South African Trade and Industry Minister Rob Davies has appealed to the South African and Russian business communities to identify all the important issues that the two countries need to address to promote bilateral trade and investment. "What are the key critical issues?" he asked a breakfast meeting of the South Africa-Russia Business Council in Midrand on Monday.

He pointed out that Russia was not yet a member of the World Trade Organisation (WTO), but has applied to join. "We have accorded Russia market economy status. In return, we have been included in their GSP [general system of preferences]." The two countries also have a bilateral Intergovernmental Commission on Trade and Economic Cooperation (ITEC), jointly chaired at Ministerial level.

"We are in the process of negotiating a sanitary and phyllosanitary agreement, [but] we don't have a double-taxation agreement or an investment protection agreement," pointed out Davies. "One of the things the Business Council can do is identify these issues - identify the agreements we need to have. It is important we have more business intelligence into the ITEC meetings."

Russian Ambassador to South Africa Anatoly Makarov stressed that it "depends on the business circles in both countries whether we maintain the acquired momentum in trade and investment."

"I think that investment by South African companies into Russia, and by Russian companies into South Africa, is one of the key drivers [in deepening the bilateral relationship] -along with trade," affirmed Business Unity South Africa CEO Jerry Vilakazi.

Makarov reported that, according to statistics from Russian Customs, bilateral trade between the two countries amounted to $484-million in 2008, a figure that was nearly double that of 2007. He highlighted that the next meeting of ITEC was scheduled for October 26 and October 27, in Pretoria, and that it was expected that South African President Jacob Zuma would make an official visit to Russia in the northern spring, probably in April or May.

"The next ITEC meeting is [thus] the ITEC meeting to prepare for the visit of the South African President to Russia," he said. "We can see what we have to do during the five or six months [after ITEC] to prepare for this visit." Thus input from the South Africa-Russia Business Council into the next ITEC could bear fruit in the form of agreements signed by the two countries' Presidents next year. Makarov stressed the importance of the Business Council and suggested that it could promote major bilateral projects.

Interestingly, South Africa already has an agreement with Russia in the area of culture.
"We are preparing an action programme, to increase our cultural contacts," revealed Makarov.

The Russian ambassador also reminded everyone of the launch, on Thursday evening, of South Africa's Sumbandila microsatellite on a Russian Soyuz rocket. He emphasised Russia's willingness to support the creation of the South African National Space Agency, which is now in the process of formation.