The Star Malaysia - StarBiz

South Africa avoids European Union for a year on trade summit

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JOHANNESBU­RG: South Africa has spent more than a year frustratin­g its biggest trade partner and largest foreign investor, the European Union (EU), by failing to respond to requests for a high-level summit, according to people familiar with the situation.

The EU requested South Africa to schedule the so-called Eu-south Africa Summit over the past 12 months but hasn’t received a response setting or suggesting a date, said the people who asked not to be identified because a public statement hasn’t been made.

The summits are meant to reflect the EU’S strategic partnershi­p with South Africa, the only nation on the continent with which it has such a relationsh­ip.

The delay is fuelling concern among Western powers that South Africa is turning increasing­ly towards Russia and China and neglecting relations with the United States and European nations, the people said.

South Africa last year held exercises with the Russian and Chinese navies, declined to condemn Russia’s invasion of Ukraine and was accused by the US ambassador of shipping arms to Russia, an allegation Pretoria denied.

“It was unfortunat­ely not possible to schedule a summit in 2023, but discussion­s continue with a view to determinin­g the most suitable date,” an EU spokespers­on said in a response to queries.

With South Africa due to hold national elections on May 29, a summit will now only be possible later in the year, the people said.

South Africa and the EU are “working closely” towards holding a summit, Zane Dangor, director-general of the South African Department of Internatio­nal Relations and Cooperatio­n, said in a post on X on Monday. The presidency didn’t respond to requests for comment.

More than a thousand American, European and British companies have invested in the country and western nations account for the bulk of South Africa’s trade.

While China is South Africa’s single biggest trade partner, with two-way flows of Us$56.3bil in 2022, the EU collective­ly accounted for Us$56.4bil worth of commerce with South Africa that year.

And while China has few investment­s in South Africa, more than 1,000 companies from the EU accounted for 51% of all foreign direct investment stock in 2021 or 1.41 trillion rand, and employed 350,000 people, according to the EU Chamber of Commerce and Industry of Southern Africa.

More than 600 US companies operate in South Africa, employing 134,600 people, according to South Africa’s government.

The delays to the summit are sending a negative signal about future relations between the EU and South Africa, three of the people said.

The Trade, Developmen­t and Cooperatio­n Agreement between the EU and South Africa came into force in 2004, covering preferenti­al trade arrangemen­ts and establishi­ng a regular political dialogue.

The summits were held annually between 2009 and 2013, and the last one that was held in 2018 was the seventh.

Plans for the next summit were initially set back by the Covid-19 pandemic.

South Africa has insisted that it still values its relations with the EU and the United States.

President Cyril Ramaphosa and Internatio­nal Relations and Cooperatio­n Minister Naledi Pandor have met with US officials in a bid to shore up relations in recent months and have expressed dismay about a bipartisan bill tabled in the US Congress calling for a review of bilateral relations between the countries.

“It was unfortunat­ely not possible to schedule a summit in 2023, but discussion­s continue with a view to determinin­g the most suitable date.” An EU spokespers­on

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