/ 20 September 1998

SA, EU trade talks collapse

OWN CORRESPONDENT, Johannesburg | Friday 8.30pm.

THE three year talks between the European Union and South Africa over a sweeping free trade agreement fell through on Friday over the issue of concessions for agricultural products.

The failure comes just days after both sides expressed hope that the three years of tough talks would be wrapped up during the talks in Brussels and dashing hopes for an early end to the gruelling talks. Speaking after the meeting, South African ambassador to the EU, Elias Links, said EU negotiators refused to table an offer of improved access for farm products without a prior commitment from South Africa to phase out the use of the terms “port” and “sherry” for its fortified wines, he said.

He said the EU’s tough stance calls into question its commitment to ever concluding the trade deal. “This to us is unacceptable,” Links said. Although South Africa was prepared to negotiate an accord on wines and spirits in parallel with the proposed free trade agreement, it could not accept a “direct linkage,” between the two, he said.

The talks on a free trade deal with South Africa began in the summer of 1995 with the EU promising a generous deal that would boost the development of post-apartheid South Africa and help build a pole of stability and prosperity in the region. The negotiations quickly got bogged down as South Africa baulked at EU demands that some 40% of its agricultural exports to Europe be excluded from the final accord.

Trade links

18