The agreement provides for the liberalisation of 95% of EU imports from South Africa within 10 years and 86% of South African imports from the EU within 12 years. In order to protect the vulnerable sectors of both sides, some products are excluded from the free trade agreement and others have only been partially liberalized. For the EU, these are mainly agricultural products, while South Africa is manufactured products, in particular certain automotive products and certain textile and clothing products. However, since December 2006, there have been plans to strengthen trade liberalization in the automotive sector. The duration of the agreement is not specified, but may be revised within five years of the entry into force of the agreement to take account of any changes. “Over the years, the European Commission and the World Bank Group have helped millions of people around the world lead better lives. With today`s agreement, we are equipping ourselves with renewed instruments to more effectively address today`s more numerous and complex global challenges,” said Johannes Hahn, Commissioner for Budget and Administration. The subsequent amendments to the Agreement have been inserted in the original text. This consolidated version is only documentary. The agreement covers a number of areas and contains a clause on future developments that will broaden the scope of cooperation.
Development projects in Afghanistan, Ukraine, Turkey, Somalia and the Sahel, as well as support for global partnerships such as the Global Prevention and Reconstruction Mechanism, which helps developing countries better understand and reduce their vulnerability to natural hazards and climate change. The decision adopts the agreement on behalf of the EU. The agreement aims to strengthen relations between the EU and South Africa in various areas in the areas of trade, development and cooperation. The provisions of the agreement concern cooperation in areas as diverse as: the European Commission and the World Bank Group first signed a framework agreement in 2001. The new cooperation agreement is an update and extension of an earlier agreement from 2016 and sets out the modalities of cooperation between the two organisations. The Financial Framework Partnership Agreement enables the parties to cooperate over the long term, including innovative tools and strengthening relationships with mature partners such as the World Bank Group. The European Commission`s support has also helped MIGA extend its development impact to conflict and fragility situations, as well as projects in Africa that have benefited from the Agency`s environmental and social expertise. The agreement contains detailed rules of origin to ensure that products benefiting from the preferential regime come only from South Africa or the EU.
In order to take account of modern international production processes, specific provisions make the rules of origin more flexible. The two sides are intensifying their economic cooperation in many areas such as industry (to facilitate the restructuring of South African industry), the information society, the creation and development of small and medium-sized enterprises, transport and energy. .