South Africa, Chile to strengthen ties

4 July 2012

South Africa and Chile look will to advance political, economic and trade relations at the 4th Joint Consultative Mechanism (JMC) meeting between the two countries this week.

International Relations Deputy Minister Ebrahim Ebrahim will co-chair the meeting with his Chilean counterpart, Fernando Schmidt, in Pretoria on Friday.

“South Africa is a major foreign investor in Chile, and will use the opportunity to address bilateral issues pertaining to cooperation in trade and investment, public works, and the avoidance of double taxation,” the Department of International Relations and Cooperation said in a statement on Tuesday.

South Africa remains one of the largest foreign investors in Chile’s mining sector.

However, the trade balance between South Africa and Chile is currently in favour of Chile. To address this, the JMC will consider establishing a joint bilateral trade and investment commission.

“In addition, an avoidance of double taxation agreement between the two countries has been negotiated and is ready for signature, which, when implemented, will make investments in South Africa more attractive for Chilean business,” the department said.

The last JCM meeting took place in Chile in 2008.

Source: SANews.gov.za