South Africa was one of ten countries with which Denmark was aiming to improve trade by 50%, Denmark Trade and Development Cooperation Minister Morgens Jensen said on Tuesday.
During a bilateral meeting with Trade and Industry Minister Dr Rob Davies, Jensen said that Denmark saw South Africa as a port to the rest of Africa, pointing out that 27 000 Danish citizens visited South Africa each year.
Davies pointed out that South Africa’s total trade with Denmark had been increasing steadily, having grown from R2.9-billion in 2009 to R4.8-billion in 2013.
“Total exports to Denmark from South Africa increased from R1-billion in 2009, [to] R1.4-billion in 2011; [however, it declined to] R1-billion in 2012 and R890-million in 2013. The decrease in total exports from South Africa to Denmark in 2012 and 2013, can be attributed to a decline in external demand, due to slow recovery in the European Union,” Davies said.
However, total imports from Denmark into South Africa had increased from R1.9-billion in 2009 to R3.9-billion in 2013.
Meanwhile, the Ministers also discussed the notice submitted by South Africa to terminate its bilateral investment treaty with Denmark.
Davies explained that the new investment policy aimed to modernise and strengthen South Africa’s investment regime by implementing a series of policy measures that would ensure South Africa remained open to foreign investment and provided adequate security and protection to all investors, while preserving the sovereign right of the South African government to pursue developmental public policy objectives.
Further, he also pointed out that the Tripartite Free Trade Area would be launched next month.
Davies noted that existing regional trade arrangements would not be reopened, which meant that agreements such as the Southern African Development Community free trade agreement, the Common Market for Eastern and Southern Africa trade agreement and the East African Community customs union protocol would be rolled into the tripartite arrangement.