EUROPEAN AID OR TRADE FOR SOUTH AFRICAN DEVELOPMENT?

In: Review of African political economy, Band 22, Heft 66, S. 585-587

Abstract

AS FAR AS AIDING SOUTH AFRICAN DEVELOPMENT IS CONCERNED, THE EUROPEAN UNION (EU) SEEMS TO BE CONFUSED AS TO WHETHER SOUTH AFRICA IS TO BE REGARED AS A "DEVELOPING COUNTRY" REQUIRING PREFERENTIAL TREATMENT AND SPECIAL ASSISTANCE OR AS AN INDUSTRIALIZED COUNTRY WHICH MUST BE SUBJECT TO THE RULES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT). IN MARCH 1995 THE EUROPEAN PARLIAMENT FACED CONFLICT WHEN ATTEMPTING TO IMPLEMENT AN EUROPEAN INVESTMENT BANK LOAN TO SOUTH AFRICA BECAUSE OF DIFFERENCES OF OPINION OVER SOUTH AFRICA'S STATE OF DEVELOPMENT. IN JUNE 1995 THE EU AGREED TO A NEGOTIATING MANDATE ON TRADE AND COOPERATION BETWEEN THE EU AND SOUTH AFRICA WHICH WOULD LEAD TO A FREE TRADE AREA. THIS FREE TRADE AGREEMENT WOULD REMOVE TARIFFS WHICH IS SEEN BY SOME IN EUROPE AS A RELATIVELY PAINLESS FORM OF DEVELOPMENT ASSISTANCE TO SOUTH AFRICA, ASSISTANCE WHICH CAN ALSO BE SEEN AS A COMPROMISE BETWEEN THE TWO SIDES OF SOUTH AFRICA'S DEVELOPMENT DEBATE. RECONCILING ANY NEW AGREEMENT WITH GATT RULES IS A PROBLEM THAT STILL MUST BE FACED BY THE EU AND SOUTH AFRICA.