The duration of the agreement is not fixed, but can be amended within five years of its entry into force to consider possible changes. The European Commission and the World Bank Group signed a framework agreement for the first time in 2001. The new cooperation agreement is an update and extension of an earlier 2016 agreement and sets out the terms of cooperation between the two organizations. The Financial Framework Partnership Agreement allows the parties to forge long-term cooperation, including innovative instruments and strengthening their relationships with mature partners such as the World Bank Group. The European Commission`s support has also helped MIGA extend its development effects to situations of conflict and fragility, as well as to projects in Africa that have benefited from the Agency`s environmental and social expertise. „Over the years, the European Commission and the World Bank Group have together helped millions of people around the world lead better lives. With today`s agreement, we will equip ourselves with a renewed toolkit to more effectively address today`s many more complex global challenges,“ said Johannes Hahn, European Commissioner for Budget and Administration. South Africa and the EU can take safeguards when an imported product is likely to cause serious harm to domestic industry. The agreement also allows South Africa to adopt temporary safeguards (for example. B an increase or reintroduction of tariffs). In addition, similar measures protect the economies of members of the Central African Customs Union and the outermost regions of the EU (such as Reunion). As with other development cooperation agreements, decentralized cooperation is a key element of support, requiring significant civil society participation in the development process.
The agreement covers a number of areas and contains a clause on future developments that will broaden the scope of cooperation. The agreement is complemented by three additional agreements: the Science and Technology Agreement and the Wine and Spirits Agreements. The TDCA`s fisheries agreement has not been concluded. South Africa also has qualified adherence to the Cotonou Agreement, which governs relations between the EU and ACP countries. Building on the long-standing cooperation of partners, the agreement will promote economic growth and digital development, create jobs, strengthen skills, support fragile and conflict-affected states, combat climate change and address gender inequalities around the world. In addition, the agreement will help accelerate the joint response of partners to COVID-19, including support for small and medium-sized enterprises in emerging countries. In Ukraine, IFC worked with the European Commission and other development actors to help the government reduce energy waste and greenhouse gas emissions in the housing sector. The two sides are strengthening their economic cooperation in many sectors such as industry (to facilitate the restructuring of South African industry), the information society, the creation and development of small and medium-sized enterprises, transport and energy. Cooperation in this area should also support sustainable development in its economies and protect the environment. The TDCA establishes preferential trade agreements between the EU and South Africa, with the gradual introduction of a free trade area. The EU is South Africa`s main trading and investment partner. The free trade agreement aims to ensure south Africa has better access to the EU market and better access to the South African market.
As a result, it plays an important role in South Africa`s integration into the global economy. The agreement covers about 90% of current bilateral trade between the two parties.