South Africa and Chile: Agricultural Trade Relationships

This article considers Chile and South Africa’s agricultural policy evolutions in terms of trade. It also looks at Chile and South Africa’s trade with the rest of the world, particularly with regards to agricultural trade. From an agricultural trade perspective, Chile’s position as a direct competitor of South Africa for the EU and USA markets is clearly apparent, primarily due to their joint location in the southern hemisphere. Furthermore, the movement of agricultural products between these nations from a South African export perspective is discussed. This article explores the potential for South Africa to increase its exports to Chile by deepening existing trading and investigating the expansion of trade lines. Two policy observations can be identified from this study with a view to improving South Africa’s current agricultural sector and increasing its exports trade to Chile. The first observation is the manner in which the agricultural budget is allocated (following Chile’s successful budget allocation as a guide). The second observation is, should South Africa negotiate a Free Trade Agreement (FTA) with Chile, the opportunities for agricultural export expansion from the products listed in the annexe shown on the final page.