Cape Town - The South African government anticipates that Barack Obama's election as president of the United States will provide a boost for trade between Africa and the US. It might even force SA's biggest developed trading partner, the European Union, to think more seriously about its stance in trade negotiations which the government believes has been defined by the Europeans wanting more than they are willing to give.
The cabinet released a statement saying that Obama's election will lay a "solid foundation for the redefinition of America's relations with the rest of the world", while the director-general of the Department of Trade and Industry, Tshediso Matona, told an earlier media briefing that government was planning to up the ante when it came to negotiating trade agreements and that it was setting a "lot of store" by the Obama win.
Referring to South Africa's position on global free trade talks, Matona said that the country was committed to returning to them when the conditions were right, and that this was perhaps the opportunity to do so. This is, of course, provided that the Democratic administration in the US does not adopt a more protectionist stance than the Republicans have.
"We will be watching closely," says Matona, who is confident that the Obama win will boost the possibility of new trade vehicles as well as strengthen existing ones.
Matona stressed that South Africa intended to take a more aggressive line when it came to exploring free trade agreements with the US as well as with countries like India and China.
He conceded that the Europeans were nervous about this, but said that if they were competitive they had nothing to worry about. He said that an increase in the number of goods coming into South Africa would only benefit the consumer and the economy.
South Africa is one of three Southern African Development Community states which refused to sign the Economic Partnership Agreements with Europe, as they believe it gives unfair advantage to the EU.
"We are targeting new markets for preferential agreements,including India and China, to take advantage of large markets," says Matona, who added that South Africa would have to adopt some tough strategies to enhance export opportunities.
- Fin24.com