South Africa and China have a long-standing relationship when it comes to trade agreements. China is one of the major trading partners of South Africa, and the two countries have enjoyed fruitful economic cooperation over the years. In this article, we will take a closer look at the trade agreements between these two countries.
The BRICS Partnership
South Africa is part of the BRICS group of countries, which includes Brazil, Russia, India, and China. This group of countries represents some of the world`s fastest-growing economies, and they have been working together to strengthen economic ties and promote economic growth. In 2011, South Africa joined the group, which has helped to improve the country`s trade relations with China.
Trade Agreements
In 1999, South Africa and China signed the Agreement on Trade Relations, which provided a framework for the two countries to develop their economic relationship. Since then, the two countries have signed several other agreements, including the Agreement on Economic and Technical Cooperation, the Protocol on Cooperation in Science and Technology, and the Memorandum of Understanding on Investment Promotion.
One of the most significant trade agreements between South Africa and China is the China-South Africa Free Trade Agreement. This agreement was signed in 2018 and aims to increase trade between the two countries by eliminating tariffs on a range of goods and services. It is expected that this agreement will help to boost trade between China and South Africa, which is already worth billions of dollars.
Trade Issues
Despite the close economic ties between China and South Africa, there have been some issues that have caused tensions between the two countries. For example, South Africa has expressed concerns about the dumping of cheap Chinese goods in the country, which has had a negative impact on local industries. In addition, there have been concerns about the treatment of South African workers in Chinese-owned companies.
Conclusion
South Africa and China have a close economic relationship, which is underpinned by a range of trade agreements. These agreements have helped to promote economic growth and increase trade between the two countries. However, there are also some issues that need to be addressed, such as the dumping of cheap Chinese goods and the treatment of workers in Chinese-owned companies. Overall, the relationship between South Africa and China is an important one, and it will continue to be a key driver of economic growth for both countries.
