EU opens trade talks with 12 African states

RELATIONS between the EU and Southern Africa look set to move up a gear as international leaders arrive for a major two day summit…

RELATIONS between the EU and Southern Africa look set to move up a gear as international leaders arrive for a major two day summit in the Namibian capital.

The second such gathering of representatives from the 15 EU and 12 Southern African Development Community (SADC) states indicates the commitment of both sides to forging closer political economic and trade links.

The co chairman of the meeting as President of the Council of Ministers, the Tanaiste, Mr Spring, called the SADC something of a "success story". Lesotho, Angola, Botswana, Malawi, Mozambique, Namibia, Swaziland, South Africa, Tanzania, Zambia, and Zimbabwe constitute 81 per cent of Southern Africa's GNP and 40 per cent of its population. Several of these countries have growth rates of up to 6 per cent.

In an attempt to ensure stability, the agenda includes specific co operation measures to combat drug trafficking, to tackle the AIDS issue, and to promote democracy and human rights.

READ MORE

But EU officials warn the real growth and progress is expected through trade, and regional trade remains low. Cross border investments are limited. As a result, both sides are anxious to exploit actions such as the Cross Border Initiative which joins governments and the private sector to facilitate trade and investment programmes.

But with a certain irony, it may also be that trade, the most buoyant and positive issue under discussion, may also be the most divisive as the issue of the proposed controversial EU South Africa Free Trade Agreement has already caused concern.

SADC countries have indicated their grave concern about the possible impact of this agreement on their economies. The Southern African Customs Union (SACU) countries - South Africa, Botswana, Lesotho, Swaziland and Namibia could suffer significant fiscal losses if South Africa were to finalise this pact and reduce its customs payment. Some estimate that losses would amount to more than current EU spending to these countries.

The EU, which boasts a very healthy trade surplus with South Africa, claims that a bilateral agreement like this would not adversely affect the principles which underpin EU ACP relations, such as preferential and non reciprocal access to the EU market.

A strong South Africa, the EU says, will ultimately mean a strong SADC. For the moment the SADC States need to be convinced.