Mexico and South Africa have much in common, says Mexican Foreign Minister Jose Antonio Meade.
They are both members of the Group of 20 (G20) because each is an economic power in its region and both are significant economies in the global system.
They have enjoyed strong political and diplomatic relations for 21 years, sharing values and challenges – including how to overcome poverty and inequality.
But these promising links had not translated into a relationship that was as strong as it could be, especially economically, Meade said in South Africa this month when he was leading a strong political and business delegation to participate in the second Binational Commission between the two countries and boost commerce.
Last year combined trade between the countries amounted to less than $700 million (R7.6 billion), just 0.1 percent of Mexico’s total global trade of $700bn.
South Africa-Mexico trade had peaked in 2012 at about $1.2bn.
Much of that had been due to Mexico buying white maize from South Africa because its own harvest had not been good, Meade said.
“But that means that the relationship has shown the potential to grow beyond US$1 billion. And we know the way to South Africa from Mexico and the other way round. So we should strive to increase the volumes of trade.”
Investment both ways was also relatively small.
“So we need to find each other and create an environment more conducive to the flow of investment. We both have very good financial sectors. So if we get our financial sectors to speak that could be a very good anchor in terms of identifying further opportunities.”
Meade said tourism had peaked in 2010 when more than 25 000 Mexicans visited South Africa for the Fifa World Cup but had since dwindled to 5 000 annually, about the same number as South African tourists to Mexico.
Both were tiny numbers, “if you consider that Mexico generates about 16 million tourists every year.
And we receive about 25 million tourists a year”.
Student exchanges should also expand greatly, he said, noting that there were less than 30 Mexican students studying in South Africa and vice versa.
“So…all of the indicators show enormous opportunities for growth of two countries that have respect, that have shown appreciation, that have shown friendship in difficult times. And that political dialogue, that friendship should be translated into opportunities.”
Meade insisted that South Africa’s relationship with Brazil through their membership of Brics (Brazil, Russia, India, China and South Africa) was no obstacle to expanding economic and other relations between South Africa and Mexico.
He noted that Mexico also had important relations with many of the Brics countries, especially China, its second largest trading partner, and Brazil. Mexico was one of the largest investors in Brazil.
And he pointed out that Mexico had also recently created its own Brics-like forum within the G20, known as MIKTA, comprising Mexico, Indonesia, South Korea, Turkey and Australia.
“We don’t think there is any conflict in the relationship. Quite the contrary; given that now South Africa has found its way to America through Brazil, it should be natural to expand that relationship and to expand those views by finding its way to Mexico as well. So it’s a route to Mexico or a Mexican route to Brazil, whichever way you want to look at it.”
He quipped that Pope Alexander VI, who famously divided the New World between Spain and Portugal in 1493, “should not divide South Africa and Mexico”.
International Relations Minister Maite Nkoana-Mashabane also remarked after meeting Meade that considerable scope remained for expanding relations.
Together the two ministers signed six more agreements, including an “Action Plan: South Africa and Mexico towards a priority relationship”. – Peter Fabricius