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EU aims to ‘consolidate’ relations with SA in 2015 following action-packed period

EU aims to ‘consolidate’ relations with SA in 2015 following action-packed period

29th May 2015

By: Terence Creamer
Creamer Media Editor

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The head of the European Union (EU) Delegation to South Africa, Ambassador Roeland van de Geer, expects a quieter year in relations between the 28-member-country bloc and South Africa, following an action-packed and, at times, tempestuous 2014.

Besides a high-profile spat over citrus black spot (CBS), the EU and South Africa also bumped heads over South Africa’s unilateral cancellation of bilateral investment treaties with a number of European countries; all this amid tense final negotiations on the much-delayed Economic Partnership Agreement (EPA) between the EU and the Southern African Customs Union members, as well as Mozambique.

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But Van de Geer insists that, while relations may have appeared tense in the public arena, communication channels remained open throughout, laying the basis for continued progress on trade, investment and development cooperation.

In the area of trade, South African exports to the EU in 2014 came in at R193-billion, representing 23.15% of all exports from Africa’s most diversified economy and making the EU a larger importer of South African products than the US and the Bric countries of Brazil, Russia, India and China. The figure also represents an improvement on the R165-billion exported to the EU in 2013.

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In addition, Van de Geer stresses that the majority of trade is with South Africa’s non-minerals sectors, while the country’s trade deficit with the EU has also narrowed. EU exports to South Africa rose in 2014 to R301-billion, from R284-billion.

Even citrus exports held up, despite the CBS dispute, with the 645 000 t exported to the EU in 2014 representing only a marginal decline in volumes. In value terms, however, citrus exports rose by 9% to R4-billion.

Van de Geer also emphasises that no ban has ever been placed on South Africa oranges and insists that all interceptions have been pursued for phyto-sanitary rather than protectionist reasons.

He expects the situation to improve in 2015, despite the fact that South Africa and the EU remain at odds over the science regarding fruit-to-plant CBS contamination. However, the EU is supportive of South Africa’s decision to approach the International Plant Protection Convention to seek a scientific settlement.

Van de Geer views 2015 as a year of “consolidation”, with a key ambition being the finalisation and ratification of the EPA.

Following ten years of talks, chief negotiators initialled the EPA in July last year, only months ahead of the October 1, 2014, deadline imposed by the EU for the conclusion of the reciprocal trade arrangement. A failure to conclude a deal would have resulted in Botswana, Namibia and Swaziland losing their preferential access to the EU for exports of beef, fish and sugar.

Since then the texts have been “scrubbed” and are ready to be presented to the various governments so that the final ratification process can be initiated; a process that is likely to endure for the remainder of the calendar year.

Van de Geer also believes 2015 will represent the true start of new 2014 to 2020 development-cooperation cycle, which is backed by €250-million in financial commitment. The aid package has been aligned to South Africa’s National Development Plan and will specifically support education and training, job creation and the building of a more capable State.

In addition, the delegation also anticipates the first disbursements this year of the €100-million set aside by the EU to help accelerate the preparation of social and economic infrastructure projects in South Africa and the region.

Following a strong response to a 2014 request for proposals, some 20 projects have been short-listed for possible support under the Infrastructure Investment Programme for South Africa, which is administered by the Development Bank of Southern Africa.

“Taking into account all the troubles we have in Europe and all the troubles there are in South Africa, I think 2014 was a milestone year in advancing the relationship. This year will be about consolidating those gains,” Van de Geer avers.

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