Share

Davies: EU more 'flexible' on trade talks

Cape Town - After eight years of inflexibility the European Union has softened its stance as the deadline looms for a long delayed trade deal between it and the Southern African Development Community.

Trade and Industry minister Rob Davies however warned on Wednesday that only solid and significant concessions will clinch a deal.

The EU appears to be more “flexible” said Davies in an interview with Fin24.

The main concession the EU has made in the trade negotiations, which are aimed at hammering out reciprocal tariff regimes or Economic Partnership Agreements (EPAs) between the EU and Sadc countries, involves a proposal to take "new generation" issues off the table.  These include services, intellectual property rights and investment which South Africa has consistently refused to negotiate on.  

But, Davies cautioned against claiming victory on this issue at this stage and said: “We still need to see the colour OF these (proposals)”.

He added: “Since our discussions in Brussels (last month) we had another negotiating session (in South Africa) last week and it seems that the EU is now more flexible. There seems to be an understanding that there are some bridges we are not prepared to cross.”

SADC/EU EPA negotiations have dragged on since 2002 when the Cotonou agreement redefined trade relations between the EU and African, Caribbean and Pacific (ACP) countries. Given the EU’s apparent softening in the last few months, the question remains whether these controversial agreements will be concluded in time for the latest deadline by the end of 2010 and what concessions would be made.

President Jacob Zuma is apparently more confident than Davies at this stage.

Following a meeting with his counterpart Ian Khama earlier on Wednesday in Pretoria, Zuma said: “There is an understanding with the EU that an agreement of the EPA must be signed at the end of this year and therefore we have agreed with our negotiators to The stumbling blocks that remain are significant.

The sticking points include issues related to rules of origin which apply to exports from the SADC to the EU and spell out which goods are considered to have been produced within the region. Agricultural safeguards are also still a source of disagreement because the EU is opposed  to SADC countries raising tariffs if EU products start  “flooding” the local market.

The biggest bone of contention, however, is the fact that the EU wants to retain the controversial most favoured nation clause. This clause would obligate SADC countries to offer the EU the same trade concessions it extends to other countries in future trade agreements if those countries represent more than 1.5% of global trade.

Marc Maes, an EPA critic from the coalition of a Belgian NGO known as 11.11.11 has slammed this as a “purely offensive strategy to protect European interests and to prevent that, for instance, Africa turns around and offers the U.S. (or China) a better deal”

Davies, who has also been vocal about what he regards as bullying tactics by the EU during these negotiations, is not as fazed about meeting or missing the 2010 deadline as he is about striking a deal that’s in the SADC’s long-term interests.

“I don’t think the world will come tumbling down if the deadline is not met. It was put in place to say ‘let’s have a serious crack at this.  There’s a better understanding of the position that SADC countries find themselves in. But whether this is significant enough to conclude the talks remains to be seen,” said Davies.

The eight years of negotiations with the EU have put particular political strain on Southern Africa and has threatened the cohesion of the Southern African Customs Union (five of the SADC countries also belong to SACU).

Tensions in the regions climaxed last year in June when Botswana, Lesotho and Swaziland went ahead and signed an interim EPA with the EU. While Namibia initialed the document it didn’t sign it. South Africa, which refused to sign, accused the EU of blackmailing smaller and more vulnerable states into signing interim EPAs that, in the long-term undermined the regions potential for development and economic growth.

While South Africa warned that it would be left with little choice but to walk out of  SACU if these interim EPAs were ratified, her neighbours argued that they were under pressure because the EU threatened to slash the access countries have to European markets if they didn’t sign the EPA by a certain date. The EU then agreed to set aside the interim EPAs and negotiate with the group as a whole again.

This coupled to the united front that the Southern African leaders put on at last week’s round of EPA talks in Pretoria, is the reason why all eyes will be on next week’s round of talks with the EU in Mozambique.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.89
+0.3%
Rand - Pound
23.82
+0.4%
Rand - Euro
20.37
+0.3%
Rand - Aus dollar
12.30
+0.3%
Rand - Yen
0.12
+0.3%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders