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Deputy Minister Pahad to Co-Chair SA-Spain Annual Concultations Madrid
- South African Deputy Foreign Minister Aziz Pahad will today Tuesday 17 July
2007, together with his counterpart Secretary of State for Foreign Affairs Bernadino
Leon Gross, co-chair the 4th session of the South Africa - Spain Annual Political
Consultations In Madrid, Spain. Deputy Minister Pahad is visiting Spain
within the context of South Africa's priority to consolidate bilateral political,
economic and trade relations with Spain. Issues on the agenda of discussions
are expected to include, among others:
An overview of the current status of
and prospects for increased bilateral political and economic relations;
The
African agenda including
An evaluation of the Spanish Africa Plan;
Post
conflict reconstruction and development with regard to the Democratic Republic
of Congo, Darfur, Côte d'Ivoire, Western Sahara, Equatorial Guinea and Somalia;
The
outcomes of the recently concluded African Union Summit;
African Union - European
Union relations with particular reference to the forthcoming African Union - European
Union Summit in Lisbon at the end of 2007;
Migration
The
conflict in the Middle East including Israel and Palestine, Lebanon and Iraq;
Nuclear non-proliferation;
An assessment of developments in the Latin American
region; and
The comprehensive reform of the United Nations and South Africa's
tenure of the non-permanent seat on the United Nations Security Council. Bilateral
Economic Relations
Spain is the 8th largest economy in the world and
it is SA's 9th most important export market. Despite the increase in two-way
trade between South Africa and Spain over the past five years and an increase
of 1 473% in Spanish direct investments in SA between 2003 and 2005, opportunities
to increase trade and investment relations remain plentiful. Total trade
between the two countries increased from €1,9b in 2005 to €2,1b in 2006.
In 2006, South Africa's exports to Spain totalled €1,4b (an increase of 7,6%
on the 2005 figure). South Africa's main exports were coal (€462 m),
fish (€117 m), fresh fruits (€56 m), iron and steel products (€161
m), chemicals (€33 m), industrial machinery (€146 m) and automotive
parts and accessories (€69 m). Spain is South Africa's 9th most important
export market. Spanish exports to South Africa grew by 16,9% in 2006. The
most important products exported to South Africa were vehicles (€110 m),
automotive parts (€129 m), chemicals (€83 m), industrial machinery (€49
m), furniture (€15 m) and electrical goods (€9m). During the past 10
years South Africa's exports to Spain increased by a spectacular 274%. Spanish
exports to SA recorded a 300% growth. Regarding investments, in 2005 South
Africa remains the largest recipient of Spanish outward investment in Africa.
Other African recipients were Namibia (€51, 55 m), Morocco (€17, 11
m), Cape Verde Islands (€8,47 m) and Algiers (€1,97 m). On 23
June 2006 South Africa and Spain signed the Avoidance of Double Taxation and the
Prevention of Fiscal Evasion Agreement with respect to taxes on income and capital.
This Agreement, together with the Agreement for the Reciprocal Promotion and Protection
of Investments, signed in 1998, has laid the foundation for increased bilateral
investment flows. The following sectors in South Africa were to date targeted
for FDI by Spanish companies: Metals (€245 m), Manufacturing of non metallic
minerals (€119 m), Automotives (€26 m), Wood & Cork (€26 m),
Construction (€15 m), Chemicals (€4 m). Spanish companies like
ACS Dragados (Platinum Highway), Acerinox (Columbus Steel), Grupo Antolín
(Automotive), Irizar (Luxury buses), Ulma (packaging) and Union Fenosa (mining)
all have investments in South Africa. Spain could be considered as a source
of FDI in the following sectors: infrastructure, tourism, agro-processing and
renewable energy. Issued by Ronnie Mamoepa on 082 990 4853
Department of Foreign Affairs
Private Bag X152
Pretoria
0001 17
July 2007 | 
