§ Mr. CabornTo ask the President of the Board of Trade (1) if he will make a statement on the draft negotiating mandate for a new trade regime between the European Union and South Africa; [25610]
(2) if he will undertake a study into the effect of the proposed free trade area between the European Union and South Africa on the economies of the other member states of the Southern African Customs Union and the Southern African Development Community. [25609]
§ Mr. NeedhamThe draft negotiating directives presented by the European Commission propose that the EU should respond positively if the South African Government were willing to negotiate a bilateral free trade agreement. The Government believe that such an agreement offers the greatest potential for delivering improvements in access to the EU market for South African products and promoting our long-term trade relations.
We therefore support the Commission proposal, on the understanding that any free trade agreement negotiated between the EU and South Africa is compatible with World Trade Organisation rules and takes account of South Africa's regional commitments. I believe that this is in line with the recommendation on the future relationship between the EU and South Africa made in the Trade and Industry Select Committee's report on trade with southern Africa published on 27 July 1994. In the process of negotiation, we will urge the European Commission to take into account the possible effects of such an agreement on the economies of South Africa's neighbours and we will also listen carefully to the views of South Africa's partners in the Southern African Customs Union and the Southern African Development Community.