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President Thabo Mbeki, accompanied by the Minister of Foreign Affairs, Dr Nkosazana Dlamini Zuma, will attend the Presidential Inauguration Ceremony of the President-elect of Brazil, Luiz Inacio Lula da Silva, on Wednesdays, 1 January 2003.

President-elect da Silva, a former metallurgical worker and trade unionist and leader of the Workers Party (PT), was voted President of the Federative Republic of Brazil on his birthday, 27 October 2002 in a landslide victory.

Formal diplomatic relations between South Africa and the Federative Republic of Brazil date back to 1948. Brazil was foremost in advocating the isolation of the apartheid regime. Since the transition to a democratic South Africa, bilateral relations between South Africa and Brazil have normalised rapidly, and evolved to a level that could be described as strategic. The first meeting of a Joint Commission, which was established to facilitate bilateral cooperation on key issues of mutual concern to both South Africa and Brazil, took place from 5 to 7 August 2002 in Brasilia. Minister Dlamini Zuma led a high-level delegation of officials from the Departments of Foreign Affairs, Agriculture, Health, Minerals and Energy, Transport, Environmental Affairs and Tourism, and Trade and Industry.

Brazil is the largest economy in South America and one of the largest in the world. It is also a member of, and an active participant in most international organisations. As one of the leading countries in Latin America, Brazil plays a prominent role in world diplomacy.

Following the democratic transition in South Africa, Brazil sought vigorously to promote and strengthen relations with South Africa. South Africa and Brazil share similar challenges and like-mindedness of approach, which provide the foundation for close bilateral and multilateral cooperation. For example, South Africa, through Brazil, encouraged MERCOSUL/R to issue a Joint Statement on the hosting of the new developmental round of the WTO, highlighting its prominent position in the implementation of the G-South concept.

Brazil has also been the driving force in the promotion of South Africa's relations with MERCOSUL/R countries and the eventual signature of the Framework Trade Agreement with the bloc in 2000.

In view of Brazil's historical link to Africa and its large population of African descent, Brazil is potentially a significant partner in achieving the objectives of NEPAD.

Brazil is South Africa's biggest trading partner in Latin America. South Africa's exports to Brazil reached their a peak in 1996 with a total of US $414 million. More than 25% of this figure was represented by industrial alcohol, which Brazil used in its fuel pool. South Africa's exports to Brazil for the years 1997, 1998 and 1999 were respectively US$367, US$278 and US$172 million. For the year 2000, South Africa's exports to Brazil totalled US$228 million.

Major South African exports to Brazil include precious and semi-precious stones and metal, anthracite and coal, iron and steel, miscellaneous chemical products, organic chemicals, aluminium, nickel, synthetic fibres, machinery and mechanical appliances, paper and paperboard.

Brazilian exports to South Africa increased steadily by almost 85% from 1993 up to and including 1997. In 2000 Brazil's exports to South Africa increased to US$302 million, resulting in a trade surplus of US$74 million in Brazil's favour.

Major Brazilian exports to South Africa consist of vehicles and components, aircraft, machinery, mineral fuels, electrical machinery, animal and vegetable fats and oils, meat, ores, slags and ashes, organic chemicals, tobacco.

Brazil remains an important tourist market for South Africa. South African Airways currently maintain 4 flights per week between Johannesburg and Sao Paulo.

The participation of President Mbeki and his delegation in the inaugural ceremonies of the new Brazilian President is expected further to cement the already excellent relations between South Africa and Brazil.

Common market of the South, known by its acronym in Spanish as MERCOSUR and in Portuguese as MERCOSUL. Member countries are Argentina, Brazil, Paraguay and Uruguay while Bolivia and Chile are associate members.

For more information please contact Ronnie Mamoepa at 082 990 4853.

Issued by: Department of Foreign Affairs, Private Bag x152, 0001, Pretoria, 30 December 2002