This summary was prepared by Whitehouse & Associates for the African Resource Network.

Mozambique and South Africa have a bilateral trade agreement.

The agreement with Mozambique is a wide-ranging preferential arrangement regulating mine labour, railway and port matters and trade. A limited number of Mozambican goods receive tariff preferences from South Africa on the basis of an annualized quota system.

Mozambique is South Africas second largest export market with trade having increased dramatically over the past five years. Although full year 1999 statistics were not yet available at the time of writing this speech, January to November 1999 figures already reflect a 51% increase in South Africas exports to Mozambique over the full year 1998 statistics. If this trend continues, Mozambique could be South Africas largest trading partner in Africa within the next few years.