Aug 17, 2012
Chile affirms importance of trade agreement with SacuBack
Africa|Pluna|Africa|Australia|Chile|India|South Africa|University Of South Africa|Airline|Products|Service|Services|Fernando Schmidt
© Reuse this
“We’re aiming at a PTA with Sacu,” confirms Chilean Under Secretary (Deputy Minister) for Foreign Affairs Fernando Schmidt. The signing of the MoU is the first step. “This is the opening of talks. It’s a win-win situation.”
The South American country already has free trade agreements (FTAs) with most Latin American countries, but Chile also has PTAs with some countries, such as India. “There are many different forms [of trade agreements],” he observes.
Chile is well known for its commitment to free trade. “We have announced that we will lower our tariffs to zero for all imports from all countries,” he highlights. “But FTAs are essential for other issues – nontariff barriers, phytosanitary barriers, customs agreements. It’s not just tariffs. There are no fewer than 12 disciplines that are regulated under an FTA.”
“Chile has also deregulated its airspace. Airlines from any country can fly internal routes in Chile without restrictions, without reciprocity,” cites Schmidt. “Today, a couple of companies are being approved – one Swedish, one Mexican – they serve the Chilean domestic market. A Uruguayan airline, Pluna, is already serving our domestic market.”
A second instrument to promote bilateral investment between South Africa and Chile has also been finalised – an Agreement on the Avoidance of Double Taxation. Currently, trade between the two countries is running in Chile’s favour. According to South African Revenue Service figures, last year, South African imports from Chile amounted to R834 622 926 while South African exports to Chile were worth R604 083 784. In 2010, the figures were R579 329 403 and R450 454 011 respectively and in 2009 R861 737 835 and R446 718 467 respectively.
In an address to the Institute for Global Dialogue and the University of South Africa early last month, Schmidt emphasised Chile’s belief in the principles of freedom, including economic freedom. “In the economic field, we also believe in free entrepreneurship, with all the safeguards that it requires to ensure equity and transparency, with all the safeguards to ensure the regulatory role of the State.”
Concerning the issues surrounding a trade agreement between his country and South Africa and Sacu, as well as the value of such an agreement, he pointed out that, in the years since the FTA between Chile and Australia had come into force, trade between those two countries had grown at a rate of 21% a year despite the fact that both are southern hemisphere countries with similar climates and similar products.
“To have a PTA with Sacu – this is something very important,” he affirmed. “This is something the countries concerned have already negotiated with the European Union and the European Free Trade Area countries. This creates new opportunities. Opportunities for our people and entrepreneurs.”
The current global crisis has not altered Chilean perceptions. “[W]e strongly believe that the solution to the problems that affect today’s world is not to become secluded inside our own borders,” he asserted. “The solution does not lie in protectionism, but in opening up even further to the world.
“We want to cut down on costs, diversify our trade, become more efficient, allow our people to access new and better goods and services,” explained Schmidt. “We want to be innovative in addressing our challenges and so here is a clear invitation to South Africa, an important country on this continent and globally.”
Edited by: Martin Zhuwakinyu© Reuse this Comment Guidelines (150 word limit)
Other News This Week News
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
This Week's Magazine
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
Private-owned defence and aerospace manufacturer Paramount Group and the Ichikowitz Family Foundation unveiled its Anti-Poaching Skills and K9 Training Academy in Magaliesburg last month.
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...