Changes from report parliamentary committee draft to plenary report

Added7. Welcomes the fact that within the framework of the EU-Angola SIFA, fiscal capacity building measures are being envisaged;

Trade balances

Change 6

Changed3.8. Welcomes the fact that trade relations between the EU and the SADC EPA States have expanded significantlysignificantly, both at regional and bilateral levels, with the SADC EPA States being able to achieve a trade surplus; considers that this demonstrates the EPA’s positive contribution to economic development;development, noteswhile that,the withdesired thepositive exceptioneffects ofon Southemployment, Africa,regional economic cooperation and the bulkdiversification and modernisation of the economy have not yet reached their potential and should be pursued as a priority; notes that SADC EPA States’States mainly export precious stones, articles of wood, transports, mineral products and agricultural products, such as fruits and vegetables, to the EU; notes, however, that South Africa’s exports to the EU involve unprocessedare agriculturalmore productsdiverse and rawinclude materials;higher added-value goods;

Change 7

Added9. Emphasises that with the exception of South Africa, SADC EPA States primarily trade within the region; notes that trade with South Africa continues to account for 80 % of the EU’s trade with the SADC EPA States and that South Africa’s trade in goods with other African countries accounts for only 17 % of its total foreign trade; notes that intra-SADC trade accounts for 23 % of SADC States’ total trade; acknowledges that intra-SADC trade patterns differ from EU-SADC bilateral trade; points out that overall, there has been no improvement in diversification and the share of manufacturing in GDP remains weak; stresses that diversified economies would make the SADC EPA States more resilient to external shocks; stresses the importance of strengthening regional value chains;

Added10. Stresses that the EPA should support a new trade dynamic between the Parties by means of the progressive asymmetrical liberalisation of trade between them; stresses also that it can reinforce, broaden and deepen cooperation in all areas relevant to trade and therefore also enhance the partnership between the SADC countries and the EU; stresses the importance of the principle of asymmetric trade liberalisation as a tool to foster the economic growth and sustainable development of SADC EPA countries;

Added11. Underlines that while EPAs can provide significant advantages for African, Caribbean and Pacific (ACP) countries, they also come with their own set of challenges and drawbacks; insists, therefore, that policymakers carefully consider these factors and work to ensure that EPAs are implemented in a way that maximises benefits for all parties involved;

Added12. Recalls that all the Parties should always act on the basis of the principles of solidarity and mutual interest in order to enhance their fruitful collaboration, fulfil their commitments and obligations, and facilitate the capacity of the SADC EPA countries to continue to implement the agreement;

Technical barriers to trade

Change 8

Changed4.13. NotesRecalls that the SADC EPA aims to promote regional integration and that the agreement should be a building block for the African Continental Free Trade Area launched in 2021; notes that regional integration is hamperedchallenged by long waiting times at border crossings, high border costs and inadequate cross-border connectivity; calls on the Commission and the SADC EPA States to increase cooperation in infrastructure, digital trade and certification;certification, including under the Global Gateway Initiative; stresses the importance of prioritising regional transport and infrastructure projects in the region to deepen regional integration and increase intra-trade flows; recalls the need to promote efficient cross-border infrastructure development, harmonising regulations and strengthening cooperation between SADC EPA States in order to create an interconnected SADC region; calls on the SADC EPA States to harmonise the regulations and procedures related to customs and transportation in order to simplify cross-border processes, reduce delays and promote a conducive environment for trade and investment;

Change 9

Added14. Stresses the necessity of formalising cross-border work arrangements to promote decent work, protect workers’ rights and ensure social and economic development in the region; recognises the specific challenges faced by women, particularly in the context of cross-border work, including gender-based violence and corruption;

Added15. Urges the Commission and the SADC EPA States to extend their commitment to creating an enabling environment that supports legal and transparent labour mobility, while safeguarding the rights and dignity of workers;

Rules of origin

Change 10

Changed5.16. NotesWelcomes thatthe noCommission’s agreementannouncement hason yetthe beenactivation reachedof onregional diagonalcumulation cumulation;with Southern African Customs Union (SACU) countries; recalls that the introduction of flexible rules of origin is essential for achieving regional integration objectives; stresses that rules of origin must promote the objectives of the African Continental Free Trade Area;Area (AfCFTA); recalls that the EPA should support the further development of the AfCFTA;

Trade disputes and market access issues

Change 11

Changed6.17. Notes that trade irritants have occurred in relation to sanitary and phytosanitary (SPS) measures, in particular for poultry and citrus fruits; calls on the Commission and the SADC EPA States to use the forums and cooperation mechanisms agreed under the EPA to address changes in regulations and problems related to SPS measuresregulations at an early stage and in a cooperative atmosphere so that appropriate action can be taken in a timely manner; recalls that the European Parliament should be fully informed in the framework of the review ensuring that the SPS measures applied by South Africa are in line with Union requirements and the provisions of the EPA and do not harm the plant health of Union and SADC production; acknowledges that the Commission has given technical and financial support to EU-SADC EPA States to comply with the requirements of the SPS measures and calls for a thorough monitoring of the work to reduce health risks; recommends that solutions to trade irritants caused by SPS requirements be sought through high-level political discussions;

Capacity building

18. Notes that governance and fiscal and institutional capacity remain the greatest challenges for the EPA’s effective implementation;

Change 12

Removed8. Calls on the Commission and the Member States to step up their efforts in technical assistance; calls on the Commission to significantly expand its communication and cooperation with SADC EPA States and to provide them with timely support in implementing upcoming EU projects and fulfilling other international commitments;

Added19. Highlights the importance of development cooperation and technical and financial assistance as essential factors for achieving the objectives under the EPA and for beneficial cooperation between the Parties;

RemovedValue chains

Added20. Recalls that it can be challenging for smaller ACP countries lacking in resources and infrastructure to implement EPAs; calls for the EU and its Member States to assist their developing partner countries so that they can fully take advantage of the opportunities presented by EPAs;

Removed9. Concludes that the EPA has not succeeded in deepening regional value chains in and between SADC EPA States to any significant extent; does not consider the EPA to have substantially contributed to the promotion of food sovereignty and poverty reduction in the SADC EPA States;

Added21. Calls on the Commission and the Member States to step up their efforts in technical assistance; calls on the Commission to significantly expand its communication and cooperation with SADC EPA States and to provide them and, when appropriate, their companies and civil society organisations, with timely support in implementing upcoming EU projects and fulfilling other international commitments such as the Multilateral Environmental Agreements, the International Labour Organization (ILO) Conventions and the UN Guiding Principles on Business and Human Rights;

RemovedClimate and food security

AddedEconomic, social and environmental development

Added22. Concludes that the EPA has not succeeded in deepening regional value chains and those in and between SADC EPA States to any significant extent, but should strengthen the diversification of exports and regional value-added chains, as well as create more resilient supply chains that can adapt to future disruptions of the socio-economic development of the SADC; underlines the importance of developing regional value chains for the economic resilience of the region; expects the EPA to better contribute to combating the lasting problems of food sovereignty and poverty reduction in the SADC EPA States; recalls that the objective of EPAs is to create positive effects on economic development and regional integration; stresses that the EPA still has a lot of potential to advance sustainable development and that this should be pursued as a priority;

Added23. Underlines the wish to leave sufficient policy space for SADC EPA States to create local added value; believes that the EU should actively support the SADC EPA States in their efforts to move up the value chain; stresses that the effective management of regional specialisation is essential to maximise the potential of regional value chains and requires cooperative governance structures and policies; calls for the EU and SADC EPA States to work towards the development of high-quality digital infrastructure, including broadband networks and digital platforms, to enhance connectivity, promote e-commerce and facilitate the exchange of information and services across borders;

Added24. Underscores the critical importance of the service value chain in driving economic growth, fostering innovation and enhancing regional cooperation within the SADC region; highlights the potential in the service sectors in the SADC region, which include financial services, tourism and telecommunications;

Added25. Underlines the importance of the EU’s commitment to multilateral cooperation and to securing Europe’s own trade interests, while at the same time addressing some of the key interests of ACP countries, particularly with regard to regional integration;

Added26. Recalls the two-pillar solution for addressing the tax challenges arising from the digitalisation and globalisation of the economy, as agreed by the members of the Organisation for Economic Co-operation and Development/G20 Inclusive Framework on Base Erosion and Profit Shifting;

Added27. Calls for the EU and its Member States to ensure that the agreed global minimum corporate tax rate of 15 % for multinational enterprises is applied effectively; underlines that this minimum tax rate is estimated to generate around USD 150 billion in additional global tax revenues annually;

Added28. Calls on the Commission to ensure that developing countries can fully exercise their rights under the WTO special and differential treatment provisions, most notably in order to ensure their food security; calls on the Commission to update its 2009 communication on fair trade;

Added29. Stresses that there is an urgent need to undertake far-reaching joint efforts towards decarbonisation and to support this with substantial funding, as well as to carry out far-reaching technology transfers; emphasises the significance of joint collaboration in promoting sustainable development and combating climate change, while fostering economic growth; stresses that the establishment of energy partnerships with the countries of the SADC region must focus not only on the implementation of the Green Deal in Europe, but must at the same time aim to supply the region;

Added30. Reiterates that the green transition offers the potential to be a generator of quality and green jobs that can contribute significantly to poverty eradication and social inclusion, both in EU Member States and in the SADC EPA States;

Added31. Underscores the importance of investing in education and skills development tailored to decarbonisation efforts, while addressing the challenges of the just transition;

Added32. Considers that projects to improve local infrastructure in the SADC EPA countries in connection with city partnerships are useful in order to underpin climate partnerships between the EU and individual SADC EPA States in a decentralised manner, and to deepen exchanges between municipalities in Southern Africa and the EU; is convinced that municipal exchanges make it possible for African and European experts to develop problem-appropriate solutions for the development of local infrastructure; welcomes the fact that such partnership projects are supported by the programme ‘Local Authorities: Partnerships for sustainable cities 2020’; calls on the Commission to continue to assist the SADC EPA countries in meeting EU environmental policy requirements and maintain this funding programme; urges the Commission, the European External Action Service and the EU delegations to facilitate dialogue with the aim of promoting mutual understanding on the impact of EU climate initiatives, such as the introduction of the Carbon Border Adjustment Mechanism (CBAM) Regulation and the Deforestation Regulation, and upcoming Union due diligence legislation;

33. Stresses that the SADC EPA States are particularly affected by the impacts of climate change; recalls that agriculture in Southern Africa is affected by both floods and droughts; urges the Commission and the SADC EPA States to intensify their cooperation in developing appropriate early warning systems and coordination between the relevant ministries of the SADC EPA States in order to achieve the objectives of the Nationally Determined Contributions;

Change 13

Removed11. Welcomes the efforts of the SADC EPA States and the Commission to establish closer cooperation on resilient food systems and food sovereignty within the review process;

Added34. Welcomes the efforts of the SADC EPA States and the Commission to establish closer cooperation on resilient food systems and food sovereignty within the review process; considers that this cooperation is an opportunity to push forward the United Nations Declaration on the Rights of Peasants and Other People Working in Rural Areas and agriculture-oriented ILO Conventions such as No. 129 on labour inspection in agriculture, No. 10 on minimum age in agriculture and No. 11 on the right of association in agriculture; recalls the fact that agro-ecology’s capacity to reconcile the economic, environmental and social dimensions of sustainability has been recognised in landmark reports from the Intergovernmental Panel on Climate Change and the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services, as well as the World Bank and FAO-led global agricultural assessment (IAASTD);

Removed12. Stresses that there is an urgent need to undertake far-reaching joint efforts towards decarbonisation;

Added35. Stresses the need for efforts in building climate-resilient value chains within the agro-industry and the development of drought-resistant crop varieties and climate-adapted processing techniques;

Added36. Emphasises that access to clean water and sanitation facilities is fundamental to agricultural sustainability; stresses the need for comprehensive water management strategies; emphasises that the lack of access to clean water and sanitation in the SADC region is an obstacle to sustainable development;

Added37. Calls for regional agro-processing initiatives to be carried out and shared among SADC EPA States in order to promote knowledge exchange and the sharing of best practices; calls for the progress made in regional value chains in agricultural processing to be monitored;

AddedGender

Added38. Acknowledges the vital role of women in the economic development of the SADC region and the importance of creating an enabling environment that safeguards their rights; calls on the Commission to prioritise gender issues in the context of the implementation of the EPA, for example by organising workshops on gender equality between, inter alia, women’s rights organisations in the EU and in SADC countries, by raising the awareness of domestic authorities and companies as to the untapped economic potential stemming from discrimination against women and by helping them identify the political, economic and social drivers that hamper African women’s advancement and calls for policies and concrete actions to close the gender gap; stresses the importance of empowering women and young people in the SADC region by enhancing their access to finance, resources and economic participation; calls for the EU and the SADC EPA States to ensure equal and unhindered access to financial services and resources for women and young people, and the promotion of financial inclusion;

Investment

39. Points out that green finance and investments need to be significantly scaled up in order to achieve the goals of the 2030 Agenda for Sustainable Development and the Paris Agreement and to advance the transition to a low-carbon and climate-resilient economy in the SADC EPA States;

Change 14

Added40. Calls for the EU and SADC EPA States to actively explore innovative mechanisms for green finance, including green bonds, climate-focused investment funds and public-private partnerships, leveraging international platforms to attract investments in sustainable and climate-resilient projects; calls for the EU to leverage its influence in obtaining improved financing practices from institutions such as the World Bank and enhancing the International Monetary Fund’s role in reducing the debt of heavily indebted countries and therefore calls for the EU and its Member States to use their influence to explore new approaches that unlock finance for climate adaptation; emphasises the need for proactive measures to continue to attract increased investments, notably in strategic and innovative sectors, which can lead to higher-quality outcomes and foster more sustainable development, which could result in long-term benefits both for the SADC EPA States and the EU; further urges the EU and SADC EPA States to jointly explore innovative financing possibilities such as securing loans and subsequently allocating them under appropriate conditions to finance public infrastructure in crucial areas such as energy, water supply, waste disposal and recycling;

Added41. Calls for the EU and its Member States to intensify their efforts at international forums, including the WTO, to advocate increased international climate financing;

42. Notes that the investment stock of EU Member States in the SADC EPA States remains significantly higher than that of the United States or China;

Change 15

Changed15.43. ConsidersFurther considers that there is an urgent need to increase sustainable investment in the SADC region and expects investment areas to be identified that appear particularly suitable for investment partnerships between the EU and the SADC EPA States; calls for a better coordinated Team Europe approach in identifying and implementing suitable measures to increase investment; stresses that the achievement of the SDGs requires massive investments in supporting infrastructure and diversification away from dependence on primary commodities towards high-value industrial products; stresses that the EU’s investment policy should help developing countries, notably African countries, to attract FDI and to reduce the funding gap to achieve the SDGs; emphasises that creating decent jobs must be a key factor for supporting investment in the SADC region, enabling robust domestic frameworks for human rights and environmental due diligence; underlines the importance of involving local companies wherever possible in the implementation process to keep invested funds in the region, boost employment and facilitate the transfer of skills; believes that Global Gateway funds should be increased and that the share of grants for equally necessary public investments must be increased;

Change 16

Added44. Calls on the Commission and the Member States to ensure that when selecting and supporting Global Gateway projects, social dialogue needs to be an integral part of the institutional framework for policy-making and implementation at all levels;

Added45. Calls on the Commission to better coordinate the individual national export credit agencies of EU Member States in order to align with the priorities of the European Green Deal;

Added46. Underlines the significance of small and medium-sized enterprises (SMEs) in the economic development of SADC States, recognising their potential and role; reiterates the need to raise awareness on the benefits and opportunities of the agreement, in particular for SMEs;

Added47. Emphasises the importance of proactive involvement by private sector enterprises in the implementation and monitoring of the EU-SADC EPA;

Added48. Calls on the Commission to actively promote and encourage participation in capacity-building programmes and regional initiatives aimed at strengthening investment and export capacity, while fostering a more SME-friendly market environment;

Added49. Welcomes the introduction of EU programmes such as the Support to Improving the Investment and the Business Environment Programme aimed at improving the business and investment climate in SADC States; calls, in this context, for more funding to be envisaged in the next financial period in order to give a greater boost to the growth and development of private sector, as well as to create job opportunities for the local population, thereby reducing poverty;

50. Stresses that a transparent and predictable legal and fiscal framework will help promote regional integration and attract foreign direct investment;

Change 17

AddedAngola’s accession

Added51. Recognises the importance of the EU-Angola SIFA to this Agreement as a new approach to build the necessary transparent and predictable legal and fiscal framework fostering the due diligence of investors to attract sustainable and responsible investment, and highlights the agreed provisions on commitments on gender, climate change and sustainable development; encourages other countries in the region to consider similar SIFAs with the EU, which include nationally determined contributions in their design; underlines that the EU-Angola SIFA should contribute to the attraction and expansion of sustainable investment in Angola, as well as to the promotion of economic diversification, while at the same time integrating environmental and labour rights commitments, and should not have the opposite effect; highlights sustainable investment opportunities in the climate-sensitive agricultural sector, investments in renewable energy and climate-resilient infrastructure, as well as skills development; calls on the Commission to prioritise cooperation projects that promote the sustainability commitments set out in the EU-Angola SIFA within the Multiannual Indicative Programme for Angola; believes that agreements such as the EU-Angola SIFA can provide a legal and organisational framework for sustainable investment that reduces Angola’s dependency on oil and gas; welcomes the fact that the EU-Angola SIFA includes important aspects of the practical implementation of investments such as the transparency and predictability of investments, the streamlining of approval procedures, the establishment of focal points of interested investors, procedures for dispute avoidance and resolution and for the due diligence of investors; calls for the EU and the SADC EPA States to consider whether a Sustainable Investment Facilitation Agreement should complement the EPA; calls on the SADC EPA States to enter into negotiations on this issue, if necessary;