Background on the TDCA

1. Briefing to the Select Committee on Trade & International Relations regarding the Amending Agreement to the SA-EU Trade, Development and Cooperation Agreement (TDCA)

2. Background on the TDCA • The TDCA was the first bilateral framework agreement entered into by both SA and the EU. • The TDCA was signed in 1999. • It was partially implemented in January 2000 awaiting ratification. • The TDCA was fully implemented in May 2004 following final ratification. • It includes chapters on Political Dialogue, Trade, Economic Cooperation, Development Cooperation and Cooperation in other areas. • Trade liberalisation is asymmetrical in nature: SA to eliminate tariffs on 86% of EU imports to SA over 12 year period, whilst EU to eliminate tariffs on 95% of South African exports over 10 year period. • The 2004 mid-term review of TDCA led to realisation that TDCA needed an update. • Formal TDCA revision negotiations was launched on 27 March 2007 (DIRCO-led).

3. Background on TDCA (cont.) • Negotiations included all relevant SA Departments and were conducted by three thematic negotiation groups, namely: • Political Dialogue Negotiating Group: DIRCO-led; • Economic and Other Areas of Cooperation Working Group: DIRCO-led; • Development Cooperation Negotiating Group: National Treasury-led. • 35 new and revised articles initialled by chief negotiators on 10 October 2007. • Process of revision of trade chapters is being conducted separately under SADC EPA negotiations process. • Amending Agreement was signed by Minister Nkoana-Mashabane during 2nd SA-EU Summit on 11 September 2009.

4. The Revised TDCA in Context • The Mid-Term review was mandated in terms of Article 103 of the TDCA. • The TDCA has proven to be very beneficial to SA in terms of trade, having helped to facilitate a 234% trade increase between 2000-2004, and a 170% trade increase from 2004-2007 in SA-EU trade. • TDCA regulates SA-EU Development Assistance. • The EU is SA largest ODA partner, having committed to €950m for 2007-2013 EU budget cycle. • The European Investment Bank has budgeted €900m loans for infrastructure projects over the same period. This envelope is almost fully committed and expected to be increased. • The TDCA allows for broad-ranging cooperation over many fields and provides legal foundation for the regulation of relations. • The Revised TDCA further broadens and entrenches this cooperation. • The Revised TDCA articles do not impose any mandatory financial commitments for either side.

5. Changes to the TDCA Revised Preamble: • A new recital has been added recognising that the multilateral disarmament and non-proliferation treaty system in all its components is of vital importance; • That progress should be made in the implementation of all the obligations deriving from it; • South Africa’s inclusion of a reference to disarmament in this paragraph is an important point-of-principle victory, as it is the first time that the EU has been forced into, not only focussing on including the non-proliferation aspect as an essential element in a framework agreement, but also adding the disarmament issue.

6. Changes to the TDCA Revised Article 2 (Essential elements) • The Article has been reworded to include the following essential elements of the Agreement: • the respect for democratic principles and fundamental human rights as laid down in the Universal Declaration of Human Rights; • cooperation on issues of disarmament and the non-proliferation of weapons of mass destruction. • As essential elements, this means that any violation of these principles could result in the termination of the Agreement.

7. Changes to the TDCA Revised Article 55 (Information Society and ICTs) • The article has been reworded to provide for broader cooperation. The Parties agree to cooperate in the development of the Information Society, and in harnessing ICTs as enabling tools of socio‑economic development in the information age. Cooperation shall include dialogues, information exchange and possible technical assistance on different aspects of building the information society.

8. Changes to the TDCA Revised Article 57 (Energy) • This article has been amended to place more focus on energy security, the promotion of cleaner energy technologies, as well as regulatory cooperation. Revised Article 58 (Mining and Minerals) • This article has been amended to allow to support policies and programmes that promote the local beneficiation of minerals and that create opportunities for collaboration in the development of the mineral beneficiation sector.

9. Changes to the TDCA Revised Article 59 (Transport) • The existing article on Transportas been split into two; General and Maritime. • The general section has been revised and now also allows for: • cooperation on issues of rail transport; • exchanging of information and improving cooperation on the respective transport safety and security policies and practices; • harmonising transport policies and regulatory frameworks through enhanced policy dialogue and exchanges of regulatory and operational know-how with competent authorities; • as well as developing partnerships in the field of global satellite navigation systems, including research and technology development, and their application for sustainable development.

10. Changes to the TDCA New Article 59A (Maritime transport) • This allows for broad cooperation and dialogue on maritime transport and includes issues such as formulation of legislation relating to maritime transport and market administration; strive for efficient transport service for international sea trade; enforce internationally binding shipping safety standards; prevent marine pollution; exchange of personnel, scientific information and technology; to enhance maritime security. Revised Article 60 (Tourism) • It has been broadened to include the development of local communities and promoting cooperation at regional and continental levels.

11. Changes to the TDCA Revised Title V (Development Cooperation) • The various articles in Title V have largely been amended to reflect updated internal South Africa and EU procedures New Article 65A Here in the Parties: • Elaborate on their joint commitment to meeting the MDG’s; • Redouble their efforts to meet their Monterrey Financing for Development Commitments; • Commit to achieve the outcomes of the Johannesburg Plan of Implementation; • Express their support for the African Union and its socio economic programme

12. Changes to the TDCA Revised Article 83 (Science and Technology) • Has been substantially broadened • Allows for greater S&T partnership and cooperation under the EU's Framework Programmes and to strengthening Africa's science and technology capacities. [SA is already the 4th largest non-EU participant in the Euro55 billion Framework Research Programme after the US, Russia and Japan. SA also has a separate Science and Technology Agreement with the EU – since 1997]. Revised Article 84 (Environment) • Has been broadened and now also allows for cooperation on improving air quality.

13. Changes to the TDCA Revised Article 85 (Culture) • It has been amended and now allows for the establishment of a policy dialogue in the field of culture. • It also commits both Parties to cooperate in the framework of the relevant international fora(e.g. UNESCO) in order to enhance the protection and promotion of cultural diversity and to foster intercultural dialogue at international level.

14. Changes to the TDCA Revised Article 86 (Social Issues) • This article has been amended and now allows for a broader dialogue in the area of employment and social policy, which will include questions relating to the social problems of post-apartheid society, poverty alleviation, decent work for all, social protection, unemployment, gender equality, violence against women, children's rights, persons with disabilities, older persons, youth, labour relations, public health, safety at work and population.

15. Changes to the TDCA Revised Article 90 (Fight against drugs and money laundering) • This article has substantially altered; • It has been re-titled to “Cooperation on Illicit Drugs” allowing for cooperation to ensure a balanced and integrated approach towards addressing the drugs problem and reducing the supply of, trafficking in and the demand for illicit drugs.

16. Changes to the TDCA New Article 91A(Weapons of Mass Destruction and their means of delivery) • Is an essential element committing the Parties to cooperate and to contribute to strengthening the multilateral disarmament and non-proliferation system. • The Parties agree to counter the proliferation of all weapons of mass destruction and their means of delivery through full compliance with and national implementation of their respective existing obligations and commitments under the relevant treaties and agreements and other relevant international obligations. • In this regard they undertake to take steps to sign, ratify or accede to relevant international disarmament and non-proliferation instruments, as appropriate. • They agree to fully implement and comply with all international legally binding instruments, as well as establish and/or maintain an effective system of national export controls.

17. Changes to the TDCA New Article 91B (Combating terrorism) • Consists mainly of a declaratory section dealing with commitments to combating terrorism and the approaches thereto • The Parties agree to cooperate in the prevention and suppression of acts of terrorism in accordance with the Charter of the United Nations and international law, relevant conventions and instruments and within their respective legislation and regulations • In this regard they will, inter alia, exchange information on terrorist groups and their support networks • The parties will exchange views on means and methods used to counter terrorism, including in technical fields and training, and by exchange of experiences in respect of terrorism prevention.

18. Changes to the TDCA New Article 91C (Money laundering and terrorism financing) • Commits the Parties to making every effort and cooperating in order to prevent the use of their financial systems for laundering of proceeds from criminal activities in general and from offences related to illicit drugs and psychotropic substances in particular • This may also include administrative and technical assistance with the purpose of developing the implementation of regulations and efficient functioning of the suitable standards. New Article 91 D (Combating Organised Crime) • The Parties agree to cooperate in combating organised and financial crime, including corruption.

19. Changes to the TDCA New Article 91E (Small Arms and Light Weapons) • The Parties agree to pursue and further develop close cooperation to prevent, combat and eradicate the illicit trade in small arms and light weapons in all its aspects as set out in the UN Programme of Action (UNPoA) to address the issue of the excessive accumulation of small arms and light weapons. New Article 91F (Mercenaries) • The Parties undertake to establish a regular political dialogue to cooperate in the prevention of mercenary activities in accordance with their obligations under international conventions and their respective legislation and regulations implementing such obligations.

20. Changes to the TDCA New Article 91G (International Criminal Court) • The Parties reaffirm their support for the International Criminal Court and its work • The Parties further agree to cooperate to promote the universality and integrity of the Rome Statute and related instruments and agree to strengthen their cooperation with the ICC and its work.

21. Changes to the TDCA New Article 91H(Cooperation on Migration) • This article allows for very broad and in- depth SA- EU migration dialogue. • In strengthening cooperation the dialogue shall cover a comprehensive agenda that includes, inter alia: • fair treatment of foreign nationals residing legally on their territories; • visa issues of mutual interest; including simplifying entry procedures nationals of both parties; • travel document security and identity issues; • In the framework of cooperation to prevent and reduce illegal immigration, the Parties agree to readmit their illegal migrants;

22. Failure to Ratify by South Africa • SA & EU entered into a Strategic Partnership on 14 May 2007. • SA is one of only nine such strategic partners for the EU- others are Brazil, Canada, China, India, Japan, Russia, Ukraine and the USA. • The SA-EU Strategic Partnership Joint Action Plan, is a political plan of action that compliments the TDCA. • Non- ratification by SA of the TDCA Revision Agreement would send a negative signal to a key strategic partner. • The Revised TDCA for the first time commits the EU to recognise that the multilateral disarmament and non-proliferation treaty system in all its components is of vital importance, and that progress should be made in the implementation of all the obligations deriving from it. • South Africa’s insistence on a reference to disarmament in this paragraph is an important point-of-principle victory, as it is the first time that the EU has been forced into not only focussing on including the non-proliferation aspect as an essential element in a framework agreement, but also the disarmament issue. • Following ratification, this could be used as a precedent going forward when dealing with the EU on the linkages between non-proliferation and disarmament.

23. Thank you