Alec Erwin

SOUTH AFRICA: FREE TRADE PACT SIGNED WITH EU

• Report rights infringement
• published: 21 Jul 2015
• views: 68

English/Nat After more than four years of negotiations, South Africa and the European Union finally signed a free trade pact on Monday, warding off a last minute bid by France to squeeze further concessions. The agreement proposes abolishing tariffs on about 90 percent of two-way trade between South Africa and the E-U; trade which tops more than $U-S 17 (b) billion annually. But the agreement came close to a last minute collapse after Pretoria rejected fresh demands that it give wider recognition to product names emanating from Europe. The deal has finally been signed; a significant step forward for South Africa's economic growth into the new millennium. Over 12 years, South Africa will eliminate tariffs on 86 percent of goods it imports from E-U countries, while tariffs on 90 percent of its exports to the E-U will be lifted within 10 years. However, fears that the accord might unravel emerged on Monday morning after Pretoria rejected fresh demands that it give wider recognition to product names emanating from Europe. The signing ceremony in Pretoria was delayed by nearly an hour as the French deliberated about whether or not to block the deal which needed the approval of all 15 E-U member states. Diplomats said French President Lionel Jospin had to be called to resolve the impasse and have the agreement cleared by a meeting of E-U foreign ministers in Luxembourg. South African Trade and Industry Minister Alec Erwin and E-U commissioner Toul Nielsen signed the agreement. SOUNDBITE: (English) "From our side this has been part and parcel of our long range strategic thinking on the economy and we are extremely pleased that this agreement has been concluded and that we were able to sign the agreement here today." SUPER CAPTION: Alec Erwin, South African Trade and Industry Minister SOUNDBITE: (English) "It confirms a clear process by the EU to support the process of change and reform in South Africa and reflects both sides' desire to further expand their political, trade and cooperation contexts to the benefit of South Africa and indeed southern Africa as a region." SUPER CAPTION: Toul Nielsen, E-U commissioner Finnish Secretary of State Jukka Valtasaari and ambassadors of other E-U member states also endorsed the accord. SOUNDBITE: (English) "We have the agreement now. It's been signed. It's a milestone and I'm delighted to represent the union here." SUPER CAPTION: Jukka Valtasaari, Finnish Secretary of State Jukka Valtasaari Finland currently holds the presidency of the E-U council of ministers. The deal, to be implemented from January 1 next year, is the most important to be struck by South Africa's post-apartheid government. Pretoria took a hard line in the negotiations with its largest trading partner and was rewarded with significant access for its agricultural products in E-U markets. The E-U already stands accused of bullying its weaker trading partner into relinquishing some of its rights to use product brand names in use for hundreds of years, such as port and sherry, and to provide greater access to its fishing waters. The E-U demanded, for instance, that South Africa guarantee that its wine producers would phase out their use of the names port and sherry within 12 years. The current wording of an agreement on wines and spirits, which runs in parallel to the main trade agreement, was instead deliberately couched in vague terms. The French and other southern E-U states were concerned that any concessions to South Africa on brand names could set a precedent for future trade negotiations. You can license this story through AP Archive: http://www.aparchive.com/metadata/youtube/77e72484c4d6b75d4812311ab19dc01d Find out more about AP Archive: http://www.aparchive.com/HowWeWork