President Abdul Kalam of India on State Visit to South Africa: 14-18 September 2004

PRETORIA- President of the Republic of India Dr. Abdul Kalam will pay a State Visit to South Africa from Tuesday-Saturday 14-18 September 2004, at the invitation of President Thabo Mbeki. Ms Meira Kumar, Indian Minister of Social Justice and Empowerment and Members of Parliament will accompany President Kalam.

This will be the first state visit by a serving Indian Head of State since the transformation of South Africa into a democracy. The State visit will serve to enhance the strategic partnership which exists between India and South Africa and follows upon the highly successful State Visit undertaken by President Thabo Mbeki to India in October 2003.

The visit will afford President Mbeki and President Kalam the opportunity to exchange views on a variety of issues including the strengthening of multilateralism, the WTO, the campaign against international terrorism, the aftermath of the war in Iraq and developments in the Middle East. Other topics for discussion would include South-South relations, North-South relations, developments within in Africa with reference to the African Union, NEPAD, ongoing peace-keeping efforts in Central and West Africa, the rapprochement between India and Pakistan, and as well as co-operation with the new government of Indian Prime Minister Manmohan Singh. In addition the visit will afford an opportunity to discuss the India-Brazil-South Africa (IBSA) trilateral co-operation agenda and an envisaged programme of action.

BACKGROUND

Relations between South Africa and India have been historically solid. Since the establishment of diplomatic relations, former President Nelson Mandela has twice visited India on State Visits, whilst former Indian Prime Minister Gujral (March1997) and Vajpayee have also visited South Africa (the latter to attend the NAM Summit in Durban in August 1998 and the Commonwealth Heads of Government Summit in November 1999).

President Thabo Mbeki visited India as Deputy President in 1996 and undertook a successful State Visit in October 2003. In the last number of years a number of South African Ministers paid official visits to India.

Three 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 former President Nelson Mandela and former 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 former President Nelson 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.

The third is the Delhi Declaration signed during the 2003 State Visit of President Thabo Mbeki, which reaffirms the strategic partnership between the two countries.

JOINT MINISTERIAL COMMISSION

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. 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. The next meeting is envisaged to take place during the first quarter of 2005.

TRADE RELATIONS

Trade between South Africa and India continues to grow. In 2003, total bilateral trade approached a level of R6.5 billion, with imports from India at R3.12 billion and exports to India at R3.35 billion. India currently ranks as South Africa's 20th most important export market and 20th most important import market. Given the potential for bilateral trade, this may well change during coming years.

The sheer size of the Indian economy (14th largest manufacturing economy in the world) 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.

For further information contact:

· Ronnie Mamoepa on 082 990 4853

Issued by the Department of Foreign Affairs
Private Bag X152
Pretoria
0001

10 September 2004

Agreements

Agreements currently being negotiated between South Africa and India are:

  • Free Trade Framework Agreement;
  • MoU on Co-operation in the field of Agriculture;
  • Agreement on Co-operation in Health and Medicine;
  • MoU on Information and Communications Technology;
  • Agreement on Police Co-operation;
  • MoU on Sports and Youth Affairs;
  • MoU on Maritime: Merchant Shipping; and
  • MoU between the South African and Indian Foreign Service Institutes.

Economic relations with South Africa

SA Trade with India (Rand - billions) (Source: DTI)

1997 1998 1999 2000 2001 2002 2003

Exports 1.34 1.63 2.36 3.0 3.30 4.03 3.35
Imports 1.54 1.63 1.51 1.76 2.11 2.94 3.12
Total 2.88 3.26 3.87 4.76 5.43 6.94 6.47

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.

Bilateral Trade

Trade between South Africa and India continues to grow. In 2003, total bilateral trade approached a level of R6.5 billion, with imports from India at R3.12 billion and exports to India at R3.35 billion. India currently ranks as South Africa's 20th most important export market and 20th 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.

Historical relations between the two countries are now being used to foster closer economic links. To maximise opportunities between the two economies, various initiatives have been undertaken. 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 meeting in Pretoria in June 2003. 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. Developments in building economic relations with India are also expanding to include partners in SACU. To this effect SACU recently agreed that a Free Trade Agreement (FTA) be negotiated with India.

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 three years to discuss matters related to production of defence equipment and sharing of technical expertise.

India has been one of the biggest purchasers from the SA defence industry. South African companies led by DENEL are currently involved in an important bid for a very large contract to supply 155mm artillery to the Indian Army. According to Denel this deal is vital to its long-term viability.

South Africa and India have signed three Defence Agreements: a Memorandum of Understanding concerning Co-operation in the Field of Defence Equipment (1996), an Agreement on Defence Co-operation (2000) and an Agreement on Supply of Defence Equipment (2003).

Culture

A year-long series of cultural events are being held under the auspices of the South African and Indian High Commissions and Consulates-General to commemorate South Africa's 10 years of Democracy.



 

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