of this Agreement on
tariff elimination shall continue to be applicable.
Article 18
Review Clause
No later than five years after the entry into  force of this Agreement, the Community and
South Africa shall consider further steps in the process of liberalisation of their reciprocal trade.  Forthis purpose, a review shall be undertaken of, in particular but not exclusively, the customs duties
applicable to products listed in Annex II, list 5, Annex III, lists 5 and 6, Annex IV, lists 5, 6 and 7,
Annex V, lists 1, 2, 3 and 4, Annex VI, lists 4 and 5 and Annex VII.
TITLE III
Trade Related Issues
SECTION A
Common Provisions
Article 19
Border Measures
1. Quantitative restrictions on imports or exports and measures having equivalent effect on trade
between South Africa and the Community shall be abolished on the entry into force of this
Agreement.WT/REG113/1
Page 16
2. No new quantitative restrictions on imports or exports or measures having equivalent effect
shall be introduced in trade between the Community and South Africa.
3. No new customs duties on imports or exports or charges having equivalent effect shall be
introduced, nor shall those already applied be increased, in the trade between the Community and
South Africa from the date of entry into force of this Agreement.
Article 20
Agricultural Policies
1. The Parties may have regular consultations in the Cooperation Council on the strategy and
practical modalities of their respective agricultural policies.
2. If either Party, in pursuit of their respective agricultural policies, considers it necessary to
amend the arrangements laid down in this Agreement it will notify the Cooperation Council, whichwill decide on the requested modification.
3. If the Community or South Africa, in applying paragraph 2, amends the arrangements made
by this Agreement for agricultural products, it shall make adjustments to be agreed on by the
Cooperation Council so as to maintain the concessions  on imports originating in the other Party at an
equivalent level to that provided for in this Agreement.
Article 21
Fiscal Measures
1. The Parties shall refrain from any measure or practice of an internal fiscal nature establishing,
whether directly or indirectly, discrimination between the products of one Party and products
originating in the territory of the other Party.
2. Products exported to the territory of one of the Parties may not benefit from repayment of
indirect internal taxation in excess of the amount of indirect taxation imposed on them directly or
indirectly.
Article 22
Customs Unions and Free-Trade Areas
1. The Agreement shall not preclude the maintenance or establishment of customs unions, free-
trade areas or other arrangements between either of the Parties and third countries, except in so far as
they alter the rights and obligations provided for in this Agreement.
2. Consultation between the Community and S outh Africa shall take place within the
Cooperation Council concerning agreements establishing or adjusting customs unions or free-trade
areas and, where required, on other major issues related to their respective trade policy with third
countries.  In particular, in the event of a third country acceding to the European Union, such
consultation shall take place so as to ensure that account can be taken of the mutual interests of theCommunity and South Africa.WT/REG113/1
Page 17
Article 23
Anti-Dumping and Countervailing Measures
1. Nothing in this Agreement shall prejudice or affect in any way the taking, by either Party, of
anti-dumping or countervailing measures in accordance with Article VI of the GATT 1994, the
Agreement on Implementation of Article VI of the GATT 1994, the Agreement on Subsidies and
Countervailing Measures, annexed to the Marrakech Agreement establishing the WTO.
2. Before definitive anti-dumping and countervailing duties are imposed in respect of products
imported from South Africa, the Parties may consider the possibility of constructive remedies as
provided for in the Agreement on Implementation of Article VI of the GATT 1994 and the Agreementon Subsidies and Countervailing Measures.
Article 24
Safeguard Clause
1. Where any product is being imported in such increased quantities and under such conditions
as to cause or threaten to cause serious injury to domestic producers of like or directly competitive
products in the territory of one of the Contracting Parties, the Community or South Africa, whichever
is concerned, may take appropriate measures under the conditions provided for in the WTOAgreement on Safeguards or the Agreement on Agriculture annexed to the Marrakech Agreement
establishing the WTO and in accordance with the procedures laid down in Article 26.
2. Where any product is being imported in such increased quantities and under such conditions
as to cause or threaten to cause serious deterioration in the economic situation of the EuropeanUnion's outermost regions, the European Union, after having examined alternative solutions, may
exceptionally take surveillance or safeguard measures limited to the region(s) concerned, in
accordance with the procedures laid down in Article 26.
3. Where any product is being imported in such quantities and under such conditions as to cause
or threaten to cause serious deterioration in the economic situation of one or more of the other
Members of the Southern African Customs Union, South Africa, at the request of the country orcountries concerned, and after having examined alternative solutions, may exceptionally take
surveillance or safeguard measures in accordance with the procedures laid down in Article 26.
Article 25
Transitional Safeguard Measures
1. Notwithstanding the provisions of Article 24, exceptional measures of limited duration which
derogate from the provisions of Articles 12 and 15 may be taken by South Africa in the form of an
increase or reintroduction of customs duties.
2. These measures may only concern infant industries or sectors facing serious difficulties
caused by increased imports originating in the Community as a result of the reduction of duties
envisaged under Articles 12 and 15, particularly where these difficulties produce major social
problems.
3. Customs duties on imports applicable in South Africa to products originating in the
Community introduced by these measures may not exceed the level of the basic duty or the applied
MFN rates of duty or 20 per cent ad valorem , whichever is the lower, and shall maintain an element
of preference for products originating in the Community.  The total value of all imports of theWT/REG113/1
Page 18
products which are subject to these measures may not exceed 10 per cent of total imports of industrial
products from the Community during the last year for which statistics are available.
4. These measures shall be applied for a period not exceeding four years.  They shall cease to
apply at the latest on the expiry of the maximum transitional period of 12 years.  These time limitsmay exceptionally be extended by decision of the Cooperation Council.
5. No such measures can be introduced in respect of a product if more than three years have
elapsed since the elimination of all duties and quantitative restrictions or charges or measures having
an equivalent effect concerning that product.
6. South Africa shall notify the Cooperation Council of the exceptional measures it intends to
take and, at the request of the Community, consultations shall be held on such measures before they
are applied in order to reach a satisfactory solution.  Its notification shall include an indicative
schedule for the introduction and subsequent elimination of the customs duties to be imposed.
7. If no agreement on the proposed measures referred to in paragraph 6 has been reached within
30 days of such notification, South Africa may take the appropriate measures to remedy the problem
and shall provide the Cooperation Council with the definite schedule for the elimination of the
customs duties introduced under this Article.  This schedule shall provide for a phasing out of these
duties at equal annual rates starting at the latest one year after their introduction.  The Cooperation
Council may decide on a different schedule.
Article 26
Safeguard Procedures
1. In the event of the Community or South Africa initiating a surveillance mechanism in respect
of difficulties referred to in Article 24 which has as its purpose the rapid provision of information on
the trend of trade flows, it shall inform the other Party thereof and, if requested, enter into
consultations with it.
2. In the cases specified in Article 24, before taking the measure provided for therein or, in cases
to which subparagraph 5(b) of this Article apply, the Community or South Africa, as the case may be,shall as soon as possible supply the Cooperation Council with all relevant information, with the view
to seeking a solution acceptable to both Parties.
3. In the selection of measures, priority must be given to those which least disturb the
functioning of this Agreement and they shall be lim ited to the extent necessary to prevent or remedy
serious injury and to facilitate adjustment.
4. The safeguard measures shall be notified immediately to the Cooperation Council and shall be
the subject of periodic consultations within that body, particularly with a view to establishing a
timetable for their abolition as soon as circumstances permit.
5. For the implementation of the previous paragraphs the following provisions shall apply.
(a) As regards Article 24, difficulties arising from the situation referred to in that Article
shall be referred for examination to the Cooperation Council, which may take anydecision needed to put an end to such diff iculties.  If the Cooperation Council or the
exporting Party has not taken a decision putting an end to the difficulties or no other
satisfactory solution has been reached within 30 days of the matter being so referred,
the importing Party may adopt appropriate measures to remedy the problem.  Such
measures should be taken for a period not exceeding three years and shall containWT/REG113/1
Page 19
elements which would digressively lead to their elimination at the end of the set
period, at the latest.
(b) Where exceptional circumstances requirin g immediate action make prior information
or examination, as the case may be, impossible, the Community or South Africa,whichever is concerned, may, in the situations specified in Article 24, apply forthwith
the precautionary measures necessary to deal  with the situation and shall inform the
other Party immediately thereof.
Article 27
Exceptions
The Agreement shall not preclude prohibitions or restrictions on imports, exports, goods in
transit or trade in used goods justified on grounds of public morality, public policy or public security;
the protection of health and life of humans, animals or plants;  the protection of national treasures
possessing artistic, historic or archaeological value;  or the protection of intellectual, industrial andcommercial property or rules relating to gold and silver.  Such prohibitions or restrictions shall not,
however, constitute a means of arbitrary or unjustifiable discrimination where the same conditions
prevail or a disguised restriction on trade between the Parties.
Article 28
Rules of Origin
The rules of origin for the application of tariff  preferences provided for in this Agreement are
laid down in Protocol 1.
SECTION B
Right of Establishment and Supply of Services
Article 29
Reconfirmation of GATS Obligations
1. In recognition of the growing importance of services for the development of their economies,
the Parties underline the importance of strict observance of the General Agreement on Trade inServices (GATS), in particular its principle on most-favoured-nation treatment, and including its
applicable protocols with annexed commitments.
2. In accordance with the GATS, this treatment shall not apply to:
(a) advantages accorded by either Party under the provisions of an agreement as defined
in Article V of the GATS or under measures adopted on the basis of such an
agreement;
(b) other advantages accorded pursuant to the list of most-favoured-nation exemptions
annexed by either Party to the GATS.
3. The Parties reaffirm their respective commitments as annexed to the fourth Protocol to the
GATS concerning basic telecoms and the fifth Protocol concerning financial services.WT/REG113/1
Page 20
Article 30
Further Liberalisation of Supply of Services
1. The Parties will endeavour to extend the scope of the Agreement with a view to further
liberalising trade in services between the Parties.  In the event of such an extension, the liberalisation
process shall provide for the absence or elimination of substantially all discrimination between the
Parties in the services sectors covered and should cover all modes of supply including the supply of a
service:
(a) from the territory of one Party into the territory of the other;
(b) in the territory of one Party to the service consumer of the other;
(c) by a service supplier of one Party, through commercial presence in the territory of the
other;
(d) by a service supplier of one Party, through presence of natural persons of that Party in
the territory of the other.
2. The Cooperation Council shall make the necessary recommendations for the implementation
of the objective set out in paragraph 1.
3. When formulating these recommendations, the Cooperation Council shall take into account
the experience gained by the implementation of the obligations of each Party under the GATS, with
particular reference to Article V generally and especially paragraph 3(a) thereof covering the
participation of developing countries in liberalisation agreements.
4. The objective set out in paragraph 1 shall be subject to a first examination by the Cooperation
Council at the latest five years after the entry into force of this Agreement.
Article 31
Maritime Transport
1. The Parties shall endeavour to apply effectively the principle of unrestricted access to the
international maritime market and traffic based on fair competition on a commercial basis.
2. The Parties agree to extend to each other's nationals and the vessels registered in the territory
of either of the Parties treatment no less favourable than that granted to the most favoured nation in
respect of the maritime transport of goods, passengers or both, access to ports, the use of
infrastructure and auxiliary maritime services of those ports and related fees and charges, customs
facilities and the assignment of berths and facilities for loading and unloading, based on fair
competition and on commercial terms.
3. The Parties agree to consider maritime transp ort, including intermodal operations, in the
context of Article 30, without prejudice to nationality restrictions or agreements entered into by either
Party, which exist at that time and which would be consistent with the Parties' rights and obligations
under the GATS Agreement.WT/REG113/1
Page 21
SECTION C
Current Payments and Movement of Capital
Article 32
Current Payments
1. Subject to the provisions of Article 34, the Parties undertake to allow all payments for current
transactions between residents of the Community and of South Africa to be made in freely convertible
currency.
2. South Africa may take the necessary measures to ensure that the provisions of paragraph 1,
which liberalise current payments, are not used by its residents to make unauthorised capital outflows.
Article 33
Capital Movements
1. With regard to transactions on the capital account of balance of payments, the Community
and South Africa shall ensure, from the entry into force of this Agreement, that capital relating todirect investments in South Africa in companies formed in accordance with current laws can move
freely, and that such investment and any profit stemming therefrom can be liquidated and repatriated.
2. The Parties shall consult each other with a view to facilitating and eventually achieving full
liberalisation of the movement of capital between the Community and South Africa.
Article 34
Balance of Payment Difficulties
Where one or more Member States of the Comm unity, or South Africa, is in serious balance
of payments difficulties, or under threat thereof, the Community or South Africa, as the case may be,may, in accordance with the conditions established under the General Agreement on Tariffs and Trade
and Articles VIII and XIV of the Articles of Agreement of the International Monetary Fund, adopt
restrictions on current transactions which shall be of limited duration and may not go beyond what is
necessary to remedy the balance of payments situation.  The Community or South Africa, as the case
may be, shall inform the other Party forthwith and shall submit to it as soon as possible a timetable forthe elimination of the measures concerned.
SECTION D
Competition Policy
Article 35
Definition
The following are incompatible with the proper functioning of this Agreement, in so far as
they may affect trade between the Community and South Africa:WT/REG113/1
Page 22
(a) agreements and concerted practices between firms in horizontal relationships,
decisions by associations of firms, and agreements between firms in vertical
relationships, which have the effect of substantially preventing or lessening
competition in the territory of the Community or of South Africa, unless the firms can
demonstrate that the anti-competitive effects are outweighed by pro-competitive ones;
(b) abuse by one or more firms of market power in the territory of the Community or of
South Africa as a whole or in a substantial part thereof.
Article 36
Implementation
If, at the entry into force of this Agreement,  either Party has not yet adopted the necessary
laws and regulations for the implementation of Article 35, in their jurisdictions it shall do so within a
period of three years.
Article 37
Appropriate Measures
If the Community or South Africa considers that a particular practice in its domestic market is
incompatible with the terms of Article 35, and:
(a) is not adequately dealt with under the implementing rules referred to in Article 36, or(b) in the absence of such rules, and if such practice causes or threatens to cause serious
prejudice to the interests of the other Party or material injury to its domestic industry,
including its services industry,
the Party concerned may take appropriate measures consistent with its own laws, after consultation
within the Cooperation Council, or after 30 workin g days following referral for such consultation.
The appropriate measures to be taken shall respect the powers of the Competition Authority
concerned.
Article 38
Comity
1. The Parties agree that, whenever the Commission or the South African Competition Authority
has reason to believe that anti-competitive practices, defined under Article 35, are taking place within
the territory of the other authority and are substantially affecting important interests of the Parties, it
may request the other Party's competition authority to take appropriate remedial action in terms of that
authority's rules governing competition.
2. Such a request shall not prejudice any action under the requesting authority's competition
laws that may be deemed necessary and shall not in any way encumber the addressed authority's
decision-making powers or its independence.
3. Without prejudice to its respective functions, rights, obligations or independence, the
competition authority so addressed shall consider and give careful attention to the views expressed
and documentation provided by the requesting authority and, in particular, pay heed to the nature of
the anti-competitive activities in question, the firm or firms involved, and the alleged harmful effect
on the important interests of the aggrieved Party.WT/REG113/1
Page 23
4. When the Commission or the Competition Authority of South Africa decides to conduct an
investigation or intends to take any action that may have important implications for the interests of the
other Party, the Parties must consult, at the reques t of either Party and both shall endeavour to find a
mutually acceptable solution in the light of their respective important interests, giving due regard toeach other's laws, sovereignty, the independence of the respective competition authorities and to
considerations of comity.
Article 39
Technical Assistance
The Community shall provide South Africa with technical assistance in the restructuring of its
competition law and policy, which may include among others:
(a) the exchange of experts;
(b) organisation of seminars;
(c) training activities.
Article 40
Information
The Parties shall exchange information taking into account the limitations imposed by the
requirements of professional and business secrecy.
SECTION E
Public Aid
Article 41
Public Aid
1. In so far as it may affect trade between the Community and South Africa, public aid favouring
certain firms or the production of certain goods, which distorts or threatens to distort competition, andwhich does not support a specific public policy objective or objectives of either Party, is incompatible
with the proper functioning of this Agreement.
2. The Parties agree that it is in their interests to ensure that public aid is granted in a fair,
equitable and transparent manner.
Article 42
Remedial Measures
1. If the Community or South Africa considers that a particular practice is incompatible with the
terms of Article 41, and that such practice causes or threatens to cause serious prejudice to the
interests of the other Party or material injury to its domestic industry, the Parties agree, where it is not
adequately dealt with under existing rules and pro cedures, to enter into consultations with a view toWT/REG113/1
Page 24
finding a mutually satisfactory solution.  Such consultations will be without prejudice to the Parties'
rights and obligations in terms of their respective laws and international commitments.
2. Either Party may invite the Cooperation Co uncil to examine, in the context of such
consultation, the Parties' public policy objectives justifying the grant of public aid referred to inArticle 41.
Article 43
Transparency
Each Party shall ensure transparency in the area of public aid. In particular, where a Party so
requests, the other Party shall provide information on aid schemes, on particular individual cases of
public aid, or on the total amount and the distribution of aid given.  The exchange of information
between the Parties shall take into account the limitations imposed by either Party's laws relating to
the requirements of business and professional secrecy.
Article 44
Review
1. In the absence of any rules or procedures for the implementation of Article 41, the provisions
of Article VI and XVI of the General Agreement on Tariffs and Trade 1994 as well as the WTO
Agreement on Subsidies and Countervailing Measures shall apply to public aid or subsidies.
2. The Cooperation Council shall periodically review the progress made in these matters.  In
particular it shall continue to develop cooperation and understanding on the measures taken by eachParty with regard to the operation of Article 41.
SECTION F
Other Trade-Related Provisions
Article 45
Government Procurement
1. The Parties agree to cooperate to ensure that access to the Parties' procurement contracts is
governed by a system which is fair, equitable and transparent.
2. The Cooperation Council shall periodically review the progress made in this matter.
Article 46
Intellectual Property
1. The Parties shall ensure adequate and effective protection of intellectual property rights in
conformity with the highest international standards.  The Parties apply the WTO Agreement on TradeRelated Aspects of Intellectual Property Rights (TRIPs) from 1 January 1996 and undertake to
improve, where appropriate, the protection provided for under that Agreement.WT/REG113/1
Page 25
2. If problems in the area of intellectual property protection affecting trading conditions were to
occur, urgent consultations shall be undertaken, at th e request of either Party, with a view to reaching
mutually satisfactory solutions.
3. The Community and its Member States confirm the importance they attach to the obligations
arising from the:
(a) Protocol to the Madrid Agreement concerning the International Registration of Marks
(Madrid 1989);
(b) International Convention for the Protection of Performers, Producers of Phonogram
and Broadcasting Organisations (Rome 1961);
(c) Patent Cooperation Treaty (Washington 1979 as amended and modified in 1984).
4. Without prejudice to the obligations arising from the WTO Agreement on TRIPs,
South Africa could favourably consider accession to the multilateral conventions referred to inparagraph 3.
5. The Parties confirm the importance they attach to the following instruments:
(a) the provisions of the Nice Agreement concerning the International Classification of
Goods and Services for the Purposes of the Registration of Marks (Geneva 1977 and
amended in 1979);
(b) Berne Convention for the Protection of Literary and Artistic Works (Paris Act, 1971);
(c) International Convention for the Protec tion of New Varieties of Plants (UPOV)
(Geneva Act, 1978);
(d) Budapest Treaty on the International Recognition of the Deposit of Micro-organisms
for the Purposes of Patent Procedure (1977 modified in 1980);
(e) Paris Convention for the Protection of Industrial Property (Stockholm Act, and
amended in 1979) WIPO;
(f) WIPO Copyright Treaty (WCT), 1996.
6. In order to facilitate the implementation of this Article, the Community may provide, on
request and on mutually agreed terms and conditions, technical assistance to South Africa in, among
other things, the preparation of laws and regulations for the protection and enforcement of intellectual
property rights, the prevention of the abuse of such rights, the establishment and reinforcement of
domestic offices and other agencies involved in enforcement and protection, including the training of
personnel.
7. The Parties agree that for the purpose of this Agreement, intellectual property includes in
particular copyright, including the copyright on computer programmes and neighbouring rights, utility
models, patents, including biotechnical inventions, industrial designs, geographical indications,
including appellations of origin, trade marks and service marks, topographies of integrated circuits, aswell as the legal protection of databases and the protection against unfair competition as referred to in
Article 10 bis of the Paris Convention for the Protection of Industrial Property and protection of
undisclosed information on know-how.WT/REG113/1
Page 26
Article 47
Standardisation and Conformity Assessment
The Parties will cooperate in the field of standardisation, metrology, certification and quality
assurance in order to reduce differences between the Parties in these areas, remove technical barriers
and facilitate bilateral trade.  This cooperation shall include:
(a) measures, in accordance with the provisions of the WTO TBT Agreement, to promote
greater use of international technical regulations, standards and conformity
assessment procedures, including sector specific measures;
(b) developing agreements on mutual recognition of conformity assessment in sectors of
mutual economic interest;
(c) cooperation in the area of quality management and assurance in selected sectors of
importance to South Africa;
(d) facilitation of technical assistance for sout hern African capacity building initiatives in
the fields of accreditation, metrology and standardisation;
(e) developing practical links between South African and European standardisation,
accreditation and certification organisations.
Article 48
Customs
1. The Parties shall promote and facilitate cooperation between their customs services in order to
ensure that the provisions on trade are observed and to guarantee fair trade.  The cooperation shall
give rise, among other things, to the exchange of information and training schemes.
2. Without prejudice to other forms of cooperation envisaged in this Agreement, in particular
under Article 90, the Contracting Parties' administrative authorities shall provide mutual assistance inaccordance with the provisions of Protocol 2 of this Agreement.
Article 49
Statistics
The Parties agree to cooperate in this field.  The cooperation will be geared mainly to the
harmonisation of statistical methods and practice to enable processing, according to mutually agreed
bases, of data on trade in goods and services and, more generally, on any field covered by the
Agreement lending itself to statistical treatment.WT/REG113/1
Page 27
TITLE IV
Economic Cooperation
Article 50
Introduction
The Parties agree to develop and promote cooperation on economic and industrial matters to
their mutual advantage and in the interest of the southern African region as a whole, by diversifying
and strengthening their economic links, promoting sustainable development in their economies,
supporting patterns of regional economic cooperation, promoting cooperation between small andmedium-sized enterprises, protecting and improving the environment, promoting the economic
empowerment of historically disadvantaged gr oups, including women, protecting and promoting
worker and trade union rights.
Article 51
Industry
The aim of cooperation in this area is to facilitate the restructuring and modernisation of the
South African industry while fostering its compet itiveness and growth and to create conditions
favourable to mutually beneficial cooperation between South African and Community industry.
The aim of the cooperation shall be, inter alia:(a) to encourage cooperation between the Parties' economic operators (companies,
professionals, sectoral and other busine ss organisations, organised labour, etc.);
(b) to back the efforts of South Africa's public and private sectors to restructure and
modernise industry, under conditions ensuring environmental protection, sustainable
development and economic empowerment;
(c) to foster an environment which favours private initiatives, with the aim of stimulating
and diversifying output for the domestic and export markets;
(d) to promote improved utilisation of So uth Africa's human resources and industrial
potential through, inter alia, the facilitation of access to credit and investment finance
and support to industrial innovation, technology transfer, training, research andtechnological development.
Article 52
Investment Promotion and Protection
Cooperation between the Parties shall aim to establish a climate which favours and promotes
mutually beneficial investment, both domestic and foreign, especially through improved conditions
for investment protection, investment promotion, the transfer of capital and the exchange of
information on investment opportunities.
The aims of cooperation shall be, inter alia, to facilitate and encourage:(a) the conclusion, where appropriate, between the Member States and South Africa of
agreements for the promotion and protection of investment;WT/REG113/1
Page 28
(b) the conclusion, where appropriate, between the Member States and South Africa of
agreements to avoid double taxation;
(c) the exchange of information on investment opportunities;(d) work towards harmonised and simplified procedures and administrative practices in
the field of investment;
(e) support, through appropriate instruments, the promotion and encouragement of
investment in South Africa and in the Southern African region.
Article 53
Trade Development
1. The Parties undertake to develop, diversify and increase trade between them and to improve
the competitiveness of South African production on domestic, regional and international markets.
2. Cooperation in the field of trade development shall in particular focus on the following:
(a) drawing up appropriate trade development strategies and creation of a trade
environment supportive of competitiveness;
(b) capacity building and development of human resources and professional skills in the
field of trade and support services in both the public and private sector, including
labour;
(c) exchanges of information on market requirements;(d) know-how and technology transfer through investment and joint ventures;(e) development of the private sector, in particular small and medium-sized enterprises
engaged in trade;
(f) establishment, adaptation and strengthening of organisations concerned with the
development of trade and support services;
(g) regional cooperation for the development of trade and trade-related infrastructure and
services in southern Africa.
Article 54
Micro-enterprises and Small and Medium-Sized Enterprises
The Parties shall aim to develop and strengthen micro enterprises (MEs) and small and
medium-sized enterprises (SMEs) in South Africa, as well as to promote cooperation between SMEs
in the Community and in South Africa and the region in a manner that is sensitive to gender equality.
The Parties shall, inter alia:
(a) cooperate, where appropriate, in the creation of enabling legal, administrative,
institutional, technical, tax and financial frameworks for the setting up and expansion
of MEs and SMEs;WT/REG113/1
Page 29
(b) provide assistance required by MEs and SMEs, whatever their legal status, in areas
such as financing, skills training, technology and marketing;
(c) provide assistance to companies, organisations, policy makers and agencies providing
services referred to under paragraph b through appropriate technical support,information exchange and capacity building;
(d) establish and facilitate appropriate links between South African, southern African and
Community private sector operators in order to improve the flow of information
(relating to strategy formulation and implementation, business trends and
opportunities, networking, joint ventures and transfer of skills).
Article 55
Information Society - Telecommunicat ions and Information Technology
1. The Parties agree to cooperate in the area of information and communication
technology (ICT) which they consider as key sectors of modern society and which are vital to
economic and social development and to the development of an information society.  Communication
in this context encompasses post, broadcasting, telecommunications, information technologies.  The
aim of cooperation shall be to:
(a) improve the access of South African public and private entities to means of
communications, electronics and information technologies through support to the
development of infrastructural networks, human resources and appropriate
information society policies in South Africa;
(b) support cooperation between the countries of the southern African region in this area,
in particular in the context of satellite technology;
(c) address the challenges of globalisation, new technologies, institutional and sector
restructuring, and the developing gap in basic information services and in advanced
services.
2. Cooperation shall include among others:
(a) dialogue on different aspects of information society, including regulatory aspects and
communications policy;
(b) information exchanges and possible technical assistance on regulation,
standardisation, conformity testing and certification of information and
communications technologies and the use of frequencies;
(c) dissemination of new information and communication technologies, and the
development of new facilities, particularly in relation to interconnection of networks
and interoperability of applications;
(d) promotion and implementation of joint research, technological development on
projects in the field of new technologies related to the information society;
(e) access for South African organisations to Community projects or programmes on the
basis of the arrangements applying in the various fields concerned, and access for
European Union organisations to operations initiated by South Africa under the same
conditions.WT/REG113/1
Page 30
Article 56
Postal Cooperation
Cooperation in this area shall include:(a) exchange of information and dialogue on postal matters in relation to, inter alia,
regional and international activities, regulatory aspects and policy decisions;
(b) technical assistance on regulation, operational standards and human resource
development;
(c) promotion and implementation of joint projects, including research, on technological
development in this sector.
Article 57
Energy
1. Cooperation in this area shall include the aim of cooperation in this area shall be:
(a) to improve the access of South Africans to affordable, reliable and sustainable
sources of energy;
(b) to reorganise and modernise the energy producing, distributing and consuming
subsectors so that appropriate services are provided on optimum terms of economicefficiency, social development and environmental acceptability;
(c) to support cooperation between countries in the southern African region to exploit
locally available energy resources in an efficient and environmentally friendly
manner.
2. Cooperation shall specifically aim:
(a) to support the development of appropriate energy policies and infrastructure in
South Africa;
(b) to diversify energy supplies in South Africa;(c) to improve energy operators performance standards in technical, economic and
financial terms especially in the electricity and liquid fuels sectors;
(d) to facilitate capacity building of local expertise especially by general and technical
training;
(e) to develop new and renewable forms of energy and support infrastructure especially
for rural energy power supply;
(f) to improve the rational use of energy notably by the promotion of energy systems'
efficiency;
(g) to promote transfer and use of environmentally friendly technologies;WT/REG113/1
Page 31
(h) to promote regional energy cooperation in southern Africa.
Article 58
Mining and Minerals
1. The aim of cooperation in this area is, inter alia:
(a) to support and promote policy measures that improve health and safety standards in
the mining industry as well as conditions of employment;
(b) to make mineral resources and geoscience information accessible for exploration and
mining investment. The cooperation should also create a mutually beneficial climate
for attracting investment in the sector, including SMEs (and previously disadvantaged
communities);
(c) to support policies which ensure that mining activities take place with due
consideration for the environment and sustainable development, taking into account
the specific circumstances in the country and nature of mining;
(d) to cooperate on mining and minerals technology research and development.
2. Cooperation will include South African activities undertaken within the framework of the
Southern African Development Community (SADC) Mining Coordination Unit.
Article 59
Transport
1. The aim of the cooperation in this area shall be:
(a) to improve the access of South Africans to affordable, safe and reliable modes of
transport and to facilitate the flow of goods in the country through the support to the
development of intermodal infrastructure networks and transport systems, that areeconomically and environmentally sustainable;
(b) to support cooperation between the countries of the southern African region in order
to create a sustainable transport network for regional needs.
2. Cooperation shall specifically focus on:
(a) contributing to the restructuring and modernisation of road, rail, port and airport
infrastructure;
(b) gradually improving the conditions of air transport, rail, road and multimodal transit,
as well as the management of roads, railways, ports and airports, and maritime and air
traffic;
(c) improving the safety of air and maritime traffic by improving aids to navigation and
training to enable efficient programmes.WT/REG113/1
Page 32
Article 60
Tourism
1. The Parties will cooperate with the aim of strengthening the development of a competitive
tourism industry.  In this context the Parties in particular agree:
(a) to promote the development of the tourism industry as a generator of economic
growth and empowerment, employment and foreign exchange;
(b) to seek to establish a strategic alliance involving public, private and community
interests in order to ensure the sustainable development of tourism;
(c) to carry out joint operations in such areas as the development of products and
markets, human resources and institutional structures;
(d) to cooperate on tourism training and capacity building in order to improve service
standards;
(e) to cooperate in promoting and developi ng community-based tourism through pilot
projects in rural areas;
(f) to facilitate liberal movement of tourists.
2. The Parties agree that cooperation in the field of tourism will be based, inter alia, on the
following guidelines:
(a) respecting the integrity and interests of local communities, particularly in rural areas;
(b) stressing the importance of cultural heritage;(c) facilitating training, know-how transfer and awareness creation in the wider
community;
(d) providing positive interaction between tourism and environmental preservation;
(e) promoting regional cooperation in southern Africa.
Article 61
Agriculture
1. Cooperation in this area shall be aimed at the promotion of integrated, harmonious and
sustainable rural development in South Africa.  Cooperation will in particular be geared:
(a) to modernise and restructure, where appropriate, the agricultural sector through
methods including the modernisation of infrastructure and equipment, the
development of packaging and storage techniques and the improvement of private
distribution and marketing chains;
(b) to facilitate the development and the enha ncement of competitiveness of farmers from
previously disadvantaged communities and the provision of appropriate agricultural
services in this regard;WT/REG113/1
Page 33
(c) to diversify and develop output and external markets;
(d) to achieve and develop cooperation in animal health, plant health and agricultural
production techniques;
(e) to examine measures to harmonise standards and rules on animal and plant health,
with a view to facilitating trade, taking into account the legislation in force for both
Parties and in conformity with the rules of the WTO.
2. Cooperation will take place, inter alia, through the transfer of know-how, the establishment of
joint ventures and capacity building programmes.
Article 62
Fisheries
Cooperation in this area shall aim at promoting sustainable management and use of fisheries
resources in the long-term interest of both Parties.  This will be achieved by exchanges of information
and the design and implementation of agreed arrangements which may address the economic,
commercial, developmental, scientific and technical aspirations of the Parties.  These arrangements
will be set out in a separate mutually beneficial fisheries agreement which the Parties undertake to
seek to complete as soon as possible.
Article 63
Services
The Parties agree to foster cooperation in the services sector in general and in the area of
banking, insurance and other financial services in particular, through, inter alia:
(a) encouraging trade in services;(b) exchanging, where appropriate, information on rules, laws and regulations governing
the services sector in the Parties;
(c) improving accounting, auditing, supervision and regulation of financial services and
financial monitoring, for example through the facilitation of training schemes.
Article 64
Consumer Policy and Protection of Consumer Health
Parties shall start cooperation in the area of consumer policy and consumer health protection,
in particular aiming at:
(a) establishing systems of mutual information on domestically prohibited and dangerous
products;
(b) exchanging information and experience on the establishment and operation of
post-market surveillance of products and product safety;
(c) improving information provided to consumers especially on prices, characteristics of
products and services offered;WT/REG113/1
Page 34
(d) encouraging exchanges between consumer interest representatives;
(e) increasing the compatibility of consumer policies and systems;(f) exchange of information on increasing consumer awareness through information and
education;
(g) notifying enforcements and cooperation between the Parties in investigating harmful
or unfair business practices;
(h) exchange of information on effective ways of redressing any wrongs to consumers
victimised by illegal activities.
TITLE V
Development Cooperation
SECTION A
General
Article 65
Aims
1. Development cooperation between the Community and South Africa shall be conducted in a
context of policy dialogue and partnership, and shall support the policies and reforms carried out by
the national authorities.
2. In particular, development cooperation shall contribute to South Africa's harmonious and
sustainable economic and social development and to its insertion into the world economy and to
consolidate the foundations laid for a democratic society and a state governed by the rule of law in
which human rights in their political, social and cultural aspects and fundamental freedoms arerespected.
3. Within this context, priority shall be given to supporting operations, which help the fight
against poverty.
Article 66
Priorities
1. The areas of development cooperation will mainly concern the following:
(a) support for policies and instruments towards the progressive integration of the
South African economy into the world economy and trade, for expansion of
employment, for development of sustainable private enterprises, for regional
cooperation and integration.  In this context, special attention will be given toproviding support to the adjustment efforts occasioned in the region by the
establishment of the free-trade area under this Agreement, especially in the SACU;
(b) enhancement of living conditions and delivery of basic social services;WT/REG113/1
Page 35
(c) support to democratisation, the protection of human rights, sound public
management, the strengthening of civil society and its integration in the development
process.
2. Dialogue and partnership between public authorities and non-governmental development
partners and actors will be promoted.
3. Programmes shall be focused on the basic needs of the previously disadvantaged communities
and reflect the gender and environmental dimensions of development.
Article 67
Eligible Beneficiaries
Cooperation partners eligible for financial and technical assistance shall be national,
provincial and local authorities and public bodies, non-governmental organisations and
community-based organisations, regional and international organisations, institutions and public orprivate operators.  Any other body could be made eligible if so designated by both Parties.
Article 68
Means and Methods
1. The means that may be deployed under the cooperation operations referred to in Article 66
shall include in particular studies, technical assistance, training or other services, supplies and works,
and also evaluation and monitoring audits and missions.
2. Community financing, in local or foreign currency, depending on the needs and nature of the
operation, may cover:
(a) government budget expenditures to support reforms and policy implementation in the
priority sectors identified through a policy dialogue;
(b) investment (with the exception of the purchase of buildings) and equipment;(c) in certain cases and in particular where a programme is implemented by a
non-government partner, recurrent expenditure.
3. Contribution from the partners defined in Article 67 shall in principle be required for each
cooperation operation.  The nature and amount of this contribution shall be adapted to the possibilities
of the partner and the nature of operations.
4. Opportunities may be sought for coherence and complementarity with other providers of
funds, particularly the Member States of the European Union.
5. Appropriate steps will be taken by both Parties to ensure that the Community character of
development cooperation under this Agreement is made known to the general public.
Article 69
Programming
1. Multiannual indicative programming based on specific objectives derived from the priorities
in Article 66 and indicating modalities for the preparation, implementation and monitoring of theWT/REG113/1
Page 36
development cooperation and resulting operations during a reference period shall be carried out in the
context of close contacts between the Community and the South African Government with the
contribution of the European Investment Bank.  The outcome of programming discussions shall be set
out in a multiannual indicative programme signed by both Parties.
2. Detailed operational procedures and provisions for implementation and monitoring of the
development cooperation shall be attached to the multiannual indicative programme.
Article 70
Project Identification, Preparation and Appraisal
1. The identification and preparation of development operations shall be the responsibility of the
Government of South Africa National Authorising Officer as defined in Article 80, or any other
eligible beneficiary defined in Article 67.
2. Project or programme dossiers submitted for financing by the Community must contain all the
information necessary for their appraisal.  Such dossi ers shall be officially transmitted to the Head of
Delegation by the National Authorising Officer or the other eligible beneficiaries.
3. The appraisal of development operations shall be undertaken jointly by the National
Authorising Officer and/or the other eligible beneficiaries and the Community.
Article 71
Financing Proposal and Decision
1. The conclusions of the appraisal shall be summarised by the Head of Delegation in a
financing proposal prepared in close collaboration with the National Authorising Officer and/or the
requesting partner.
2. The Commission shall finalise the financing proposal and forward it to the Community's
decision-making body.
Article 72
Financing Agreements
1. Any project or programme approved by the Community shall be covered by:
(a) either a financing agreement drawn up between the Commission, acting for the
Community, and the National Authorising Officer acting for the Government of
South Africa, or the eligible beneficiary;
(b) or a contract with international organisations or legal bodies, physical persons or any
other operator defined in Article 67 responsible for carrying out the project or
programme.
2. All financing agreements or contracts shall provide for on-the-spot checks by the Commission
and the European Court of Auditors.WT/REG113/1
Page 37
SECTION B
Implementation
Article 73
Eligibility of Contractors and Supplies
1. Participation in invitations to tender and contracts shall be open on equal terms to all natural
and legal persons in the Member States of the European Union, South Africa and the ACP States.
Participation may be extended to include other developing countries in duly substantiated cases and in
order to ensure the best cost-effectiveness ratio.
2. Supplies shall originate in the Member States, South Africa or the ACP States.  In duly
substantiated exceptional cases, they may originate in other countries.
Article 74
Contracting Authority
1. Works, supply and service contracts shall be prepared, negotiated and concluded by the
eligible beneficiary, in agreement and in collaboration with the Commission.
2. The eligible beneficiary may request the Commission to prepare, negotiate and conclude
service contracts on their behalf, directly or through its relevant agency.
Article 75
Procurement Procedures
Procedures for procurement or for contracts fi nanced by the Community are laid down in the
general clauses attached to the financing agreements.
Article 76
General Regulations and Conditions
The award and performance of works, supply and service contracts financed by the
Community shall be governed by this Agreement a nd by the respective general regulations for works,
supply and service contracts and general conditions as adopted by decision of the Cooperation
Council.
Article 77
Settlement of Disputes
Any dispute arising between South Africa and a contractor, supplier or provider of services
during the performance of a contract financed by the Community shall be settled by arbitration
according to the procedural rules on conciliation and arbitration of contracts as adopted by decision ofthe Cooperation Council.WT/REG113/1
Page 38
Article 78
Fiscal and Customs Arrangements
1. The South African Government shall apply to all contracts financed by the Community a full
exemption from fiscal and custom duties and/or taxes or charges having an equivalent effect.
2. The details of the arrangements, referred to in paragraph 1 shall be established by means of an
Exchange of Letters between the South African Government and the Commission.
Article 79
Chief Authorising Officer
The Commission will appoint a chief authorising officer who shall be responsible for
managing resources made available by the Community for development cooperation with
South Africa.
Article 80
National Authorising Officer and Paying Agent
1. The South African Government shall appoint a national authorising officer to represent it in
all operations relating to projects financed by the Commission which are the subject of a financing
agreement between South Africa and the Community.  A paying agent shall also be appointed.
2. Obligations and tasks of the chief authorising officer and the national authorising officer and
the paying agent shall be established by way of an exchange of instruments between the South
African Government and the Commission in accordance with the provisions of the financial
regulations of the Commission applicable to preferential agreements.
Article 81
Head of Delegation
1. The Commission is represented in South Af rica by the Head of Delegation who ensures,
together with the national authorising officer, the implementation, monitoring and follow-up of the
financial and technical cooperation in conformity with the principles of sound financial management
and the provisions of this Agreement.  In particular, the Head of Delegation shall be granted powers tofacilitate and expedite the preparation, appraisal and execution of projects and programmes.
2. The South African Government shall accord to the Head of Delegation and the officials from
the Commission appointed in South Africa privileges and immunities in accordance with the Vienna
Convention on Diplomatic Relations of 1961.
3. In defining the tasks and obligations of the national authorising officer and the head of
delegation, the Parties shall seek to ensure the greatest degree of local management of projects and
programmes as well as compatibility and coherence with practices applying in the other ACP States.WT/REG113/1
Page 39
Article 82
Monitoring and Evaluation
1. The objective of monitoring and evaluation shall consist in the external assessment of
development operations (preparation, implementation and subsequent operation), with a view to
improving the development effectiveness of ongoing and future operations.  This work shall be done
jointly by South Africa and the Community.
2. Monitoring and evaluation of the cooperation shall be done jointly by South Africa and the
Community.  Annual consultations may be held to assess progress and agree on the measures to betaken to adapt and improve implementation of the multiannual indicative programme and to prepare
for future operations.
TITLE VI
Cooperation in Other Areas
Article 83
Science and Technology
The Parties undertake to intensify scientific and technological cooperation. Detailed
arrangements for the implementation of this objective have been set out in a separate agreement,
which entered into force in November 1997.
Article 84
Environment
1. The Parties will cooperate to pursue sustainable development through the rational use of non-
renewable natural resources and the sustainable use of renewable natural resources, thus promoting
protection of the environment, prevention of its deterioration and the control of pollution.  The Parties
will aim to improve the quality of the environment a nd work together to combat global environmental
problems.
2. The Parties will give special consideration to the development of capacity in environmental
management.  There will be dialogue on the identification of environmental priorities.  The impact of
past South African policies on the state of the environment will be reviewed and addressed where
possible.
3. The cooperative relationship will involve, inter alia, matters relating to urban development
and land use for agricultural and non-agricultural purposes;  desertification;  management of waste,
including hazardous and nuclear waste;  manageme nt of dangerous chemicals;  conservation and
sustainable use of biological diversity;  the sust ainable management of forestry resources;  water
quality control;  control of pollution from industrial and other sources;  control of coastal and marine
pollution and the management of marine resources;  integrated water catchment management,including management of international river basins;  water demand management and issues
surrounding the reduction of greenhouse gas emissions.WT/REG113/1
Page 40
Article 85
Culture
1. The Parties undertake to cooperate in the sphere of culture in order to promote a thorough
knowledge and better understanding of cultural diversities within South Africa and the European
Union.  Parties will clear obstacles to intercultu ral communication and cooperation, and will stimulate
awareness of the interdependence of peoples of different cultures.  They will foster participation by
the population of South Africa and the European Union in the process of reciprocal cultural
enrichment.
2. Cultural contacts will aim at preserving and enhancing the cultural heritage and producing
and disseminating cultural goods and services.  The widest possible use shall be made of national,
regional and interregional communications media and infrastructure to facilitate cultural contacts,
while promoting respect for copyright and related rights.
3. The Parties will cooperate in cultural events and exchanges among institutions and
associations from South Africa and the European Union.
Article 86
Social Issues
1. The Parties will engage in a dialogue on social cooperation.  This shall include, but not
necessarily be limited to, questions relating to the social problems of post-apartheid society, poverty
alleviation, unemployment, gender equality, viol ence against women, children's rights, labour
relations, public health, safety at work and population.
2. The Parties consider that economic development must be accompanied by social progress.
They recognise the responsibility to guarantee basic social rights, which specifically aim at the
freedom of association of workers, the right to collective bargaining, the abolition of forced labour,
the elimination of discrimination in respect of employment and occupation and the effective abolition
of child labour.  The pertinent standards of the ILO shall be the point of reference for the development
of these rights.
Article 87
Information
The Parties shall take appropriate measures to promote and encourage an effective mutual
exchange of information. Priority shall, inter alia, be given to ensuring the spread of information on
cooperation between South Africa and the Community.  In addition, the Parties shall endeavour to
provide basic information about South Africa and the European Union for the general public, and
specialised information about European Union policies for specific audiences in South Africa as wellas specialised information about South African policies for specific audiences in the European Union.
Article 88
Press and Audiovisual Media
The Parties shall encourage cooperation in the field of press and audiovisual media, in order
to support the further development and fostering of independence and pluralism in the media.
Cooperation shall be sought, inter alia, through:WT/REG113/1
Page 41
(a) promotion of the development of human resources, in particular through training and
exchange programmes for journalists and media professionals;
(b) encouragement of wider access to sources of information for the media;
(c) exchange of technical know-how and information;
(d) production of audiovisual programmes.
Article 89
Human Resources
1. The Parties shall cooperate in order to enhance the value of human resources in South Africa
in all areas covered by the Agreement.  Cooperation shall aim to strengthen institutional capacity in
the government's key human resource development areas, paying special attention to the most
disadvantaged sections of the population.
2. In order to develop the level of expertise of senior staff in the public and private sectors, the
Parties shall step up their cooperation on education and vocational training and cooperation between
educational institutions and firms.  Particular attention shall be paid to promote the establishment of
permanent links between specialised bodies in the European Union and South Africa so as toencourage the pooling and exchange of experience and technical resources.
3. The Parties shall encourage the exchange of information in order to foster cooperation on the
recognition of degrees and diplomas by the relevant authorities.
4. The parties shall encourage linkage and cooperation between institutions of higher learning,
for example universities.
Article 90
Fight Against Drugs and Money Laundering
The Parties undertake to cooperate in the fight against drugs and money laundering by:(a) promoting the South African drugs control master plan and enhancing the
effectiveness of South African and southe rn African regional programmes to counter
the illegal abuse of narcotic drugs and psychotropic substances as well as theproduction, supply and trafficking of these substances, based on the relevant
international UN Drugs Control Conventions;
(b) preventing the use of their financial institutions to launder capital arising from
criminal activities in general and from drugs trafficking in particular on the basis ofstandards equivalent to those adopted by international bodies, in particular the
Financial Action Task Force (FATF);  and
(c) preventing the diversion of precursor chemicals and other essential substances used
for the illicit production of narcotic drugs and psychotropic substances on the basis ofthe standards adopted by international authorities concerned, notably those of the
Chemical Action Task Force (CATF).WT/REG113/1
Page 42
Article 91
Data Protection
1. The Parties shall cooperate to improve the level of protection to the processing of personal
data, taking into account international standards.
2. Cooperation on personal data protection may include technical assistance in the form of
exchanges of information and experts and the establishment of joint programmes and projects.
3. The Cooperation Council shall periodically review the progress made in this regard.
Article 92
Health
1. The Parties shall cooperate to improve the mental and physical health of populations by
promoting health, and preventing disease.
2. In the field of public health the Parties shall cooperate by sharing knowledge and experience
on programmes which, inter alia, disseminate information, improve the education and training of
public health professionals, monitor disease and develop health information systems, decrease risksfrom lifestyle related diseases, prevent and control HIV/AIDS and other communicable diseases.
3. Cooperation in the field of safety and health at work shall include exchange of information on
legislative and non-legislative measures to prevent accidents, occupation related diseases and
occupation related health risks.
4. Cooperation in the pharmaceutical field may include support in the evaluation and registration
of medicinal products.
TITLE VII
Financial Aspects of Cooperation
Article 93
Objective
In order to achieve the objectives of this Agreement, South Africa shall benefit from financial
and technical assistance from the Community in the form of grants and loans to support its
socioeconomic development needs.
Article 94
Grants
Financial assistance in the form of grants shall be covered by:(a) a special financial facility established under the Community budget, in support of the
development cooperation activities referred to in Articles 65 and 66;WT/REG113/1
Page 43
(b) other financial resources made available from other Community budget lines for
development and international cooperation activities falling within the scope of those
budget lines.  The procedure for presentation and approval of requests,
implementation, and monitoring/evaluation will be in accordance with the general
conditions relating to the budget line in question.
Article 95
Loans
As regards financial assistance in the form of loans, the European Investment Bank could
consider, at the request of the Council of the European Union, the extension of its financing ofinvestment projects in South Africa by means of  long-term loans, within the limits of maximum
amounts and periods of validity to be determined in application of the relevant dispositions of the
Treaty establishing the European Community.
Article 96
Regional Cooperation
The financial assistance from the Community referred to in the previous Articles may be used
to fund projects or programmes of national or local interest in South Africa as well as the participationof South Africa in regional cooperation activities which it undertakes together with other developing
countries.
TITLE VIII
Final Provisions
Article 97
Institutional Set-Up
1. The Parties agree on the establishment of a Cooperation Council which will perform the
following functions:
(a) to ensure the proper functioning and implementation of the Agreement and the
dialogue between the Parties;
(b) to study the development of trade and cooperation between the Parties;(c) to seek appropriate methods of forestalling problems which might arise in areas
covered by the Agreement;
(d) to exchange opinions and make suggestions on any issue of mutual interest relating to
trade and cooperation, including future action and the resources available to carry it
out.
2. The composition, frequency, agenda and venue of Cooperation Council meetings shall be
agreed on through consultation between the Parties.
3. The Cooperation Council referred to above shall have the power to take decisions in respect
of all matters covered by this Agreement.WT/REG113/1
Page 44
4. The Parties agree to encourage and facilitate regular contacts between their respective
Parliaments on the various areas of cooperation covered by the Agreement.
5. The Parties will also encourage contacts between other similar and relevant institutions in
South Africa and the European Union such as the Economic and Social Committee of the European
Community and the National Economic Deve lopment and Labour C ouncil (NEDLAC) of
South Africa.
Article 98
Tax Carve-Out Clause
1. The most-favoured-nation treatment granted in accordance with the provisions of this
Agreement, or any arrangements adopted under this Agreement, do not apply to tax advantages which
South Africa and the Member States of the Europ ean Union are providing or may provide in the
future on the basis of agreements to avoid double taxation or other tax arrangements, or domesticfiscal legislation.
2. Nothing in this Agreement, or in any arra ngements adopted under this Agreement, may be
construed to prevent the adoption or enforcement of any measure aimed at preventing the avoidance
or evasion of taxes pursuant to the tax provisions of agreements to avoid double taxation or other taxarrangements, or domestic fiscal legislation.
3. Nothing in this Agreement, or in any arrang ements adopted under this Agreement, shall be
construed to prevent the Member States of the Eur opean Union or South Africa from distinguishing,
in the application of the relevant provisions of th eir fiscal legislation, between taxpayers who are not
in the same situation, in particular with regard to their place of residence, or with regard to the place
where their capital is invested.
Article 99
Duration
This Agreement shall be valid for an unlimited period. Either Party may denounce this
Agreement by notifying the other Party in writing.  The Agreement shall cease to apply six months
after the date of such notification.
Article 100
Non-Discrimination
In the fields covered by this Agreement, and without prejudice to any special provisions
contained therein;
(a) the arrangements applied by South Africa in respect of the Community shall not give
rise to any discrimination between the Member States, their nationals, or their
companies or firms;
(b) the arrangements applied by the Community and the Member States in respect of
South Africa shall not give rise to any discrimination between South African
nationals or its companies or firms.WT/REG113/1
Page 45
Article 101
Territorial Application
This Agreement shall apply, on the one hand, to the territories in which the Treaty
establishing the European Community is applied and under the conditions laid down in that Treaty,
and, on the other hand, in respect of South Africa, to the territories as defined in the South African
Constitution.
Article 102
Future Developments
The Parties may, by mutual consent and within their respective spheres of competence,
expand the Agreement in order to enhance the level of cooperation and add to it by means of
agreements on specific sectors or activities.
Within the framework of this Agreement, eith er of the Parties may put forward suggestions
for expanding the scope of the cooperation, taking into account the experience gained in its
application.
Article 103
Review
The Parties will review this Agreement within five years of its entering into force in order to
address the possible implications of other arrangements which may affect this Agreement.  Furtherreviews may be mutually agreed on.
Article 104
Dispute Settlement
1. Each Party may refer to the Cooperation Counc il any dispute relating to the application or
interpretation of this Agreement.
2. The Cooperation Council may settle any dispute by means of a decision.3. Each Party shall be bound to take the measures involved in carrying out the decision referred
to in paragraph 2.
4. In the event of it not being possible to settle the dispute in accordance with paragraph 2, either
Party may notify the other of an appointment of an arbitrator;  the other Party must then appoint a
second arbitrator within two months of the appointment of the first arbitrator.
5. The Cooperation Council shall appoint a third arbitrator within six months of the appointment
of the second arbitrator.
6. The arbitrators' decisions shall be taken by majority vote within 12 months.7. Each Party to the dispute must take the steps required to implement the decision of the
arbitrators.
8. The Cooperation Council shall establish the working procedures for arbitration.WT/REG113/1
Page 46
9. In the case of disputes arising under Titles II and III of this Agreement, the following
procedures shall apply:
(a) the appointment of a second arbitrator must be made within 30 days;(b) the Cooperation Council shall appoint a third arbitrator within 60 days of the
appointment of the second arbitrator;
(c) the arbitrators shall, as a general rule, submit their findings and decisions to the
Parties and to the Cooperation Council not la ter than six months from the date of the
composition of the arbitration panel.  In cases of urgency, including those involvingperishable goods, the arbitrators shall aim to issue their report to the parties within
three months;
(d) the Party concerned shall inform the other Party and the Cooperation Council within
60 days of its intentions in respect of implementation of the findings and decisions ofthe Cooperation Council or the arbitrators, as the case may be;
(e) If it is impractical to comply immediately with the findings and decisions of the
Cooperation Council or the arbitrators, the Party concerned shall be afforded a
reasonable period of time to do so.  The reasonable period of time shall not exceed15 months from the date of submission of the findings and decisions to the Parties.
However, that period of time may, by mutual consent of the Parties, be reduced or
extended, depending on the particular circumstances.
10. Without prejudice to their right to have recourse to WTO dispute settlement procedures, the
Community and South Africa shall endeavour to settle disputes relating to specific obligations arising
under Titles II and III of this Agreement through recourse to the specific dispute settlement provisions
of this Agreement.  Arbitration proceedings established under this Agreement will not consider issues
relating to each Party's WTO rights and obligations, unless the Parties agree to refer any such issues to
the arbitration.
Article 105
Clause on Bilateral Agreements
Except in so far as it creates equivalent or greater rights for the Parties involved, this
Agreement shall not affect rights contained in existing Agreements binding one or more MemberStates, on the one hand, and South Africa, on the other.
Article 106
Amendment Clause
1. Any Party desirous of amending this Agreement may put forward its proposal for the
amendment, together with its submissions in motivation of the proposed amendment, to the
Cooperation Council for consideration and decision.
2. In the event that the other Party considers that the proposed amendment could detrimentally
impact on its rights in terms of the Agreement, it may submit a proposal for compensatory
adjustments of the Agreement to the Cooperation Council for consideration and decision.WT/REG113/1
Page 47
Article 107
Annexes
Protocols and Annexes shall form an integral part of the Agreement.
Article 108
Languages and Number of Originals
This Agreement is drawn up in duplicate in the Danish, Dutch, English, Finnish, French,
German, Greek, Italian, Portuguese, Spanish and Swedish languages and the official languages of
South Africa, other than English, namely Sepedi, Sesotho, Setswana, siSwati, Tshivenda, Xitsonga,
Afrikaans, isiNdebele, isiXhosa and isiZulu, each of these texts being equally authentic.
Article 109
Entry into Force
This Agreement shall enter into force on the first day of the month following that during
which the Contracting Parties have notified each other of the completion of the necessary procedures.
If pending the entry into force of the Agreement, the Parties decide to apply it provisionally,
all references to the date of entry into force shal l be deemed to refer to the date such provisional
application takes effect.
Done at Pretoria on the Eleventh day of October in the year One thousand Nine Hundred and
Ninety-Nine.
For the Joint Council
The President
__________