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South Africa's trade balance with India for first 6 months of 2018
Date: 23 Aug 2018 Category: Economics |
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We take a look at the customs data published by the South African Revenue Service (SARS) and focus on South Africa's trade with India for the first 6 months of 2018. What exactly are we exporting to India, and conversely what are we importing from India??
We take a look at the numbers below. |
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So what does South Africa and Japan trade in?
The image below shows the cumulative value of trade for the first 6 months of 2018 for a wide variety of product categories. It shows the total value exported, total value imported and then the trade balance which is (Exports - Imports). A positive trade balance shows South Africa exported more of a product than what it imported from India. A negative trade balance shows South Africa imported more of a product category from India than what they exported to India.
By far South Africa's best export to India is Mineral products. Within this category we find Coal. India is South Africa's biggest export market for coal. In total for Mineral products South Africa has a trade surplus (positive trade balance) with India of R18.4 billion in the first 6 months of the 2018. On the flip side India's best export to South Africa is vehicles, aircrafts and vessels, of which India has a trade surplus of R4.99 billion with South Africa. So basically South Africa has a trade deficit with India in the vehicles, aircraft and vessels category to the tune of R4.99 billion.
As readers can see of the 22 major product categories South Africa only has a positive trade balance in 6 of the 22 categories, while India is better off in 16 of the 22 categories. South Africa's saving grace when it comes to trade with India is the fact that South Africa exports so much coal to India. Even though South Africa only has a positive trade balance in 6 of the 22 product categories, South Africa has an overall trade surplus (positive trade balance) of R5.14billion for the first 6 months of 2018.
But if South Africa did not export coal to India we would be sitting with a trade deficit (negative trade balance) to the value of around R13 billion.
A summary of the top 5 biggest exports of South Africa to India is shown below (based on exports value and not trade balance value)
A summary of the top 5 biggest imports by South Africa from India is shown below (based in imports value and not trade balance value)
While it is nice to see South Africa with a positive trade balance with one of its BRICS peers, one has to wonder whether India is just using its BRICS partner South Africa to get its hands on cheap coal? As the rest of the trade categories does not look balanced at all. In fact South Africa is losing out in trade with India in the majority of other product categories. So we will ask again, as we did in a previous article, should South Africa really be part of BRICS?
As readers can see of the 22 major product categories South Africa only has a positive trade balance in 6 of the 22 categories, while India is better off in 16 of the 22 categories. South Africa's saving grace when it comes to trade with India is the fact that South Africa exports so much coal to India. Even though South Africa only has a positive trade balance in 6 of the 22 product categories, South Africa has an overall trade surplus (positive trade balance) of R5.14billion for the first 6 months of 2018.
But if South Africa did not export coal to India we would be sitting with a trade deficit (negative trade balance) to the value of around R13 billion.
A summary of the top 5 biggest exports of South Africa to India is shown below (based on exports value and not trade balance value)
- Mineral Products: R 20 837 083 310
- Products Iron & Steel: R 1 793 798 697
- Chemicals: R 1 419 196 134
- Wood pulp & paper: R 1 341 800 806
- Machinery: R 1 058 641 550
A summary of the top 5 biggest imports by South Africa from India is shown below (based in imports value and not trade balance value)
- Chemicals: R 5 888 777 395
- Vehicles aircraft & vessels: R 5 058 825 299
- Machinery: R 2 847 080 632
- Mineral Products: R 2 456 963 428
- Products Iron & Steel: R 1 168 280 363
While it is nice to see South Africa with a positive trade balance with one of its BRICS peers, one has to wonder whether India is just using its BRICS partner South Africa to get its hands on cheap coal? As the rest of the trade categories does not look balanced at all. In fact South Africa is losing out in trade with India in the majority of other product categories. So we will ask again, as we did in a previous article, should South Africa really be part of BRICS?