South Africa - Chile agree to expand Economic Links

Santiago- South Africa and Chile agreed to actively expand economic and trade links between the two countries following bilateral discussions between South Africa’s Foreign Minister Dr. Nkosazana Dlamini Zuma and her Chilean counterpart Minister Alejandro Foxley held at the Chilean Foreign Ministry in Santiago on Tuesday 25 March in Santiago.

In this regard, the two countries plan among others to increase the number of high-level business delegations to each other’s countries to explore the attractive trade and investment opportunities in both SA and Chile.

The two countries are on the verge of signing an agreement on the Mutual Avoidance of Double Taxation. The existing trade tariff regime will also come under review in an effort to remove impediments to the expansion of trade volume.

Current two-way trade volumes between the countries amount to R1 billion, two thirds of which are Chilean exports to South Africa. This trade imbalance will be among the focus of bilateral discussions during the proposed state visit of Chile’s President Michelle Bachelet and Minister Foxley to SA later this year.

On the investment front the two Ministers agreed that given the growing economies of the two countries, that attractive investment opportunities for the business sectors of both countries exist in such areas as mining operations, services and technologies as well as in such sectors food production and processing, aqua-culture, wineries, entertainment and hospitality industries.

In this regard, the current sizeable investment of approximately US$ 4 billion by South African companies in Chile including Anglo-American, Tiger-Brands, Irvin-Johnson and Sun International and others are in the vanguard of growing South African investments in Chile.

During the bilateral meeting the two Foreign Ministers remained of the firm view that political relations between SA and Chile remain sound. In this regard, the two Ministers agreed to convene the next meeting of the SA-Chile Joint Consultative Mechanism in Santiago in June this year.

The Joint Consultative Mechanism continues to serve a constructive purpose in the ongoing political dialogue between the two countries at bilateral, regional and multilateral levels.

The flow of tourists between the two countries is growing rapidly and is expected to sharply increase in the run-up and during the 2010 FIFA-World Cup to be held in South Africa.

Accordingly and in pursuance of  further consolidating and strengthening bilateral ties, Minister Dlamini Zuma conveyed President Thabo Mbeki’s invitation to Chile’s President Michelle Bachelet to pay a state  visit to South Africa at the earliest mutually convenient date. Simultaneously Minister Dlamini Zuma invited her counterpart to visit South Africa before the proposed state visit to ensure maximum success of the state visit.

Minister Dlamini Zuma is expected to hold further bilateral discussions with Chile’s Minister of Planning Paula Quintana on Wednesday 26 March. She is expected to return to South Africa on Thursday 27 March.

Issued by Ronnie Mamoepa at 082’990’4853

C-O South African Embassy-Chile
26 March 2008