EU & SOUTH AFRICAN COUNTRIES SIGN INTERIM EPA

KUALA LUMPUR, June 5 (Bernama) -- The European Union has signed an interim
Economic Partnership Agreement (EPA) with Botswana, Lesotho and Swaziland.

Mozambique meanwhile has signalled its intention to sign this agreement in
the near future, but its trade minister was unable to come to Brussels, a
statement issued by the EU Trade Commission in Brussels said today.

This interim agreement secures EU market access for these countries while
negotiations for a full EPA with the seven country Southern African Development
Community (SADC) EPA group are ongoing.

The other members of the SADC EPA group are South Africa, Namibia and
Angola. Declarations attached to the interim EPA set out how the EU and the SADC
EPA group will address outstanding controversial issues in the negotiations for
a full EPA.

EU Trade Commissioner Catherine Ashton said the agreement was an important
step.

"It first of all guarantees market access to the European market for those
countries that have signed Friday.

"More importantly, it is a vote of confidence in the process that we have
put in motion to build a strong and lasting economic and trade relationship,"
she said.

Meanwhile, Neo Moroka, Minister for Trade and Industry of Botswana and Chair
of the SADC group, said the signing of the interim EPA marked a significant
milestone in their trade negotiations.

"It ensures uninterrupted flow of SADC EPA goods into the EU market. There
are still some outstanding issues to be resolved. These will be negotiated in
parallel with negotiations towards a full EPA, covering services and
investment," he said.

Three other countries in the region, South Africa, Namibia and Angola, opted
not to sign at this juncture. This agreement will now have to be notified to the
World Trade Organization.

Angola as a Least Developed Country (LDC) maintains its duty-free quota-free
access to the EU market under the 'Everything But Arms' (EBA) initiative.

South Africa-EU trade is governed by the Trade, Development and Cooperation
Agreement (TDCA) signed in 1999 which allows preferential tariff rates for more
than 90 percent of South Africa's exports to the EU.

The EU-SADC EPA is consistent with regional integration processes such as
the larger SADC and the "SACU" or Southern Africa Customs Union.

By signing this interim agreement, the signatories will work towards a
"full" EPA, which will address all outstanding issues in terms of trade in
goods, and also include chapters on services and trade-related aspects such as
investment, government procurement and competition.

-- BERNAMA