Economic, trade and development relations between South Africa and the European Union: The end of a strategic partnership? A South African perspective

ABSTRACT

The relationship between democratic South Africa and the European Union (EU) has been in existence for over 20 years, with its roots tracing back to anti-apartheid support measures. In its earlier form, it was anchored in the Reconstruction and Development Programme. Currently, it is guided by the National Development Plan of the National Planning Commission. This relationship has been tested over time, especially as a result of negotiations over the Economic Partnership Agreement with the EU. In the meantime, the euphoria that marked new South Africa's participation in the global system, with trade and development cooperation with the EU as one of the cornerstones, has waned considerably. The cancellation of several bilateral investment treaties with EU member states has further strained the relationship. While there are notable successes in the EU–South Africa Strategic Partnership, these may not be reflective of the actual strategic value of the partnership in the context of global shifts and the rising influence of emerging powers with which South Africa is integrating.

KEYWORDS:

• South Africa
• European Union
• EU–South Africa Strategic Partnership
• development
• trade
• geopolitics

Notes on contributors

Mills Soko is Professor and Director at the University of Cape Town's Graduate School of Business.

Mzukisi Qobo is Associate Professor and Deputy Director at the South African National Research Foundation – Chair on African Diplomacy and Foreign Policy, based at the University of Johannesburg.

Notes

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24. WTO-plus arrangements are those that go beyond those issues that are on the WTO negotiations, which traditionally have focused on trade in goods. Issues that constitute WTO-plus are those to do with the relationship between trade and behind the border regulatory issues: investment, competition and government procurement.

25. European Commission, Policy and Strategy for Raw Materials: Raw Materials Initiative, November 2008, https://ec.europa.eu/growth/sectors/raw-materials/policy-strategy_en

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31. Bertelsmann-Scott T & A Sheriff, ‘Forging a partnership with the EU beyond shared history’, South African Institute of International Affairs, 17 September 2012, http://www.saiia.org.za/opinion-analysis/forging-a-partnership-with-the-eu-beyond-shared-history

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33. For a comprehensive report of EIB Activities in South Africa, see EU–South Africa Joint Cooperation Council – Dialogue Facility, ‘Joint Cooperation Council minutes’, Minutes: 12th Meeting of the EU–SA Joint Cooperation Council, Brussels, 20 July 2011, www.dialoguefacility.org/ … /SA-EU%20reports/JCC%202011Minutes.doc

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37. Allix M, ‘EU steps up fight to have treaties with SA retained’, Business Day, 12 November 2013.

38. Department of Trade and Industry, ‘Trade policy and strategy framework’, August 2010. https://www.thedti.gov.za/parliament/2014/TPSF.pdf

39. The SADC EPA Group consists of Angola, Botswana, Lesotho, Mozambique, Namibia, South Africa and Swaziland.

40. See Vickers, B, ‘Between a rock and a hard place: Small states in the EU–SADC EPA negotiations’, The Roundtable, 100.413, April 2011, pp. 183–97.

41. Ibid.

42. The interim EPA pact made provision for Botswana, Lesotho and Swaziland to liberalise 86% of trade by value and tariff lines by the beginning of 2010. For its part, Mozambique committed to liberalising 80.5% of trade.

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44. Ibid.

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46. See Qobo M & J Senona, ‘South Africa must take care of its core economic sovereignty’, Corporate Europe Observatory, 4 August 2009, https://corporateeurope.org/coverage/south-africa-and-epas

47. Walker A, ‘The EC–SADC EPA: The moment of truth for regional integration’, International Centre for Trade and Sustainable Development, Trade Negotiations Insights, 8.6, August 2009.

48. Grant-Makokera C & L Botha, ‘South Africa–European Union Trade: Age-old chestnuts and dealmakers’, South African Institute for International Affairs, 4 October 2011, http://www.saiia.org.za/opinion-analysis/south-africa-european-union-trade-age-old-chestnuts-and-dealmakers

49. Ibid.

50. Ibid.

51. This section draws on confidential discussions with EU officials and a former South African government official in the latter half of 2016.

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53. Esnor L, ‘SA to urge EU to “help reverse deterioration” of trade terms’, Business Day, 16 July 2013.

54. Grant-Makokera C & L Botha, ‘South Africa–European Union Trade: Age-old chestnuts and dealmakers’, South African Institute for International Affairs, 4 October 2011, http://www.saiia.org.za/opinion-analysis/south-africa-european-union-trade-age-old-chestnuts-and-dealmakers

55. European Union, ‘Economic Partnership Agreement’, Official Journal of the European Union, L250/3.16, September 2016, http://trade.ec.europa.eu/doclib/docs/2015/october/tradoc_153915.pdf

56. South Africa also cancelled a BIT with Switzerland, a non-EU member, but with close ties to the trade bloc.

57. Allix M, ‘EU steps up fight to have treaties with SA retained’, Business Day, 12 November 2013.

58. European Commission, Investor-to-State Dispute Settlement (ISDS): Facts and Figures, 12 March 2015, http://www.oecd-ilibrary.org/docserver/download/5k46b1r85j6f.pdf?expires=1479234397&id=id&accname=guest&checksum=FDE5EF9A445FA8434306795760FF4709

59. Hengari AT, ‘South Africa and the European Union: Moving beyond asymmetry’ , South African Institute of International Affairs, 16 July 2013, http://www.saiia.org.za/opinion-analysis/south-africa-and-the-european-union-moving-beyond-asymmetry

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61. Onstad E, ‘Italian firms sue SA over mining laws’, 9 March 2007, http://mg.co.za/article/2007-03-09-italian-firms-sue-sa-over-mining-law

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64. See Rob Davies's response in, ‘Swiss Government Reacts to Termination of Bilateral Investment Treaty with South Africa’, Mail and Guardian, 1 November 2013. http://mg.co.za/article/2013-11-01-swiss-govt-reacts-to-termination-of-bilateral-investment-treaty-with-sa

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66. World Bank, ‘Ease of doing business: Measuring business regulation’, 2017, http://www.doingbusiness.org/data/exploreeconomies/south-africa