President Jacob Zuma’s visit to Brazil has born fruit as he returned with an agreement concerning the liberalisation of about 1000 tariff line items. The deal is a preferential trade agreement between the South African Customs Union (Sacu) and Mercosur (the major South American trade bloc).

The Department of Trade and Industry also signed a memorandum of understanding for the promotion of trade and investment with the Brazilian Ministry of Development, Industry and Foreign Trade.

In 2008 total trade between Brazil and South Africa reached $2.52 billion (R18.4bn) from $2.2bn in 2007. Mercosur has four full members and five associate members. Venezuela's full membership is pending.

Reported by Business Report