South Africa, Oman Sign Trade Deal

By Eddyson Lugangwa Posted 23 November 2006 @ 03:27 pm EET     Print     Reprint     E-Mail     Comments

Johannesburg (IBTimes.com) - South Africa’s Trade and Industry Minister Mandisi Mpahlwa and Oman Commerce and Industry Minister Maqbool Ali Sultan on Monday signed a trade co-operation agreement, in a move to stimulate trade between the two countries.

Oman was South Africa's 37th largest trading partner, according to the trade and industry department. Mpahlwa said exports to Oman last year stood at R180mn (about $25mn) and imports totalled R792mn ($108mn).

"This in itself represented a 61 percent growth in exports and 151 percent growth in imports from trading year 2003," the minister said.

Oman's exports to South Africa increased from $3,8mn in 2004 to R124mn ($17mn) last year. Maqbool attributed that to the increase in South Africa’s crude oil imports from Oman.

"However, there is a room for improvement in our trade relations especially involving the re-export of South African goods and services from Oman to other countries in the region," the minister said.

Maqbool said local companies could benefit from Oman's gas-based projects, which he said were estimated at $14bn. These included two fertiliser projects, polypropylene, an aluminium smelter, methanol and steel projects.

Oman was one of the three Gulf states that Mpahlwa visited earlier this year.

Sihle Shange, the department's director for North Africa and the Middle East, earlier this month said Maqbool's visit was part of a programme to establish relationships with Middle East countries.

South Africa and Oman, according to the agreement, have committed themselves to facilitate trade and economic relations. The agreement relates to customs duties and taxes; legal provisions for clearance, transit, storage and reloading; and import and export licences.

The agreement would be in force for three years and after that it could be renewed. The two nations would set up a joint committee to review the implementation of the agreement.

Maqbool said the countries should hold investment seminars every two years. South Africa and Oman were members of the Indian Ocean Rim for Regional Co-operation, launched in 1997.