They cautioned about the impact of an open market on companies in the region. This was the first opportunity we had to listen to the views of the South Africans. The EU has proposed lifting tariffs and duties on most SA exports to Europe in return for a phased opening up of the SA market to European exports over a period of time to be negotiated. SA officials called on the EU to rethink its approach, to ensure any accord was a wider package to promote development in the region, rather than just a reciprocal deal to cut industrial and agricultural tariffs. The two-day meeting, which ended yesterday, was largely devoted to establishing ground rules and setting the agenda for future negotiations.
Analysts expect the talks to conclude by year-end.
Prior to this week's Pretoria meeting both sides said they were committed to reaching agreement on a package which could reap rich rewards for their export industries. The free-trade pact aims to ensure a reciprocal reduction of European and SA tariffs in both the industrial and farm sectors. The restrictions placed on SA farm exports, and the fact that the country is being offered only partial membership in the Lom Convention, the trade and aid deal which links the EU to 70 African, Caribbean and Pacific states, has irked Pretoria, which says that the EU is reneging on its promise to aid SA development. Pretoria officials have also expressed concern that the free trade deal will lead to a loss of income from customs tariffs for members of the Southern African Customs Union, which comprises South Africa, Swaziland, Botswana, Lesotho and Namibia. Earlier this week, EU chief negotiator Philippe Soubestre said that given its level of economic development, South Africa could not be given the restriction-free access to European markets accorded to other, poorer African states.