South Africa and Australia strengthen ties

(2005-02-14)

South Africa and Australia, two countries which have a great deal in common in addition to good weather and a penchant for backpacking around the world, are in the process of strengthening ties in trade, sport and several other areas.

Last week Deputy Foreign Minister, Sue van der Merwe, met her Australian counterpart, Bruce Billson, the Parliamentary Secretary for Foreign Affairs and Trade, at the Union Buildings in Pretoria. Mr Billson was in South Africa at the same time as the Australian soccer team, who arrived to play an international friendly match at Absa Stadium in Durban.

Despite being stern rivals in several sports, especially rugby and cricket, South Africa and Australia already have strong trade relations. Australia is South Africa’s third largest trading partner in Asia, after Japan and the Peoples Republic of China. The two countries currently enjoy R11.4 billion worth of bilateral trade, and this figure is expanding steadily. Trade between the two countries is currently concentrated in the areas of mining and minerals, cars and motor-components, chemicals, services and tourism.

Australia, which is the world’s 12th largest economy, is also a big investor in South Africa. The merger of Australia’s BHP Billiton and South Africa’s Gencor in the 1990s created the largest mining company in the world. With many South Africans having relocated to Australia, business relations between the two countries continue to grow stronger.

Mr Billson, who had also completed a visit to neighbouring Botswana, pointed out that South Africa and Australia share common values and a common history, and he emphasised that the two countries will continue to work closely together with that as a common base.

Mr Billson is also in South Africa to address the South African Institute for International Affairs on “South-South Trade: Winning from Liberalisation”, in which he will encourage freer trade between the two countries, and to participate in the African Mining Conference at the Cape Town International Convention Centre.

As if it had been arranged by diplomats from each country in order to ensure continuing friendly relations, the soccer friendly match between South Africa and Australia – which Mr Billson attended – ended as a 1-1 draw.