Statistics add credibility to South-South trade bloc proposal

CLIVE EMDON THE AMBITIOUS South-South economic trade bloc proposed by India, Brazil and South Africa will create a market of 1.2 billion people and potential foreign trade worth US $300bn (R2 244bn), according to a Standard Bank analysis of the countries in the context of their continental economies. South African imports from South Central Asia reached R22bn in 2005 or 16% of the total imports from Asia while exports constituted R8bn or 9% of the total also to Asia. India is South Africa’s main import trading partner (75%) in the region with base metals the main import commodity. South Africa’s biggest export markets in the region are Iran, which is included in this region, (65%) and India (32%). As a major exporter of financial, research and technology services, India has grown its exports of vehicles, aircraft and machinery, chemical and mineral products to South Africa. The bank reports that imports from South American countries totalled R11.8 billion or 27% of all imports from South, Central, North America and the Caribbean states, while exports were R3.3bn or 9% of the total from this region. Brazil was identified as the main trading partner. The main import commodity is original equipment components (20%). Standard Bank describes Brazil as the largest and most populous country in South America (169m) with fairly large and well-developed agricultural, mining, manufacturing and services sectors. Brazil’s is the core economy of Mercosur, a customs union between Brazil, Argentina, Uruguay, Paraguay and Venezuela. Brazil’s major export products include aircraft, coffee, vehicles, soybeans, iron ore, orange juice, steel, textile, footwear and electrical equipment. The bank says India and South Africa’s partners in the South African Customs Union (SACU) – Botswana, Lesotho, Namibia, and Swaziland – recently agreed to start negotiations on a preferential trade deal between the two regions.