Johannesburg - Trade and Industry Minister Rob Davies has given the strongest indication yet that President Jacob Zuma’s state visit to France next week will focus on expanding market access of value added products to that country.
Davies told journalists in Cape Town yesterday that there were opportunities for South Africa to increase its quota of value added products, including wine and sugar, to the French market and the EU. That is one area they will discuss with the French leaders next week.
France is South Africa’s fourth largest trading partner in the EU. South Africa’s imports from France increased from R23.9 billion to R24.5bn last year, while exports contracted by 3.7 percent from R9.5bn to R9.1bn.
Davies said they wanted to address the issue of the R15.3bn trade deficit with France. He said they would discuss opportunities to expand the export of South Africa’s value added products.
“They are looking at improved market access to the EU by the end of the year,” Davies said. This will be after the EU has signed the Economic Partnership Agreements with the Southern African Development Community.
Zuma’s visit to France will come days after he is due to host Indian Prime Minister Narendra Modi. Modi is arriving in South Africa on Friday and will discuss bilateral trade with Zuma.
Davies said Zuma would lead a large business delegation to Paris next week. He said they were looking forward to expanding South Africa’s market access to France and to increase the quota of value added products exported.
“South Africa’s exports to France are, therefore, in value added products thus contributing to South Africa’s industrial objectives,” he said.
He said France was a significant investor in the country, with 365 French companies operating in South Africa, employing 36 000 people.
There are 17 South African companies in France employing 10 000 people.
Davies said they also wanted to use the Indian Prime Minister’s visit to expand existing trade relations. India’s exports to South Africa rose from R29bn in 2011 to R54bn last year. South Africa increased its exports to India from R24bn to R41bn during the same period.
Davies said trade surplus was in favour of India and they wanted to promote South Africa’s value added products, including agricultural products and wine to India.
BUSINESS REPORT