1. DIRCO PRESENTATION ON The SADC-EU Economic Partnership Agreement (EPA) Impact on South Africa’s Foreign Policy

2. Background on the EPAs
The EU started the negotiations for the various Economic Partnership Agreements (EPA) with African, Caribbean and Pacific (ACP) countries on 27 November 2002.
The EPAs provide for (a) progressively removing the barriers to trade and for (b) enhancing cooperation in all areas relevant to trade between the EU and ACP countries and (c) to gradually integrate the ACP into the global economy.
EPAs are intended to replace the unilateral trade regime under the Cotonou Partnership Agreement (CPA), which governs trade between the EU and ACP countries.
SA has never been a party to the CPA because (unlike the other ACP member countries) its trading relationship is regulated by the Trade, Development and Cooperation Agreement (TDCA), which South Africa had concluded separately with the European Union

3. Background cont…
SA has participated in the SADC-EU EPA configuration negotiations since The SADC EPA Group comprises of Botswana, Lesotho, Namibia, Swaziland (BLNS) and Mozambique, while Angola was an observer to the negotiations.
The negotiations have been concluded and the Agreement was signed on 10 June 2016 in Botswana.
SADC EPA countries would have to ratify the Agreement before it can enter-into-force.
The aim is for the Agreement to enter into force before the expiry on 01 October 2016 of the European Commission (EC) duty-free, quota-free market access regulation to guarantee, thereby guaranteeing continued preferential market access into the EU.

4. Benefit of the SADC-EU-EPA to SA
SA was able to obtained greater market for its agricultural sector into the EU, than what the EU was able to achieve for its access into the South African market.
SA achieved improved market access on fisheries products as well as 32 agricultural products including:
Significant improvement in the wine quota (110 million litres duty free compared to 48 million litres previously).
New market access for sugar (150,000 tons duty free) and ethanol (80,000 tons duty free).
Improvement on duty preference for SA exports of flowers, some dairy and fruit products as well as canned fruit, amongst others.

5. Benefits cont…
SA will receive protection for 105 Geographical Indicator names of which 102 are wine names and three agricultural product names (Rooibos, Honeybush and Karoo Lamb). Provision was also made for South Africa to add 30 agricultural product names in the future.
On regional integration, the SADC EPA would ensure that the SACU common external tariffs are maintained through an agreement to use a uniform trade regime.
It is projected that the improved SADC EPA access to the EU market will ultimately improve the trade balance between South Africa and the EU.

6. Implications of South Africa’s Foreign Policy
The EPA will assist SA in promoting the following foreign policy objectives:
The EPA will contribute to the promotion of regional integration, and it will also allow SADC EPA Group to expand its international trade, thereby contributing to South Africa’s foreign policy and the objectives of the NDP.
The South Africa-European Union relationship is currently underpinned by the Trade, Development and Cooperation Agreement (TDCA) signed in The SADC EPA will consequently reinforce South Africa’s economic diplomacy strategy through an enhanced access to the markets of the 28 EU member countries.

8. Implications cont…
SA’s core interest has been to harmonise trading regime between SACU and the EU; to secure further market access in agriculture (beyond the TDCA provisions) and claw back some policy space lost under the TDCA.
SADC EPA will be a important building block in the development of South Africa's North-South foreign policy objectives.
In line with the NDP objectives, the SADC EPA will advance the region (and national) industrialization through the promotion of exports. It would also provide a basis for value-addition and beneficiation within the region.
The terms of the economic partnership agreement that the SADC EPA countries have negotiated with the European Union are an improvement on South Africa’s bilateral agreement with the EU. Furthermore, negotiating an agreement as the SADC region was a foreign policy achievement.

9. Thank you