WT/REG113/R/I  
 
31 October 2016  
(16-5948) Page: 1/5 
Committee on Regional Trade Agreements    
 
EU-SOUTH AFRICA END OF IMPLEMENTATION PERIO D (EIP) REPORT  
JOINT SUBMISSION BY THE PARTIES ON TRADE , DEVELOPMENT AND CO -OPERATION AGREEMENT 
BETWEEN THE EU AND THE REPUBLIC OF  SOUTH AFRICA  
 This End of Implementation Period Report has been drafted in accord ance with Article 15 of 
the Transparency Mechanism Decision and following the draft guidelines contained in JOB/REG/4 
issued in January 2013.  
 
 This report does not prejudge the Parties' position on the concept and the duration of the 
implementation period s in FTAs and their relationship to the "reasonable length of time" within the 
meaning of Art. XXIV:5(c) of the GATT 1994.  
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1  BACKGROUND INFORMATI ON ON THE AGREEMENT  
1.1.  A Trade, Development and Co -operation Agreement between the EU (European Co mmunity 
at that time) and the Republic of South Africa was signed on 11 October 1999.  The Agreement 
started being applied on 1 January 2000 and entered into force on 1 May 2004. Its full 
implementation has been effective since the end of 2012. After the la st three EU enlargements, 
the 10+2+1 new EU Member States became contracting parties in 2004, 2007 and 20161 
respectively.  
1.1  Amendments to the TDCA  
1.2.  The following amendments have been added to the original agreement:  
a. Automotive agreement: Corrigendum to Deci sion No 1/2006 (2006/981/EC) of the EU -
South Africa Cooperation Council of 12 December 2006 on the amendment of Annex II 
and Annex III to the Agreement on Trade, Development and Cooperation between the 
European Community and its Member States and the Repub lic of South Africa, of the 
other part, to phase out and eliminate the duties on some automotive products  
b. Wines and spirits agreements: Separate Agreements on trade in wine and spirits were 
signed on 28  January  2002. They were not ratified by South Africa .  
c. Cheese agreement: Decision No 1/2009 of the EU -South Africa Cooperation Council of 16 
September 2009 on the amendment of Annex IV and Annex VI to the Agreement on 
Trade, Development and Cooperation between the European Community and its Member 
States, o n the one part, and the Republic of South Africa, on the other part, regarding 
certain agricultural products (2009/742/EC). The cheese agreement came into force on 1 
April 2010.  
1.3.  The Agreement was reviewed on 11 September 2009. The new provisions comprehend  
articles on e.g. combating poverty, aid effectiveness, the Millennium Development Goals, mineral 
resources and the linkage between migration and development.  
1.4.   Statistical data on trade in goods between the Parties as well as some indications on Parties' 
import coverage after full implementation of the Agreement can be found in Annex I of this report.   
                                                
1 Entry into force of Croatia's access ion Additional Protocol to the TDCA on 01.03.16.   WT/REG113/R/I  
 
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  2  PROVISIONS ON TRADE IN GOODS  
2.1  Import duties and charges, and quantitative restrictions  
2.1.  Annexes II – VII of the Agreement contain tariff liberalization schedu les of the Parties. The 
Tariff Elimination Schedules between South Africa and EU have been completed over a period of 12 
years. The tariff elimination schedule as presented in the factual presentation (WT/REG113/3) 
correctly reflects the process.  
2.2.  Pursuant to the Agreement, the EU has eliminated tariffs on 92% of all tariff lines, while 
South Africa has done away with tariffs on 72% of its tariff lines.   
2.1.1 Tariffs  
2.3.  Please refer to the following:  
 EU's tariff elimination schedule  
 - for industrial products:  article 11 of the Agreement and Annex II  
 - for agricultural products: article 14 of the Agreement and Annex IV  
  
 South Africa's tariff elimination schedule  
 - for industrial products: article 12 of the Agreement and Annex II I 
 - for agricultural product s: article 15 of the Agreement and Annex VI  
 
 Please follow this link to the text of the agreement and its protocols:  
 
 http://eur -lex.europa.eu/LexUriServ/LexUr iServ.do?uri=OJ:L:1999:311:SOM:EN:HTML   
 
2.1.2 Tariff quotas  
2.4.  The tariff rate quotas that are in place under the Agreement have been applied as of its entry 
into force, in accordance with the conditions mentioned in the relevant Annex of the Agreement. 
These quotas are managed on a first -come first -served basis.  
2.5.  The EU Decision (2009/742/EC) of the EU -South Africa Cooperation Council includes various 
modifications in relation to the tariff rate quotas to various agricultural products, in particular 
canned fruit, cheese and curd products and an exclusion list (Annex IV, List 8) of cheese names as 
protected denominations under EU legislation, e.g.:   
 - EU tariff quota on canned fruit (definition of gross weight);  
 - Opening of certain tariff -rate quotas for c heese and curd;  
 - Abolition of EU export refunds for certain cheese products exported to South Africa.  
 
2.1.3 Products excluded from liberalization  
2.6.  In the EU schedule of concessions, more than 800 tariff lines are excluded from EU tariff 
concessions. Cert ain products are subject to partial liberalization (e.g. wine, sugar, fruits, fruit 
juices, flowers, some dairy, canned fruit, citrus jams, prepared food, coffee and tea, yeasts), while 
the most sensitive products are excluded from liberalization (e.g. bee f; some offal; the odd fruit or 
flower line; maize; rice; maize or rice flour; starches; some sugar lines; tomatoes; asparagus; 
some jams; some preserved fruits; some fruit juices, syrups). Outside the agricultural sector some 
aluminium products are exclud ed. 
 
2.7.  In the South African schedule of concessions, more than 2,000 tariff lines are excluded from 
South Africa tariff concessions. Certain products are subject to partial liberalization (e.g. some 
meat and offal, some butter, some cheese, some cereals, som e ice cream, tyres, leather, textiles, 
fabrics, footwear, some car parts, 47% of vehicle tariff lines), while the most sensitive products 
are excluded from liberalization (e.g. some meat and offal; some dairy; some milling products; 
some sausages; some sug ar; some minerals such as pitch coke, petroleum and lubricating oils, 
waxes; some car parts (engines); 4% of vehicle tariff lines).  WT/REG113/R/I  
 
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  2.1.4 Final tariff schedule applied by RTA parties  
2.8.  Final data to be found in the EC -IDB submission 2016, provided to the WT O Secretariat in 
March 2016.  
2.2  Export duties and charges, and quantitative restrictions  
2.9.  With regard to article 19 of the Agreement, quantitative restrictions and measures having 
equivalent effect between South Africa and the European Union shall be eliminate d from the entry 
into force of the Agreement.  
2.3  Regulatory provisions on trade in goods  
2.3.1 Rules of origin  
2.10.   Disciplines regarding rules of origin are set out in Protocol 1 of the Agreement.  
2.3.2 Non -tariff barriers  
2.11.   No further cooperation regarding non -tariff barriers have been proposed.  
2.3.3 Sanitary and phytosanitary measures  
2.12.   No provisions on sanitary and phytosanitary measures are included in the Agreement.  
2.3.4 Safeguards  
2.13.   The Parties have not applied any safeguard measures using the mechanisms establ ished 
under the Agreement.   
2.3.5 Trade defence instruments  
2.14.   The Parties have not applied any measure using the mechanisms established under the 
Agreement.  
3  OTHER PROVISIONS IN THE AGREEMENT  
3.1  Economic cooperation (Title IV)  
3.1.  Economic cooperation focuses on e conomic and industrial matters to the mutual advantage of 
South Africa and the European Union and in the interest of the southern African region as a whole. 
The scope of the cooperation covers the diversification and strengthening of economic links 
between  the two signatory partners, promotion of sustainable development in their economies, 
support to patterns of regional economic cooperation, the promotion of cooperation between small 
and medium -sized enterprises, protection and improvement of the environme nt, economic 
empowerment of historically disadvantaged groups, including women, and protection and 
promotion of worker and trade union rights.  
3.2  Development cooperation (Title V)  
3.2.  Development cooperation is based on policy dialogue and partnership. It suppor ts the policies 
and reforms carried out by the national authorities of South Africa under the National Development 
Plan (NDP). The aim is to contribute to a harmonious and sustainable economic and social 
development in South Africa and to enhance the inser tion of the country into the world economy. 
It seeks consolidation of 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 are r espected. Within this context, priority is given to supporting operations which help 
the fight against poverty.  WT/REG113/R/I  
 
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  3.3.  EU development aid for South Africa is mainly implemented from the EU budget through the 
Development Cooperation  Instrument (DCI). For the period 2007 –13, the DCI had a budget of 
€980 million for South Africa. The Multiannual Indicative Programme (MIP) for cooperation with 
South Africa for 2007 –13 designated two focal areas: employment creation; and capacity 
development for service delivery and social cohesion, as well as three non -focal areas 
(governance, regional and pan -Africa n support, and trade facilitation). Cross -cutting issues, e.g. 
environment and climate change and gender equality, are brought into the mainstream of the 
chosen sectors of cooperation.  
3.4.  For the 2014 -2020 period, South Africa is one of the exceptions concern ing EU's support to 
Upper Middle Income Countries as the country continues to receive bilateral aid, though 
considerably reduced from €980 to €241 million. Aligned with the government  priorities set in its 
National Development Plan – Vision 2030, the 2014 -20 MIP focuses on its three key priorities: i) 
Employment  Creation; ii) Improving Education, Training and innovation and iii) Building a Capable 
and Developmental State. The aim is to support the Government of South Africa in reducing 
unemployment from aro und 25 % (2013) to 14 % (2020), in transforming the education, training 
and innovation system so that it can contribute to improved economic performance of the country 
and assist South Africa in fulfilling its developmental and transformative role, includi ng improving 
service delivery.  The three sectors are all decisive areas to address some key root causes of 
poverty in South Africa especially the very high level of unemployment, including for the youth.   
3.3  Cooperation in Other Areas (Title VI)  
3.5.  Article 83 o f the Agreement foresees an intensification of the existing scientific and technical 
agreement of 1997.  
3.6.  A special focus is made on the cooperation to pursue sustainable development through the 
rational use of non -renewable natural resources and the sustai nable use of renewable natural 
resources. The Agreement promotes the protection of the environment, prevention of its 
deterioration and the control of pollution. It aims at improving the quality of the environment and 
cooperation in combating global enviro nmental problems on the basis of a dialogue, which will 
contribute to the identification of environmental priorities (article 84).  
3.7.  Over the years, the EU -SA Strategic Partnership has progressively enriched through 
dialogues, specific initiatives and suppor t projects. Actions have not only been funded under the 
2007 Development Cooperation Instrument  (DCI), but also under other European Un ion 
programmes.  
3.4  Cooperation Council  
3.8.  The Parties have established a Joint Cooperation Council that meets regularly on an annual 
basis. The aim of the Cooperation Council is to enhance the cooperation through bilateral dialogue 
forums (e.g. Customs, Developm ent, Education & Training, Energy, Environment & Sustainable 
Development, Health, ICT, Maritime Transport, Migration, Science & Technology, Space, and 
Trade).  
3.5  Dispute settlement  
3.9.  Article 77 of the Agreement includes a dispute settlement mechanism based on the model of 
the WTO Dispute Settlement Understanding. The Parties have not made use of this mechanism.  
4  CONCLUSION  
4.1.  The achievements of the Agreement and those of the Cotonou Agreement and the previous 
ACP-EC agreements in regional cooperation and integrati on, as well as economic and trade 
cooperation, are the basis for the EU -SADC Economic Partnership Agreement (EPA), which was 
signed on 10 June 2016. The EU -SADC EPA will be implemented in a complementary and mutually 
reinforcing manner with respect to the Cotonou Agreement and this Agreement, subject to its 
Articles 110 and 111.  WT/REG113/R/I  
 
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  ANNEX 1  
STATISTICS ON TRADE IN GOODS  
Table A1. 1 EU(28): Imports from South Africa (million €)   
Year Total  Agricultural products*  Non-agricultural products*  
2007  20,906  1,930  18,976  
2008  23,519  2,051  21,467  
2009  18,468  1,812  16,656  
2010  19,395  2,075  17,320  
2011  20,693  1,955  18,738  
2012  19,140  1,984 17,156  
2013  14,387  2,263  12,123  
2014  17,652  2,162  15,489  
2015  18,393  2,430  15,963  
*  WTO definition.  
Source:  EUROSTAT (Comext).  
 
Table A1. 2 South Africa: Imports from the EU (Million Rands)  
Year Total  Agricultural products * Non-agricultural products*  
2007  214, 487  8,454  206,033  
2008  272,977  10,838  262,139  
2009  377,064  21,229  355,834  
2010  413,646  22,636  391,009  
2011  535,602  30,787  504,815  
2012  661,811  43,242  618,569  
2013  459,127  28,536  430,591  
2014  300,126  21,648  278,478  
2015  320,301  22,709  297,591  
*  WTO definition.  
Source:  www.thedti.gov.za  
 
Table A1. 3 EU(28) import coverage after full implementation of the Agreement   
Coverage  2007  2008  2009  2010  2011  2012  2013  2014  2015  
% of tariff  lines 83% 83% 84% 90% 90% 89% 89% 89% 89% 
% of imports  91% 92% 91% 93% 94% 95% 93% 95% 94% 
Note:  DFQF as % total . 
Note:  EU28 for the entire period . 
Source:  EUROSTAT Comext/ISDB Normal trade regime only . 
 
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