Chairperson, colleagues, ladies and gentlemen, trade between the European Union, EU, and South Africa is estimated at about E30 billion a year. The EU remains South Africa's main trading partner accounting for over 40% of its imports, nearly 30% of the exports and over 30% of foreign direct investment that flows to South Africa. Conversely, roughly 66% of South African assets abroad are held within the EU.
The Trade, Development and Co-operation Agreement governs the trade relations between South Africa and the EU. South Africa and the European Community and its Member States signed the Trade, Development and Co- operation Agreement on 11 October 1999. It was applied on a provisional basis with effect from 1 January 2000 and fully entered into force with effect from 1 May 2004. The objectives of the Trade, Development and Co- operation Agreement are to cement South Africa's relationship with the EU by providing certainty to South African operators; improve market access for exporters on both sides; integrate South Africa into the global economy; and to promote South Africa's economic development.
These objectives are fulfilled through the establishment of a trade arrangement between South Africa and the EU over a transitional period of 12 years. The EU has pursued ever-deeper integration while taking in new members. As a consequence, today's EU, with 27 member states and a population of close to 500 million people, is more prosperous, stronger and more influential than the original European Economic Community of 50 years ago. The wider internal market and new economic opportunities have increased European's prosperity and competitiveness.
The EU's economic integration has been six enlargements with the largest occurring in May 2004, when 10 Central and Eastern European countries joined. The most recent enlargement occurred on 1 January 2007 when Romania and Bulgaria joined the EU. The enlargement of the EU from 25 to 27 member states will extend South African exporters' access to these two new member states of the EU. At the same time, South African economic operators and consumers may benefit from lower-priced products on imports from these countries. The trade arrangement between South Africa, Romania and Bulgaria is on the same terms set out in the Trade, Development and Co-operation Agreement.
Die Gekose Komitee van Ekonomiese en Buitelandse Sake ondersteun. Baie dankie. [Tussenwerpsels.] [The Select Committee of Economic and Foreign Affairs supports. Thank you. [Interjections.]]
Debate concluded.
Question put: That the Report be adopted.
IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.
Report accordingly adopted in accordance with section 65 of the Constitution.