B4-0454/96

Resolution on the negotiations for a trade and cooperation agreement with South Africa

The European Parliament,

- having regard to the Treaty on European Union, in particular the provisions on a common foreign and security policy (Title V), and to the objectives outlined in Article 130u of the EC Treaty,

- having regard to the statement of the European Union of 19 April 1994 on cooperation with South Africa,

- having regard to the final declaration of the EU-Southern Africa Foreign Ministers Conference in Berlin (5-6 September 1994),

- having regard to its opinion of 30 November 1994 ((OJ C 363, 19.12.1994, p. 13.)) on the proposal for a Council Decision on the conclusion of the Cooperation Agreement between the European Community and the Republic of South Africa (COM(94)0402 - C4-0171/94 - 94/0216(CNS)),

- having regard to South Africa's application to join the Lomé Convention and the Georgetown agreement, and the support of the ACP in favour of this application,

- having regard to its resolution of 10 October 1995 on South Africa's future economic and trade relations with the European Union ((OJ C 287, 30.10.1995, p. 32.)),

- having regard for the present state of the negotiations on a long-term cooperation and trade agreement between South Africa and the European Union, which officially started on 30 June 1995,

A. whereas substantial progress has been made between the European Union and South Africa on the non-trade aspects of the negotiations, whilst the start of negotiations on the trade aspects has been substantially delayed,

B. noting with regret that this continued delay is due solely to European Member States' failure to agree on a satisfactory 'supplementary detailed trade mandate' which would allow for the negotiation of a mutually beneficial agreement with South Africa,

C. aware that the envisaged date for the final agreement between South Africa and the European Union was set for March 1995, and that the continued delays could adversely affect the inclusion of the South Africa Lomé Protocol,

D. conscious of the fact that South Africa's ability to improve its economic and trade relations will be crucial to the consolidation of its fragile democracy and to ensuring political stability in the Southern African region as a whole,

E. conscious, furthermore, that the European Union has so far failed to strengthen existing trade relations and capitalize on the new trading opportunities created by political change, following democratic elections in South Africa, now two years ago,

F. whereas, in the long term, this could gradually undermine the so far strong position of the EU vis-à-vis its competitors on the South African market,

G. noting that the Council agreed to approve a new negotiating mandate for the Commission,

1. Reiterates, as a matter of urgency, its call on the EU Member States and the Commission to effectively commence detailed negotiations with South Africa with a view to concluding a mutually beneficial long-term trade agreement;

2. Stresses its concern at the fact that the delays in Council appear due more to Member States' uncertainty over the EU's global policy on Free Trade Areas, rather than to the specific case of South Africa;

3. Stresses that the process of economic restructuring in South Africa presents a unique case; reiterates in this regard the European Parliament's call on the Commission and the Member States to 'maintain maximum flexibility' and to keep all possible options open;

4. Reminds the EU Member States that they have made a commitment to negotiating an agreement on preferential trade access with South Africa;

5. Deplores, in this regard, the intention of EU Member States to add to the final 'trade mandate' a list of South African agricultural export products to be excluded 'a priori' from the negotiations;

6. Recalls, in this regard, that the potential for South African agricultural exports is limited due to lack of rain and arable land and increasing domestic demands;

7. Recalls, furthermore, that South Africa is presently still discriminated against in terms of trade access in comparison with its main competitors on the EU market;

8. Stresses equally, however, the need for any future trade agreement to provide adequate and transparent safeguards for both EU producers and traditional ACP suppliers;

9. Proposes, therefore, that exclusion of products from preferential access should be an accepted part of the negotiations with South Africa, where it is evidenced that these exclusions are indeed necessary to safeguard the position of European, ACP or South African producers;

10. Reiterates the need for proper analysis of the impact of a FTA not only on the EU, but also on South Africa's industry and that of its SACU partners;

11. Regrets, in this regard, the fact that some Member States see such impact studies as a means to further delaying negotiations;

12. Stresses its concern that the positions adopted by Member States, in defining the detailed trade mandate, are severely reducing the attractiveness of the EU's offer to South Africa;

13. Reiterates the importance of a long-term trade deal for future relations between the European Union and South Africa; reminds Member States that their present actions belie the strong political statements of support made to South Africa in the EU's statement of 19 April 1994;

14. Calls in this regard on the EU Member States and the Commission to take account of the high adjustment costs to South Africa - and its SACU neighbours - of a process of increased trade liberalization as presently proposed by the EU;

15. Calls, in particular, for flexibility in the coverage and time-frame of tariff reductions required from South Africa which, if they are to be economically and politically sustainable, need to be far less ambitious than presently envisaged by the EU;

16. Reiterates the view that any future trade deal should encourage intra- regional trade in Southern Africa through the urgent regional harmonisation of the rules of origin;

17. Calls on the Commission and the Member States to de-link the non-trade from the trade aspects in the agreement in order to ensure that the delay in the negotiations on the detailed trade aspects does not negatively impact on non-trade aspects, such as the Lomé Protocol;

18. Instructs its President to forward this resolution to the Council and Commission, to the governments and parliaments of the EU Member States, to the Government and Parliament of South Africa, to other governments of the member states of the Southern African Development Community, to the ACP Council and to the ACP/EU Joint Assembly.