With the trade talks on track, the EU’s first man in South Africa is returning to Brussels confident his time has been well spent, writes Madeleine Wackernagel
Erwan Four has a knack for leaving a posting just before disaster strikes — once in Venezuela, prior to the 1989 riots; and again in Mexico, ahead of the 1994 peso collapse. But there’s no reason to expect a crisis this time. The European Union’s first ambassador to this country is confident that with the trade deal virtually signed, and many other funding initiatives taking off, he can safely return to Brussels.
There is a sense of regret that he cannot be here to witness the conclusion of three years’ work now that the marathon trade negotiations are entering the final lap. But when the call came, there was no question of delay. Bureaucracy, it seems, waits for no one.
So it will be up to his successor, Michael Laidler, the EU’s present incumbent in Harare, to tie up the loose ends. Next month sees the ministerial stock-taking, when Minister of Trade and Industry Alec Erwin and EU development commissioner Joo de Deus Pinheiro put the finishing touches to the deal.
And not before time. After three years of offer and counter-offer, confusion and, on occasion, stalemate, implementation is on track for January 1999.
“It is an ambitious programme,” says Four, “but perfectly attainable. Yes, it’s taken a long time, but that is not unusual. You have to remember where South Africa came from. This was a whole new ball game — cutting tariffs and taking a regional view on trade issues had never been part of policy before.”
From the EU side, the various trade niggles along the way didn’t help the Europeans’ cause. Nor were the proper frameworks in place to deal with disputes.
“There was a lot of misunderstanding in local business circles at first. The EU ban on the import of ostrich meat, for example, and the Gencor-Lonrho platinum merger plan were seen as victimisation, which was certainly not the case. There was no concept of the EU as an entity, with a real and legitimate role to play in ensuring fair competition.”
Four has worked hard at correcting that impression. Greater dialogue has meant increased awareness of what the EU can offer to business as well as government, not only in the form of direct aid, but also in terms of loans, partnerships and skill-sharing.
“South Africa has had more visits from EU institutions than even Washington, which bears testimony to the keen interest shown in this country,” he says.
But, many locals might wonder, how far does that interest translate into opening up EU markets to our agricultural exports? Even now, the trade deal that is so close to being finalised has diplomatically excluded agricultural products. The issue is an extremely sensitive one, to be dealt with at another time, under a separate protocol.
“Much has been made of the exclusions, but in reality they affect only a few products. A counter-offer is being discussed in Brussels right now, which hopefully should narrow the differences even further, but the issue is a political minefield,” says Four.
“We must not forget the bigger picture. The EU is only too well aware of the development needs of this country. But, at the same time, it has to consider its own constituents. Reform of the Common Agricultural Policy will continue, particularly in light of the World Trade Organisation rules.
“No agreement is perfect, but at least we have now set the course for the next 10 to 12 years, which will see a further breakdown of tariff barriers, not just between Europe and South Africa but on a worldwide scale.
“And the impact of such a trade deal extends far beyond the piece of paper. More important is the message it sends to potential investors, domestically and internationally. A trade pact between South Africa and its biggest trading partner is a huge boost to confidence.”
And hopefully, in turn, to investment. “The issue here is job creation, job creation, job creation. If we can make a difference with this agreement then all the problems we’ve had in getting there will have been worth it.”
He points to the vast potential of entrepreneurial spirit that is still largely untapped. The EU is already involved, via the European Investment Bank and the European Programme for Reconstruction and Development, in providing technical and financial assistance. And, after many delays, projects are finally taking off. Disbursement levels are up, albeit from a very low rate, but as Four explains, most projects are run on a three-year basis so they are only now getting off the ground.
One of his more gratifying tasks has been travelling around the country, seeing development in practice. And one of the biggest lessons has been the importance of partnerships in making those projects work.
“Development cannot take place in a vacuum; it cannot be exclusionary. Everyone, from business to non-governmental organisations to government departments, must take part.
“In my experience, the projects that make the most difference, which change the lives of the most people, are those that involve the community. They are always far more successful than the ones driven by bureaucrats.”
As befits his diplomatic status, Four is cautious in his assessment of the country’s long-term prospects. Then again, with the gold price crashing and the South-East Asian stock markets tumbling, any other response would be wildly optimistic. But he believes the fundamentals are in place; now we just need to build on them. There are no quick fixes.
He should know, especially after four years spent establishing the EU presence and guiding one of the most important agreements to be signed by this government. And he will be back — if only to run the Two Oceans marathon next year.