'SA has no preferred partners'

Cape Yown - SA's promise to prioritise trade relations with countries like India, Brazil and China has been "misconstrued" as being hostile to the developed countries of the Northern Hemisphere.

Briefing parliament's portfolio committee on international relations and co-operation, the chief director responsible for trade policy at the department of trade and industry Mzukisi Qobo, said SA's relations with key developed countries "remain vital".

Qobo said Europe represents 40% of SA's total trade, while the developed world remains a critical source of investment and technology.

However, this did not mean South Africa had changed its view on how unfairly and aggressively the European Union (EU) was trying to force countries in the Southern African Development Community (SADC) to sign trade agreements that would scupper any chance of the region's long term economic development.

It also did not mean SA had changed its stance on how developed nations were demanding concessions from developing countries in the Doha round of world trade talks without reciprocating.

Qobo said SA has to be "mindful of the boundless opportunities" that trade with the Southern Hemisphere's developing nations offered, outlining how the Bric countries (Brazil, Russia, India and China) offered far more fair-trade opportunities as well as the chance to diversify SA's export and domestic manufacturing base.

"There is no doubt that the centre of gravity is shifting towards the emerging powers of the South," Qobo said. "These are the fastest growing economies with the fastest growing middle classes." According to him, trade between developing countries is increasing at an annual rate of 11%.

Main bugbear

SA's main bugbear with the EU is the interim economic partnership agreements (Epa) that the EU has managed to persuade Botswana, Swaziland, Lesotho and Mozambique to sign.

South Africa, Namibia and Angola have refused to enter into these agreements, arguing their attractions offer short-term benefits and will eventually scupper any chance these countries have of substantial and sustained economic development.

South Africa planned to make a last ditch attempt to get Botswana, Mozambique, Swaziland and Lesotho not to formally ratify these agreements. It warned them the agreements will destroy the South African Customs Union which, in turn, dashes any hope of regional economic integration.

Part of the Epa agreement is a "most favoured nation" clause, which implied that whatever trade concession Botswana, Swaziland, Lesotho or Mozambique offered to other countries would automatically have to be passed on to the EU.

"Other South-South countries are not going to want to negotiate with a country if they know that the concession given to them is going to be passed on to the EU," warned Qobo.

- Fin24.com