1.1 The UN ECE has an international committee known as the world Wide Forum on Vehicle Harmonization ( abbreviation to WP29) which prepares Regulation on motor vehicle safety and environmental control.

The UN ECE WP29 operates in the same transparent manner as the International Organization for Standardization and the International Electro- Technical Committee which support the work of WP29. At issue, therefore, is South Africa’s accession to the UN ECE automotive agreements. These being:

1.2 The United Nation Economic Commission for Europe ( UN ECE) has, over the past 40 years, put in place two automotive agreements that are extremely important to the global motor vehicle industry. Both agreements were developed by Working Party 29 under the auspices of the UN ECE. WP 29 meets in Geneva three times a year and reviews the work of expert group who prepare UN ECE regulations on motor vehicle safety. Worldwide trade in motor vehicle and components is enhanced and facilitated for countries which become Contracting Parties to these Agreements. South African (mainly the SABS but also, on occasion, the National Association of Automobile Manufacturers of South Africa (NAAMSA) And the Department of Transport) have attended the WP 29 meeting for several years as observers.

1.3 The 1958 Agreement was one of the first serious post-war attempts to remove technical barriers to trade in Europe. It has become the international forum for the developed of vehicle safety regulations. This agreement concerns the adoptions of uniform technical prescriptions for wheeled vehicle, equipment and parts which can be fitted and/or be used on wheeled vehicle and the conditions for reciprocal recognition of approvals granted on these prescriptions. The agreement provides for reciprocal recognition of motor vehicle and components which comply with the relevant UN ECE Regulations. The Agreement seeks to further the worldwide acceptance by nations of complying vehicle and components. Signatories agree to accept vehicle and components which comply with those regulations which a contracting Party has not objected to. If a Contracting Party disagrees with a regulation there is no obligation to accept goods which comply with that regulation. Parties may declare at accession which regulations are not acceptable or object to new regulations. The system proved for "Type approval", the affixing of the E-mark and mutual recognition of E-mark products. ""Type approval" means that a sample of a product is submitted to a technical authority, i.e. the SABS, for testing. If found acceptable the type of product is approved sale making regular testing unnecessary. Samples are tested at certain intervals. The E-mark denotes conformance with the UN ECE regulations.

1.4 The Global Agreement was published in June 1998 as a result of a drive by the USA over some years to harmonise EU and US/Japanese standards. This agreement concerns the establishment of global technical regulations for wheeled vehicle and equipment and parts which can be fitted and/or used on wheeled vehicles. To harmonised differing motor vehicle and automotive component regulations into international regulations. A contracting party is obliged to adopt technical regulations (if it vote in favour). Parties may rescind or amend adopted regulations provided reasons and intent are provided. Parties may withdraw from the Agreement subject to twelve months notice. Unlike the 1958 agreement the global agreement does not provide reciprocal recognition of E-marked products. The focus is on harmonising the technical regulation. Contracting parties (if they agree to the adoption of the regulation in question) must adopt such a UN ECE regulation into its own laws and regulations.

* Agreement Concerning the Adoption of Uniform Technical Prescriptions for Wheeled Vehicles, Equipment and Parts which can be Fitted and/or be used on Wheeled Vehicles and the conditions for Reciprocal Recognition of Approvals Granted on the basic of these Prescriptions - "1958 Agreement"

* Agreement concerning the establishing of Global Technical Regulation for Wheeled Vehicles, Equipment and Parts which can be Fitted and/or used on Wheeled Vehicles - "Global Agreement".

2. GENERAL IMPLICATIONS

2.1 The economic importance of the motor vehicle industry cannot be over emphasized. 1998 saw an increase in exports of 181% in motor vehicle units and 98% by value over the exports of 1996! Of the light motors vehicle exports, the major destinations were the developed countries within the EU as well as SADC. Components exports also increased from R4,05 billion in 1996 to R6,8 billion in 1998, an increase of 68%! The main destination for these exports is the EU. It is clear from these statistics that EU specifications are extremely important to industry.

2.2 Ensuring fast and cost effective market access for these exports is a DTI priority. Our ultimate aim is to secure complete recognition of South Africa testing and certification thus avoiding costly and time-consuming re-testing and re-shipment. The UN ECE agreements do just that and membership will be reduce costs for the local industry.

3. IMPLICATION OF SOUTH AFRICA BECOMING A CONTRACTING PARTY TO THE 1958 AGREEMENT

3.1 Advantages

a) Enables RSA to apply the "E" mark to certain components made in RSA and thereby ensures their acceptability by all Contracting Party countries.

This removal of technical barriers to RSA exports will increase competitiveness of our motor industry by enhancing the flow of exports which in turn will improve economic growth and provide job creation

b) Job creation will result from both increased exports and from the test work and surveillance activities related to the local application of the "E" mark.

c) Contracting Party status will allow South Africa to input our needs into WP29.

d) Since 1985 RSA has been adopting and applying many of the UN ECE Regulation on unilateral basis as Compulsory Specification promulgated by the minister of Trade and Industry - but without any of the multilateral benefits mentioned above.

e) Increase the local and regional focus on internationalization of standards and regulations, which is essential to future regional and international trade and economical prosperity.

3.2 Oligations

a) To accept imported vehicle and components which comply with whatever regulations South Africa adopts under the Agreement (we already do so)

b) In the event that a new Regulation is developed which we do not wish to accept, then we must object to that Regulation (A hypothetical example would be left - hand- drive vehicle only).

c) In cases where RSA applied the "E" mark to components, to introduce measures to ensure compliance of the components.

4. IMPLICATION OF SOUTH AFRICA BECOMING A CONTRACTING PARTY TO THE 1998 GLOBAL AGREEMENT

4.1 Advantages

a) General similar to those advantages for the 1958 Agreement except that "E" marking is not provided for under the 1998 agreement.

b) This Agreement is specifically designed to enable full participation of the USA (not possible under the 1958 Agreement) and to ensure that the needs of developing country are taken into consideration in what will be known as Global Technical Regulation (GTR)

The GTR’s are expected to become annexed to the 1958 Agreement and so enable "E" marking to be applied under the 1958 Agreement.

c) In essence the outputs will have a greater worldwide acceptance Whereas those of the 1958 Agreement were rather focused on European acceptance.

4. 2 Oblication

a) To accept imported vehicle and components which comply with the Regulations.

b) If a contracting Party votes in favour of a GTR it is then "obligated to submit the technical regulation to the process used by that Contracting Party to adopt such technical regulation into its own laws and regulations..."

(Note that the obligation is to initiate the process not to require Adoption per se)

5. CURRENT STATUS

In late 1999 the Chief State Law Advisor and the Office of the Chief State Law Advisor International Law indicated that the agreements were acceptable. The minister of Trade and Industry then sought and obtained Cabinet’s approval for South Africa’s accession to the UN ECE 1958 Agreement and the 1998 Global Agreement on 2 February 2000.

With the approval of the State President South Africa’s Ambassador to the UN signed the agreement on the 14 of June 2000. It entered into force on 25 August 2000.

To become a contracting Party to the 1998 agreement Parliament is requested to ratify the signing of the agreement. At the same time we are requesting Parliament to agree to South Africa’s accession to the 1958 agreement so that the instrument of accession can be deposited in Geneva.