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Minister of Foreign Affairs, Dr Nkosazana Dlamini Zuma, will together with Russian Deputy Prime Minister, Dr Vladimir Yakovlev, co-chair the third session of the Joint Inter-Governmental Committee on Trade and Economic Co-operation (ITEC) from Monday, 10 to Wednesday, 12 November 2003 in Moscow.

Dr Nkosazana Dlamini Zuma will be accompanied by the Minister of Health, Manto Tshabalala-Msimang, and the Deputy Minister of Agriculture and Land Affairs, Dirk Cornelius du Toit.

During the visit, Minister Dlamini Zuma and her Russian counterpart will also engage in political consultations focusing on, among others: the African Union (AU), New Partnership for Africa's Development (NEPAD), the Middle East situation, strengthening of multilateralism, United Nations reform, the campaign against terrorism as well as the current developments in Iraq in the aftermath of the war.

Issues on the agenda of ITEC will include the current status of the respective countries' economies, mutual investment promotions and identifying specific trading sectors. The Joint Sub-Committee on Trade, Investment and Banking is also working to ensure successful co-operation on the establishment of a co-ordinated approach by Investment Agencies. The Department of Trade and Industry visited Moscow on 19 to 22 June 2003 and a South African Trade Centre will be established in Moscow to showcase South African export products and act as a Trade Information Centre.

South African exports of manufactured goods and other agricultural products are high on the agenda. Joint research projects in both science and technology are underway with scientific visits from research institutions from the respective countries having taken place after the second Session of ITEC in 2002. Future areas of co-operation have also been identified with South African research institutions and the private sector, namely, the Academy of Sciences of South Africa (ASSAF), the South African Astronomical Observatory (SAAO), PetroSA, the National Laser Centre (NLC), the Council for Scientific and Industrial Research (CSIR) and SASOL LIMITED and their Russian counterparts.

Co-operation in the mining industry and the energy sector will also be discussed in the Joint Sub-Committee on Minerals and Energy. The latter has identified a number of areas of co-operation during the second session of ITEC and Agreements in these areas are currently under scrutiny. The Department of Water Affairs and Forestry's visit to Moscow in May 2003 have resulted in the establishment of a Task Team, which, among others, will finalise the Terms of Reference for a Joint Committee on Water Affairs and Forestry during the third session of ITEC. Department of Transport will also utilise the upcoming session of ITEC to set up a Task Team that will work on the Terms of Reference for the establishment of a Joint Sub-Committee on Aviation and Maritime Transport. The Joint Military Commission will also fall under the umbrella of ITEC as from the third session of ITEC.

Politically South Africa's relations with the Russian Federation have been identified as a priority. This decision has been reflected in the increasing high level political interaction between South Africa and Russian political leadership over the past year especially within the international multilateral fora and in particular between President Mbeki and President Putin within the United Nations and the G8 and the subsequent approval and endorsement of the African Union and NEPAD by the Russian Federation.

From a trade and economic perspective progress between the Republic of South Africa and the Russian Federation has not reached its full potential, both President Mbeki and President Putin have therefore, agreed and stressed the necessity for trade and economic relations to be prioritised.

Our present trade relations are as follows:

Trade between South Africa and Russia (South African statistics)

1999 (R'million)
Exports: 406
Imports: 249
Total Trade: 655
Trade Balance: 157
Export/import: 1.6

2000 (R'million)
Exports: 200
Imports: 565
Total Trade: 765
Trade Balance: -365
Export/import: 0.4

2001 (R'million)
Exports: 284
Imports: 336
Total Trade: 620
Trade Balance: -52
Export/import: 0.8

2002 (R'million)
Exports: 415
Imports: 972
Total Trade: 1387
Trade Balance: -557
Export/import: 0.4

2003* (R'million)
Exports: 262
Imports: 165
Total Trade: 427
Trade Balance: 97
Export/import: 1.6
* - Figures for the first six months of 2003

Total (R'million)
Exports: 1567
Imports: 2287
Total Trade: 3854
Trade Balance: -720
Export/import: 0.96

Source: RSA Department of Trade and Industry

Trade between South Africa and the Russian Federation is expected to grow even further in the following years, particularly after South Africa recognised the Russian economy as a Market Economy in November 2003 and the Russian Federation placed South Africa on the list of developing countries with preferential trade status in April 2003.

Minister Dlamini Zuma will also pay a courtesy call on President Putin, Prime Minister Kasyanov and Deputy Prime Minister Yakovlev.

Contact: Ronnie Mamoepa, 082 990 4853

Issued by: Department of Foreign Affairs

9 November 2003