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News Article - Agriculture
Exporters making inroads into European Union market
Posted on: Friday, 16 November 2001. Article source: Eastern Cape Business News
EASTERN CAPE farmers and manufacturers feature strongly among the South African exporters who have beaten slow world markets with a hefty 53 per cent increase in sales to Europe during the first six months of this year. Figures released by the European Commission show that this growth is on top of a 35 per cent increase in South African exports to Europe in 2000. In monetary terms local exports to the European Union (EU) grew from R38 billion in the first six months of last year to nearly R58 billion in the first six months of 2001. South Africa's competitive advantage over countries trading with the EU is underlined by the fact that the sluggish economy kept total imports into Europe down to eight per cent in the first six months of this year. Two-way trade between South Africa and the EU showed an overall increase in this half. EU imports into South Africa, mostly hi-tech manufactured goods, grew by 14 per cent over the corresponding period in 2000. South Africa's trade surplus with Europe was R14 billion in the first half of 2001 compared with a surplus of R17 billion for last year. The European Commission embassy in Pretoria said it was clear that South African exporters had made significant inroads into the EU market. They had taken advantage of the dollar-denominated commodities such as gold and platinum, a weaker rand for manufactured and agricultural products and the improved market access created since January 2000 by the South Africa-EU trade development and co-operation agreement. South African fruit exports to the EU grew by 15 per cent in the first half of 2001 and comprised more than six per cent of the country's overall exports to the union. Local vegetable exports to the EU climbed by 57 per cent. While there is no breakdown by province, the Eastern Cape is a major exporter of fruit and vegetables, with strong growth reported by this sector during 2001. Meat products experienced a 118 per cent increase in sales to the EU for the first half of 2001. Included in these exports would be ostrich meat produced in the Eastern Cape. Exports of fish products rose by 35 per cent, with a large percentage coming from the Eastern Cape which pioneered the export of fresh hake to Spain and other European markets. Strong growth in automotive exports from the Eastern Cape is reflected in sales of purifying and filtering equipment, mainly catalytic converters, which rose by 67 per cent and now comprise eight per cent of total South African exports to the EU. The Eastern Cape is the largest producer of catalytic converters. Vehicle exports to the EU also rose and make up more than four per cent of South African exports to this market. The majority of these vehicles are produced in the Eastern Cape town of Uitenhage by Volkswagen South Africa.
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