Treaty of Amity and Cooperation in South East Asia; with Deputy Ministers

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International Relations

10 June 2020
Chairperson: Ms T Mahambehlala (ANC)
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Meeting Summary

Video: Portfolio Committee on International Relations and Cooperation

The Committee met to consider and adopt the Report by the Department of International Relations and Cooperation (DIRCO) on the Treaty of Amity and Cooperation (TAC) in South East Asia according to Section 231(2) of the Constitution.  

The Department outlined why it is beneficial for South Africa to assent to the Association of Southeast Asian Nations (ASEAN) treaty. ASEAN has become a very important region because of shifting economic power from the West to the East. This Treaty will be beneficial to South Africa’s economic growth and will increase trade and undo the negative trade surplus South Africa has with ASEAN countries. South Africa’s export to ASEAN countries has increased at an average of 13% annually, and was valued at R 38 692 billion in 2019.

On the issue of the human rights record of ASEAN countries, South Africa will seek to engage bilaterally with countries over domestic matters. This is the position DIRCO will take as informed by South African foreign policy, instead of addressing such issues on multilateral platforms. South Africa may, on these multilateral forums, decide to vote against or in favour of a specific country if the need arises. These are the principles South Africa is following, for example in the United Nations. When South Africa accedes to this Treaty, South Africa will be guided by the principles of this agreement when engaging with ASEAN countries. 

South Africa’s foreign policy is based on the principles of human rights and will always seek to engage with countries where there are violations. As an example the Department referred to Myanmar, which is part of ASEAN group. South Africa is actively engaging with Myanmar over this issue.

The Committee decided to adopt the Report and recommend to the House to approve South Africa’s accession to the Treaty.

Meeting report

The Chairperson said, politically speaking, the Committee welcomes the initiative to formalise relations with the Association of South East Asian Nations (ASEAN) grouping. Four of these diplomatic relations within the ASEAN group, were in existence before South Africa became a democratic State in 1994. Full diplomatic relations with the other six nations were established after 1994. One of the Portfolio Committee’s oversight functions is to ensure the Department of International Relations and Cooperation strengthens regional integration across the different economic communities in the Global South.

By building diplomatic engagement with ASEAN, South Africa will enhance its ability to create strategic relations for social and economic benefit domestically. This can be transferred to the Southern African Development Community (SADC) region and Africa as a whole, in line with the tenets of South Africa’s foreign policy.

The Chairperson applauded South Africa’s efforts to expand its strategic economic ambit and find new markets, given rising tensions in trade relations. These tensions are exacerbated by the trade wars between the United States of America and China. It is also coupled with shrinking global markets.

Accessing more economic partners and markets is in South Africa’s national interest. The Department must not focus all its foreign policy efforts on countries such as China, the USA, Russia, India and the EU, to the detriment of the ASEAN countries. ASEAN countries may present important economic opportunities and development lessons. The ASEAN Treaty will contribute to eliminating the tariff between Member States. This will in turn lead to reduced prices and more investment opportunities.

The Portfolio Committee is aware of the dangers of an influx of cheap imports flooding local markets, especially coupled with poor governance structures in some countries. The Department must conduct due diligence on economic advantages and structural conditions of the ASEAN market. This includes looking at consumer behaviour. If South Africa has a commodity the ASEAN group needs, and if this gives South Africa an opportunity to benefit through manufacturing the commodities needed, then by all means South Africa must follow its national interest and promote trade relations and economic cooperation with the ASEAN group.

Presentation on the Report on the Treaty of Amity and Cooperation (TAC) in South East Asia

Mr Kgabo Mahoai, Director-General of Department of International Relations and Cooperation (DIRCO), presented the Report on the Treaty of Amity and Cooperation (TAC) in South East Asia.

Mr Mahoai showed the Committee pictures of where these South East Asia countries are located. This is to inform the Committee which countries are part of the South East Asia region, also known as the Association of South East Asian Nations (ASEAN).

Indonesia has the highest Gross Domestic Product (GDP) with 1.4 trillion. Thailand has the second highest with 500 billion in US dollars. Singapore has the highest GDP per capita, followed by Brunei and Malaysia.

These statistics will give Committee Members an idea why it is in South Africa’s national interest to enter into this Treaty. When looking at South Africa’s export profile with ASEAN in five year intervals, from 2004 to 2019 it shows an increasing trend. From:

  • 2004 it was R8 198 Billion,
  • 2009 it was R13 593 Billion,
  • 2014 it was 28 017 Billion, and in
  • 2019 it was valued at R38 692 Billion.

This indicates an annual average growth rate of 13%. In 2004, exports to ASEAN made up 2.8% of South Africa’s global exports, and in 2019, it made up 2.3%.

Imports also follow a similar trend except that South Africa buys more from ASEAN than it sells to the region. This results in a significant trade deficit for South Africa. ASEAN is a regional grouping initiated on a common dream of peace in the region. It was formed 52 years ago, on August 8, 1967 in Bangkok, Thailand, to promote economic growth, social progress and cultural development through multilateral cooperation.

The core five ASEAN founding members are Indonesia, Malaysia, Philippines, Singapore and Thailand. The subsequent membership of Brunei (1984), Vietnam (1995), Laos and Myanmar (1997), and Cambodia (1999), incrementally expanded the organisation to all ten South East Asian countries, and further consolidation of its institutions. It is expected, acceding to the TAC will help to address this through improved market access.

South Africa’s economic strategy regarding ASEAN focuses particularly on Indonesia, Thailand, Singapore, Malaysia and Vietnam. This is informed by the value and volume of trade and investment opportunities.

Through this approach South Africa seeks to obtain collaborative engagements in the following sectors:

  • automobiles and automobile parts,
  • mineral beneficiation,
  • agro-processing,
  • aquaculture,
  • energy,
  • ICT and textiles, among others.

Another crucial matter is to begin to satisfactorily address market access issues affecting fresh produce and meat. Closer association through accession of the Treaty of Amity and Cooperation (TAC) will enable South Africa to engage the bloc to address these key issues. This is just to give Members an idea of the importance of TAC.

Ms Sindi Mququ, Chief Director: Central, South & South East Asia, Branch: Asia & Middle East, DIRCO, continued with the rest of the presentation.

The Chairperson gave permission.

Ms Mququ told the Portfolio Committee all ASEAN Foreign Ministers approved South Africa’s accession to TAC, as a high contracting party. DIRCO is requesting parliamentary approval for South Africa to accede to TAC in South East Asia. Parliament is asked to approve this, because accession to TAC will accrue benefits for South Africa, such as:

  • This region has 5.9% average economic growth. It will ensure South Africa gets collaboration with an organisation dedicated to economic growth, and a growing hub of consumer demand.
  • Facilitation of South Africa’s national economic interest and utilisation of ASEAN as a source for skills development.
  • Promotion of South-South cooperation.
  • This Treaty will help South Africa with enhanced cooperation on regional and global challenges.

This is an important region. There has been a shift in economic power from West to East. ASEAN offers numerous opportunities, population growth of 620 million people, a consumer market of US $1.2 trillion, GDP of US $3 trillion, economic growth rate of 5.9% annually, and the region attracts Foreign Direct Investment total of US $121 billion.

TAC was first signed by ASEAN leaders at the first ASEAN summit in Bali, Indonesia on 24 February 1976. TAC was initiated to create peace, friendship, and achieve development and prosperity in the region. Through accession, non-ASEAN States are actively encouraged to enhance cooperative relations with ASEAN.

South Africa-ASEAN total trade in 2018 amounted to R123 Billion. South Africa exports a total of R40 Billion to South East Asia and imports from this region a total of R84 Billion. The envisaged partnership with ASEAN is aimed at, among other things, improving access for South African goods and services to the South East Asia market. This will reduce the trade deficit. This partnership will also help South Africa with skills development through various training opportunities in South East Asia, in critical economic sectors which will boost South Africa’s initiatives to improve its productive capability.

South Africa aspired to become a Dialogue Partner to ASEAN. This is dependent on ASEAN’s assessment of South Africa’s qualification upon accession to TAC. Signing TAC will make South Africa a High Contracting Party. This is the first step towards becoming a Dialogue Partner. As a Dialogue Partner, South Africa will enjoy a consultative relationship with ASEAN in areas of common interest and participate in ASEAN summits, which take place bi-annually.

Discussion

Rev K Meshoe (ACDP) asked two questions based on the Bandung Conference:

  • The first question is about the strategy the Department will follow regarding ASEAN, which strategy is, South Africa will focus on Indonesia, Malaysia, Vietnam, and Thailand. Rev Meshoe asked why China is left out of this strategy, because China is part of this Treaty.
  • Secondly, Principle Six of the agreements under the Bandung Conference says there must be no intervention or no interference on the internal affairs another country. If there are human rights abuses happening in one Member State, he asked how this gets addressed, and how does the ASEAN group implement accountability among its Member States. He wanted to know if there is any form of accountability between Member States of the ASEAN group. Also, under Principle Seven, it says there must be no use of pressure from any Member State onto another Member State. He asked what measures are taken to make sure ASEAN group countries are accountable to one another

Mr X Nqola (ANC) said the Report clearly shows why South Africa must enter this Treaty. In the Treaty it is written: the features of our own amenity includes but is not limited to economic growth, agricultural, expansion of trade, economic infrastructure and technical cooperation.

Mr Nqola asked what exactly this Treaty means when it speaks about technical cooperation. He said he is asking because he wants to understand everything in the Treaty. There is also something on justice cooperation, and he asked if this includes an extradition agreement with ASEAN member states.

On the issue of endorsement by Cabinet, and Parliament, he asked what legal status will be of a Treaty endorsed by Cabinet and rejected by Parliament. The presentation given by DIRCO was very helpful in providing economic statistics of ASEAN countries, but what is not included is the human rights record of ASEAN countries. Human rights are international and a concern of all countries globally. South Africa cannot be seen entering into Treaty’s with countries with a poor human rights record.

Mr Nqola said he is very happy with the shift of economic power from the West to the East, the far-right to the progressive, and is sure some Members are not happy with this shift.

Mr T Mpanza (ANC) asked what the security and financial implications for South Africa are if the Committee supports the accession to the Treaty. He asked because there must not be a situation where the Department comes back to the Committee and says this is not budgeted for. He asked if relations with the ASEAN group means Brazil, Russia, India, China, and South Africa (BRICS) is dead.

Mr Mpanza said he agrees with the Chairperson. South Africa needs to broaden its search and find new markets. However, this might signal to other people that BRICS is dying. The answer to this question should be a no, BRICS is not dead. As the Committee, Members must believe this is about how South Africa is strategically aligning in geopolitical forums for national interest.

South Africa cannot afford to play only in one multilateral group within the global South. As a Committee, Members must advocate for South Africa to remain in BRICS. South Africa needs to re-envision foreign policy and address the challenges faced by BRICS. The Committee however knows these challenges are brought upon BRICS because of challenges faced domestically by Member States, and because some BRICS Members are moving towards the right.

He said the Committee supports government’s commitment to BRICS. Government’s commitment is demonstrated through making the Midrand based Africa Regional Centre of the new BRICS Development Bank operational. The Committee also supports the Bank’s potential to expand its mandate not only to financing South African projects, but also regional infrastructure and development projects of all countries in the SADC region and beyond.

Mr D Moela (ANC) said, as a Committee it must send its condolences to the family of one fellow Member of Parliament (MP), Ms Dorah Dlamini, who passed away earlier today. The Department is speaking about the facilitation of South Africa’s national interest. Mr Moela wanted to know what these interests the Department is referring to are, and what impact it will have on South Africa.

The presentation speaks about critical skills development through training opportunities. He asked the Department to elaborate on what these critical skills are, and what skills will be exchanged between ASEAN and South Africa.

Mr B Nkosi (ANC) said accession to the Treaty implies a gradual process will follow, and South Africa automatically becomes a Member benefitting from the agreements governing ASEAN. As it stands it will take South Africa more than 20 years to become a beneficiary within ASEAN. There are close to 20 countries which acceded to this Treaty. It took the USA 15 years to become a beneficial partner of ASEAN. The Department must explain what the implications for South Africa will be. He asked if it means South Africa will have to increase trade with the various founding members of ASEAN, or if it means South Africa will immediately be able to access advantages.

Mr Mpanza asked the following follow up questions:

  •  about the assessment on South Africa by ASEAN, he wanted to know if the assessment will be based on what South Africa is already trading and exchanging with ASEAN countries, or if the assessment will be based on the overall trade of South Africa with other countries.
  • Mr Mpanza asked about the inter-trade between and among ASEAN countries and competition. He wanted to know if South African products will save and if South Africa will be able to find space and market share in ASEAN countries.
  • He asked if South African industries are ready to compete in the ASEAN market.
  • Article 7 of the Treaty says the association will develop regional strategies for economic development. He asked if the Department will get access to these regional strategies, and what these strategies consist of.
  • Article 6 of the Treaty also provides for ASEAN to engage in regional cooperation with regional bodies. Mr Mpanza wanted to know what the advantages are of South Africa as a country approaching ASEAN, compared to approaching ASEAN as the SADC region.

Ms B Swarts (ANC) said, on entering the Treaty, the answer is yes. South Africa must engage in the international system in a way which encourages economic growth and development. The White paper on South Africa’s foreign policy supports establishing political and economic relations with countries in Asia.

In the Committee’s view the Department has aligned with the objectives of the White Paper, National Development Plan (NDP), the Department’s strategic goals, and its Annual Performance Plan for 2020/21. The Committee supports the advancement of South-South cooperation as strategically important in the pursuit of South Africa’s foreign policy objectives. This will enable the country to address the challenges of economic and political marginalisation which emanates from the process of globalisation and favours the North.

Ms Swarts said the South-South agenda correlates around the promotion of global reforms, multilateral solidarity, and mutual trade and investment. The key tenets on South-South cooperation provided what is included in South Africa’s foreign policy. It also highlights the power shift in economic power and the relevance of the Asian region with major emerging powers such as China and India increasing its global influence.

Asia has become Africa’s largest trading region and has become an increasingly important source of investment, particularly China, India and Japan. South Africa must therefore focus on identifying under-explored markets in the region which will provide new export opportunities. South Africa must remember there are also many regional powers in Asia, such as Indonesia, Malaysia, Republic of South Korea, and Vietnam.

Ms Swarts said it is within the Committee’s oversight mandate for the Committee to ensure South Africa leverages on the similar views South Africa has with these countries on issues of reform of global governance, solidarity, and economic justice.

The Constitution requires the Department to get ratification on treaties from Parliament. However, Ms Swarts asked how Department monitors and reports on activities, and at what point the Department reports on the outcomes of ratification of treaties. She also asked what South Africa gained from previous ratifications.

Ms T Msane (EFF) said at some point, the Department will take the Committee through agreements South Africa is part of, so the Committee can see:

  • if there are any forms of duplication, and
  • how the Department will be able to streamline all agreements with different regions, and
  • what type of regional integrations South Africa is striving towards.

Ms Msane also asked what role South Africa will play in this regional body, regarding the South-China sea conflict. China is the biggest body in this region, and normally uses its power to coerce and force other countries in this region to recognise its position in the fight of the South-China sea conflict. This ends up hampering the effectiveness of the region.

As other Members pointed out this process might take 20 years, she asked how ASEAN will assist with the programme of a United Africa, and how other African countries will be able to benefit. Currently Africa is the biggest supplier of commodities belonging to this region. She asked how South Africa will make sure the country moves from being a supplier of raw commodities, to developing industries in South Africa which can utilise these raw commodities. This is so South Africa can play a bigger role in this agreement.

Some of the Member States of ASEAN belong to Indian Ocean Rim Association (IORA) together with South Africa. She asked how these bodies will be integrated, and if there will ever be consultations between IORA and ASEAN.  Regarding the ASEAN Inter-governmental Commission on Human Rights, she asked how effective this body has been according to South Africa’s assessment, and what role South Africa will play regarding this Commission in ASEAN.

Departments Response

Ms Mququ said China is not a member of ASEAN. ASEAN is made of the ten countries reflected in DIRCO’s presentation. China is also just a dialogue partner in ASEAN. China is not located in this region. The focus with this Treaty is on the listed countries. This does not mean there will be a change in South Africa’s foreign policy regarding China. South Africa’s relations with China will remain the same. This Treaty simply shows a diversification in South Africa’s foreign policy initiatives.

On the issue of non-intervention, this principle is informed by the history of the establishment of ASEAN in 1967. This history speaks to the conflicts which existed in this region and amongst the five founding Members of ASEAN. Therefore, to bring these countries together, there must be concessions made. The same principle of non-intervention in domestic affairs of one another applies in the Africa Union. This principle runs through all multilateral agreements in the world.

On the issue of the human rights record of ASEAN countries, South Africa will seek to engage bilaterally with countries over domestic matters. This is the position DIRCO will take as informed by South African foreign policy, instead of addressing such issues on multilateral platforms. South Africa may, on these multilateral forums decide to vote against or in favour of a specific country if the needs arises. These are the principles South Africa was following, for example, in the United Nations. When South Africa accedes to this Treaty, South Africa will be guided by the principles of this agreement when engaging with ASEAN countries.  

South Africa’s foreign policy is based on the principles of human rights and will always seek to engage with countries where there are violations. As an example she referred to Myanmar, which is part of ASEAN group. South Africa is actively engaging with Myanmar over this issue. The meaning of technical operations means any activity that will improve the level of skills, technical knowledge, or technical expertise.

Technical cooperation means South Africa will gain expertise or knowledge from developed countries such as Singapore, a country leading in Information and Communication Technology (ICT). It could help South Africa to also improve its ICT by building its own technical expertise with the help of the countries who lead in these fields.

There is no extradition clause included in TAC. The Department of Justice however, can work together with other ASEAN Countries to develop mutual extradition agreements. DIRCO gave TAC to the Department of Justice to further this issue, as extradition treaty agreements happen solely between the Justice Departments of countries. 

Regarding the status of the Treaty, and if Parliament will not approve it, she replied, DIRCO took this process step by step and informed Cabinet about all the content of the Treaty. DIRCO also engaged with other Departments, departmental clusters in government, because it is the Executive which is accountable to Parliament.

DIRCO presented this Treaty to Cabinet first, before presenting it to Parliament. The whole Executive had to agree to the content of this Treaty. This is the process which had to be followed. If Parliament does not approve this Treaty, DIRCO will not be able to sign it. There are also no financial or security implications for the foreseeable future if South Africa signs this Treaty.

Regarding how long it takes for a country to be a Dialogue Partner of ASEAN, it depends on what engagement the country has with the ASEAN group, and if the country is making a meaningful contribution to ASEAN.

The reason why the USA took so long to ascend to ASEAN is because one of the reasons why ASEAN was formed is so the founding member states can stay clear of Cold War tensions. The USA was one of the major players in the Cold War and this could have delayed its ascension to ASEAN. It depends on what kind of engagements and discussions are held between ASEAN and the USA.

This does not mean it will also take South Africa 15 years to become a Dialogue Partner in ASEAN. South Africa already has strategic bilateral agreements with Indonesia, which is the biggest among the ASEAN states.

On the point made, as to why South Africa did not approach ASEAN as a region, it is because countries are at different level of interest regarding some matters. DIRCO felt it will be in South Africa’s national interest to take this opportunity of working closely with this growing region.

However, the ASEAN Secretariat will approach SADC Secretariat, so there is collaboration at regional level. South Africa, the country, has control on what it does and how it engages with ASEAN outside the SADC region.

The benefits will increase for both South Africa and SADC as this agreement goes further. The role South Africa plays in the China-South Sea conflict is the same as engaging with these countries bilaterally to find an amicable solution for all countries involved.

This issue of conflict is also attended to through the ASEAN Regional Forum. This Forum is mainly to deal with security issues, and China is part of this Forum. These matters are discussed at this level.

When South Africa accedes to TAC, the country is only acceding to what is outlined in the Treaty itself. In terms of IORA and cooperation between IORA and ASEAN, there was movement relating to the IORA Secretariat and ASEAN Secretariat, who worked on developing a cooperative relationship between the bodies.

The Director-General of DIRCO Mr Mahoai took over from Ms Mququ and thanked her for her input. Mr Mahoai said South Africa wants to join ASEAN based on South Africa’s national interest. On the issue of monitoring implementation, DIRCO does follow up and monitors all treaties it signs to make sure it follows through with what is required from South Africa as a treaty signatory.

DIRCO also informs the Committee of everything is accountable to the Committee. These agreements are important because it means South Africa has more friends. This is important because it adds to South Africa’s soft power, being part of such associations. Once South Africa has acceded to this Treaty, South Africa will be able to draw some trade benefits. Mr Mahoai also said this Treaty will not affect BRICS or China relations in any way. It is actually complimentary and will add on the efforts made by BRICS. The Treaty was also studied by the State’s Legal Advisor on International law and DIRCO was given the green light to accede to the Treaty.

Deputy Minsters Input

Deputy Minister Candith Mashego-Dlamini said it is very important for the Portfolio Committee to  support the accession to TAC, because it is up to the Committee how it presents this Treaty to Parliament to adopt.

Deputy Minister Alvin Botes said requesting approval for the Treaty is in line with the White Paper. This Paper held the ASEAN region to be of increased importance to South Africa and Africa. The current dispensation regarding South Africa and the ASEAN group evidently relates to having an overture to China, India, and Japan. This Treaty ensure South Africa’s footprint is embedded within South East Asia. This Treaty should result in an increase in trade for South Africa and it should be used by the Committee as a measure of accountability to see if this Treaty leads to a positive increase trade for South Africa. The work of this Treaty started as far back as 2008 through collaboration between DIRCO and the seven ASEAN Member States with missions in Pretoria. These Member States helped in persuading the ASEAN community to allow South Africa to accede to the Treaty.

Adoption of Treaty

The Chairperson thanked the Department and the Deputy Ministers for the presentation. The Chairperson said it is sad news, not only did a fellow MP pass away, but as the Committee was having this meeting it received the sad news of the outgoing President of Burundi, Mr Pierre Nkurunziza passing away.

The Committee sends its condolences to the families of President Pierre Nkurunziza and fellow MP Ms Dorah Dlamini.

The Chairperson said she will wait for further confirmation by DIRCO regarding half of the South Sudan Cabinet Ministers having COVID-19. This shows COVID-19 presents a serious problem to the Continent. The Chairperson said the Portfolio Committee on International Relations and Cooperation, having considered the Draft Report on the Treaty of Amity and Cooperation in South East Asia, tabled according to Section 231(2) of the Constitution 1996, recommends the House according to Section 23, adopts this Report. The Chairperson asked if the Committee supports the adoption of the report.

Mr Mpanza moved for the Committee to adopt the Report and recommended its approval by Parliament for accession to the Treaty.

Ms Swarts seconded the motion,

The Committee adopted the Report and recommended the House approve South Africa’s accession to the Treaty.

The Chairperson thanked the Deputy Ministers for being present and also thanked the Committee Members for attendance.

The meeting was adjourned.

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