A new free-trade accord signed yesterday between South Africa and the EU could be worth around €5.6 billion (£4.4 billion) to the Union over the next five years, and offers the prospect of further growth in Irish exports to the country.

The chief executive of the Irish Exporters Association, Mr John Whelan, said exporters welcomed the agreement as an opportunity to increase trade with South Africa.

"In general it is a good market for Ireland to expand its exports, with a 20 per cent increase in exports to the country in 1998. The accord will obviously benefit South African exports to Ireland which only amount to £45 million a year, but any expansion of trade is good for both countries."

Irish exports to South Africa were worth about £270 million in 1998, an increase of 20 per cent on the previous year, but this year growth has been slower with a 2 per cent rise on the year to date. The agreement will liberalise nearly 90 per cent of the trade between the EU's 15 member-states and South Africa, which amounts to €16 billion a year.

Under the accord, customs du ties will be lifted from 86 per cent of EU exports over a 12-year period while custom duties will be eliminated from 95 per cent of South African exports over 10 years.

The 200-page agreement, which took 3 1/2 years to negotiate with a last-minute compromise on wines and spirits, affects more than 10,000 products, and will define competition policy, industrial matters and EU aid to South Africa.

The signing of the agreement by Finnish Foreign Ministry secretary Mr Jukka Valtassari, South African Trade and Industry minister Mr Alec Erwin, EU Commisssioner Mr Toul Nielson and the ambassadors of the 15 EU states, had been delayed because France sought further commitments on wine from South Africa.

Earlier in the day, the signing had looked in doubt as France, Greece, Italy, Portugal and Spain questioned South Africa's commitment to phasing out the use of "traditional expressions" such as port, sherry, ouzo and grappa.

The EU wants descriptions such as "grand cru", "vintage", "ruby", and "feta" protected in accordance with European regulations.

When a pact had seemed doubtful, South Africa's president, Mr Thabo Mbeki, had targeted the attitude of the rich world. "What has raised the question of whether the agreement can be signed today or not, is the reality that the developed countries of the north have lost all sense of the noble idea of human solidarity," he said.