ACP states monitor SA trade talks

Date: 24/09/1998

By Shada Islam

AFRICAN, Caribbean and Pacific governments are keeping a close eye on the faltering free trade talks between the EU and South Africa as they prepare to open negotiations on a new long-term pact with the Union.

Although the two sets of talks are not linked, Union development officials have always said the trade deal being negotiated with South Africa would be a “model and a test” for Europe's relations with other developing countries.

The ACP countries are being asked to abandon the commercial preferences they receive as members of the Lomé Convention in favour of new free trade pacts based on a reciprocal and progressive lowering of tariffs, similar to those now being negotiated with Pretoria.

But the failure of last week's EU-South African talks to resolve continuing disputes over farm products and wine have sparked fears that this could cast a shadow over the Lomé negotiations. South Africa is a full ACP member and, as a partial member of the Lomé Convention, will take part in the Lomé talks.

Moreover, having seen the problems facing South African negotiators as they try to improve access to EU markets, many ACP governments could become even more reluctant to embark on similar market-opening talks with the Union.

“We see that it is taking a developed country like South Africa almost three years to negotiate a free trade deal with the EU and we wonder, is it really worth it?” said one ACP diplomat.

But EU officials believe the three years of talks will have made an ACP accord easier to negotiate. “We have learned a great deal about negotiating free trade agreements with countries in transition,” said one. “We now have a better idea of their priorities and difficulties. The South African talks have provided us with a very rapid learning curve.”