AGREEMENT
on Trade, Development and Cooperation between the European Community and its Member States, of the one part, and the Republic of South Africa, of the other part
THE KINGDOM OF BELGIUM,
THE KINGDOM OF DENMARK,
THE FEDERAL REPUBLIC OF GERMANY,
THE HELLENIC REPUBLIC,
THE KINGDOM OF SPAIN,
THE FRENCH REPUBLIC,
IRELAND,
THE ITALIAN REPUBLIC,
THE GRAND DUCHY OF LUXEMBOURG,
THE KINGDOM OF THE NETHERLANDS,
THE REPUBLIC OF AUSTRIA,
THE PORTUGUESE REPUBLIC,
THE REPUBLIC OF FINLAND,
THE KINGDOM OF SWEDEN,
THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,
Contracting Parties to the Treaty establishing THE EUROPEAN COMMUNITY,
hereinafter referred to as the ‘Member States’, and
THE EUROPEAN COMMUNITY, hereinafter referred to as the ‘Community’,
of the one part, and
THE REPUBLIC OF SOUTH AFRICA, hereinafter referred to as ‘South Africa’,
of the other part,
hereinafter referred to as the ‘Parties’,
CONSIDERING the importance of the existing links of friendship and cooperation between the Community, Member States and South Africa and the common values that the Parties share;
CONSIDERING that the Community, Member States and South Africa wish to further strengthen these links and to establish close and lasting relations based on reciprocity, partnership and co-development;
RECOGNISING the historical achievements of the South African people in abolishing the apartheid system and building a new political order based on the rule of law, human rights and democracy;
RECOGNISING the Community's and Member States' political and financial support to this process of political change and transition in South Africa;
RECALLING the firm commitment of the Parties to the principles of the United Nations Charter and to democratic principles and fundamental human rights as laid down in the Universal Declaration on Human Rights;
BEARING IN MIND the Cooperation Agreement between South Africa and the European Community which was signed on 10 October 1994;
RECALLING the wish of the Parties to establish the closest possible relationship between South Africa and the countries of the ACP-EC Lomé Convention as reflected in the signing, on 24 April 1997, of the Protocol governing the accession of South Africa to the fourth ACP-EC Convention of Lomé, as amended by the Agreement signed in Mauritius on 4 November 1995;
TAKING ACCOUNT of the Parties' rights and obligations in terms of their membership of the World Trade Organisation (WTO), the need to contribute to the implementation of the results of the Uruguay Round, and the efforts already made by both parties in this respect;
RECALLING the importance attached by the Parties to the principles and rules which govern international trade and to the need to apply them in a transparent and non-discriminatory manner;
CONFIRMING the Community's and Member States' support and encouragement for the process of trade liberalisation and economic restructuring currently under way in South Africa;
RECOGNISING the efforts by the South African Government to ensure economic and social development for the people of South Africa;
EMPHASISING the importance both the European Union and South Africa place on the successful implementation of the South African reconstruction and development programme;
CONFIRMING the commitment of the Parties to promote regional cooperation and economic integration between the countries of southern Africa, and to encourage the liberalisation of trade between those countries;
BEARING IN MIND the Parties' commitment to ensure that their mutual arrangements do not impede the process of restructuring the Southern African Customs Union (SACU), which links South Africa to four ACP States;
UNDERLINING the importance which the Parties attach to the values and principles set out in the Final Declarations of the International Conference on Population and Development held in Cairo in 1994, of the World Summit for Social Development held in Copenhagen in March 1995 and of the Fourth World Conference on Women held in Beijing in 1995;
REAFFIRMING the commitment of the Parties to economic and social development and the respect for the fundamental rights of workers, notably by promoting the relevant International Labour Organisation (ILO) Conventions covering such topics as the freedom of association, the right to collective bargaining and non-discrimination; the abolition of forced labour and child labour;
RECALLING the importance of opening a regular political dialogue in bilateral and multilateral contexts on issues of common interest,
HAVE AGREED AS FOLLOWS:
TITLE I
GENERAL OBJECTIVES, PRINCIPLES AND POLITICAL DIALOGUE
Article 1
Objectives
The objectives of this Agreement are:
to provide an appropriate framework for dialogue between the parties, promoting the development of close relations in all areas covered by this Agreement;
to support the efforts made by South Africa to consolidate the economic and social foundations of its transition process;
to promote regional cooperation and economic integration in the southern African region to contribute to its harmonious and sustainable economic and social development;
to promote the expansion and reciprocal liberalisation of mutual trade in goods, services and capital;
to encourage the smooth and gradual integration of South Africa into the world economy;
to promote cooperation between the Community and South Africa within the bounds of their respective powers, in their mutual interest.
Article 2
Essential element
Respect for democratic principles and fundamental human rights as laid down in the Universal Declaration on Human Rights, as well as for the principles of the rule of law underpins the internal and international policies of the Community and of South Africa and constitutes an essential element of this Agreement.
The Parties also reaffirm their attachment to the principles of good governance.
Article 3
Non-execution
The Parties agree, for the purpose of the correct interpretation and practical application of this Agreement, that the term ‘circumstances of particular urgency’ in paragraph 3 means a case of the material breach of the Agreement by one of the Parties. A material breach of the Agreement consists in:
repudiation of the Agreement not sanctioned by the general rules of international law, or
violation of the essential element of the Agreement, as described in Article 2.
Article 4
Political dialogue
The political dialogue and cooperation are in particular intended to:
promote greater mutual understanding between the Parties and a greater convergence of views;
enable each party to consider the position and interests of the other;
encourage the support for democracy, the rule of law and the respect of human rights;
promote social justice and help create the necessary conditions to eliminate poverty and all forms of discrimination.
The political dialogue shall take place whenever necessary, notably:
at ministerial level;
at the level of senior officials representing South Africa, on the one hand, and the Presidency of the Council of the European Union and the Commission of the European Communities, on the other;
taking full advantage of all diplomatic channels, including regular briefings, consultations on the occasion of international meetings and contacts between diplomatic representatives in third countries;
where appropriate, by any other means or at any other levels to be agreed between the Parties which would make a useful contribution to consolidating the dialogue and increasing its effectiveness.
The Parties shall also participate in the political dialogue in the larger ACP/EU framework, as foreseen and laid down in relevant ACP/EC Treaties.
TITLE II
TRADE
SECTION A
GENERAL
Article 5
Free trade area
Article 6
Classification of goods
On the Community side, the combined nomenclature of goods shall apply to the classification of goods imported from South Africa. On the South African side, the harmonised system shall apply to the classification of goods imported from the Community.
Article 7
Basic duty
Article 8
Customs duties of a fiscal nature
The provisions concerning the abolition of customs duties on imports shall also apply to customs duties of a fiscal nature, with the exception of non-discriminatory excise duties levied on both imported and locally-produced goods which are in accordance with the provisions of Article 21.
Article 9
Charges having an equivalent effect to customs duties
The Community and South Africa shall abolish in their respective imports any charge having an effect equivalent to customs duties on imports on entry into force of the Agreement.
SECTION B
INDUSTRIAL PRODUCTS
Article 10
Definition
The provisions of this section apply to products originating in the Community and South Africa with the exception of the products covered by the definition of agricultural products under this Agreement.
Article 11
Tariff elimination by the Community
Customs duties applicable on import into the Community of products originating in South Africa listed in Annex II, list 1 shall be progressively abolished in accordance with the following schedule:
Customs duties applicable on import into the Community of products originating in South Africa listed in Annex II, list 2 shall be progressively abolished in accordance with the following schedule:
Customs duties applicable on import into the Community of products originating in South Africa listed in Annex II, list 3 shall be progressively abolished in accordance with the following schedule:
For a number of products indicated in this list, tariff elimination will start four years after the date of entry into force of this Agreement. Tariff elimination of these products will take place in three equal annual reductions, to be concluded six years after the date of entry into force of the Agreement.
For a certain number of steel products indicated in this list, tariff reduction will be realised on a MFN basis, to arrive at a zero duty in the year 2004.
For motor-car components indicated in this list, the applied tariff will be reduced by 50 % as from the entry into force of the Agreement.
The precise Community basic duties and tariff elimination schedule for the products on this list will be established in the second six months of the year 2000, after both parties have examined the prospects for a further liberalisation of South African imports of automotive products from the Community mentioned in Annex III, lists 5 and 6, in the light of, inter alia, the outcome of the South African motor industry development programme review.
Article 12
Tariff elimination by South Africa
Customs duties applicable on import into South Africa of products originating in the Community listed in Annex III, list 1 shall be progressively abolished in accordance with the following schedule:
Customs duties applicable on import into South Africa of products originating in the Community listed in Annex III, list 2 shall be progressively abolished in accordance with the following schedule:
Customs duties applicable on import into South Africa of products originating in the Community listed in Annex III, list 3 shall be progressively abolished in accordance with the following schedule:
Customs duties applicable on import into South Africa of products originating in the Community listed in Annex III, list 4 shall be progressively abolished in accordance with the following schedule:
South Africa will inform the Community about the outcome of the South African motor industry development programme review. It will present proposals for a further liberalisation of South African imports of automotive products from the Community mentioned in Annex III, lists 5 and 6. The Parties will jointly examine these proposals in the second six months of the year 2000.
SECTION C
AGRICULTURAL PRODUCTS
Article 13
Definition
The provisions of this section apply to products originating in the Community and South Africa covered by the WTO definition of agricultural products as well as fish and fisheries products (Chapter 3, 1604 , 1605 and products 0511 91 10 , 0511 91 90 , 1902 20 10 and 2301 20 00 ).
Article 14
Tariff elimination by the Community
Customs duties applicable on import into the Community of products originating in South Africa listed in Annex IV, list 1 shall be progressively abolished in accordance with the following schedule:
Customs duties applicable on import into the Community of products originating in South Africa listed in Annex IV, list 2 shall be progressively abolished in accordance with the following schedule:
Customs duties applicable on import into the Community of products originating in South Africa listed in Annex IV, list 3 shall be progressively abolished in accordance with the following schedule:
For certain products referred to in this Annex a duty free quota shall apply, in accordance with the conditions there mentioned, as from entry into force of the Agreement until the end of the tariff phase down for these products.
Customs duties applicable on import into the Community of products originating in South Africa listed in Annex IV, list 4 shall be progressively abolished in accordance with the following schedule:
For certain products referred to in this Annex a duty free quota shall apply, in accordance with the conditions there mentioned, as from entry into force of the Agreement until the end of the tariff phase-down for these products.
The Cooperation Council may decide on:
the extension of the list of processed agricultural products under Annex IV, list 5, and
the reduction of the duties applying to processed agricultural products. This reduction of duties may take place when in trade between the Community and South Africa the duties applying to basic products are reduced or, in response to reductions resulting from the mutual concessions relating to processed agricultural products.
Article 15
Tariff elimination by South Africa
Customs duties applicable on import into South Africa of products originating in the Community listed in Annex VI, list 1 shall be progressively abolished in accordance with the following schedule:
Customs duties applicable on import into South Africa of products originating in the Community listed in Annex VI, list 2 shall be progressively abolished in accordance with the following schedule:
Customs duties applicable on import into South Africa of products originating in the Community listed in Annex VI, list 3 shall be progressively abolished in accordance with the following schedule:
For certain products indicated in this Annex a duty free quota shall apply, in accordance with the conditions there mentioned, as from entry into force of the Agreement until the end of the tariff phase down for these products.
Article 16
Agricultural safeguard
Notwithstanding other provisions of this Agreement and in particular Article 24, if, given the particular sensitivity of the agricultural markets, imports of products originating in one Party cause or threaten to cause a serious disturbance to the markets in the other Party, the Cooperation Council shall immediately consider the matter to find an appropriate solution. Pending a decision by the Cooperation Council, and where exceptional circumstances require immediate action, the affected Party may take provisional measures necessary to limit or redress the disturbance. In taking such provisional measures, the affected Party shall take into account the interests of both Parties.
Article 17
Accelerated tariff elimination by South Africa
Article 18
Review clause
No later than five years after the entry into force of this Agreement, the Community and South Africa shall consider further steps in the process of liberalisation of their reciprocal trade. For this purpose, a review shall be undertaken of, in particular but not exclusively, the customs duties applicable to products listed in Annex II, list 5, Annex III, lists 5 and 6, Annex IV, lists 5, 6 and 7, Annex V, lists 1, 2, 3 and 4, Annex VI, lists 4 and 5 and Annex VII.
TITLE III
TRADE RELATED ISSUES
SECTION A
COMMON PROVISIONS
Article 19
Border measures
Article 20
Agricultural policies
Article 21
Fiscal measures
Article 22
Customs unions and free-trade areas
Article 23
Anti-dumping and countervailing measures
Article 24
Safeguard clause
Article 25
Transitional safeguard measures
Article 26
Safeguard procedures
For the implementation of the previous paragraphs the following provisions shall apply.
As regards Article 24, difficulties arising from the situation referred to in that Article shall be referred for examination to the Cooperation Council, which may take any decision needed to put an end to such difficulties. If the Cooperation Council or the exporting Party has not taken a decision putting an end to the difficulties or no other satisfactory solution has been reached within 30 days of the matter being so referred, the importing Party may adopt appropriate measures to remedy the problem. Such measures should be taken for a period not exceeding three years and shall contain elements which would degressively lead to their elimination at the end of the set period, at the latest.
Where exceptional circumstances requiring immediate action make prior information or examination, as the case may be, impossible, the Community or South Africa, whichever is concerned, may, in the situations specified in Article 24, apply forthwith the precautionary measures necessary to deal with the situation and shall inform the other Party immediately thereof.
Article 27
Exceptions
The Agreement shall not preclude prohibitions or restrictions on imports, exports, goods in transit or trade in used goods justified on grounds of public morality, public policy or public security; the protection of health and life of humans, animals or plants; the protection of national treasures possessing artistic, historic or archaeological value; or the protection of intellectual, industrial and commercial property or rules relating to gold and silver. Such prohibitions or restrictions shall not, however, constitute a means of arbitrary or unjustifiable discrimination where the same conditions prevail or a disguised restriction on trade between the Parties.
Article 28
Rules of origin
The rules of origin for the application of tariff preferences provided for in this Agreement are laid down in Protocol 1.
SECTION B
RIGHT OF ESTABLISHMENT AND SUPPLY OF SERVICES
Article 29
Reconfirmation of GATS obligations
In accordance with the GATS, this treatment shall not apply to:
advantages accorded by either Party under the provisions of an agreement as defined in Article V of the GATS or under measures adopted on the basis of such an agreement;
other advantages accorded pursuant to the list of most-favoured-nation exemptions annexed by either Party to the GATS.
Article 30
Further liberalisation of supply of services
The Parties will endeavour to extend the scope of the Agreement with a view to further liberalising trade in services between the Parties. In the event of such an extension, the liberalisation process shall provide for the absence or elimination of substantially all discrimination between the Parties in the services sectors covered and should cover all modes of supply including the supply of a service:
from the territory of one Party into the territory of the other;
in the territory of one Party to the service consumer of the other;
by a service supplier of one Party, through commercial presence in the territory of the other;
by a service supplier of one Party, through presence of natural persons of that Party in the territory of the other.
Article 31
Maritime transport
SECTION C
CURRENT PAYMENTS AND MOVEMENT OF CAPITAL
Article 32
Current payments
Article 33
Capital movements
Article 34
Balance of payment difficulties
Where one or more Member States of the Community, or South Africa, is in serious balance of payments difficulties, or under threat thereof, the Community or South Africa, as the case may be, may, in accordance with the conditions established under the General Agreement on Tariffs and Trade and Articles VIII and XIV of the Articles of Agreement of the International Monetary Fund, adopt restrictions on current transactions which shall be of limited duration and may not go beyond what is necessary to remedy the balance of payments situation. The Community or South Africa, as the case may be, shall inform the other Party forthwith and shall submit to it as soon as possible a timetable for the elimination of the measures concerned.
SECTION D
COMPETITION POLICY
Article 35
Definition
The following are incompatible with the proper functioning of this Agreement, in so far as they may affect trade between the Community and South Africa:
agreements and concerted practices between firms in horizontal relationships, decisions by associations of firms, and agreements between firms in vertical relationships, which have the effect of substantially preventing or lessening competition in the territory of the Community or of South Africa, unless the firms can demonstrate that the anti-competitive effects are outweighed by pro-competitive ones;
abuse by one or more firms of market power in the territory of the Community or of South Africa as a whole or in a substantial part thereof.
Article 36
Implementation
If, at the entry into force of this Agreement, either Party has not yet adopted the necessary laws and regulations for the implementation of Article 35, in their jurisdictions it shall do so within a period of three years.
Article 37
Appropriate measures
If the Community or South Africa considers that a particular practice in its domestic market is incompatible with the terms of Article 35, and:
is not adequately dealt with under the implementing rules referred to in Article 36, or
in the absence of such rules, and if such practice causes or threatens to cause serious prejudice to the interests of the other Party or material injury to its domestic industry, including its services industry,
the Party concerned may take appropriate measures consistent with its own laws, after consultation within the Cooperation Council, or after 30 working days following referral for such consultation. The appropriate measures to be taken shall respect the powers of the Competition Authority concerned.
Article 38
Comity
Article 39
Technical assistance
The Community shall provide South Africa with technical assistance in the restructuring of its competition law and policy, which may include among others:
the exchange of experts;
organisation of seminars;
training activities.
Article 40
Information
The Parties shall exchange information taking into account the limitations imposed by the requirements of professional and business secrecy.
SECTION E
PUBLIC AID
Article 41
Public aid
Article 42
Remedial measures
Article 43
Transparency
Each Party shall ensure transparency in the area of public aid. In particular, where a Party so requests, the other Party shall provide information on aid schemes, on particular individual cases of public aid, or on the total amount and the distribution of aid given. The exchange of information between the Parties shall take into account the limitations imposed by either Party's laws relating to the requirements of business and professional secrecy.
Article 44
Review
SECTION F
OTHER TRADE-RELATED PROVISIONS
Article 45
Government procurement
Article 46
Intellectual property
The Community and its Member States confirm the importance they attach to the obligations arising from the:
Protocol to the Madrid Agreement concerning the International Registration of Marks (Madrid 1989);
International Convention for the Protection of Performers, Producers of Phonogram and Broadcasting Organisations (Rome 1961);
Patent Cooperation Treaty (Washington 1979 as amended and modified in 1984).
The Parties confirm the importance they attach to the following instruments:
the provisions of the Nice Agreement concerning the International Classification of Goods and Services for the Purposes of the Registration of Marks (Geneva 1977 and amended in 1979);
Berne Convention for the Protection of Literary and Artistic Works (Paris Act, 1971);
International Convention for the Protection of New Varieties of Plants (UPOV) (Geneva Act, 1978);
Budapest Treaty on the International Recognition of the Deposit of Micro-organisms for the Purposes of Patent Procedure (1977 modified in 1980);
Paris Convention for the Protection of Industrial Property (Stockholm Act, and amended in 1979) WIPO;
WIPO Copyright Treaty (WCT), 1996.
Article 47
Standardisation and conformity assessment
The Parties will cooperate in the field of standardisation, metrology, certification and quality assurance in order to reduce differences between the Parties in these areas, remove technical barriers and facilitate bilateral trade. This cooperation shall include:
measures, in accordance with the provisions of the WTO TBT Agreement, to promote greater use of international technical regulations, standards and conformity assessment procedures, including sector specific measures;
developing agreements on mutual recognition of conformity assessment in sectors of mutual economic interest;
cooperation in the area of quality management and assurance in selected sectors of importance to South Africa;
facilitation of technical assistance for southern African capacity building initiatives in the fields of accreditation, metrology and standardisation;
developing practical links between South African and European standardisation, accreditation and certification organisations.
Article 48
Customs
Article 49
Statistics
The Parties agree to cooperate in this field. The cooperation will be geared mainly to the harmonisation of statistical methods and practice to enable processing, according to mutually agreed bases, of data on trade in goods and services and, more generally, on any field covered by the Agreement lending itself to statistical treatment.
TITLE IV
ECONOMIC COOPERATION
Article 50
Introduction
The Parties agree to develop and promote cooperation on economic and industrial matters to their mutual advantage and in the interest of the southern African region as a whole, by diversifying and strengthening their economic links, promoting sustainable development in their economies, supporting patterns of regional economic cooperation, promoting cooperation between small and medium-sized enterprises, protecting and improving the environment, promoting the economic empowerment of historically disadvantaged groups, including women, protecting and promoting worker and trade union rights.
Article 51
Industry
The aim of cooperation in this area is to facilitate the restructuring and modernisation of the South African industry while fostering its competitiveness and growth and to create conditions favourable to mutually beneficial cooperation between South African and Community industry.
The aim of the cooperation shall be, inter alia:
to encourage cooperation between the Parties' economic operators (companies, professionals, sectoral and other business organisations, organised labour, etc.);
to back the efforts of South Africa's public and private sectors to restructure and modernise industry, under conditions ensuring environmental protection, sustainable development and economic empowerment;
to foster an environment which favours private initiatives, with the aim of stimulating and diversifying output for the domestic and export markets;
to promote improved utilisation of South Africa's human resources and industrial potential through, inter alia, the facilitation of access to credit and investment finance and support to industrial innovation, technology transfer, training, research and technological development.
Article 52
Investment promotion and protection
Cooperation between the Parties shall aim to establish a climate which favours and promotes mutually beneficial investment, both domestic and foreign, especially through improved conditions for investment protection, investment promotion, the transfer of capital and the exchange of information on investment opportunities.
The aims of cooperation shall be, inter alia, to facilitate and encourage:
the conclusion, where appropriate, between the Member States and South Africa of agreements for the promotion and protection of investment;
the conclusion, where appropriate, between the Member States and South Africa of agreements to avoid double taxation;
the exchange of information on investment opportunities;
work towards harmonised and simplified procedures and administrative practices in the field of investment;
support, through appropriate instruments, the promotion and encouragement of investment in South Africa and in the Southern African region.
Article 53
Trade development
Cooperation in the field of trade development shall in particular focus on the following:
drawing up appropriate trade development strategies and creation of a trade environment supportive of competitiveness;
capacity building and development of human resources and professional skills in the field of trade and support services in both the public and private sector, including labour;
exchanges of information on market requirements;
know-how and technology transfer through investment and joint ventures;
development of the private sector, in particular small and medium-sized enterprises engaged in trade;
establishment, adaptation and strengthening of organisations concerned with the development of trade and support services;
regional cooperation for the development of trade and trade-related infrastructure and services in southern Africa.
Article 54
Micro-enterprises and small and medium-sized enterprises
The Parties shall aim to develop and strengthen micro enterprises (MEs) and small and medium-sized enterprises (SMEs) in South Africa, as well as to promote cooperation between SMEs in the Community and in South Africa and the region in a manner that is sensitive to gender equality. The Parties shall, inter alia:
cooperate, where appropriate, in the creation of enabling legal, administrative, institutional, technical, tax and financial frameworks for the setting up and expansion of MEs and SMEs;
provide assistance required by MEs and SMEs, whatever their legal status, in areas such as financing, skills training, technology and marketing;
provide assistance to companies, organisations, policy makers and agencies providing services referred to under paragraph b through appropriate technical support, information exchange and capacity building;
establish and facilitate appropriate links between South African, southern African and Community private sector operators in order to improve the flow of information (relating to strategy formulation and implementation, business trends and opportunities, networking, joint ventures and transfer of skills).
Article 55
Information society — telecommunications and information technology
The Parties agree to cooperate in the area of information and communication technology (ICT) which they consider as key sectors of modern society and which are vital to economic and social development and to the development of an information society. Communication in this context encompasses post, broadcasting, telecommunications, information technologies. The aim of cooperation shall be to:
improve the access of South African public and private entities to means of communications, electronics and information technologies through support to the development of infrastructural networks, human resources and appropriate information society policies in South Africa;
support cooperation between the countries of the southern African region in this area, in particular in the context of satellite technology;
address the challenges of globalisation, new technologies, institutional and sector restructuring, and the developing gap in basic information services and in advanced services.
Cooperation shall include among others:
dialogue on different aspects of information society, including regulatory aspects and communications policy;
information exchanges and possible technical assistance on regulation, standardisation, conformity testing and certification of information and communications technologies and the use of frequencies;
dissemination of new information and communication technologies, and the development of new facilities, particularly in relation to interconnection of networks and interoperability of applications;
promotion and implementation of joint research, technological development on projects in the field of new technologies related to the information society;
access for South African organisations to Community projects or programmes on the basis of the arrangements applying in the various fields concerned, and access for European Union organisations to operations initiated by South Africa under the same conditions.
Article 56
Postal cooperation
Cooperation in this area shall include:
exchange of information and dialogue on postal matters in relation to, inter alia, regional and international activities, regulatory aspects and policy decisions;
technical assistance on regulation, operational standards and human resource development;
promotion and implementation of joint projects, including research, on technological development in this sector.
Article 57
Energy
Cooperation in this area shall include the aim of cooperation in this area shall be:
to improve the access of South Africans to affordable, reliable and sustainable sources of energy;
to reorganise and modernise the energy producing, distributing and consuming subsectors so that appropriate services are provided on optimum terms of economic efficiency, social development and environmental acceptability;
to support cooperation between countries in the southern African region to exploit locally available energy resources in an efficient and environmentally friendly manner.
Cooperation shall specifically aim:
to support the development of appropriate energy policies and infrastructure in South Africa;
to diversify energy supplies in South Africa;
to improve energy operators performance standards in technical, economic and financial terms especially in the electricity and liquid fuels sectors;
to facilitate capacity building of local expertise especially by general and technical training;
to develop new and renewable forms of energy and support infrastructure especially for rural energy power supply;
to improve the rational use of energy notably by the promotion of energy systems' efficiency;
to promote transfer and use of environmentally friendly technologies;
to promote regional energy cooperation in southern Africa.
Article 58
Mining and minerals
The aim of cooperation in this area is, inter alia:
to support and promote policy measures that improve health and safety standards in the mining industry as well as conditions of employment;
to make mineral resources and geoscience information accessible for exploration and mining investment. The cooperation should also create a mutually beneficial climate for attracting investment in the sector, including SMEs (and previously disadvantaged communities);
to support policies which ensure that mining activities take place with due consideration for the environment and sustainable development, taking into account the specific circumstances in the country and nature of mining;
to cooperate on mining and minerals technology research and development.
Article 59
Transport
The aim of the cooperation in this area shall be:
to improve the access of South Africans to affordable, safe and reliable modes of transport and to facilitate the flow of goods in the country through the support to the development of intermodal infrastructure networks and transport systems, that are economically and environmentally sustainable;
to support cooperation between the countries of the southern African region in order to create a sustainable transport network for regional needs.
Cooperation shall specifically focus on:
contributing to the restructuring and modernisation of road, rail, port and airport infrastructure;
gradually improving the conditions of air transport, rail, road and multimodal transit, as well as the management of roads, railways, ports and airports, and maritime and air traffic;
improving the safety of air and maritime traffic by improving aids to navigation and training to enable efficient programmes.
Article 60
Tourism
The Parties will cooperate with the aim of strengthening the development of a competitive tourism industry. In this context the Parties in particular agree:
to promote the development of the tourism industry as a generator of economic growth and empowerment, employment and foreign exchange;
to seek to establish a strategic alliance involving public, private and community interests in order to ensure the sustainable development of tourism;
to carry out joint operations in such areas as the development of products and markets, human resources and institutional structures;
to cooperate on tourism training and capacity building in order to improve service standards;
to cooperate in promoting and developing community-based tourism through pilot projects in rural areas;
to facilitate liberal movement of tourists.
The Parties agree that cooperation in the field of tourism will be based, inter alia, on the following guidelines:
respecting the integrity and interests of local communities, particularly in rural areas;
stressing the importance of cultural heritage;
facilitating training, know-how transfer and awareness creation in the wider community;
providing positive interaction between tourism and environmental preservation;
promoting regional cooperation in southern Africa.
Article 61
Agriculture
Cooperation in this area shall be aimed at the promotion of integrated, harmonious and sustainable rural development in South Africa. Cooperation will in particular be geared:
to modernise and restructure, where appropriate, the agricultural sector through methods including the modernisation of infrastructure and equipment, the development of packaging and storage techniques and the improvement of private distribution and marketing chains;
to facilitate the development and the enhancement of competitiveness of farmers from previously disadvantaged communities and the provision of appropriate agricultural services in this regard;
to diversify and develop output and external markets;
to achieve and develop cooperation in animal health, plant health and agricultural production techniques;
to examine measures to harmonise standards and rules on animal and plant health, with a view to facilitating trade, taking into account the legislation in force for both Parties and in conformity with the rules of the WTO.
Article 62
Fisheries
Cooperation in this area shall aim at promoting sustainable management and use of fisheries resources in the long-term interest of both Parties. This will be achieved by exchanges of information and the design and implementation of agreed arrangements which may address the economic, commercial, developmental, scientific and technical aspirations of the Parties. These arrangements will be set out in a separate mutually beneficial fisheries agreement which the Parties undertake to seek to complete as soon as possible.
Article 63
Services
The Parties agree to foster cooperation in the services sector in general and in the area of banking, insurance and other financial services in particular, through, inter alia:
encouraging trade in services;
exchanging, where appropriate, information on rules, laws and regulations governing the services sector in the Parties;
improving accounting, auditing, supervision and regulation of financial services and financial monitoring, for example through the facilitation of training schemes.
Article 64
Consumer policy and protection of consumer health
Parties shall start cooperation in the area of consumer policy and consumer health protection, in particular aiming at:
establishing systems of mutual information on domestically prohibited and dangerous products;
exchanging information and experience on the establishment and operation of post-market surveillance of products and product safety;
improving information provided to consumers especially on prices, characteristics of products and services offered;
encouraging exchanges between consumer interest representatives;
increasing the compatibility of consumer policies and systems;
exchange of information on increasing consumer awareness through information and education;
notifying enforcements and cooperation between the Parties in investigating harmful or unfair business practices;
exchange of information on effective ways of redressing any wrongs to consumers victimised by illegal activities.
TITLE V
DEVELOPMENT COOPERATION
SECTION A
GENERAL
Article 65
Aims
Article 66
Priorities
The areas of development cooperation will mainly concern the following:
support for policies and instruments towards the progressive integration of the South African economy into the world economy and trade, for expansion of employment, for development of sustainable private enterprises, for regional cooperation and integration. In this context, special attention will be given to providing support to the adjustment efforts occasioned in the region by the establishment of the free-trade area under this Agreement, especially in the SACU;
enhancement of living conditions and delivery of basic social services;
support to democratisation, the protection of human rights, sound public management, the strengthening of civil society and its integration in the development process.
Article 67
Eligible beneficiaries
Cooperation partners eligible for financial and technical assistance shall be national, provincial and local authorities and public bodies, non-governmental organisations and community-based organisations, regional and international organisations, institutions and public or private operators. Any other body could be made eligible if so designated by both Parties.
Article 68
Means and methods
Community financing, in local or foreign currency, depending on the needs and nature of the operation, may cover:
government budget expenditures to support reforms and policy implementation in the priority sectors identified through a policy dialogue;
investment (with the exception of the purchase of buildings) and equipment;
in certain cases and in particular where a programme is implemented by a non-government partner, recurrent expenditure.
Article 69
Programming
Article 70
Project identification, preparation and appraisal
Article 71
Financing proposal and decision
Article 72
Financing agreements
Any project or programme approved by the Community shall be covered by:
either a financing agreement drawn up between the Commission, acting for the Community, and the National Authorising Officer acting for the Government of South Africa, or the eligible beneficiary;
or a contract with international organisations or legal bodies, physical persons or any other operator defined in Article 67 responsible for carrying out the project or programme.
SECTION B
IMPLEMENTATION
Article 73
Eligibility of contractors and supplies
Article 74
Contracting authority
Article 75
Procurement procedures
Procedures for procurement or for contracts financed by the Community are laid down in the general clauses attached to the financing agreements.
Article 76
General regulations and conditions
The award and performance of works, supply and service contracts financed by the Community shall be governed by this Agreement and by the respective general regulations for works, supply and service contracts and general conditions as adopted by decision of the Cooperation Council.
Article 77
Settlement of disputes
Any dispute arising between South Africa and a contractor, supplier or provider of services during the performance of a contract financed by the Community shall be settled by arbitration according to the procedural rules on conciliation and arbitration of contracts as adopted by decision of the Cooperation Council.
Article 78
Fiscal and customs arrangements
Article 79
Chief authorising officer
The Commission will appoint a chief authorising officer who shall be responsible for managing resources made available by the Community for development cooperation with South Africa.
Article 80
National authorising officer and paying agent
Article 81
Head of Delegation
Article 82
Monitoring and evaluation
TITLE VI
COOPERATION IN OTHER AREAS
Article 83
Science and technology
The Parties undertake to intensify scientific and technological cooperation. Detailed arrangements for the implementation of this objective have been set out in a separate agreement, which entered into force in November 1997.
Article 84
Environment
Article 85
Culture
Article 86
Social issues
Article 87
Information
The Parties shall take appropriate measures to promote and encourage an effective mutual exchange of information. Priority shall, inter alia, be given to ensuring the spread of information on cooperation between South Africa and the Community. In addition, the Parties shall endeavour to provide basic information about South Africa and the European Union for the general public, and specialised information about European Union policies for specific audiences in South Africa as well as specialised information about South African policies for specific audiences in the European Union.
Article 88
Press and audiovisual media
The Parties shall encourage cooperation in the field of press and audiovisual media, in order to support the further development and fostering of independence and pluralism in the media. Cooperation shall be sought, inter alia, through:
promotion of the development of human resources, in particular through training and exchange programmes for journalists and media professionals;
encouragement of wider access to sources of information for the media;
exchange of technical know-how and information;
production of audiovisual programmes.
Article 89
Human resources
Article 90
Fight against drugs and money laundering
The Parties undertake to cooperate in the fight against drugs and money laundering by:
promoting the South African drugs control master plan and enhancing the effectiveness of South African and southern African regional programmes to counter the illegal abuse of narcotic drugs and psychotropic substances as well as the production, supply and trafficking of these substances, based on the relevant international UN Drugs Control Conventions;
preventing the use of their financial institutions to launder capital arising from criminal activities in general and from drugs trafficking in particular on the basis of standards equivalent to those adopted by international bodies, in particular the Financial Action Task Force (FATF), and
preventing the diversion of precursor chemicals and other essential substances used for the illicit production of narcotic drugs and psychotropic substances on the basis of the standards adopted by international authorities concerned, notably those of the Chemical Action Task Force (CATF).
Article 91
Data protection
Article 92
Health
TITLE VII
FINANCIAL ASPECTS OF COOPERATION
Article 93
Objective
In order to achieve the objectives of this Agreement, South Africa shall benefit from financial and technical assistance from the Community in the form of grants and loans to support its socioeconomic development needs.
Article 94
Grants
Financial assistance in the form of grants shall be covered by:
a special financial facility established under the Community budget, in support of the development cooperation activities referred to in Articles 65 and 66;
other financial resources made available from other Community budget lines for development and international cooperation activities falling within the scope of those budget lines. The procedure for presentation and approval of requests, implementation, and monitoring/evaluation will be in accordance with the general conditions relating to the budget line in question.
Article 95
Loans
As regards financial assistance in the form of loans, the European Investment Bank could consider, at the request of the Council of the European Union, the extension of its financing of investment projects in South Africa by means of long-term loans, within the limits of maximum amounts and periods of validity to be determined in application of the relevant dispositions of the Treaty establishing the European Community.
Article 96
Regional cooperation
The financial assistance from the Community referred to in the previous Articles may be used to fund projects or programmes of national or local interest in South Africa as well as the participation of South Africa in regional cooperation activities which it undertakes together with other developing countries.
TITLE VIII
FINAL PROVISIONS
Article 97
Institutional set-up
The Parties agree on the establishment of a Cooperation Council which will perform the following functions:
to ensure the proper functioning and implementation of the Agreement and the dialogue between the Parties;
to study the development of trade and cooperation between the Parties;
to seek appropriate methods of forestalling problems which might arise in areas covered by the Agreement;
to exchange opinions and make suggestions on any issue of mutual interest relating to trade and cooperation, including future action and the resources available to carry it out.
Article 98
Tax carve-out clause
Article 99
Duration
This Agreement shall be valid for an unlimited period. Either Party may denounce this Agreement by notifying the other Party in writing. The Agreement shall cease to apply six months after the date of such notification.
Article 100
Non-discrimination
In the fields covered by this Agreement, and without prejudice to any special provisions contained therein;
the arrangements applied by South Africa in respect of the Community shall not give rise to any discrimination between the Member States, their nationals, or their companies or firms;
the arrangements applied by the Community and the Member States in respect of South Africa shall not give rise to any discrimination between South African nationals or its companies or firms.
Article 101
Territorial application
This Agreement shall apply, on the one hand, to the territories in which the Treaty establishing the European Community is applied and under the conditions laid down in that Treaty, and, on the other hand, in respect of South Africa, to the territories as defined in the South African Constitution.
Article 102
Future developments
The Parties may, by mutual consent and within their respective spheres of competence, expand the Agreement in order to enhance the level of cooperation and add to it by means of agreements on specific sectors or activities.
Within the framework of this Agreement, either of the Parties may put forward suggestions for expanding the scope of the cooperation, taking into account the experience gained in its application.
Article 103
Review
The Parties will review this Agreement within five years of its entering into force in order to address the possible implications of other arrangements which may affect this Agreement. Further reviews may be mutually agreed on.
Article 104
Dispute settlement
In the case of disputes arising under Titles II and III of this Agreement, the following procedures shall apply:
the appointment of a second arbitrator must be made within 30 days;
the Cooperation Council shall appoint a third arbitrator within 60 days of the appointment of the second arbitrator;
the arbitrators shall, as a general rule, submit their findings and decisions to the Parties and to the Cooperation Council not later than six months from the date of the composition of the arbitration panel. In cases of urgency, including those involving perishable goods, the arbitrators shall aim to issue their report to the parties within three months;
the Party concerned shall inform the other Party and the Cooperation Council within 60 days of its intentions in respect of implementation of the findings and decisions of the Cooperation Council or the arbitrators, as the case may be;
If it is impractical to comply immediately with the findings and decisions of the Cooperation Council or the arbitrators, the Party concerned shall be afforded a reasonable period of time to do so. The reasonable period of time shall not exceed 15 months from the date of submission of the findings and decisions to the Parties. However, that period of time may, by mutual consent of the Parties, be reduced or extended, depending on the particular circumstances.
Article 105
Clause on bilateral agreements
Except in so far as it creates equivalent or greater rights for the Parties involved, this Agreement shall not affect rights contained in existing Agreements binding one or more Member States, on the one hand, and South Africa, on the other.
Article 106
Amendment clause
Article 107
Annexes
Protocols and Annexes shall form an integral part of the Agreement.
Article 108
This Agreement is drawn up in duplicate in the Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovenian, Slovak, Spanish and Swedish languages and the official languages of South Africa, other than English, namely Sepedi, Sesotho, Setswana, siSwati, Tshivenda, Xitsonga, Afrikaans, isiNdebele, isiXhosa and isiZulu, each of these texts being equally authentic.
Article 109
Entry into force
This Agreement shall enter into force on the first day of the month following that during which the Contracting Parties have notified each other of the completion of the necessary procedures.
If pending the entry into force of the Agreement, the Parties decide to apply it provisionally, all references to the date of entry into force shall be deemed to refer to the date such provisional application takes effect.
Hecho en Pretoria, el once de octubre de mil novecientos noventa y nueve.
Udfærdiget i Pretoria, den ellevte oktober nitten hundrede og nioghalvfems.
Geschehen zu Pretoria am elften Oktober neunzehnhundertneunundneunzig.
Έγινε στην Πρετόρια, στις ένδεκα Οκτωβρίου χίλια εννιακόσια ενενήντα εννέα.
Done at Pretoria on the eleventh day of October in the year one thousand nine hundred and ninety-nine.
Fait à Pretoria, le onze octobre mil neuf cent quatre-vingt-dix-neuf.
Fatto a Pretoria, addì undici ottobre millenovecentonovantanove.
Gedaan te Pretoria, de elfde oktober negentienhonderd negennegentig.
Feito em Pretória, em onze de Outubro de mil novecentos e noventa e nove.
Tehty Pretoriassa yhdentenätoista päivänä lokakuuta vuonna tuhatyhdeksänsataayhdeksänkymmentäyhdeksän.
Som skedde i Pretoria den elfte oktober nittonhundranittionio.
Por la Comunidad Europea
For Det Europæiske Fællesskab
Für die Europäische Gemeinschaft
Για την Ευρωπαϊκή Κοινότητα
For the European Community
Pour la Communauté européenne
Per la Comunità europea
Voor de Europese Gemeenschap
Pela Comunidade Europeia
Euroopan yhteisön puolesta
På Europeiska gemenskapens vägnar
Pour le Royaume de Belgique
Voor het Koninkrijk België
Für das Königreich Belgien
Cette signature engage également la Communauté française, la Communauté flamande, la Communauté germanophone, la Région wallonne, la Région flamande et la Région de Bruxelles-Capitale.
Deze handtekening verbindt eveneens de Vlaamse Gemeenschap, de Franse Gemeenschap, de Duitstalige Gemeenschap, het Vlaamse Gewest, het Waalse Gewest en het Brusselse Hoofdstedelijke Gewest.
Diese Unterschrift verbindet zugleich die Deutschsprachige Gemeinschaft, die Flämische Gemeinschaft, die Französische Gemeinschaft, die Wallonische Region, die Flämische Region und die Region Brüssel-Hauptstadt.
For Kongeriget Danmark
Für die Bundesrepublik Deutschland
Για την Ελληνική Δημοκρατία
Por el Reino de España
Pour la République française
Thar ceann na héireann
For Ireland
Per la Repubblica italiana
Pour le Grand-Duché de Luxembourg
Voor het Koninkrijk der Nederlanden
Für die Republik Österreich
Pela República Portuguesa
Suomen tasavallan puolesta
För Republiken Finland
För Konungariket Sverige
For the United Kingdom of Great Britain and Northern Ireland
For the Republic of South Africa
wa Repapoliki ya Afrika Borwa
Ya Rephaboliki ya Afrika Borwa
Wa Rephaboliki ya Aforika Borwa
WeRiphabliki yaseNingizimu Afrika
wa Rephabuliki ya Afurika Tshipembe
Wa Riphabliki ra Afrika-Dzonga
Vir die Republiek van Suid-Afrika
WeRiphabhliki yeSewula Afrika
WeRiphablikhi yoMzantsi Afrika
WeRiphabhulikhi yaseNingizimu Afrika
ANNEX I
REPUBLIC OF SOUTH AFRICA
LIST OF AGREED DEROGATIONS TO STANDSTILL AND ROLLBACK
Introduction
The Community and the Republic of South Africa agree that any increase of the applied most favoured nation (MFN) tariff or any other trade restrictive or distorting measures taken after 1 July 1996 will be eliminated vis-à-vis the other side at the latest the day of entry into force of the Agreement.
At the request of the South African side and bearing in mind the particular nature of the Republic of South Africa's economic transformation and the specific stage of adaptation of its tariff system within the framework of its WTO obligations, the Community has agreed to consider, on an exceptional basis, specific requests for derogations to rollback.
As a result of this process, both sides agree that for the purpose of implementation of Article 7 of this Agreement, the tariff levels listed below will replace the tariffs effectively applied as of 1 July 1996 as the standstill reference for the products mentioned in this Annex.
|
Code description |
Date of implementation |
Rate in 1996 |
New rate |
|
0207 41 90 |
18.9.1997 |
27 % |
220 c/kg |
|
0403 90 00 |
2.1.1998 |
free |
450 c/kg |
|
0404 10 00 |
2.1.1998 |
free |
450 c/kg |
|
0404 90 00 |
2.1.1998 |
100 c/kg |
450 c/kg |
|
0405 10 00 |
2.1.1998 |
320 c/kg |
500 c/kg |
|
0405 20 10 |
2.1.1998 |
20 % |
500 c/kg |
|
0405 20 90 |
2.1.1998 |
320 c/kg |
500 c/kg |
|
0405 90 00 |
2.1.1998 |
320 c/kg |
500 c/kg |
|
0406 10 10 |
2.1.1998 |
25 % |
500 c/kg |
|
0406 10 20 |
2.1.1998 |
20 % |
500 c/kg |
|
0406 20 10 |
2.1.1998 |
22 % |
500 c/kg |
|
0406 20 90 |
2.1.1998 |
25 % |
500 c/kg |
|
0406 30 00 |
2.1.1998 |
25 % |
500 c/kg |
|
0406 40 10 |
2.1.1998 |
22 % |
500 c/kg |
|
0406 40 90 |
2.1.1998 |
25 % |
500 c/kg |
|
0406 90 10 |
2.1.1998 |
22 % |
500 c/kg |
|
0406 90 25 |
2.1.1998 |
660 c/kg |
500 c/kg |
|
0406 90 35 |
2.1.1998 |
660 c/kg |
500 c/kg |
|
0406 90 90 |
2.1.1998 |
25 % |
500 c/kg |
|
0902 30 00 |
11.1.1999 |
free |
R4/kg |
|
0902 40 00 |