Aug. 31 – India and South Africa are looking into signing a comprehensive bilateral trade agreement as trade between the two nations continues to see strong growth.
“We are going to examine a Comprehensive Economic Partnership Agreement between India and South Africa, as the country is a strategic partner,” India’s Commerce and Industry Minister Anand Sharma said while at the “India Show” in Johannesburg.
Bilateral trade between the two has been increasing steadily over the last few years, with trade figures rising from US$7.5 billion in the 2008-2009 fiscal year to US$7.9 billion over 2009-2010. While South African President Jacob Zuma was in New Delhi this past June, both countries agreed to try and hit the US$10 billion milestone by 2011-2012, but that may have underestimated the trade potential between the two countries as bilateral trade has already reached US$2.7 billion through the first quarter.
“It (the US$10 billion trade target) is well below potential. I think it is doable by 2011. Then we can look at higher rates,” Sharma said. “The opportunities are limitless. South African corporations are coming to India with optimism.”
Sharma also said that he hopes to wrap up a limited free trade agreement between India and the Southern African Customs Union (SACU) as soon as possible. The SACU is made up of Botswana, Lesotho, Namibia, South Africa and Swaziland. Union representatives will travel to New Delhi next month for the fifth round of talks over tariff reductions and other barriers to trade.
