Johannesburg — THE ever-increasing complexities of doing business with the European Union (EU) have recently coincided with a possible increase in its relevance to SA, and indeed sub-Saharan Africa.

In this context, the EU position as the world's largest economic and trading bloc underlines its relevance to various challenges directly related to required economic growth in both SA and sub-Saharan Africa.

On the other hand, given that sub-Saharan Africa is increasingly interdependent with the South African economy, there is a pivotal role for the South African economy in its development. Hence, while many current international economic issues affect both SA and sub-Saharan Africa, of special relevance for most of Africa is SA's relationship with the EU.

It would thus appear as if both SA and sub-Saharan Africa could well try to target the increasing convergence of their interests in dealing with the EU, and use the accompanying amplified negotiating leverage for improved economic relationships that would benefit all concerned and increase the overlapping interests. This regional dimension deserves to be revisited by South African diplomats and businesses in the course of their efforts to craft optimal policy frameworks for economic relations with the EU and other African countries.

The incoming Reach (registration, evaluation and administration of chemicals) legislation is a very good example of EU policy that will profoundly affect all African mineral exports going into the EU.

On the other hand, pending new wine policy within the EU will mainly affect SA. This is at a time when South African wine exports to the EU are dropping for the first time in some years and the SA-EU wine and spirits agreement has been rescheduled for a new attempt at resolution next month.

The ongoing hiatus in WTO multilateral negotiations strengthens the need for other formats governing trade with the EU, especially as in the current international situation these would help set precedents for other similar agreements.

For the EU the trade relationship with SA is of similar importance as far as setting precedents is concerned. This helps explain the special significance for both parties of the current review of the trade, cooperation and development agreement between SA and the EU, where the aspects concerning free trade remain of central importance.

It is clear that challenges in the current review of the agreement must receive some priority from South African negotiators, but an increased involvement by South African business is essential, and improved formats must be created for this to take place. Business, through organisations such as Business Unity SA, must become better acquainted with a variety of relevant facts to be able to support government.

The renewed relevance of the EU for South African business is illustrated by such events as the dismal South African attempts to reverse the growing trade deficit with China, and to increase the percentage of these exports away from primary products. The current hiatus in trade discussions between the US and the Southern African Customs Union (Sacu), with SA in a key position, serves to strengthen the importance of the EU as a trading partner.

The EU is currently trying to negotiate economic partnership agreements with sub-Saharan Africa in terms of a review of the Cotonou agreement with the Africa/Caribbean/Pacific (ACP) countries, and governs their economic relations. SA is only a "qualified" member of the ACP and not centrally involved in the review of Cotonou taking place in parallel with the trade, cooperation and development agreement review, thereby creating a major convergence of interests for Africa.

The fact that the EU has recently agreed to a South African request that it negotiate a trade agreement with Sacu means that this could be the first economic partnership agreement. It could set a very good example and be a major step towards rationalising the economic relationship between the EU and southern Africa. Such convergence of South African-EU and ACP-EU economic negotiations is in parallel with the EU recently extending a "special" relationship to SA that is similar to those it has with such countries as India, China and Russia.

The Southern Africa/European Business Forum, largely promoted by the EU, had its inaugural session in Brussels last November immediately following the SA-EU Joint Cooperation Council meeting where the special EU relationship was under discussion. This provides another facet of the emerging southern Africa-EU economic relationship where the EU seems to envisage SA having a privileged relationship and Sacu sealing an economic partnership agreement with the EU.

If SA wants to take advantage of these windows of opportunity with global relevance for it and Africa in a manner that ensures collaboration with, and endorsement by, Africa en route, urgent attention must be given to ensure that SA, and especially South African business, has adequate capacity to coordinate and cope with the challenges. The fact that such issues as Reach, SA's status with the EU and the results of the forum meeting in November last year, are scarcely known in most local business circles seems to indicate there is much to be done.