Hon Chairperson, hon members, the Trade Development and Co- operation Agreement, TDCA, was signed in 1999. It was the first bilateral framework agreement entered into by both the democratic South Africa and the European Union, EU. While awaiting ratification, it was partially implemented in January 2000, and was fully implemented in May 2004 following the final ratification.
The TDCA includes chapters on political dialogue, trade, economic co- operation, development co-operation and co-operation in other areas. Trade liberalisation is asymmetrical in nature. South Africa is to eliminate tariffs on 86% of imports from EU imports over a 12-year period, whilst the EU is to eliminate tariffs on 95% of imports from South Africa over a 10- year period.
The 2004 mid-term review, mandated in terms of Article 103 of the TDCA, led to the realisation that an update was needed. Formal revision negotiations were launched on 27 March 2007, led by the Department of International Relations and Co-operation.
Negotiations included all relevant South African departments and were conducted by three thematic negotiation groups, namely the political dialogue negotiation group, the economic and other areas of co-operation working group, and the development co-operation negotiation group.
Thirty-five new and revised articles were initiated by chief negotiators on 10 October 2007, while a process of revision of trade chapters is being conducted separately under the Southern African Development Community Economic Partnership Agreement negotiations process. An amending agreement was signed by hon Minister Nkoana-Mashabane during the second South Africa- European Union summit on 11 September 2009.
The TDCA has proved to be very beneficial to South Africa in terms of trade. It has helped to facilitate a 234% trade increase between 2000 and 2004 and a 170% trade increase from 2004 to 2007.
South Africa's inclusion of a reference to disarmament in the agreement is an important point-of-principle victory, as it is the first time that the EU has been forced into not only focusing on including the nonproliferation aspect as an essential element in the framework agreement, but also adding the disarmament issue.
Article 2 has been reworded to include the following essential elements of the agreement, namely the respect for democratic principles and fundamental human rights as laid down in the Universal Declaration of Human Rights, and co-operation on issues of disarmament and the nonproliferation of weapons of mass destruction. As essential elements, this means that any violation of these principles could result in the termination of the agreement.
Article 57 was amended to place more focus on energy security, the promotion of cleaner energy technologies, and regulatory co-operation. Article 58 has been amended to allow support for policies and programmes that promote the local beneficiation of minerals and that create opportunities for collaboration in the development of the mineral beneficiation sector, as we discussed in the previous debate.
In the new Article 65A the parties elaborate on their joint commitment to meeting the Millennium Development Goals.
Article 86, which is on social issues, now allows for a broader dialogue in the areas of employment and social policy, which will include questions relating to social problems of postapartheid 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.
Article 90, on the fight against drugs and money-laundering, has been substantially altered and re-titled "Co-operation on Illicit Drugs", allowing for co-operation 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.
The new Article 91C on money-laundering and terrorism financing commits the parties to making every effort and to co-operating in order to prevent the use of their financial systems for laundering the proceeds from criminal activities and from offences related to illicit drugs and psychotropic substances.
Following ratification, the inclusion of the reference to disarmament could be used as a precedent going forward when dealing with the EU on linkages between nonproliferation and disarmament. Nonratification by South Africa of the TDCA revision agreement would send a negative signal to a key strategic partner. I therefore urge this House to support this ratification. I thank you.
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.