According to the Department of Foreign Affairs, the two ministers consolidated their bilateral relations in economic and trade during the meeting.
On the economic front, Espinosa said they had agreed to seek a better balance in bilateral trade.
“South Africa is the most important trade partner of Mexico in Africa, but there is clearly a great potential to enhance our exchanges. In this regard, both our governments will encourage reciprocal missions of business delegations,” she told reporters.
South Africa and Mexico are recognised as newly industrialised countries.
As the word's developing nations are trying to consolidate their position in the global economy in response to the global economic melt-down the two countries are forging new trade alliances to keep their economies afloat.
The two ministers also signed a Memorandum of Understanding to establish a Joint Bi-National Commission (BNC) and an Agreement on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income.
The establishment of a BNC would allow both countries the opportunity to review bilateral cooperation projects and to identify cooperation in new areas.
The economy of Mexico is 10th to 12th largest in the world. In spite of its unprecedented macroeconomic stability, which has reduced inflation and interest rates to record lows and has increased per capita income, enormous gaps remain between the urban and the rural population.
As an export-oriented economy, more than 90% of Mexican trade is under free trade agreements with more than 40 countries, including the European Union, Japan, Israel, and much of Central and South America.
With South Africa, trade between the two countries has been growing at a steady pace.
There is a noticeable development in the increase of diversification on traded goods and most importantly, trade between the two countries is complementary.
Main exports to Mexico are iron and steel products, machinery and equipment, metal ores, chemicals, cereals, and raw hides and skins.
Imports from Mexico include wheeled tractors, machinery and equipment, paper and paperboard and chemical products.
Article published courtesy of BuaNews
