EU begins southern African trade talks

SA to attend as observer ALAN PEAT JUST ANNOUNCED is the launch of trade negotiations between the European Union (EU) and seven southern African countries. These are Angola, Botswana, Lesotho, Mozambique, Namibia, Swaziland and Tanzania. South Africa, meantime, will also attend the negotiations, but only on an observer basis. The reason, according to Andre Erasmus, senior manager of trade and customs consultants Deloitte, is that SA already has a free trade agreement (FTA) with the EU. Although it is possible that the new proposed agreement will follow similar lines to the current EU/SA agreement, the present thinking on trade agreements in Europe has been coloured by the success of the US Africa Growth and Opportunity Act (Agoa). It is therefore also possible that the new agreement might be only one-way - opening a duty- free market in Europe to the approved countries in southern Africa on selected product categories, and with no requirement for reciprocity in the African partner countries. Speculation But this, he added, has not been confirmed or denied - and is therefore only speculation at the present time. “The latest information is that the two groups have decided to join forces and promote trade and development by launching negotiations for a region-to-region economic partnership agreement, (EPA), said Erasmus. “By opening up trade between both regions and setting up clear rules for trade, the EPA will contribute to the economic integration of the region.”