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1 June 2008

Portoroz: South African Foreign Minister, Dr Nkosazana Dlamini Zuma will lead a South African Government delegation, including Deputy Minister, Rob Davies to the South Africa-EU Ministerial Troika meeting, scheduled for Tuesday, 3 June at Portoroz in Slovenia. The European Union delegation will include Slovenian Foreign Minister, Dimitrij Rupel, Dr Javier Solana and Louis Michel, the European Union's Commissioner for Development.

The SA-EU Ministerial Troika meeting is being held a year after the establishment of the SA-EU Strategic Partnership and in preparation for the first ever SA-EU Summit scheduled for 25 July this year in Bordeaux, France. President Thabo Mbeki will lead the South African government delegation to the Summit in France.

Accordingly, Minister Dlamini Zuma will lead the South African government delegation to the SA-EU Ministerial Troika meeting with a view to advancing South Africa's national interests through the Trade Development Co-operation Agreement with the European Union (EU) and within the broad framework of promoting North-South Co-operation

Among other issues on the agenda of the SA-EU Troika Ministerial meeting is:

* South Africa-European Union strategic partnership and the implementation of the Joint Action Plan
* Southern African Development Community – European Union Economic Partnership Agreement
* Africa-European Union Joint Action Plan
* European Union – China - Africa
* African issues, including Democratic Republic of Congo (DRC) and Great Lakes situation; Sudan with reference to Darfur; Chad/Central African Republic; Comoros; Somalia; Zimbabwe and Kenya
* Middle East situation
* Western Balkans
* European Security and Defence Policy
* And the World Trade Organisation/Doha Development Round

It is anticipated that the SA-EU Troika Ministerial will probably finalise the establishment of structured dialogue fora between South Africa and the EU in time for the SA-EU Summit on issues of peace and security, migration, health, transport, energy, customs and revenue, as well as social dialogue.

South Africa – European Union Economic Relations

* The European Union is the world's largest trading bloc and generates about 30% of global growth domestic product (GDP) and 20% of global trade flows. It is the world's biggest aid donor to poor countries, contributing approximately half of global aid.

* Implementation of the Trade, Development and Co-operation Agreement's (TDCA's) trade provisions has been under way since 2000 with the aim of establishing a Free Trade Area (FTA) between South Africa and the EU by 2012. Total trade has increased over five-fold, from R 56,5 billion in 1994 to R 313 billion in 2007.

* In 2007 South Africa's exports to the EU-15 amounted to R 137 billion. The EU ranked as South Africa's number one exporting region for 2007. South Africa's total imports from the EU-15 amounted to R 176 billion in 2007, also ranking number one.

* Europe remains the principal source of foreign direct investment (FDI) in South Africa, accounting for around 80% of total FDI in 2005. Additionally, the EU accounted for approximately 66% of net foreign investment in South Africa in 2003 and 2004, and in 2005 the EU’s share of the total assets held by foreigners in South Africa amounted to approximately 60%.

* The EU is South Africa's largest development partner representing approximately 70% of all Overseas Development Assistance (ODA), with South Africa earmarked to receive € 980 million for 2007/13. The European Investment Bank has also approved a loan mandate of € 900 million for South Africa.

South Africa-European Union (15) Trade

2004 (Rands Billion)
Imports from the EU 2005: 121
Exports to the EU: 93
Total Trade: 215

2005 (Rands Billion)
Imports from the EU 2005: 128
Exports to the EU: 106
Total Trade: 235

2006 (Rands Billion)
Imports from the EU 2005: 154
Exports to the EU: 124
Total Trade: 278

2007 (Rands Billion)
Imports from the EU 2005: 176
Exports to the EU: 137
Total Trade: 313

The SA-EU Strategic Partnership

Following the visit of President Mbeki to the European Union (EU) in November 2004, there was a reappraisal in the European Commission of relations with South Africa. The Commission felt that SA-EU relations needed to be elevated beyond the framework provided for in the SA-EU Trade and Development Co-operation Agreement (TDCA) into a substantive strategic partnership along the lines of those the EU has with countries like India and China, etc. This resulted in informal discussions between the SA Mission in Brussels and the European Commission (EC) about the developing nature of the SA-EU relationship, which eventually led to the matter being raised at the November 2005 SA-EU Joint Co-operation Committee (JCC) meeting. The JCC accepted a joint report mandating that "new steps need to be taken to ensure that South Africa – EU relations develop into a truly strategic partnership".

In February 2006, the European Commissioner for Development and Humanitarian Aid, Mr Louis Michel, presented President Mbeki and Minister Dlamini Zuma with a non-paper entitled: "A possible EU-SA strategic partnership". In a letter dated 30 May 2006, President Mbeki provided a preliminary response, in which he expressed himself in favour of a strategic partnership between South Africa and the EU. Based on the various aforementioned interactions, and also using the opportunity offered by the requirement for a mid-term review of the TDCA, the European Commission subsequently published a paper on 28 June 2006 titled: "Communication from the Commission to the Council and European Parliament: Towards an EU-South Africa Strategic Partnership".

In November 2006, the JCC adopted a Joint Statement on the SA-EU Strategic Partnership, which called for a Joint Action Plan to be finalised and agreed to at the next SA-EU Ministerial Troika meeting to be held on 14 May 2007, and that a progress report on its implementation be drafted for adoption at the November 2007 JCC. The parties agreed that the Strategic Partnership should add value to the existing co-operation, including the SA-EU Joint Country Strategy Paper (CSP) for 2007/13, as well as to the present review and full implementation of the TDCA.

Following several rounds of intense negotiations, the SA-EU Ministerial Troika meeting of 14 May 2007 agreed to the Joint Action Plan for the establishment of the SA-EU Strategic Partnership. In terms of the structure of the Strategic Partnership and its overall relation to the SA-EU Trade and Development Co-operation Agreement (TDCA) agreement was reached on the following issues, namely:

* There will be high-level political talks twice a year in Troika format. This forms the core of political dialogue between the EU and South Africa. The meetings will take place in South Africa and the EU. The dialogue should take place at Summit level on a regular basis.

* High-level ad hoc meetings on issues of common interest will be effected whenever necessary.

* The JCC should take place alternately in South Africa and the EU.  It will meet at Senior Officials and/or Ministerial level.

* Full use will be made of opportunities for contacts between South African Ministers and their EU counterparts on issues of mutual interest.

* There would be periodic meetings at the level of senior officials and experts to exchange views on regional, continental and global issues.

* To maintain and strengthen regular dialogue at the level of Heads of Mission's meetings with the South African Department of Foreign Affairs.

* To review at the Summit, Ministerial Troika and JCC-level meetings the effective implementation of decisions taken, and jointly decide on future actions.

Enquiries:
Ronnie Mamoepa
Cell: 082 990 4853

Issued by: Department of Foreign Affairs
1 June 2008