WRITTEN QUESTION E-2287/98

by Jaak Vandemeulebroucke (ARE) to the Commission

(22 July 1998)

Subject: Bilateral trade, development and cooperation agreement between the European Union and the Republic of South Africa

At the end of April 1997 the Republic of South Africa became the seventy-first member of the Lomé Convention. However the European Union and the Government of South Africa are also holding negotiations on a bilateral trade, development and cooperation agreement. All relevant discussions should normally have been completed by the middle of 1998. The new agreement is to replace the GATT generalised system of preferences (GSP), which since 1994 has provided for lower import tariffs for certain South African products, with an asymmetrical free trade area with the European Union.

Can the Commission provide answers to the following questions:

1. Which South African products are at present subject to tariffs or other levies imposed by the European Union?

2. Which South African products will still be subject to tariffs or other levies imposed by the European Union following completion of the bilateral trade, development and cooperation agreement?

3. Which products from the European Union are at present subject to tariffs or other levies imposed by the Republic of South Africa?

4. Which European Union products will still be subject to tariffs or other levies imposed by the Republic of South Africa following completion of the bilateral trade, development and cooperation agreement?

5. What stage have the discussions reached on the bilateral trade, development and cooperation agreement between the European Union and the Republic of South Africa?

6. How many negotiating rounds (with whom, where, when and on what subject) have taken place since the start of the bilateral negotiations?

7. When is the closing discussion on the bilateral trade, development and cooperation agreement planned (with whom and where)?

8. What are, according to the Commission's "very general study" the economic consequences of the free trade agreement for southern Africa?

9. On what a) principles, b) measures, c) tariff agreements and d) product lists has agreement already been reached?

10. On what a) principles, b) measures, c) tariff agreements and d) product lists has agreement still not been reached? Why, and who has reservations about which particular problem points?

11. After approval of the agreement can the Republic of South Africa levy import tariffs on subsidised agricultural products from the European Union in order to prevent or compensate for the disruption of the agricultural sector in southern Africa? If not, why not?

12. Can the European Union, after approval of the agreement, levy import tariffs on a) agricultural products, b) coal and c) steel imported from the Republic of South Africa? If so, why and at the request of which Member State?

Answer given by Mr Pinheiro on behalf of the Commission

(22 September 1998)

1. Tariffs applicable to current South African exports into the Community are the most favoured nation clause (MFN) or, where appropriate, the generalized scheme of preferences (GSP).

2. As things stand today the free trade area (FTA) will provide full duty free access by the end of the transitional period for 95 % of all South African exports into the Community. The remaining 5 % relates to agricultural products only.

3. Tariffs applicable to current Community exports into South Africa are MFN.

4. As things stand today the FTA will provide full duty free access by the end of the transitional period for 85 % of all Community exports into South Africa. The remaining 15 % relates mainly to industrial products.

5. Discussions have reached the final stage, as Commission negotiators are guided by "the Union's determination to bring negotiations to a successful conclusion no later than the autumn of 1998", as expressed by the Cardiff European Council of June 1998.

6. Since the start of the negotiations in June 1995 the Commission and its South African interlocutors have been involved in 20 rounds of negotiations on the whole spectrum of subjects covered by the envisaged trade, development and co-operation agreement.

7. The 21st and hopefully final round is scheduled for 16-18 September 1998 in Brussels.

8. The Commission expects that the envisaged agreement will have a positive dynamic economic effect on both South Africa and the other countries in the region.

9. Ad referendum agreement has been reached on the main principles and the bulk of the measures and draft articles of the envisaged agreement.

10. Ad referendum agreement has not yet been reached on some measures, the trade section and the product lists annexed to the agreement, due to a remaining gap between offers and requests of both sides.

11. Ad referendum agreement has been reached on a general safeguard, an agricultural safeguard and a regional (South African customs union) safeguard clause which would allow South Africa exceptionally to take measures to redress disturbances to domestic market caused by imports of products originating in the Community.

12. The general safeguard, the agricultural safeguard and another regional (Réunion) safeguard can be equally applied by the Community, in cases where imports originating in South Africa would cause serious disturbance to the Community market.