SA trade with South America
Although trade with Latin America is relatively small – only 2% of South Africa's total trade is with the Southern Common Market (Mercosur) – trade ties are expected to grow substantially in the future. Trade between South Africa and Mercosur grew significantly between 1994 (R2.7-billion) and 2000 (R6-billion).In December 2000, a framework agreement for the creation of a free trade agreement was signed by South Africa and Mercosur. The aim of the agreement was to strengthen existing relations, promote the expansion of trade, and establish the conditions for the creation of a future free trade agreement between Mercosur and the Southern African Customs Union (Sacu). It is expected that the free trade agreement will be signed before the end of 2004.
The Mercosur was created by Argentina, Brazil, Paraguay and Uruguay in 1991, and recently accepted Mexico and Venezuela - who join Bolivia, Chile and Peru - as associate members.
Key trading partners
Brazil
Brazil is South Africa's largest trading partner in Latin America, with bilateral trade reaching R5.3-billion in 2001. Brazil and South Africa consider each other strategic partnerships co-operating at multilateral forums such as the World Trade Organisation. The following products have the best potential for South African exports to Brazil: coal, nickel plates, insecticides, interchangeable tools, containers, diphosphorous pentaoxide, ferro-alloys, synthetic filament yarn, household furniture and uncoated paper and paperboard.
Mexico
Trade between South Africa and Mexico grew to R1.4-billion in 2000 and is continuing to grow. South African products with export potential to Mexico include stainless steel, ferro-alloys, household furniture, light vessels, electrical transformers, paper, tanning extracts of vegetable origin, unwrought aluminium, machines, mechanical appliances and wool.
Chile, Colombia,
Argentina
Chile is becoming an increasingly important trading partner for South Africa, with a number of South African mining companies operating in the South American state.
Exports to Chile amounted to some R340-million in 2003, with R344-million imported in the same year. Exports to Colombia were R323-million in 2003. Exports to Argentina were R329-million in the same year, and imports some R2.1-billion.
SouthAfrica.info reporter
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