Japan and South Africa agreed on Thursday to consider a pact to promote trade, raising the possibility the fast-growing nation will become the first African country to have a free trade pact with Japan.
The agreement on the study came at a 30-minute meeting between Japanese Minister of Economy, Trade and Industry Shoichi Nakagawa and his South African counterpart, Mandisi Mpahlwa, a trade ministry official said.
”The South African minister said his country wanted to explore the possibility of concluding a trade pact no matter what kind it would be,” the official said.
Nakagawa said he ”basically agreed” to the idea, the official said, adding the trade agreement could be a free trade pact but could also take a different form.
Japan’s exports to South Africa surged 33,9% to 314,4-billion yen ($2,8-billion) in 2004, with growing shipments of automobiles and auto parts, according to the Japanese finance ministry.
Imports from South Africa to Japan rose 19,8% to 498,3-billion yen.
Japan has been increasingly pursuing free trade pacts to secure access to natural materials and markets for its exports.
Its first-ever free trade agreement took effect in late 2002 with Singapore and a second accord went into force in April with Mexico. In May, it sealed the outline of an agreement with Malaysia.
Japan is also in talks to reach free-trade deals with Indonesia, Malaysia, the Philippines, South Korea and Thailand. – Sapa-AFP