OTTAWA - Canada and South Africa are in discussions to enhance bilateral trade and investment, potentially leading to an exchange of South African wine for Canadian gas exports. This initiative coincides with Prime Minister Mark Carney's upcoming visit to Johannesburg for the G20 summit.

South African High Commissioner Rieaz Shaik described the negotiations as a "gas-for-wine deal." He emphasized that the focus is on establishing a strategic partnership with Canada. The talks are centered on five key sectors: agribusiness, infrastructure, mining, energy, and advanced technologies. Shaik indicated that the final agreement would likely take the form of a foreign investment promotion and protection agreement, aimed at increasing private sector engagement rather than a traditional trade deal.

A significant challenge in these discussions is developing a mutually acceptable dispute-resolution mechanism for the involved sectors. Shaik noted that senior South African officials plan to visit Saskatchewan soon, which he described as being "light-years ahead" in advancing seed products to markets seeking non-meat protein sources.

Additionally, South Africa is interested in learning from Canadian cold-chain systems to reduce food spoilage. Shaik expressed a desire for provincial liquor boards in Canada to offer premium and niche wines from South Africa. His country is launching a marketing campaign next week to shift imports away from cheaper bulk wines.

South Africa is also looking to purchase liquefied natural gas from Canada, contingent on the availability of export infrastructure. Canadian companies are assisting South Africa in transitioning to cleaner coal as the nation aims to reduce its reliance on fossil fuels. Shaik suggested that Canadian agencies, such as Export Development Canada and FinDev Canada, could support Canadian investors in large infrastructure projects in South Africa.

The ongoing merger of Anglo American and Teck Resources into a new critical minerals firm, Anglo Teck, is expected to significantly impact copper exports. Shaik mentioned that South Africa's expertise in deep mining could also benefit Canada.

Cooperation between the two countries could extend into technology sectors, including advanced manufacturing, artificial intelligence, and nuclear technology. As South African President Cyril Ramaphosa hosts the G20 leaders' summit this week, he and Carney may discuss these trade negotiations as early as Friday.

Shaik highlighted that both leaders are focused on achieving tangible results. Federal officials, who spoke on the condition of anonymity, noted that Canada is working to establish a framework for closer commercial and diplomatic relations with South Africa.

Both nations are addressing their trade dependencies on the U.S. market. Shaik compared the efforts to create a continent-wide free-trade area in Africa to Canada's initiatives to eliminate interprovincial trade barriers. He expressed admiration for Canada, stating, "We are so fascinated now about Canada, because when we see the similarities."

Shaik also reflected on South Africa's historical ties with Canada, recalling its role in opposing the apartheid regime through trade unions and advocacy. He acknowledged Canada's significant support in helping South Africa establish a functional democracy. "I call it a family relationship because of the strong beginning," he said, adding that while the relationship exists, it is not as dynamic or interactive as it could be.