EU nearer agreement with South Africans

Talks on a landmark agreement, which will liberalise 90 per cent of trade between South Africa and the EU, reopened in Brussels yesterday with officials on both sides expressing confidence a deal can finally be done by tomorrow.

The long-awaited agreement - this is the 21st round of talks - will be the first of its kind between the EU and a developing country in the Lome group, although the Union has already agreed similar market access deals with Mediterranenan countries and Latin America's Mercosur.

The EU's current £100 million five-year development aid programme for South Africa is also likely to be repeated for the post2000 budget period. There have been considerable difficulties on the EU side agreeing a negotiating mandate, particularly on the issue of tarrif-free access to Europe of fruit and fruit juice.

South African negotiators have been resisting full access to the country's developing industrial market. They also have concerns about attempts to harmonise wine and spirit production standards and labelling.