SA, Indonesia to unlock trade
Sello Tang
24 May 2006
South Africa and Indonesia are making headway in removing transport barriers blocking the flow of trade between the two countries.
Lack of direct transportation between South Africa and Asian countries has been a major challenge for efficient trading.
This issue also came under the spotlight in November 2004 during the Asia-Africa Trade and Investment Conference, where delegations from African countries complained about barriers to accessing Asian markets.
Visiting Indonesian Trade Minister Mari Pangestu said in Pretoria on Tuesday that her country and South Africa were moving to resolve the problem.
"This is an issue which is receiving attention at the moment," Pangestu said, adding that discussions to address direct flight setbacks between South African Airlines and a trade committee from Indonesia were at an advanced stage.
Trade and Industry Minister Mandisi Mpahlwa said that "over the course of time we will overcome the
problem".
Task team
Mpahlwa noted that the issue of transport links was one of the items discussed at Tuesday's first meeting of a joint trade committee between a South African and Indonesian government trade team.
The joint committee is tasked with reviewing trade relations, identifying obstacles that affect the flow of trade, and overseeing the implementation of trade deals between the two countries.
Trade relations
"The challenge, however, in addition to growing the volume of trade, lies in changing the structure of trade to ensure greater diversity in traded products and services, and more effectively reflecting the capacities of the two economies," Mpahlwa said.
He advised the task team to take discussions beyond "the traditional understanding of trade" and to help to foster relations between individual business communities in both countries.
Issues under discussion at the meeting
included trade promotion, industrial cooperation, facilitating cooperation between business communities and encouraging direct banking between South Africa and Indonesia.
The meeting also explored ways of forging stronger ties between small businesses in the two countries.
Indonesia is South Africa's fourth-largest export trading partner, while Asia is South Africa's second largest trading bloc after the European Union.
Pangestu and her trade team were expected to address business communities in Johannesburg and Cape Town during their four-day visit to the country.
Source: BuaNews
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