BRANCH: EUROPEBRANCH: EUROPE

Presentation by Ambassador MolekanePresentation by Ambassador Molekane

To The Parliamentary Portfolio Committee on To The Parliamentary Portfolio Committee on International RelationsInternational Relations

30 July 201430 July 2014

PRESENTATION OVERVIEW

• Branch Europe Theme

• Structure of Branch Europe

• SA Footprint in Europe

• 5 Pillars SA-Europe Relations

• Relevance of the EU

• Europe Situational Analysis

• Branch Annual Performance Plan– High Level Engagements

– Key Issues to address in 2014/15

BRANCH EUROPE THEMEBranch theme for 2013/2014 and 2014/2015 is Job Creation through Inward Investments. Investment understood as inclusive of trade, investments, tourism, scientific and technical cooperation. In addition, the promotion of relevant national priorities in agriculture and rural development, fighting crime, education and the advancement of the African and south development agenda and infrastructure development are also prioritised.

Strategic Plan 2013-2018:

•Strengthen relations with strategic formations of the North•Strengthen political and economic relations including Tourism

South Africa should continue focusing its engagements with Europe in order to enhance our five national priorities, the NDP, the African Agenda, and our global governance priorities over the next 20 years

 

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STRUCTURE OF THE BRANCH

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SA FOOTPRINT IN EUROPESA Missions in EU member states

• Belgium (Brussels)

• UK (London)

• Ireland (Dublin)

• France (Paris)

• Denmark (Copenhagen)

• Italy (Rome, Milan)

• Finland (Helsinki)

• Spain (Madrid)

• Portugal (Lisbon)

• Sweden (Stockholm)

• Greece (Athens)

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• Austria (Vienna)

• Germany (Berlin, Munich)

• The Netherlands (The Hague)

• Czech Republic (Prague)

• Poland (Warsaw)

• Hungary (Budapest)

• Romania (Bucharest)• Bulgaria (Sofia)

SA maintains 21 Missions in 19 EU Member StatesBrussels coordinates relations with the EU and ACP institutions.

SA FOOTPRINT IN EUROPE SA Missions in non-EU Countries

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Russia (Moscow)

Belarus (Minsk)

Switzerland (Geneva, Berne)

Norway (Oslo)

Ukraine (Kyiv)

Turkey: Ankara

SA maintains 6 Missions in non-EU member states including in Russia, a BRICS Strategic Partner

5 PILLARS OF SA – EUROPE RELATIONS

SA Major European Trading Partners in ZAR Millions, 2013

Source: the dti

Selected European Tourist Arrivals into SA

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RELEVANCE OF THE EU

Croatia became 28th member on

1 July 2013.

Combined population of over 500 million inhabitants

(7.3% of world population).

2nd-largest economy in the world - accounting for 17% of

the world’s gross domestic product.

Some of the world’s most advanced infrastructure.

Key global centres of knowledge, cutting edge

innovation and technology.

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SA – EU Strategic PartnershipJoint Action Plan (JAP) adopted in May 2007

TDCA - Legal Foundation of PartnershipSigned 1999 & fully implemented from 1 May 2004

1999 Joint Cooperation Council (JCC)

Parliamentary Dialogue

High-level Political Dialogue

Summits

Ministerial

Senior Officials

 

Policy Dialogues & Sectoral Cooperation

EUROPE SITUATIONAL ANALYSIS

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Political EnvironmentPolitical Environment Escalating tensions between EU and Russia as a result of conflicting spheres of

interest i.e. annexation of the Crimea and tensions in Ukraine; The creation of the Eurasian Economic Union (Russia, Belarus and Kazakhstan) as a

potential rival to the EU [in terms of various forms of integration and cooperation]; Other unresolved territorial disputes resulting in interstate tensions i.e. between

Azerbaijan and Armenia over Nagorno-Karabakh, Georgia and Russia over South Ossetia and Abkhazia, as well as internal tensions i.e. Russia’s Caucasus region;

Recent EU Parliamentary elections in May 2014 saw the rise of eurosceptic parties; Rise of nationalistic tendencies, issues of identity and intra-regional tensions

(Scottish, Catalonia referendums Sept 2014); Coalition governments with divergent interests in many European countries. Move towards stricter immigration policies; Global influence of Russia, UK and France as members of the UNSC P5; Germany’s and France’s leadership role within the EU.

EUROPE SITUATIONAL ANALYSIS

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Economic Realities Economic Realities Euro-zone area showing signs of recovery; Challenges remain - unemployment and deflation;Russian dominance of the European gas market and diversification into other markets to offset potential economic sanctions from the EU; Challenges in adhering to austerity measures; Continued reliance on Germany to bail out troubled Euro-zone countries; In spite of the Euro-crisis and global downturn, Europe continues to attract FDI and promote outward investment in emerging markets; Continued interest for economic and commercial partnerships with emerging markets including Africa Trade protectionist policies (especially with regard to SA citrus products); Use of multilateral issues and fora to regain competitive advantage (Post-2015 Development Agenda and Climate Change); The EU decision to include aviation in its Emissions Trading System (ETS) will challenge its relations with affected countries.

EUROPE SITUATIONAL ANALYSIS

High levels of education and skills; High unemployment especially among the youth; Economic buying power has decreased resulting in poorer households; Burden of ageing population / low population growth; Migration and mobility remain challenges; Continued xenophobic manifestations.

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Social Factors

Europe remains technologically advanced; Platform for best practices in the commercialization of S&T and R&D into revenue

generating opportunities; Increased focus on sustainable technology, reducing reliance on fossil fuel energy

sources in favour of renewable energy; Leading location for R&D and innovation; Russia, Ukraine, Belarus – source of technology in field of Space research.

Technology

ANNUAL PERFORMANCE PLAN

In the 2014/15 APP we will continue to focus our engagements with Europe around the

diverse demands of the National Development Plan with a specific focus on

promoting economic diplomacy in Europe and emphasis on African Agenda through

key bilateral mechanisms such as:

6 Strategic Partnerships (EU, UK, Germany, France, Russia, Turkey)

12 Structured mechanisms

20 High Level engagements

10 Senior Officials Political Consultations

97 trade and investment seminars

84 engagements with chambers of commerce

82 tourism events

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HIGH LEVEL ENGAGEMENTS FOR 2014-15

Presidential level

• Russia, Turkey, Belarus - outgoing Presidential visits• SA-EU Summit - incoming • Poland – incoming

High Level Engagements: • SA-Russia 12th ITEC at Ministerial level (incoming)• Russia incoming Official Visit at Ministerial level • Turkey outgoing Official Visit at Ministerial level• Azerbaijan outgoing Official Visit at Ministerial level• Belarus incoming Official Visit at Ministerial level• Romania incoming Official Visit at Ministerial level• Czech Republic incoming Official Visit at Deputy Ministerial level• Hungary incoming Working Visit at Deputy Ministerial level• Serbia incoming Official Visit at Ministerial/Deputy level

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KEY ISSUES TO ADDRESS IN 2014/15• Critical = Matching SA capacity constraints + skills gaps with available study,

mentorship and partnership opportunities in countries of accreditation;• Non-tariff barriers (e.g. CBS);• Export drive / dumping into South Africa and rest of Continent;• Bilateral Investment Treaties (BITS);• UK visa regime and demand for reciprocity and start negotiating a Visa Free

regime for all SA citizens;• Decrease of ODA;

• Perception about parts of SA economy e.g. labour unrest in mining sector;•  Identification of further opportunities for SA’s national priorities in Central

and Eastern Europe• Future of the ACP and South Africa’s role post-2020.

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Obrigado! Dank u! Danke! Grazie! Děkuji! Obrigado! Dank u! Danke! Grazie! Děkuji! Gracias! Merci! Kiitos! Dziakuju! Tak! Gracias! Merci! Kiitos! Dziakuju! Tak!

Efharisto! Sagulan! SpaciboEfharisto! Sagulan! Spacibo!