WRITTEN QUESTION E-2286/98

by Jaak Vandemeulebroucke (ARE) to the Council

(28 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. At the same time the European Union and the Government of South Africa are however negotiating on a bilateral trade, development and cooperation agreement. All relevant negotiations should normally have been completed by the middle of 1998. The new agreement is to replace the GATT generalised system of preferences (GSP) which has provided for lower import tariffs since 1994 for certain South African products with an asymmetrical tree trade area with the European Union.

Can the Council provide answers to the following questions:

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

2. Which South African products will still be subject to tariffs or other European Union levies 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 the 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. For what date 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) products lists has agreement already been reached?

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

11. Can the Republic of South Africa after approval of the agreement levy import duties on subsidised agricultural products from the European Union in order to avoid 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 duties 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?

Reply

(9 November 1998)

On 24 April 1997 the Republic of South Africa was given a qualified membership of the Lomé Convention. This membership did not cover the trade provisions of the Convention, since they were to be covered by a separate bilateral trade and co-operation agreement to be negotiated between the EU and South Africa. The mandate to negotiate this agreement was handed to the Commission by the Council on 19 June 1995 and 25 March 1996. Since then the Commission has negotiated with South Africa and should therefore be in a better position to make the requested information available. At present the Council only has the following comments to the various questions:

Regarding the products subject to tariffs or other levies, the EU imports from South Africa products from 437 customs positions at zero duties and products from 3 473 customs positions which pay duties (1996 figures). South Africa imports from the EU products from 2 628 customs positions at zero duties and products from 5 380 customs positions which pay duties (average 1994-1996 figures).

The question of the number of products from either side subject to tariffs is precisely what is being negotiated between the two sides and can therefore not be answered at the present stage.

As to the number of negociating rounds which have already taken place, only the Commission can give a correct answer to that question, since they are the negotiators. The Council has been informed of 20 rounds of negotiations.

The negotiations have been going on since 1996 and substantial progress has been achieved in these difficult negotiations. It can be hoped that a conclusion of the negotiations is not too far away, although no date is planned for the moment.

The negotiations are taking place on a "nothing is agreed until everything is agreed" basis. Since they are not finalised yet, an answer to questions 9 to 12 of the Honourable Member cannot be given.