President Thabo Mbeki to Pay State Visit to India, Wednesday, 15 - Saturday, 18 October 2003

President and Mrs Thabo Mbeki will pay a State Visit to India from Wednesday, 15th to Saturday, 18th October 2003. The President's delegation includes Ministers Dr Nkosazana Dlamini Zuma, Thoko Didiza, Dr. Ben Ngubane, Dr. Ivy Matsepe-Casaburri, Valli Moosa, Dr. Manto Tshabalala-Msimang, Dr. Penuell Maduna, Phumzile Mlambo-Ngcuka, Dr. Essop Pahad, Jeff Radebe, Mosiuoa Lekota, Alec Erwin.

The visit is intended to give impetus to the strategic partnership between SA and India and give more substance to the economic dimension of the relationship through the intended signing of the Free Trade Framework Agreement .

During the visit, President Mbeki and Prime Minister Vajpayee will hold bilateral discussions expected to discuss among others:

· Status of bilateral relations between both countries;
· Mutual security related issues i.e criminal matters, terrorism, extradition and defence;
· Status of South-South and North-South relations;
· Developments within Africa with reference to the African Union and NEPAD and continental conflict resolution efforts;
· Strengthening of multilateralism;
· India-Brazil-South Africa (IBSA) trilateral co-operation, agenda and envisaged programme of action;
· World Trade Organisation;
· Campaign against international terrorism; and
· Aftermath of the war in Iraq and developments in the Middle East will be discussed.

Relations between South Africa and India have historically been solid. Since the establishment of diplomatic relations in 1994, former President Mandela visited India twice whilst Indian Prime Ministers Gujral (March 1997) and Vajpayee have also visited South Africa (the latter to attend the NAM Summit in Durban in August 1998 and the CHOGM Summit in November 1999). President Mbeki visited India as Deputy President in 1996. In the last number of years most members of the Cabinet have visited India.
Two important agreements serve as the basis for the relationship between South Africa and India. The first is the Agreement on the Inter-Governmental Joint Commission for Political, Trade, Economic, Cultural, Scientific and Technical Co-operation signed by then President Nelson Mandela and Prime Minister Narasima Rao on 25 January 1995.

The second important foundation of the bilateral relationship between India and South Africa is the historic Red Fort Declaration on bilateral partnership which was signed during then President Mandela's state visit to India in March 1997. The partnership is based on a common commitment to economic development, social justice and co-operation for a global order that is marked by peace, security and equity.

South Africa and India have growing bilateral relations under the aegis of the Joint Ministerial Commission (JMC) in the political, communications, economic, education, defence, health, science and technology, housing, arts, culture, agricultural spheres. The last meeting of the JMC took place on 3 and 4 July 2003 in Pretoria. The two sides discussed a wide range of global issues including the future of multilateralism, international economic relations, the way ahead for the Non-Aligned Movement and South-South Co-operation.

In addition, India reconfirmed its support for NEPAD and announced the earmarking of a sum of US$200 million in a combination of grants, credits and loans for projects under NEPAD.

Trade between South Africa and India continues to grow. In 2002, total bilateral trade approached a level of R7,0 billion, with imports from India at R2,91 billion and exports to India at R4,03 billion. India currently ranks as South Africa's 15th most important export market and 24th most important import market. Given the potential for bilateral trade, this may well change during coming years.

In 2002 India and South Africa established a bilateral Working Group to negotiate a Preferential Trading Agreement between the two countries. The Working Group first met in December 2002 in Pretoria and aims at concluding its work at the end of 2004.

The size of the Indian economy gives it an influential position in the global market in which South Africa has a key interest. Since South Africa and India have similar developmental challenges, their collective capacity in bargaining and voicing concerns that affect their economies in international forums is made highly effective. As a key emerging regional economy, India provides a platform for the re-integration of the South African economy with that of South Asia.

South Africa and India enjoy historical relations that hold significant promise for the growth of economic relations and co-operation in key areas like information communication technology, and in the multilateral arena. India is therefore key in the advancement of South Africa's butterfly strategy and ongoing discussions on a future Free Trade Area (FTA) confirm this.

Opportunities for closer co-operation in the following sectors have been identified and form part of South Africa's trade development agenda in India:

· Mining, mining equipment and related services: The new mining laws (early 2000) have allowed foreign firms to partner government controlled Indian firms. There have been visits to seal co-operative ventures in the past few months.
· Capital equipment (construction and related infrastructure): Infrastructure bottlenecks have been cited as the key impediments to economic growth. The government has now begun to deal with infrastructure problems, thereby creating opportunities.
· Agro-processed products: SA firms have began to manufacture fruit juices (Tropicana) at the same time regulations regarding the importation of fruit juices, and other processed foods are under review.
· Environmental equipment and related services.
· Autos and components (the impending deregulation in this industry has significant promise for SA auto industry).
· Services: Engineering and financial services are increasingly attracting attention.
· ICT: India's information communication technology prowess (software development) has attracted attention and South Africa has begun to engage relevant firms. Tie-ups, and memoranda of understanding have been signed between the two nations. South Africa views India's technical pool in ICT as holding promise for future co-operation between the two countries. Co-operation in space technology offers further opportunities.
· Science and Technology: India's technical manpower pool has been noted as providing impetus for closer co-operation with South Africa, especially in software development.
· Health: South Africa would like to learn more about the traditional knowledge system development (institutionalising traditional knowledge in medicines)
· SMME: Co-operation in SMME development, jewellery and between the two countries' CSIRs is ongoing.

Issued by Ronnie Mamoepa on 082 990 4853
C/O Department of Foreign Affairs
Private Bag X152
Pretoria
0001
12 October 2003

Background

South Africa's Relations with India

Internationally, India was one of apartheid South Africa's earliest and most prominent critics. India also provided moral and logistical support to the ANC over a period of four decades.

India opened an Indian Cultural Centre in Johannesburg in May 1993, whilst South Africa opened a mission in New Delhi in November 1993. On 22 November 1993, an Agreement establishing full diplomatic relations was signed. In December 1993 the Indian Cultural Centre was upgraded to a Consulate-General. April 1994 saw South Africa established a Consulate-General in Mumbai and the Indian High Commission in Pretoria established. A second Indian Consulate-General was opened in Durban in April 1994.

The current South African High Commissioner to India is Mrs M E Nkoane-Mashabane whilst Mr C H Qomoyi is the South African Consul-General in Mumbai. Mr S S Mukerjee is the Indian High Commissioner to South Africa.

Agreements

South Africa and India have to date signed the following Agreements:
· Agreement on the establishment of diplomatic relations: November 22, 1993
· MoU on Bilateral Air Services : April 8, 1993;
· Trade Agreement : August 22, 1994;
· Agreement on the Inter-governmental Joint Commission for Political, Trade, Economic, Cultural, Scientific & Technical Co-operation: January 25, 1995;
· Treaty on the Principles of Inter-state Relations and Co-operation : January 25, 1995;
· Protocol on Co-operation between the Ministry of External Affairs of India and the Department of Foreign Affairs of South Africa : January 25, 1995;
· Agreement on Co-operation in the Field of Science & Technology : July 19, 1995;
· Agreement on Co-operation in the Field of Culture : December 4, 1996;
· Agreement on Avoidance of Double Taxation and Prevention of Fiscal Evasion : December 4, 1996;
· MoU on Co-operation in the Field of Defence Equipment : December 4, 1996;
· Red Fort Declaration on a Strategic Partnership : March 28, 1997;
· Agreement in the Field of Tourism : October 1997;
· The Terms of Reference of the India-South Africa Commercial Alliance (ISACA) : October 1997;
· Programme of Co-operation (PoC) in the Field of Science & Technology : October 1997;
· Agreement on Co-operation in the Fields of Geology and Mineral Resources : October 1997. Subsequently the first meeting of the Working Group was held in Pretoria / Cape Town in August, 1998 when a Protocol was also signed;
· MoU on Defence Co-operation : September 27, 2000;
· Executive Programme for Cultural Co-operation between the Governments of South Africa and India for the Years 2001, 2002 and 2003: March 15, 2001 in pursuance of the implementation of the Cultural Agreement signed between the two countries on December 04, 1996; and
· Declaration of Intent on Co-operation in the Field of Health and Medicine: on April 30, 2001.

Economic relations with South Africa
SA Trade with India (Rand - billions) (Source : DTI)
1997 1998 1999 2000 2001 2002
Exports 1.34 1.63 2.36 3.0 3.3 4.03
Imports 1.54 1.63 1.51 1.76 2.11 2.91
Total 2.88 3.26 3.87 4.76 5.43 6.94
Main Indian products exported to South Africa are :
Cotton, yarn finished leather goods, machinery and instruments, handmade yarn fabrics, chemicals, spices, rice, handicrafts and handmade carpets.
Main products imported from South Africa are :
Gold, silver, coal and briquettes, iron and steel, inorganic and organic fertiliser, pulp and waste paper, and petroleum crude.

Investment
Total Investment from India in South Africa: US$15.6m
(Source : Reserve Bank, India)
Total Investment from South Africa in India: US$ 26.1m
(Source: Reserve Bank, South Africa)

Bilateral Trade
Historical relations between the two countries are now being used to foster closer economic links. To maximise opportunities between the two economies, various mechanisms have been created. The India- South Africa Commercial Alliance (ISACA), a private sector driven, government facilitated sectoral interaction forum was set up in recognition of the need to bridge the information awareness gap, deal with industry concerns, overcome barriers to trade and investment and stimulate trade in manufacturers and services between the two countries. ISACA meets under the auspices of the Joint Ministerial Commission (JMC).
ISACA was re-invigorated during its last (second) meeting in Pretoria in June 2002. The creation of smaller but effective cross-sectoral working groups within ISACA has helped develop trade and build alliances. Tie-ups in ICT, mining and mining equipment have been noted as a result. Frequent visits and information exchange continues.

Defence Co-operation
A number of areas of co-operation between the SA and Indian Defence Forces have been identified, including joint activities in the field of defence production, training exchanges, joint exercises, co-operation in the field of hydrography and information sharing. Indian Defence delegations have visited SA during the past two years to discuss matters related to production of defence equipment and sharing of technical expertise.

The Chief of Indian Naval Staff, Vice Admiral Singh, has stated that the primary objective of SA-Indian Navy co-operation is to ensure that the Indian Ocean remains a zone of peace. The Indian Navy currently provides 83 training slots to the South African Navy.

Culture

This year marks the 10th anniversary of diplomatic relations. A year-long series of cultural events are being held under the auspices of the South African and Indian High Commissions and Consulates-General in co-operation with the South African Department of Arts and Culture and its Indian counterpart to celebrate this historic milestone.

THE RED FORT DECLARATION ON A STRATEGIC PARTNERSHIP BETWEEN SOUTH AFRICA AND INDIA SIGNED BY PRESIDENT MANDELA AND PRIME MINISTER GOWDA ON 28 MARCH 1997

1. Gathered at the historic Red Fort in the fiftieth year of India's independence and with the emergence of a new South Africa, South Africa and India look ahead with faith and optimism to journeying together towards the larger goals of their political freedoms: economic development and social justice. As a new millennium draws near, they also pledge to work for a global order that is marked by peace, security and equity.

2. In the knowledge that their shared mass struggles began with initiatives against racial discrimination launched in South Africa by Mahatma Gandhi, the two countries look back with pride and gratefulness at their creative partnership through decades of struggle. They rededicate themselves to the ideals and vision of the Mahatma which have inspired them and which are powerfully symbolised by their common commitment to the preservation of the Gandhi heritage sites in South Africa, Phoenix Settlement and Tolstoy Farm.

3. Recalling the spirit of the Asian Relations Conference held at the Red Fort fifty years ago and the Asian-African Nations' Conference held at Bandung in 1955, South Africa and India reaffirm their commitment to the goal of universal human freedom and equality among nations.

4. Convinced of the need to retrieve their historical ties in fulfilment of an Afro-Asian destiny, they resolve to co-ordinate efforts to make the Indian Ocean Rim Association for Regional Co-operation an instrument of substantive economic partnership towards the development of a regional identity.

5. India appreciates the role being played by South Africa within the Southern African Development Community with the sensitivity to political and economic imperatives that such a role calls for. SA welcomes India's recent initiatives to promote friendship and good-neighbourliness in the South Asian region.

6. Reiterating their respect for each other's independence, sovereignty and territorial integrity, South Africa and India agree to mutually consult on matters relating to regional and global security and to support each other's efforts to promote good-neighbourliness and co-operation in their respective regions. In particular, they reaffirm their adherence to the bilateral Treaty on the Principles of Inter-State Relations of January 1995.

7. The economies of South Africa and India have certain comparative advantages, complementarities and resources which can be optimally used to promote economic development through co-operation. For example, India has valuable skills, technologies and experiences in the fields of small and medium enterprises development and employment generation programmes; South Africa has skills and technology in the fields of mining and infrastructure development.

8. South Africa and India recall with satisfaction the healthy growth in their bilateral relations in the political, economic, defence, scientific, technological and cultural spheres, constituting a firm basis for the launch of a concrete and mutually beneficial programme of co-operation in the twenty first century. They recognise South Africa's geo-strategic location as a trans-shipment point between Asia, Africa and Latin America in the development of South-South relations.

9. Concerned at the uneven impact of globalisation on developing economies, South Africa and India are convinced that the success and sustainability of the globalisation process depends on its ability to bring equal benefits to developing countries. They agree to consult and collaborate with one another in forums such as the United Nations and the World Trade Organisation and to make full use of their partnership within the Non-aligned Movement to articulate this concern. They also agree to co-ordinate their efforts in their mutual endeavour to capture the new opportunities for South-South co-operation and to help build capacities among the Least Developed Countries.

10. Convinced that the United Nations' structures need to be more representative of the concerns and diversities of the developing world, South Africa and India re-emphasise their belief in the need for UN reforms. They stress, in particular, the need for an equitable balance in the composition of an expanded Security Council to provide a constructive voice to the aspirations of the developing countries. They believe that piecemeal and discriminatory approaches to such expansion will be inconsistent with the objectives of that world body.

11. Recognising that the end of the bi-polar world has re-defined global equations, South Africa and India reaffirm their belief in the vitality and crucial importance of the Non-aligned Movement as a vehicle for safeguarding the independence of thought and autonomy of action of its members; as an instrument for extending the principles of democracy and freedom in international affairs; in promoting the objective of a world free of nuclear weapons; and as a mechanism for furthering the impulse for an equal world. South Africa and India therefore resolve to work for NAM's increasing effectiveness in the promotion of political and socio-economic justice and disarmament. They do so because they believe that peace, freedom and prosperity are, each one of them, equally indivisible.

(SIGNED) (SIGNED)
President Prime Minister
The Republic of South Africa The Republic of India
Delhi, 28 March, 1997

BRASILIA DECLARATION

I. The Foreign Ministers of Brazil, Celso Amorim, of South Africa, Dr Nkosazana Dlamini Zuma and of India, Yashwant Sinha, met in Brasilia on June 6, 2003, following ongoing consultations and after the respective Heads of State and/or Government of their countries held conversations during the G - 8 meeting, in Evian.

II. This was a pioneer meeting of the three countries with vibrant democracies, from three regions of the developing world, active on a global scale, with the aim of examining themes on the international agenda and those of mutual interest. In the past few years, the importance and necessity of a process of dialogue amongst developing nations and countries of the South has emerged.

III. The Foreign Ministers of Brazil, South Africa and India gave special consideration to the importance of respecting the rule of International Law, strengthening the United Nations and the Security Council and prioritising the exercise of diplomacy as a means to maintain international peace and security in accordance with the Charter of the United Nations and with the legal instruments to which Brazil, India and South Africa are parties.

IV. They agreed on the need to reform the United Nations, in particular the Security Council. In this regard, they stressed the necessity of expanding the Security Council in both permanent and non-permanent member categories, with the participation of developing countries in both categories. They agreed to combine efforts in order to enhance the effectiveness of the General Assembly and the Economic and Social Council of the United Nations.

V. They noted that new threats to security - such as terrorism, in all its forms and manifestations, drugs and drug-related crimes, transnational organised crime, illegal weapons traffic, threats to public health, in particular HIV/ AIDS, natural disasters, and the maritime transit of toxic chemicals and radioactive waste - must be handled with effective, co-ordinated and solidary international co-operation, in the concerned organisations based on respect for the sovereignty of States and for International Law.

VI. The Ministers highlighted the priority placed by the three governments on the promotion of social equity and inclusion, by implementing effective policies to fight hunger and poverty, to support family run farms, and to promote food security, health, social assistance, employment, education, human rights and environmental protection.

They recalled that social empowerment makes better use of human potentials, contributing to economic development in a significant manner. The Ministers recommended that the exchange of experiences in combating poverty, hunger and disease in the three countries would be of immense use to all of them. They recognised the importance of international effort to combat hunger. The three countries recognised and undertook to explore a trilateral food assistance program.

VII. The Foreign Ministers stressed the importance, for equity reasons as well as for development goals to address issues related to the elimination of all kinds of racial discrimination and to promote gender equality and mainstreaming a gender perspective in public policies.

VIII. The three Foreign Ministers expressed their satisfaction with the approval of the Convention on Tobacco Control, in the 56th Health World Assembly, and committed themselves to promote the main objectives of the Convention - to protect present and future generations against devastating consequences of the consumption of tobacco and against exposure to tobacco smoke.

IX. The Foreign Ministers identified trilateral co-operation among themselves as an important tool for achieving the promotion of social and economic development and they emphasised their intention to give greater impetus to co-operation among their countries.

While noting that their societies have diverse areas of excellence in science and technology and offer a broad range of potential opportunities for trade, investment, travel and tourism, they stressed that the appropriate combination of their best resources will generate the desired synergy. Amongst the scientific and technological areas in which co-operation can be developed are biotechnology, alternative energy sources, outer space, aeronautics, information technology and agriculture. Avenues for greater co-operation in defense matters should also be explored. The Ministers agreed upon putting forward to their respective governments that the authorities in charge of the portfolio for science and technology, defense, transportation and civil aviation, among others, also hold trilateral meetings, aiming at the creation of concrete co-operation projects.

X. The Ministers noted that the new information and communication technologies are transforming the world at a rapid speed, and in a fundamental way. At the same time, a vast digital divide exists between the developed and developing countries, which is adversely affecting the capacity of developing countries to derive optimum benefits from the globalisation process. They agreed to intensify their co-operation in ICT, including in international efforts and initiatives towards narrowing the digital divide.

XI. With respect to environmental issues and sustainable development, they recognised that the Rio Conference and its Agenda 21, the Millennium Summit and the Monterrey and Johannesburg Summits, and the Program for the Implementation of Agenda 21, contain fundamental guidelines to orient the action of their governments and co-operation initiatives.

They reaffirmed the call contained in Agenda 21, which identifies the major causes of continuing deterioration of the global environment as unsustainable patterns of consumption and production call for the necessary action as contained in the Johannesburg Program of Implementation. They also highlighted the their concern over the results of atmospheric warming due to the emission of greenhouse gases and encouraged countries having emission reduction goals in the Kyoto Protocol to work to bring them into force and fully implement them as well as urged the countries which have not signed or ratified the Protocol to do so.

XII. They also reiterated their efforts for the effective implementation of the Convention on Biological Diversity, especially the rights of countries of origin over their own genetic resources, as well as the protection of associated traditional knowledge.

The fair and equitable of benefits arising from the access to, use and management of genetic resources and associated traditional knowledge must be assured as a way to stimulate social and economic development, as well as the adding of value and the processing of biodiversity - based resources in megadiverse countries. In this context, they placed special significance on the negotiation of an international instrument on benefit sharing the auspices of the Convention on Biological Diversity, as agreed at the Johannesburg Summit.

They thus expressed their agreement that the activities of the Group of Like - minded Megadiverse Countries, of which Brazil, South Africa and India are founding members, should gain even greater importance. They also emphasised the need to render the relevant parts of the TRIPS Agreement compatible with the Biological Diversity Convention.

XIII. While welcoming the expansion of economic growth, employment, and social development, and the accompanying rise in standards of living, in several developing countries as a result of freer movements of trade, capital and technology, the Foreign Ministers of Brazil, India and South Africa expressed their concern that large parts of the world have not benefited from globalisation. They agreed that globalisation must become a positive force for change for all peoples, and must benefit the largest number of countries. In this context, they affirmed their commitment to pursuing policies, programmes and initiatives in different international forums, to make the diverse processes of globalisation inclusive, integrative, humane and equitable.

XIV. The Ministers regretted that major trading partners are still moved by protectionist concerns in their countries' less competitive sectors. They stressed the need to fully carry out the Doha Development Program and emphasised how important it is that the results of the current round of trade negotiations provide especially for the reversal of protectionist policies and trade - distorting practices, by improving the rules of the multilateral trade system. They reiterated their expectation that negotiations will gain new political impetus and that it will be possible to overcome deadlocks on issues of fundamental interest to developing countries, before the Fifth Ministerial Conference in Cancun. Furthermore, Brazil, India and South Africa decided to articulate their initiatives of trade liberalisation.

XV. The Foreign Ministers noted with concern the increased economic vulnerability of developing countries to fluctuations in global prices of commodities. They affirmed the importance of a predictable, rule - based, and transparent international trading system, to enable the developing countries to maximise their development, through gains from enhanced exports of goods and services of their competitive advantage.

XVI. They drew attention to the economic and social impact suffered by many developing countries in recent years, as a result of volatile global financial flows. They agreed to strengthen their co-operation towards making the international financial architecture responsive to development, and towards increasing its effectiveness in preventing and addressing the national and regional financial crises.
XVII. They reiterate their belief that success in globalisation with equity requires good governance, both at the national and in particular at the international levels, in recognition of the fact that, as a result of globalisation, external factors have become critical in determining the success or failure of achieving sustainable development.

XVIII. The Ministers recommended to their respective Chiefs of State and / or Government the convening of a summit meeting of the three countries. They also decided to further intensify dialogue at all levels, when needed to organise meetings of top officials and experts responsible for issues of mutual interest.

XIX. They decided to hold regular political consultations on international agenda items, as well as to exchange information on areas of mutual co-operation in order to co-ordinate their positions on issues of common interest. To give expression to issues discussed and all other matters emerging out of consultations, the Ministers further agreed to establish a Trilateral Joint Commission. The Foreign Ministries will be the focal points of the Trilateral Joint Commission and the meetings will be co-chaired by the three Foreign Ministers. The secretariat facilities will be co-ordinated by the Secretary in charge of this area in the Foreign Ministry of the host country.

XX. The Ministers decided to call this group "India, Brazil and South Africa Dialogue Forum" ( IBSA). At the invitation of the Indian Government, the next meeting is going to take place in New Delhi, within twelve months.

The Ministers of India and South Africa thanked the Brazilian Minister for convening this first trilateral meeting.

Brasilia, June 6, 2003