25 June 2000
Deputy Minister Pahad, accompanied by a business delegation, concluded his official visit to the Republic of Turkey as the guest of the Foreign Ministery's Under Secretary, Mr Faruk Logglu, on Sunday, 25 June 2000.
On Thursday evening, 22 June 2000, Mr Pahad met with the Turkish captains of Industry in Istanbul. During the day the business delegation conducted meetings with their relevant counterparts. Positive feedback on further involvement of South African companies with Turkish partners have been received and in this way a good start has been made in the diversification of South African trade with Turkey, which trade is currently being dominated by the export of raw materials from South Africa.
Discussions with Turkish Airlines (THY), who currently operate two flights per week to South Africa, revealed an intention to double the number of flights to South Africa. In addition code-sharing negotiations between the two airlines commenced on Friday, 23 June 2000, underlining the importance of South Africa as a tourist destinatin for Turkey and Tureky as a newly discovered destination for South African tourists.
During Friday, 23 June 2000, Deputy Minister Pahad also signed a Tourism Agreement with the Under Secretary of State, Assistant Professor Nevzat Saygilioglu to establish a legal framework for the expension of tourism between our two countries.
Tourism forms one of the most important foreign currency earners and job creators for our two respective countries, in a market that has vast opportunities for expansion. The exchange rate between South African rand, the US Dollar, the British Pound and other major currencies, necessitate a natural redirction of our tourists to more affordable destinations such as Turkey and Soth Africa, respectively. Specific actions in facilitating this objective will be undertaken between Government agendcies on the one hand and tour operations on the other.
Turkey has more than R300 million in direct investments in South Africa. Mr Pahd used his visit to sign on Agreement on the Reciprocal Promotion and Protection of Investments with the Turkish Under Secretariat of State Treasury. Direct Investments form the cornerstone to mutual beneficial trade, job creation and stopping the negative impact of flight capital on the economies of both countries. Possibilities for South African direct investment in the most important energy sector of Turkey will in future be exploited.
The Trade and Economic Agreement between South Africa and Turkey has been finalised during this visit and will be signed during a visit of the Minister of State and Vice Prime Minister, Mr Fikret Unlu, to South Africa during the later part of 2000. This Agreement facilitates the full spectums of trade between our two countries and is required by Turkish and South African Companies to fully exploit trade opportunities within the framework of joint ventures. Current bilateral trade registers USD561 million between our two countries. (Turkish figures). It is foreseen that this figure could be doubled in the medium term, making Turkey South Africa's most important trading partner in Central and Eastern Europe and the Central Asian States region. This agreement will also assist both countries in joint ventures with regad to the exploitation of important projects in the reconstruction of the Balkan Region and participation in specific projects in the Caspian Basin with regard to oil and gas pipelines. The Turkish Ministry of Energy and Natural Resources indicated this willingness to identify specific projects that would facilitate the participation of South African Companies over the next few months.
Further to trade and investment relation between South Africa and Turkey, is the fact that South Africa has just concluded the Free Trade and Development Agreement with the European Union. During the Helsinki Summit of the EU in December 1999, it was agreed that Turkey be invited to start EU membership talks. During this process of EU accession negotiations and eventual membership, it is foreseen that the bilateral links between South Africa and Turkey, especially in terms of trade and industry further expand to the benefit of both countries.
On the political front relations were consolidated by the signing of the Protocol on Political Consultations between the Government of South Africa and the Government of Turkey. This Agreement focuses on the development and widening of relations in accordance with recognised international law in the interest of the consolidation of peace and security, the establishment of democratic values and the observance of human rights. Turkey has identified Africa as a new foreign policy priority. It is within this framework that the objectives of the African Renaissance will be jopintly pursued.
Preceding his visit to Turkey, Deputy Minister Pahad also visited Slovakia and Bulgaria on official invitations, for a period of one day, respectively. It was agredd that the legal framework to enhance trade and investment should be finalised in the near future and that at leas one or two substantive projects in the area of trade, science and technology and tourism should be identified for specific attention i the months to come. In addition the Minister of Foreign Affairs of Bulgaria, Madam Mihailova, requested South Africa's assistance with the Government of Libya in assuring a transparent, free and fair trial of six Bulgarian Medical Aid workers being accused of injecting a number of children in Libya with the Aids Virus.
ISSUED BY THE SOUTH AFRICAN EMBASSY
ANKARA, TURKEY
SUNDAY, 25 JUNE 2000