Campaign Under Way to Link South Africa, Brazil in Trade
ASIEH NAMDAR, CNN ANCHOR: Business leaders from South Africa and Brazil are trying to bring the two</s>KIM CLOETE, SABC (voice-over): Think of Brazil and the Rio carnival springs to mind. The annual carnival boasts thousands of people from across the world for a frenzied few days of fun and entertainment. But trade officials would like South Africans to see Brazil in a different light, as a firm partner in trade, development and investments. It's part of the government's strategy for what it calls South-South operation.</s>ALEC ERWIN, TRADE AND INDUSTRY MINISTER: The massive growth in world trade since the 1950s is not taking place between north and south, it's taking place north to north. So like economies can actually trade more with each other than unlike. And that's what we seem to be doing.</s>CLOETE: New alliances are being formed between South Africa and India, Nigeria and Brazil.</s>ROB DAVIES, TRADE AND INDUSTRY COMMITTEE: It's been sort of a butterfly policy, which is position the body of the butterfly as being Africa and the wings as being Asia and Latin America.</s>CLOETE: Andre Smith, who manufactures shade netting for parks and carports is one of a number of exporters that is keen to break into markets of the so-called Murkesa (ph) Block: Brazil, Argentina, Uruguay and Paraguay.</s>ANDRE SMITH, ALNET: We understand those markets. We understand the finance that is needed. We understand the way they operate. We operate in a very similar manner, so I think it is easier for us to identify with those type of markets.</s>CLOETE: But some South Africans, particularly in the agricultural sector, are concerned about the possible risks of a take- off in trade between South Africa and a country like Brazil.</s>CLAUDIA MUTSCHLE, SOUTH AFRICAN INSTITUTE OF INTERNATIONAL AFFAIRS: In scale, the economies differ quite a bit. Brazil's is much, much larger that South Africa. But they have fairly similar products, are ranging from agricultural products all the way up to more value at industrial products. And certainly, there is a danger that these could flood our markets.</s>CLOETE: But Erwin disputes this.</s>ERWIN: The greatest growth in agricultural trade since 1950 has been in Europe. They produce identical stuff and they pay for it, they trade for it. So I can appreciate some of the hesitations and nervousness that agriculture might have, but if you look at other circumstances in which agricultural economies begin trading, trade comes from opening the markets.</s>CLOETE: At this stage, steel and auto-related products are some of South Africa's main exports to Brazil and other Latin American countries. (on camera): But an unusual South African product is also doing great business in Brazil. South Africa's wild berry liqueur and rivuta (ph) cream is moving into Brazil at a rapid pace, proof that there could be opportunities for products of all kinds. I'm Kim Cloete of the South African Broadcasting Corporation for the CNN WORLD REPORT.