Pretoria - Multilateral cooperation and regional developments formed part of discussions between South Africa and Chile on Friday.
The fourth Joint Consultative Mechanism (JCM) meeting was co-chaired by South African International Relations and Cooperation deputy minister Ebrahim Ebrahim and his Chilean counterpart the vice minister of Foreign Affairs Ambassador Fernando Schmidt.
As a major foreign investor in Chile, South Africa used the opportunity to address bilateral issues like cooperation in trade and investment and the avoidance of double taxation.
"South Africa and Chile have agreed and finalised two instruments, namely the Agreement on the Avoidance of Double Taxation and the Memorandum of Understanding on the establishment of a Joint Trade and Investment Commission," said the two countries in a joint communique.
Currently the trade balance between South Africa and Chile is in favour of Chile. The establishment of a Joint Bilateral Trade and Investment Commission would assist in the equalisation of trade balances between the two.
The meeting additionally discussed a number of other areas including the possibility of a dialogue regarding a preferential trade agreement subject to concurrence with the Southern African Customs Union, science and technology and academic exchanges in the tertiary education sector.
Exports to Chile include minerals, chemical fertilisers, sulphate, insecticides and fruit. Imports from the South American country include chemicals.
Exports to Chile in 2011 were at R604083 and imports from Chile at R834622.
On Thursday, Schmidt gave a lecture on opportunities for Africa's engagement with Chile and the Pacific Rim. The lecture featured topics regarding Chile and the Pacific Rim's relationship with Africa in general and South Africa in particular.
It was also decided to explore possibilities of further academic collaboration between Chile and South Africa in general and UNISA in particular.
Political relations between South Africa and Chile remain sound. The previous JCM meeting between Chile and South Africa took place in Chile on 31 July 2008.
The JCM continues to serve a constructive purpose in the on-going political dialogue between the two countries at bilateral, regional and multilateral levels.
Following February 2010s devastating earthquake in Chile, the South African government donated R500 000 which was routed through the Chilean Red Cross.
