Representatives from South Africa and the Philippines are exploring the possibility of forging a free trade agreement (FTA) to bolster bilateral trade ties, aiming to reduce trade barriers and foster economic growth.
During her visit to Cebu on March 14 and 15, 2024, Bartinah Ntombizodwa Radebe-Netshitenzhe, Ambassador of South Africa to the Philippines, engaged with local government officials and business leaders to promote economic cooperation in various sectors, including agro-processing, manufacturing, tourism, creative industries, and maritime training. Discussions also centered on establishing a sister-city agreement between Cebu and Durban City.
Trade Secretary Alfredo Pascual expressed the Philippines' commitment to exploring potential complementarity with South Africa through a comprehensive study. Notably, in 2021, South Africa ranked as the largest African trading partner of the Philippines, with total trade amounting to US$125.1 million.
Exports from the Philippines to South Africa include desiccated coconut, tobacco, coconut oil, and coffee extracts, while South Africa exports onion seeds, fruit juice mixtures, and grape wine to the Philippines. Both countries are evaluating the feasibility of an FTA, while South Africa is actively promoting intra-Africa trade through initiatives like the African Continental Free Trade Area (AfCFTA).
Ambassador Netshitenzhe highlighted the potential benefits of an FTA, which could provide broader market exposure and access for Philippine products in South Africa. Additionally, discussions revolved around enhancing tourism cooperation and sharing best practices in port operations, given Durban Port's expertise in handling shipping operations.
Both countries see opportunities for growth in the tourism sector, with South Africans showing interest in tropical destinations like Cebu's beaches. Last year, thousands of Filipinos visited South Africa, highlighting the potential for tourism exchanges between the two nations.
In terms of trade, Ambassador Netshitenzhe emphasized the potential for increased exports of mangoes from the Philippines to South Africa, particularly during the winter season, while also exploring opportunities for importing citrus fruits and products from South Africa to the Philippines.
Overall, discussions between South Africa and the Philippines underscore their commitment to fostering closer economic ties and exploring avenues for mutually beneficial cooperation.
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