Singapore eyes free trade with SA
Oupa Segalwe

20 April 2007

Singaporean President Sellapan Ramanathan is in South Africa on a state visit aimed at brokering a free trade agreement between the two countries, while also pushing for increased political and economic cooperation.

Speaking to the media in Pretoria on Thursday, President Thabo Mbeki said South Africa would have to consult neighbouring countries that form part of the Southern African Customs Union (SACU) on the proposed deal.

"Other countries like Namibia, Lesotho and Botswana are part of that, so to engage in such a process requires the agreement of the customs union," Mbeki said.

However, he said the matter war receiving "urgent attention" from the union. He explained that in the context of a free trade agreement, concerned countries could agree to eliminate tariffs, quotas and preferences on most if not all goods traded between them.

Ramanathan said Singapore already had such agreements with several countries, including Australia, China, India, Japan and New Zealand.

"Free trade arrangements are working in many of these places and I don't see why not with South Africa," he said, adding that SACU had to act swiftly to take the process forward.

Ramanathan said that among all fields in which the two countries were strengthening relations, the key focus was trade, which was "showing growth."

Figures from the South African Department of Foreign Affairs showed that total trade between the two countries doubled in 2006, compared to the previous year. According to the department, South Africa exported goods in the region of R3.1-million to Singapore in 2006 and imported about R7.1-million.

Developing skills
Singapore is also making inroads in terms of assisting South Africa with the development of critical skills needed for economic growth.

Already, 600 South Africans have been to that country taking part in various skills development programmes in the areas of tourism, international relations, trade and investment promotion.

"In these exchanges, experiences shared have been useful," Ramanathan said. "We are prepared to offer more opportunities for training."

Singapore, he explained, was sponsoring a number of scholarships for South Africans to study at that country's institutions of higher learning, particularly in areas of strategic defence and international relations.

There are also scholarship opportunities in the areas of public policy and administration.

South African universities, including the University of Johannesburg, have also signed memoranda of understanding with their Singaporean counterparts for exchange programmes.

While in South Africa, Ramanathan and his 22-member delegation are expected to meet with the Singaporean business community based in the country.

As part of his trip, he will visit the Mandela Museum in Soweto and lay a wreath at the Hector Pieterson Memorial, visit Robben Island off Cape Town, visit the Gandhi Settlement and Luthuli Museum in Durban, and participate in the foundation stone-laying ceremony for Straits Chemicals at Coega outside Port Elizabeth.

Source: BuaNews