Eu-South Africa Trade Development And Cooperation Agreement (Tdca)
South Africa is an emerging economy. A large part of the population lives in poverty. The EU is by far South Africa`s main development partner and provides a significant share of the external aid it receives. The asymmetrical nature of the Economic Partnership Agreement (EPA) means that African signatories are not required to react with the same degree of market openness as the EU. Finally, the TDCA contains certain institutional provisions. It creates a cooperation council to ensure the smooth running of the agreement. And it provides for regular contact between the parties; z.B. between their parliaments and between the EU Economic and Social Committee and its South African counterpart, the National Council for Economic Development and Labour. Under the CDAA EPA, the EU has eliminated all or part of tariffs on 98.7% of imports from South Africa, while guaranteeing unrestricted access to other signatory countries. Today, the EU is South Africa`s main trading and investment partner. The two sides are strengthening their economic cooperation in many sectors 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.
Cooperation in this area should also support sustainable development in its economies and protect the environment. The decision adopts the agreement on behalf of the EU. South Africa and the EU can take safeguards when an imported product is likely to cause serious harm to domestic industry. The agreement also allows South Africa to adopt temporary safeguards (for example. B an increase or reintroduction of tariffs). In addition, similar measures protect the economies of members of the Central African Customs Union and the outermost regions of the EU (such as Reunion). Finally, the TDCA provides for close cooperation in a wide range of trade-related areas, including customs services, the free movement of services and capital, as well as technical barriers such as certification and standardization. The agreement aims to strengthen relations between the EU and South Africa in a wide range of areas in the areas of trade, development and cooperation. As with other development cooperation agreements, decentralized cooperation is a key element of support, requiring significant civil society participation in the development process. The provisions of the agreement concern cooperation in areas as diverse as: the agreement covers a number of areas and contains a clause on future developments, which broadens the scope of cooperation. EU development assistance to South Africa is mainly provided by the EU budget through the Development Cooperation Financing Instrument. The agreement provides for the liberalisation of 95% of EU imports from South Africa within ten years and 86% of South African imports from the EU within 12 years.
In order to protect vulnerable sectors on both sides, some products are excluded from the free trade agreement, others have been only partially liberalized. For the EU, these are mainly agricultural products, while South Africa is an industrial product, including certain automotive products and certain textile and clothing products. However, since December 2006, there are plans to strengthen trade liberalization in the automotive sector.