Wiseman Khuzwayo

Trade and Industry Minister Rob Davies is on a roll, drumming up mutual business in both Turkey and Saudi Arabia.

Davies, who arrived in Turkey on Tuesday to strengthen economic ties between the two countries, today will co-chair the second session of the Turkey-South Africa Joint Economic Commission (JEC) in the capital, Ankara.

The forum, with Turkish Minister of Economy Zafer Caglayan, includes breakaway sessions and business-to-business meetings between local and Turkish business people.

Economic relations between the countries are governed by the JEC. Its first session was held in Pretoria four years ago.

Foreign trade statistics show that the value of trade between Turkey and South Africa grew from $369 million (about R2.8 billion) in 2010 to $509m last year, a rise of 38 percent.

South Africa’s traditional exports to Turkey are primarily from the mining sector and consist of mineral products and base metals, which contribute 56 percent and 13 percent, respectively, of local shipments to that country.

South Africa’s major imports from Turkey include non-traditional products such as machinery, electrical equipment, vehicles and aircraft.

In 2010, Deputy President Kgalema Motlanthe visited Turkey. And during a subsequent visit by Turkish Prime Minister Recep Tayyip Erdogan last year, the countries agreed to closer business collaboration.

Welcoming Erdogan, Motlanthe said the two countries were strategically located, with South Africa as a gateway to Africa and Turkey well placed between the Middle East and neighbouring EU states.

“Thus, our countries hold enormous trade and investment potential that needs to be reinforced through closer co-operation… To do this, we must identify areas where complementaries or comparative advantages exist.”

A week later, the cabinet rejected the adoption of a free trade agreement (FTA) between the two nations.

Government spokesman Jimmy Manyi said the cabinet gave the nod for South Africa to advance a mutually beneficial, co-operative and balanced approach to building trade and investment links to Turkey.

This would avoid destructive competition that could result from ineffective management of an FTA.

Manyi said: “An FTA does not allow for such a nuanced, mutually beneficial approach to building economic relations and, instead, encourages destructive competition that will undermine our industrial and employment objectives.”

Following the JEC meeting, Davies will travel to Saudi Arabia to discuss trade deals with Minister of Commerce and Industry Tawfeeq Al Rabeeah and Minister of Economy and Planning Khalid bin Mohammed Al-Gusaibi.