Pretoria - Trade and Industry Minister Rob Davies and his Iraqi counterpart Khairullah Hasan Babakr have signed an agreement aimed at strengthening economic ties between South Africa and Iraq by exploring trade potential in various sectors.
The two signed the bilateral agreement on economic and technical cooperation in Cape Town on Thursday.
Davies said trade between South Africa and Iraq was valued at R197 million last year, and in 2007, South Africa imported goods from Iraq totalling R1.7 billion.
"Trading trends indicate that we are operating below potential, but they are improving. We have exported a significant amount of value-added goods ranging from vehicles, helicopters, machinery and electrical equipment. There is also a potential for trade in citrus products, nuts and melons," he said
Davies announced that as a first step to implementing the agreement, his department would send a delegation to Iraq next year, comprising government officials and the private sector, on an International Trade Initiative (ITI).
He said the department would further seek ways to assist Iraqis with the challenge of obtaining South African visas, as there is no embassy in Iraq. Iraqi citizens currently get their visas in Jordan.
Babakr said trade relations between South Africa and Iraq have generally been conducted through intermediaries and it was envisaged that from the signed agreement, a guideline to trade directly would be formulated.
"Iraq is recovering from the devastation of war and has potential in various sectors, especially the infrastructure sector.
"We have moved from a controlled economy to a free market system and have also introduced new laws opening opportunities to foreign investors to invest in Iraq in different sectors, especially infrastructure," said Babakr. - SAnews.gov.za
