EU and South Africa sign first Clean Trade and Investment Partnership
The EU and South Africa signed a new type of trade and investment partnership in Johannesburg on Thursday, just ahead of the G20 summit. The Clean Trade and Investment Partnership (CTIP) is the first agreement of its kind and is designed to link competitiveness with climate action.
European Commission president Ursula von der Leyen described the partnership as a "new, dynamic form of trade agreement" that will focus on building supply chains in sectors such as renewable energy, clean technologies and electricity grids.
The agreement is intended to bring mutual benefits. For the EU, CTIP aims to open up new investment opportunities and reinforce access to critical raw materials. South Africa expects the partnership to support economic growth, create jobs and accelerate its shift to a low-carbon economy.
Alongside the CTIP, the two sides also signed a memorandum on minerals and metals. The document fits into the EU’s broader strategy to diversify supplies of strategic raw materials. South Africa has significant deposits of platinum and manganese, which are essential for industries such as automotive manufacturing and battery production.
Promising format
Kathleen Van Brempt, vice-chair of the European Parliament’s trade committee, said the new format offers "a lot of potential" because it is more flexible and targeted, and does not require the lengthy negotiations typical of traditional trade agreements.
"We strengthen our position on the geopolitical stage, strengthen cooperation with our partners and boost fair trade, sustainable industry and good working conditions," Van Brempt explained.
While von der Leyen is set to attend the G20 summit in Johannesburg this weekend, many other leaders have declined South Africa's invitation. Those not attending include the presidents of the US, China, Russia, Argentina and Mexico, raising questions about the standing of the intergovernmental forum.
PHOTO © GIANLUIGI GUERCIA / AFP
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