Brazil looks to strengthen trade ties with SA

Amid global uncertainties and trade tensions, Brazil and South Africa are focusing on strengthening their commercial ties to foster economic growth and development. The two countries, both members of BRICS, recognize the importance of collaborating and diversifying their trade partnerships beyond traditional markets like Europe and the United States. In a recent interview with CNBC Africa, Alexandra Loras, Director of the Brazil-South Africa Commercial Forum, emphasized the need to enhance the synergy and balance between businesses in the two nations. Brazil, the world's ninth largest economy, with a vast array of resources and a resilient economic landscape, presents a significant opportunity for South Africa to tap into. Despite facing economic challenges in recent years, Brazil is known for its exports of soybeans, aircraft, vehicles, sugar cane, beef, and chicken meat. South Africa, on the other hand, offers products and services that are of interest to Brazilian businesses, creating a mutually beneficial trade relationship. One key aspect of strengthening trade ties between Brazil and South Africa is the establishment of a national industry confederation to streamline the process of granting patents, facilitating cooperation, sharing intellectual knowledge, and fostering technology transfer. By leveraging each other's strengths and resources, the two countries aim to unlock new business opportunities and drive innovation in various sectors. While discussing the trade balance between the two nations, Loras addressed concerns about Brazil exporting more to South Africa than it imports, leading to a trade deficit for South Africa. However, she emphasized the potential for a balanced and mutually beneficial trade relationship through collaboration within existing trade agreements like SACU (Southern African Customs Union) and Mercosur. By learning from past successes and challenges, both countries can create a framework for sustainable trade practices that promote growth and fair competition. On the issue of anti-competitive trade practices, particularly in the poultry industry, Loras highlighted the importance of stringent health and safety inspections to ensure the quality and integrity of food imports. While acknowledging concerns raised by local chicken producers about alleged dumping of Brazilian chicken in the South African market, she reassured that Brazil maintains strict standards and monitoring processes to prevent such practices. Working closely with the Brazilian ambassador in South Africa, efforts are being made to address any potential issues and maintain transparency in trade relations. As the global economic landscape continues to evolve, Brazil and South Africa recognize the significance of building a resilient and diversified trade partnership that fosters growth, innovation, and economic stability. By capitalizing on their respective strengths and aligning their interests, both countries are poised to carve out a path towards sustainable development and prosperity in the region.